Advantage Assam 2.0: Positioning Assam as a Catalyst for Economic Growth

Shabnoor Rahman

&

Madhurjya Saikia

(madhurjyatu15@gmail.com)

 The ‘Advantage Assam 2.0—Investment and Infrastructure Summit 2025’ is an investors’ summit showcasing the state’s geostrategic advantages and potential as a prime investment destination. In northeastern India, Assam serves as a crucial gateway to Northeast India and Southeast Asia. The Advantage Assam 2.0 Summit is on the horizon, and it is once again time to look at Assam’s journey of growth and how this Summit on Investment and Infrastructure can fuel the same. In the past, Assam’s economy predominantly featured her vast reserves of petroleum and an abundance of green gold, i.e., tea. However, Assam has made great strides in diversifying its economy in the past decade. One of the most recent and noteworthy achievements is the Rs 27,000 crore Outsourced Semiconductor Assembly and Test (OSAT) project by Tata Group, which promises to be India’s first indigenous semiconductor and test facility. Assam has also rolled out a Production Linked Incentive Scheme for grain-based ethanol production highlighting Assam’s commitment to boosting farmer income and cleaner fuels. In the fiscal year 2023-24, Assam experienced an impressive 19.5% year-on-year increase in its Gross State Domestic Product (GSDP), highlighting its transformative economic progress.

This Investment and Infrastructure summit highlights Assam’s ability to attract high-value investments in various sectors, including sunrise industries like food processing, IT, automobile manufacturing, health and pharma, the petrochemical industry and the alternative energy industry. The Advantage Assam 2.0 summit aims to make the most of Assam’s strategic location to attract manufacturing and create opportunities in export-driven services, especially with growing economies in ASEAN and BBIN countries. This summit is a sign of Assam’s diplomatic efforts to connect with different states and strengthen its economic capabilities through discussions with multiple partners. It will serve as an important platform for both government-to-business (G2B) and business-to-business (B2B) meetings, showcasing the state’s investment opportunities, policy changes, and exploration of various sectors. The summit will also promote special economic zones and manufacturing hubs, giving businesses a chance to explore trade and investment options in Assam. Key focus areas include infrastructure and connectivity, energy, the digital economy, IT, defence, aerospace, automobile manufacturing, sports, pharmaceuticals, healthcare, agriculture, tourism, and financial services.

A major policy change is needed to ensure that all investors have fair opportunities to invest in different sectors. One important result of this is the growth of the Aerospace and Defence (A&D) sector, supported by the Aerospace and Defence Manufacturing Policy, 2025. This policy encourages investment in A&D, especially in the new Aerospace and Defence hub in Assam. It offers benefits like tax refunds, investment subsidies, and training programmes to help the A&D sector grow. Given India’s strategic advantages and its role as a net exporter of defence products, this approach aims to establish the country as a key security provider and promote regional collaboration against expansionist policies and extremism. Another important area that can boost innovation and attract investment is supporting entrepreneurs and startups through affirmative action. The Assam Startup & Innovation Policy 2025 aims to make Assam a leading startup hub in Northeast India by providing financial assistance and building the necessary infrastructure for startups. This policy encourages entrepreneurship that focuses on innovation and promotes teamwork among schools, industries, and the government to drive growth and development. Investing in infrastructure is crucial for driving social and economic development, as it leads to faster and more inclusive growth. A significant change in this regard is the Assam Industrial and Investment Policy (Amendment), 2023, which introduces incentives for implementing major projects and encourages responsible capital investment. Additionally, the Uttar Poorva Transformative Industrialization Scheme (UNNATI) 2024, also known as the New Industrial Development Scheme, is a central government initiative aimed at developing industries and creating jobs in the northeastern states of India. The goal of this scheme is to enhance economic activity in the manufacturing and services sectors. UNNATI, 2024, is intended to strengthen the industrial ecosystem in the Northeast and attract new investments. By implementing both new (greenfield) and existing (brownfield) projects through government funding and public-private partnerships, this approach aims to engage investors actively in the development of the region. Another important aspect of the policy reform is the focus on green energy and the use of biotechnology for sustainable practices. Assam, as a biodiversity hotspot, promotes eco-friendly approaches in its development plans. As a result, the governance model is increasingly aligned with the Sustainable Development Goals (SDGs) and climate action initiatives. The Assam Renewable Energy Policy, 2022 aims to enhance this focus through the installation of photovoltaic panels, solar rooftop systems, and a renewable purchase obligation mechanism. Meanwhile, the Assam Ethanol Production Promotion Policy, 2021 positions Assam as a leader in bio-ethanol production, committing to an E-20 fuel blending target by 2026. Additionally, the Assam Biotech Policy, 2022 fosters collaboration between industry and academia for research and development, while also establishing a funding mechanism for patent registration, incubation, and research trials.

Summit-based diplomacy serves as a vital tool for attracting both local and global investments, creating a multi-faceted impact on the development and inclusive growth of the region. Assam, positioned as the epicentre of the Act East Policy, can leverage this platform to engage in par-diplomatic dialogues that facilitate the free flow of inward capital. This approach promotes investment, the exchange of best practices, and cultural engagement and provides the people of Assam with exposure to top-tier skill development practices. Investments in infrastructure yield numerous ripple effects throughout the economy. These effects include job creation, a multiplier effect that helps maintain demand-supply equilibrium, reduced logistics costs, and increased per capita income, all of which enhance household consumption. As a result, the fiscal growth of the state is uplifted, leading to a more stable and self-sustaining macroeconomy. This emphasis on employment generation and increased liquidity within the state can also elevate the tax-to-GDP ratio, improve debt sustainability, and foster fiscal consolidation.

Promoting policy pragmatism and reshaping Assam’s narrative as a stable and peaceful state will enhance its global presence and serve as a gateway to ASEAN and East Asian countries. Establishing diplomatic ties to address issues of regional stability, mitigate insurgency, and facilitate the free flow of goods across borders is essential for this endeavour. Additionally, upskilling the local population to leverage demographic dividends and exporting skilled individuals to the global workforce is crucial for maintaining a prominent global standing. Assam’s identity will gain recognition in the global arena when its people unite for the common good and strive toward shared goals, promoting inclusive and sustainable growth.