Assam as India’s Growth Engine and Global Gateway

Dr Tulika Devi

(tulika29thjan@gmail.com)

Assam, the largest economy in the Northeast, today contributes more than 62 per cent of the region’s GSDP. With its strategic location, abundant resources and vibrant culture, the state is not just central to the development of the Northeast but can also be positioned as both a national growth engine and a gateway connecting India to Southeast Asia.

Agriculture continues to be the backbone of Assam’s economy, contributing nearly Rs 50,865 crore to the state’s GVA in 2023-24, while the tea industry alone added Rs 4,868 crore and nearly 80 million kg to India’s tea exports. Yet, productivity remains below potential. With the expansion of cold chains, agro-processing clusters, and “One District One Product” branding of crops such as banana, pineapple, lemon, black rice, and silk, Assam can be transformed into a major agri-export and food processing hub, catering not only to India but also to ASEAN markets.

Industry is another area of opportunity. While petroleum and natural gas have long dominated the sector, the future lies in diversification. The Tata Semiconductor Assembly and Test (TSAT) unit at Jagiroad is a landmark initiative that can anchor a new electronics ecosystem and marks a landmark step in entering the global electronics supply chain. Coupled with plug-and-play industrial parks, IT/ITES expansion in Tier-2 cities, and stronger investor facilitation, Assam can be positioned as a diversified industrial hub of Eastern India.

Tourism is already a major driver, contributing 5.5 per cent of GSDP and over 10 per cent of employment. With seven national parks, 19 wildlife sanctuaries, three UNESCO World Heritage Sites and heritage circuits built around Ahom monuments and archaeological sites, Assam can be developed into Asia’s premier eco-cultural tourism destination. River cruises, adventure tourism and MICE (Meetings, Incentives, Conferences, Exhibitions) can further open high-value markets.

Assam has made notable progress in improving health outcomes, yet rural and remote areas continue to face significant challenges. Specialist care is often unavailable, and referral facilities remain overburdened. Strengthening neonatal ambulance services, expanding telemedicine and tele-ICU networks, and enhancing Ayushman Arogya Mandirs can ensure equitable and technology-enabled healthcare for all.

In education, Assam’s youthful population offers a significant advantage, yet progress is held back by gaps in digital access, persistent dropout rates, and limited exposure to emerging skills. Expanding ICT-enabled classrooms to rural and tea garden schools, introducing vocational training in areas such as artificial intelligence, robotics, drones and electric mobility and bringing out-of-school youth back into the education system can strengthen the learning ecosystem. Collectively, these measures can position Assam as a knowledge hub with a skilled and adaptable workforce capable of driving long-term growth.

Connectivity is critical to Assam’s role as India’s bridge to Southeast Asia. Regional air routes can be revived, while multimodal logistics hubs and inland waterways can cut transport costs. Power systems, modernised with GIS-based audits, SCADA and rooftop solar, can stabilise supply and boost industry. In the future, Assam can emerge as the connectivity and energy hub of the Northeast.

Climate resilience and sustainability are equally vital. Assam is highly vulnerable to floods, but it also has renewable energy potential of 6,500 MW by 2030. Scaling rooftop solar adoption in public institutions, building flood-resilient housing and deploying ecosystem-based solutions can make the state net-zero ready and climate resilient.

Border development also holds strategic promise. Twenty key villages identified under the Vibrant Villages Programme can be transformed into hubs of trade, tourism and livelihood opportunities. Improved roads, reliable telecom networks, renewable energy systems and better access to drinking water and sanitation can create the foundations for prosperity in these areas. Eco-tourism initiatives, sustainable agriculture and the promotion of local crafts can provide new livelihood opportunities, while cross-border trade linkages can bring additional momentum. These villages can be Assam’s windows to both economic growth and cross-border cooperation.

Taken together, these strategies reflect a vision where Assam can move beyond being the economic heart of the Northeast to becoming a national growth engine that drives India’s development story, while simultaneously serving as a global gateway to Southeast Asia. With sustained investments, well-designed institutional reforms and effective partnerships, Assam can be positioned not merely as a state bridging regional gaps, but as one that sets benchmarks for growth, resilience and integration.