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Assam Economy

The economy of Assam relies heavily on agriculture, with around 70% of the workforce engaged in the sector. However, agriculture only contributes around 17% to the state's GDP due to lack of mechanization and low productivity. Rice is the main crop but productivity is lower than other major producing states. The state's per capita income is around Rs. 1,30,970 which is among the lowest in India. The government is taking steps to promote fisheries and piggery to boost rural incomes and livelihoods.
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100% found this document useful (4 votes)
6K views

Assam Economy

The economy of Assam relies heavily on agriculture, with around 70% of the workforce engaged in the sector. However, agriculture only contributes around 17% to the state's GDP due to lack of mechanization and low productivity. Rice is the main crop but productivity is lower than other major producing states. The state's per capita income is around Rs. 1,30,970 which is among the lowest in India. The government is taking steps to promote fisheries and piggery to boost rural incomes and livelihoods.
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ASSAM ECONOMY

State of Economy of Assam

Economy
• At current prices, Assam's GSDP for 2020-21 is projected to be Rs
4.09 lakh crore, about two per cent of India's GDP.
• At current prices, the state's per capita income was Rs 1,30,970 in
2020-21, finding place among the bottom-ranked states.

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ASSAM ECONOMY

AGRICULTURE
• Assam is primarily an agrarian state, with per cent of the population
residing in rural areas
• About 70 per cent of the work force directly or indirectly engaged in
agriculture. The sector's contribution to the state GSDP, however, is
just 17 per cent.

• State’s per capita income at constant price (Approx 72,000)


accounts for only 66% of national average in 2018-19.

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ASSAM ECONOMY

Broadly two types:


• Small scale peasant.
• Large scale tea plantation. Sown area
• Net Sown Area of Assam is around 2.8 million hectares i.e. 36% of
the total area of 7.8 million hectares.
• Gross Cropped Area is around 4.08 million hectares.
• Cropping Intensity is around 145%. (2014 data).
Crop Intensity
• It refers to raising of a number of crops from the same field during one
agricultural year; it can be expressed through a formula.
• Cropping Intensity = Gross Cropped Area/Net Sown Area x 100.

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ASSAM ECONOMY

Crops
Summer:
o High rainfall.
o Rice and Jute.
i. More than 65% of the land is under rice cultivation.
ii. Categorised into 3 groups:
1. Autumn rice: Ahu
a. Feb-Mar: Sown, July-Aug: Harvested.
b. Concentrated mostly in lower Brahmaputra valley.
2. Winter Rice: Sali.
a. Almost 70% of the state’s rice area.
b. July-August: Transplanted, Nov-Dec: Harvested.
3. Summer Rice: Boro 4.
Bao dhaan is also grown

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ASSAM ECONOMY

o Among cash crops, jute is the most


important-Done mostly in the central
and lower Brahmaputra districts.

Rice
Rice being the staple food.

• But productivity is less (paddy was cultivated on 2.46 million
hectares in Assam, producing 5.14 million tonnes of rice, ranking
9th among India's rice-producing states)
Compare to TN (4th largest rice producer)-2.04 million hectares land
produces 7.98 million tonnes rice.

Poor mechanization of agriculture has led to less productivity


Red Rice of Assam
• Iron rich ‘red rice’ is grown in Brahmaputra valley of Assam, without
the use of any chemical fertilizer.
• The rice variety is referred as ‘Bao-dhaan’, which is an integral part of
the Assamese food.
• As the exports of ‘red rice’ grow, it would bring enhance incomes of
farming families of the Brahmaputra flood plains. Steps taken to
promote export from Assam-
• Export of ‘Bao-dhaan’ or Red rice from Assam started in March 2021.
In a major boost to India’s rice exports potential, the first

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ASSAM ECONOMY

consignment of ‘red rice’ was flagged off to the USA by Agriculture


Processed Food Products Exports Development Authority(APEDA) .

Crops
2. Winter:
a. Low rainfall.
b. Mustard, wheat, potato.
i. Wheat is grown in the lower Brahmaputra region but the
area under cultivation is very less.
ii. Pulses occupy close to 5% of the cropped area.
1. Dominated in the lower and central Brahmaputra
districts.
iii. Oilseeds occupy nearly 10% of the area under
cultivation.

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ASSAM ECONOMY

Other Crops
1. Maize- It is produced in Assam in the districts of Karbi Anglong and
Dima Hasao. It is not so important for other parts of Assam.
2. Mustard- Grown in flood affected plains of Brahmaputra. Grown in
an area of about 3 lakh hectares.
3. Soybean and Sunflower-Both are source of oil. They were not grown
traditionally in Assam. They have been introduced recently in
Assam on experimental basis in Karbi Anglong, Barpeta, Morigaon
districts.
4. Sugarcane- It is traditional crop of Assam. It is produced in districts
like Golaghat, Jorhat, Shivsagar, Nagaon, Barpeta( basically
Brahmaputra plain around Karbi Anglong).
5. Banana- Very important crop of Assam. Grown as orchard crop in
almost every household of Assam. Goalpara and Kamrup are the
leading producer districts. The area of Chhayagaon in south bank of
Kamrup district upto Area of Goalpara is popular for a variety of
Banana called Malbhog.
6. Tobacco- It is traditionally grown in Assam. But it is grown in small
quantity by the farmers for domestic consumption. People of Assam
have habit of chewing and smoking tobacco. Phulaguri area of south

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ASSAM ECONOMY

Nagaon is popular for its flavour of tobacco Allied activities to


agriculture

Fisheries Sector
● Pisciculture has become an important source of livelihood for youth
of Assam.
● Young unemployed Assamese people are taking scientific and
modern approach of fisheries production.
● The overall increase in production and consumption of fishes in
Assam.

Fish consumption
● Fish consumption in the State has increased from 8.5 kg per annum
in 2015-16 to 11.12 kg per annum in 2019-20.
● Fish Production
● The corresponding period also saw fish production in the State jump
to 3.73 lakh MT from 2.94 lakh MT – a rise of 26.87%.
● Jagiroad is world’s largest dry fish market.

Unaccomplished targets
● Assam has become self-sufficient in production of fish seeds
● But still Assam is net importer of fishes. It imports fishes from states
like Andhra Pradesh and Telangana.
Some initiatives by the Assam government to to make a some self
sufficient in fisheries production
1. Ghare Ghare Pukhuri Ghare Ghare Maach
● Implemented in 2016-17
Basic objectives
● Providing nutritional and livelihood support to fishers

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ASSAM ECONOMY

● Employment generation
● Enhancing fish production and making the State self sufficient in
fish production by 2020-21
● Empowering the rural women through fisheries
● Construction of homestead individual ponds of around 1 bigha each
(0.14 ha)
● Construction of community ponds of around 7.5 bigha each (1.0 ha)

2. JICA Project (Assam Fisheries Development and Livelihood


Project”)
● It is in pipeline.
● Japan International Cooperation Agency (JICA), the government
body that coordinates the official development assistance (ODA) given
by Japan to other nations like India.
● Total project cost: Rs. 3391.50 Cr

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ASSAM ECONOMY

● Duration: 3 years with scope to increase up to 5 years ● Already


cleared by Ministry of DoNER.
2. Fish Seed bank
● A genetically improved fish seed bank has been opened at Gohpur
in Biswanath district.
● It is a World Bank-financed project under APART scheme.
2. Sunil Biplab scheme (announced in Budget 2021-22)
● Encourage the community-based fish culture by constructing village
community tanks in all revenue villages of Assam

Piggery Sector
● The majority of the people of the North Eastern Region are
nonvegetarian and among them a good number of people consume
pork.
● NE Region alone is the home for 38.42% of the total pig population
of India.
According to 20th livestock census of India-
1. Pigs population in Assam has grown from 16 Lakhs (last census of
2012) to 21 lakhs in 2020.
2. Overall Pigs population in country has decreased from 1.03cr to 90.6
lakhs.
3. Assam is having highest population of pigs in India.
4. About 15 Lakhs families involve in pig rearing in Assam.

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ASSAM ECONOMY

Recent issues
● Many pigs are dying in Assam.
● The diseases responsible-African Swine Fever

African Swine Fever


● Caused by double-stranded DNA virus in the Asfarviridae family.
● Not a zoonotic disease (Does not spread from animals to humans)
● Not vaccine developed so far.
● ASF causes fever, loss of appetite, vomiting and bloody diarrhea
in pigs and wild boar
● African swine fever (ASF) is a highly contagious haemorrhagic viral
disease.

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ASSAM ECONOMY
Steps taken to promote piggery sector in Assam
1. Bodoland Pig Mission
● The Pig Mission was launched as an ambitious project at Kokrajhar on
September 11 to make the Bodoland Territorial Region (BTR) a piggery
hub in the country.
1. Manoj Kr. Basumatary also known as Pigman of Assam got Assam
Gaurav award 2021 for promotion of Piggery Farming.

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ASSAM ECONOMY

Sericulture
● Nearly 60,000 families are dependent on the silk industry in Assam.
● Apart from eri and pat, Assam produces muga silk or "golden
silk"(about 97% of total global production).
Challenges faced by Silk industry
● Increased pollution- leading to less productivity of Silk worms.
● Threat of fakes silk and powerloom-made Banarasi silk products
masquerading as Assamese silk.
This led to violent protests in the silk-producing town of Sualkuchi in
March 2013.
Steps taken by State government-
1. 'Muga Mission' in 2018, worth Rs 460 crore, for a period of 10 years.
2. Central government gave its approval for an official trademark for
silk products made in Sualkuchi.

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ASSAM ECONOMY
Issues of Agriculture Sector in Assam
● The average yield of crops is much less compared to agriculturally
advanced states like Punjab.
● The gross irrigated area is lower than the national average.
● Application of fertilisers is much much lower than the national
average.
● 25% of the net sown area is affected by floods every year.
● Allied activities are yet not developed on large scale and not
practiced in scientific manner.

Steps to promote agriculture and allied activities in Assam


1. APART scheme
● The Government of Assam (GoA) through Government of India (GoI)
has received a loan from the World Bank for implementation of
Assam Agribusiness and Rural Transformation Project (APART).

Important provisions under APART


● Lay special focus on value addition in the of agricultural
commodity.
Assam Rural Infrastructure and Agricultural Services Society (ARIAS)
has been given the responsibility of implementation of the scheme.
1. Chief Minister Samgra Gram Unayan Yojna (CMSGUY)
Under this scheme Rs 30,000 cr. will be allotted in 5 years (2016 to 2021).
Main objective-
● Technical support to farmers like tractors, pumps etc
● Skill development of farmers
1. Mukhya Mantri Krishi Sa Sajuli Yojna
● 5 Lakhs farmers were given Rs 5,000 for buying farm tools and
equipments.

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ASSAM ECONOMY

Organic farming
● O Majuli- Cluster Approach for Organic Farming

Garukhuti Project(Budget 2021-22)


● To provide livelihood options to indigenous youth living in that
area, encompassing not only modern agriculture practices but also
scientific animal rearing practices. One such experiment was at
Garukhuti under Sipajhar Block in Darrang district.

Agriculture commission tom Revitalising Agriculture


● Government of Assam proposes to constitute an Agriculture
Commission under a scientist of international repute to focus on
issues related to agriculture, animal husbandry, dairy sector in Assam.
The Commission will study and suggest measures for achieving
selfsufficiency in the field of agriculture production, milk, egg and pork
production, identify constraints and devise a road map to achieve the
goal in five years.

Agri export
● The government of Assam along with Agriculture Processed Food
Products Exports Development Authority(APEDA) has developed
Agriculture Export Policy of Assam.
● The objective of this policy is to double agricultural export from
Assam by 2024-25.
● APEDA is planning to start export of Bhut Jolokia from Assam to
international market.
● Bao dhaan rice is exported to the US.

Agri Marketing
● The NERAMAC Limited was incorporated in the year 1982 as a
marketing organization in the field of Agri-Horti sector of the North-
eastern region, under the administrative control of the Ministry of
Development of North Eastern Region (DoNER).

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ASSAM ECONOMY
● Recent- NERAMAC has taken an initiative to procure pineapples
from Cachar and sell the produce in the State and other parts of
India.

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ASSAM ECONOMY

Industry
● Assam has the distinction of having the first oil refinery, the first plywood
industry and the first tea industry in the country.
High prospects of Industrial Development:

1. Gateway to Northeast and SouthEast Asia.

2. Endowed with resources:

a. Renewable- River stream due to Himalayan rivers.

b. Non-renewable resources coal, Oil and NG.

Industries in Assam are not developed except Tea and petroleum


refineries. Reasons behind poor development of industries are

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ASSAM ECONOMY
1. Geographical isolation- Assam is landlocked from and situated in the
eastern periphery of India. It is connected with mainland India with a
narrow land mass- Chicken neck or Silliguri corridor.
2. Political isolation- Assam and other North Eastern states have not
been in the focus area of development for the Central government.
Reason may low population of North East leading to less seats in
Parliament making North East less important.

3. Security concerns- North Eastern states including Assam have been


struggling because of so many insurgents groups. To a great extent
lack of peace and stability has hindered industrial development of
Assam.
● The international borders in the North east are extremely porous. Thus,
cross border infiltration of militants, and smuggling of arms are rampant
in the region.
4. Poor Infrastructure- Lack of proper infrastructure like roadways,
railway line, industrial zones has affected industrial development of
Assam.
5. Lack of interest of investors from other parts of India
"We were bogged down by a legacy of social unrest and political
indifference to Assam's progress,"

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ASSAM ECONOMY

Steps taken to improve industrial sector in Assam


1. To improve connectivity
● Alternative to Siliguri corridor
● Kaladan Multimodal Project
● Akhaura Agartala Rail Link
2. Security concerns
● NDFB peace agreement signed in Jan 2020.
● Many Dimasa National Liberation Army (DNLA) of insurgent group
operating in Dima Hasao and Karbi Anglong surrendered recently.
● Negotiations with ULFA going on

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ASSAM ECONOMY

3. Infrastructure
● A Multi-modal logistic park is being developed in Jogighopa Assam.
● 15 new National waterways developed in Assam.
● Air connectivity being improved under RCS-UDAN. Flybig a low cost
carrier connects different tier 2 towns of Assam like Lilabari, Rupshi etc
● Mahabahu Brahmaputra Scheme to build bridges over Brahmputra.
4. Attract investors
● Advantage Assam 2018- The government of Assam had conducted a
conclave of investors in February 2018 to attract investment in Assam.

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ASSAM ECONOMY

Some important outcome of the conclave were about Rs 56,000


crores investment happened in Assam.
Important Projects
● 900 cr Steel Rod factory at Tihu
● 200 cr Pepi project at Rampur in South Kamrup
● Pharmaceuticals and Textile park at Sipajhar
5. North East Industrial and Investment Promotion Policy
● Interest Subsidy @ 3% on working capital loan taken by an industrial
unit.
● Maximum period of 10 (ten) years from the date of commencement of
commercial production.
● 100% reimbursement of insurance premium paid by an industrial unit.

Tea industry
● India is the second largest producer of Tea in the world after China.
● India earns a sizeable amount of foreign exchange through export
of tea.
● However, India’s share in the international market of tea has
declined substantially.
● At present, it ranks fourth among tea exporting countries in the
world after China, Kenya and Sri Lanka.
● Assam has the largest tea growing area in the world, accounting for
around one-seventh of global tea production and over 53 per cent of
India's overall tea production.
● About 17 per cent of workers of Assam are employed by this sector.

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ASSAM ECONOMY

Issues and Challenges in the Assam Tea sector


1. Stiff competition and improved standards in the world market ●
Due to low product prices from Kenya and Sri Lanka.
● Increasing demand for organic tea.
2. Decline in productivity and quality
● Tea bushes must be replanted every five years, but most Tea bushes
older than 20 years.
3. Climate issues
● Uneven rainfall due to climate change – is affecting the productivity
and quality of Indian Tea leading to lower prices at Tea auctions.

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ASSAM ECONOMY

Second flush tea is a product of early summer. The tea from this season is
considerably darker compared to first flush.
4. Poor worker conditions and low wages
● Most workers and their families live in unsanitary conditions and receive
low wages.
5. Small Tea Growers
● Unlike large estates, STG’s are unorganized.
● They are not able to maintain the desired quality.

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ASSAM ECONOMY
6. Implementation of PLA, 1951
● Tea plantations come under the Plantation Labour Act (PLA), 1951,
which requires the tea company to provide several social benefits
apart from wages.
● Several studies, however, show that very few tea plantations fully
implement the welfare schemes guaranteed under the Plantation
Labour Act (1951) (such as housing, medical facilities, schools,
creches etc.)

Challenges specifically faced by Assam tea workers


1. Low value addition
● Assam’s tea industry is mostly confined to the tea supply chain’s
unremunerative plantation activities.
● In the tea value chain, value addition such as blending, packaging,
and even more lucrative marketing takes place outside the State.
● An ILO-funded study observes that 53 percent of the profit from tea
goes to the retailer, 33 to the blender, 7 to the factory, 6 to buyer/agent,
1 to the tea auctioneer/broker, and a mere 0.16% to the tea
plucker.
2. Not covered under Minimum Wages Act

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ASSAM ECONOMY

● Tea garden workers in Assam are not covered under the Minimum
Wages Act, and their earning is INR 217 only.Tea garden workers
wanted the daily wage to be enhanced to Rs 351.
3. Health impact
● Thirteen of fourteen samples seized by the Tea Board from
different gardens in Assam have failed chemical residue tests.
● Detection of cypermethrin and monocrotophos pesticides were
found in the tea samples. It has negative health impact on workers
and consumes.

Solutions:
1. Value addition and shops to sell the produce is necessary.
2. Basic standard for Small Tea growers must be fixed. Ballometric
method may be used for it.
● Tocklai Tea Research Institute in Assam’s Jorhat had in the 1950s
developed the ballometric method for separating fine tea leaves from
the coarse ones to ensure quality.
In July, the STGs had in a meeting with the Tea Board of India and other
stakeholders agreed to supply at least 40% fine leaf to the tea factories.

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ASSAM ECONOMY
This arrangement will be in force until the Tea Board comes up with a new
minimum quality benchmark.
1. Produce more orthodox varieties.
2. Elimination of export anomalies.

Ballometric method
● The weights on the scale are 100 steel balls from the rear wheel of
a bicycle, each weighing 1 gram.
● Every 100 grams of tea leaves is then separated into fine and
coarse leaves.
● The sorted fine leaves are put back on the scale and weighed again
with the steel balls.
● If the weight of a bunch of such leaves is equivalent to 55 balls then
that lot is passed.
● Means-the percentage of fine leaves for processing is kept to be
55%.

Oil and Natural Gas industry


● Assam is third largest crude oil producing state after(Rajasthan and
Gujarat).
● Assam is the highest Natural gas producing state in India.

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ASSAM ECONOMY

Steps taken to promote Oil and NG sector in Assam


1. Hydrocarbon Vision 2030 for North-East
● Doubling Oil and Gas production by 2030
● Making clean fuels accessible,
● Fast tracking projects
● Generating employment opportunities and promoting cooperation with
neighbouring countries
● The Vision rests on five pillars: People, Policy, Partnership, Projects
and Production.
2. INDMAX Unit at Indian Oil’s Bongaigaon Refinery
● A technology developed by IOCL
● High yield of LPG, light olefins and high octane gasoline from
Hydrocarbon
● Recent unit at Bongaigaon Refinery
3. Projects of NRL(***)
● Bamboo-based bio-refinery-Produce Ethanol-Blending with
Petroltechnology from Finland-It will be India’s first Biofuel Refinery
● Expansion-Increase production three times from 3 MMTPA to 9
MMTPA
● Paradip Numaligarh Crude Pipeline project
4. North East Gas Grid Project
● Natural Gas Pipeline Grid
● 1,656-km pipeline
● Connects Guwahati major cities in North-Eastern region the region
such as Itanagar, Dimapur, Kohima, Imphal, Aizawl and Agartala
covering all eight states North-Eastern region

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ASSAM ECONOMY
● By Indra Dhanush Gas Grid Limited (IGGL)

Bamboo Industry
● Assam is the largest bamboo producing states in India
● The main bamboo growing areas of Assam are the districts of Cachar,
Karbi Anglong, North Cachar Hills, Nagaon and Lakhimpur.
● Apart from forests, plenty of bamboos are grown in the villages
throughout the State.
● As many as 51 species of bamboo grow in Assam
● There are thousands of MSMEs producing bamboo blinds,
flooring, roofing, incense sticks, handicrafts, etc.
● Bamboo can be used in Agarbatti sector. Currently 90% of
Agarbattis are imported from Vietnam. Assam based Agarbattis can
replace it.

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ASSAM ECONOMY

Steps taken to promote Bamboo sector in Assam

Handloom Sector
● Assam is having the highest number of looms in the country as
indicated by the Handloom Census Report.
● There are 14,01,418 weavers of which 13,88,653 are women
(Source of Women empowerment).
● The State is having 11,11,577 looms (remember 11 Lakhs) wherein
about 16,43,453 people are involved in weaving and allied activities.
● Assam is at present also producing 160 million sq metre of
handwoven fabrics by engaging a large number of weavers and looms.

When Gandhiji first visited to Assam in 1921, he was deeply impressed by


the flourishing handloom crafts and the fine yarn-making talent of the
Assamese women.

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ASSAM ECONOMY

Step taken by the Assam government to support Handloom sector in


Budget 2021-22
Swanirbhar Naari
● Direct procurement of handloom items from weavers through
ARTFED & AGMC Weavers’
● Skill training
● Phase 1 to cover 1.23 lakh beneficiaries
● Setting up sales counters across India Leveraging e-commerce
portals & apps.

Coal Industry
● Assam has a coal reserve of 525 mn tonnes out of which a paltry
17.90 mn tonnes have been extracted so far.
● Assam ranks 12 in coal reserves.
● In NE states Meghalaya is having largest reserves and is ranked at
11 overall.
● So, Assam has huge Coal reserve left.
● Sulphur content of Assam coal is higher than Jharia and Raniganj.

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ASSAM ECONOMY

● However, the ash content is much lower than Jharia and Raniganj.

Current issue
● The North Eastern Coalfields (NEC), a unit of the CIL, had
announced suspension of all its mining operations in the state in
June last year following protests against the company’s activities
inside the Dehing Patkai forest.
● Recently Assam chief minister Himanta Biswa Sarma did meeting
with officials of NEC at Margherita in Tinsukia district.

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ASSAM ECONOMY
● After that he announced coal production in the state needs to be
ramped up, to meet energy requirements.

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ASSAM ECONOMY

State of Economy of Assam


Service Sector
● In the state's service sector, tourism has emerged as one of the
fastest-growing contributors, accounting for 5.5 per cent of GSDP
and approximately 10.5 per cent of total employment in the state.
● In this, the state government's initiatives, such as the promotion
campaign 'Awesome Assam', are reaping dividends.

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ASSAM ECONOMY
Services
Tourism
Schemes to promote tourism in Assam
1. Paryatan Sanjibani
● Under the 'Paryatan Sanjeevani Scheme,' loan between Rs 1 lakh and
Rs 20 lakh will be extended to interested local youths to take up new
initiatives in tourism so that the tourism sector gets a boost. 2.
Paryatan Sarathi
● "Under Paryatan Sarathi the tourist guides will be given electric
gadgets that will enable them to communicate with the Tourism
Department at ATDC on any problems.
● To avail benefits under this scheme tourist guides will have to apply
to the district tourism information officers.
3. Punyadham scheme
● Under Punyadham scheme pilgrims will be taken to various places in
the State with ASTC luxury buses.
● The age limit of pilgrims has also been brought between 50 years and
65 years.
4. RCS-UDAN
5. A Heliport has been created in Majuli district of Assam.
6. Filmfare Award 2020 in Guwahati-First time outside Mumbai.
7. Vistadome Train
● The Indian Railways' Vistadome tourist special trains will run on two
popular routes—Guwahati-New Haflong in Assam and New
Jalpaiguri-Alipurduar Junction in north Bengal
● The Vistadome coaches are equipped with state-of-the-art glass
windows and all-glass roofs and provide a 360-degree view.

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ASSAM ECONOMY

8. Asom Darshan Scheme by Assam government


9. Swadesh Darshan Scheme
● The Union Tourism and DoNER Minister G Kishan Reddy has
sanctioned 16 projects under this scheme to the North-eastern
Region.

Factors responsible behind poor tourism in Assam-


1. Poor transport links with rest of India
2. Lodging and boarding problem in tourist spots
3. Poor transport facilities in the state
4. Lack of publicity
5. Extremist activities and social political unrest
Tourism Policy of Assam,2017
Effective from 1st January 2018 and is valid for 5 years.
Mission of the scheme
● To bring maximum footfalls in Assam
● To promote tourism with vigorous massive campaign
● To build a global brand of “Awesome Assam”.
● Identify popular tourist destinations and develop infrastructure.
● Focus areas- Kamakhya Temple, Ambabuchi mela, One horned
Rhinos, tea gardens of Assam
● Promote Spiritual Tourism in Assam- Like Brand Nilanchal under
PRASAD scheme, Sankardev Trail, Swadesh Darshan Scheme

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ASSAM ECONOMY

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ASSAM ECONOMY

Assam Budget 2021-22


Key figures
● Estimated receipts -Rs 2,89,770.68 crore
● Estimated expenditure-Rs 2,89,367.10 crore
● Surplus of Rs 403.58 crore(FY 2021-22)
● Opening deficit -Rs 969.78 crore,
● The year will end with a deficit of Rs 566.20 crore

Important Initiatives
1. Chief Minister COVID Relief Scheme

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ASSAM ECONOMY
● In order to extend the wholesome support of the Government in form of
a financial assistance to the families not covered under Chief
Minister’s Shishu Seva Scheme or Chief Minister’s COVID-19
Widow Support Scheme, an amount of ₹ 1 lakh shall be provided
to the next of kin of a Covid-19 victim.
Chief Minister’s Shishu Seva Scheme
● All such children, who have lost their parents to the pandemic, will be
given vocational or skill-based training to ensure they get to earn a
livelihood
● Government will be providing Rs 3,500 per month to the guardian of
every child orphaned due to COVID-19 in the state
Chief Minister’s Covid-19 Widows Support Scheme
● Provide Rs 2.5 lakh to each widow who lost their husband due to the
Covid-19 pandemic.
2. Microfinance Incentives
● The Assam Microfinance Incentive and Relief Scheme (AMFIRS)
2021
● Budgetary allocation of Rs 7,500 crore.
● Categorisation of the borrowers in three groups
a. Regularly repaying-Rs 25,000 money assistance
b. Who didn’t pay for 1-89 days- Rs 25,000 and clearing off of overdues?
c. “stressed and destitute” whose loans have been rendered Non
Performing Assets (NPA)-complete waive off
For the third category, applicants need to apply through a format for
consideration under the scheme.

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ASSAM ECONOMY

3. Engagement of unemployed youths


● Recruitment of 1,00,000 (one lakh) educated youth of the state in
Government sector.
● Assam government will bring in a new legislation to streamline the
recruitment process to fulfill its promise of giving one lakh employments
in State government sector.
4. Orunodoi
● Initiatives for women empowerment DBT scheme.
● Increase in monthly amount to ₹ 1000 per family from the current
financial benefit of ₹ 830 per family.

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ASSAM ECONOMY
5. Asom Mala project
● Rs 5,556 crore will be allocated to develop road infrastructure under
Asom Mala. 250 km of roads by ASRIP-Assam Secondary Road
Network Improvement Project (with aid from Asian Infrastructure
Investment Bank) and 313 km of roads by ARNIP-Assam Rural
Road Network Improvement Project (with aid from Asian
Development Bank) will be constructed.
6. Sonali Xaishab Bikkashit Axom
● 1,000 model Anganwadi centres will be set up with Rs 13.50 crore.
Each centre will be constructed at a cost of Rs 25 lakh.
7. Flood-free Assam
● Keeping with the government’s vision of making Assam flood-free, the
government has announced that 1,000 km of embankmentcum-
roads will be built along the Barak and Brahmaputra rivers.
8. Swanirbhar Naari
● Scheme dedicated to the weavers of Assam who are weaving their
dreams in the looms. Government has decided to procure
handloom items directly from the indigenous weaver through
ARTFED and AGMC. The weavers will be imparted quality training to
upgrade their skills in Handloom Training Centres and Institutes.
● The first phase of this scheme shall cover 1.23 lakh beneficiaries
setting up sales counters across India Leveraging e-commerce portals
and apps.
9. Affordable Nutrition and Nourishment Assistance (ANNA) Yojana
and Anna Nischito Asoni
● People left out from the National Food Security Act, 2013 in the
urban areas like destitute / homeless who live by begging or those who
are of an unsound mind, living in the slum areas on the roadsides will
be provide free cooked meals with the help of reputed NGOs.

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ASSAM ECONOMY

10. Tap drinking water connection in tea garden labour lines


● In order to improve their living conditions, we will provide Functioning
Household Tap Connections (FHTC) to all households living in the
tea gardens of the state. This scheme will cover 805 tea gardens
across Assam within a year.
11. Revitalising Agriculture
● Government of Assam proposes to constitute an Agriculture
Commission under a scientist of international repute to focus on
issues related to agriculture, animal husbandry, dairy sector in Assam.
The Commission will study and suggest measures for achieving self-
sufficiency in the field of agriculture production, milk, egg and pork
production, identify constraints and devise a road map to achieve the
goal in five years.
12. Garukhuti Project
● To provide livelihood options to indigenous youth living in that area,
encompassing not only modern agriculture practices but also scientific
animal rearing practices. One such experiment was at Garukhuti under
Sipajhar Block in Darrang district.

13. Sunil Biplab’ Scheme


● Encourage the community based fish culture by constructing village
community tanks in all revenue villages of Assam.
● Recent experience of RIDF implementing “Ghare Ghare Pukhuri
Ghare Ghare Maach” shows that fish ponds constructed on the lines
of community ponds are successful in achieving socio-economic
development.
● First phase: 10,000 village community tanks of 1 hectare each to be
constructed in revenue villages.
● Fish production expected to increase by 50,000 MT per year.

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ASSAM ECONOMY

14. Department of Indigenous Faith and Culture


● The Government proposes to create a new Department, –
Department of Indigenous Faith and Culture – for preservation and
propagation of the unique languages and cultures, religious customs
and rituals, attires, food habits.
● Rs. 100 crore has been earmarked for the Indigenous Faith and
Culture Department that is to be set up and three departments –
Directorate of Archaeology, Directorate of Museum and Directorate of
Historical and Antiquarian Studies – are to be subsumed under the new
department.
15. Smart Phone for students of class IX and X in government
schools
16. Small traders and artisans affected by COVID-19 shall be given
a one-time grant of Rs. 10,000 through an institutional
mechanism in convergence with PM SVANidhi Scheme of
Government of India.
17. 1000 health sub-centres will be converted to hospitals
● 1,000 sub centers/HWCs will be converted to Buniyadi Swasthya
Kendra (BSK) where free medical consultation, diagnostics test/
medical treatment of primary diseases including diabetes,
hypertension, asthma, communicable diseases shall be provided.

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ASSAM ECONOMY

1. Increasing stake of Assam Government in Numaligarh Refinery


Ltd

● NRL’s origins can be traced back to the historic Assam Accord


● Government of Assam to acquire additional shareholding in NRL to
take its total stake to 26%
● Ensure NRL remains a Public Sector Undertaking in the long term
● Capacity to be expanded to 9 MMTPA from present 3 MMTPA capacity
● Rs.1500 Crore earmarked for this scheme

2. Anna Yojana
● Free rice for all beneficiaries under the National Food Security Act
● Total number of beneficiary families : 57 Lakhs

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ASSAM ECONOMY
● Ensure nutritional guarantee for all

3. Jyotisman Asom
● Free electricity to all households with monthly consumptions less than
30 units
● Adequate to cover basic electricity needs of a family
● 14 Lakhs families to instantly benefit from scheme: many more to
benefit by optimizing their consumption
● Additionally, Government to transfer a subsidy of Rs. 400 Crore to
APDCL to insulate consumers from upward revision in tariff.

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ASSAM ECONOMY

4. Redesigned ‘Swami Vivekananda Youth Empowerment Yojana’


● Creation of entrepreneurial support groups of youth on the
● lines of NRLM SHGs
● Each member of the group to receive a grant of Rs. 50,000
● To encourage youth to engage in economically productive activities
● To cover 2,00,000 youths of the State

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ASSAM ECONOMY
5. Chah Bagicha Dhan Puraskar Mela
● 7,21,485 Tea Garden workers from 752 gardens received a
● benefit of Rs. 5000 each during FY 18-19
● To receive another Rs. 3000 each in FY 20-21
● Will drive financial inclusion of Tea Garden workers and inculcate
banking habits

6. Welfare Schemes for the Tea Tribes and Adivasi

1. Wage compensation for pregnant women


● Wage compensation expanded from existing 6 months to 9 months
● Compensation increased to Rs. 18,000 to be paid in 6 installments
● Will support pre-natal and post-natal health checkups and provide
nutritional security
2. Educational Benefits
● One-time support of Rs. 10,000 to Tea Tribes & Adivasi
● students who pass HSLC and HSC exams
● Students will continue to receive same benefit provided they are still
pursuing their academic course

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ASSAM ECONOMY

3. Other benefits
● Smart phones for approx. 4000 Tea Garden Sardars
● Government to facilitate gratuity payment of approx. Rs. 50,000 to Tea
Workers
● 300 km of roads in 300 tea garden divisions to be constructed
● 102 new high schools to ensure continuous education to children in tea
gardens

7. Arundhati
● Rs. 40,000 in lieu of 1 tola gold to newly- wed brides with annual
family income of less than Rs. 5 Lakh.
● Mandatory Registration of Marriage under the Special Marriage
Act, 1954

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ASSAM ECONOMY

8. Comprehensive Social Security Schemes


1. One time grant of Rs. 25,000 as family assistance to widows and
‘Widow Pension’ of Rs. 250 per month
2. Swahid Kushal Konwar Sarbajanin Briddha Pension Asoni: Rs. 250 per
month to citizens above 60 years of age, 13 Lakh senior citizens
covered so far. Additional 10% to be covered in FY 20-21
3. Deen Dayal Divyang Sahayjya Asoni: Rs. 1000 per month to Divyangs
in Assam
4. Aideu Handique Mahila Samman Asoni, new pension scheme for
unmarried/divorced/separated/single women above the age of 40
years-Rs. 250 per month

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ASSAM ECONOMY

9. Vistarita Kanaklata Mahila Sabalikaran Asoni


● Revolving fund of Rs. 25000 and Rs. 10000 for female SHGs Rs.
50000 to each SHG availing / eligible to avail bank loans, benefiting
1.04 lakh SHGs
● Scooties for Jeevika Sakhis along with monthly allowance of Rs. 500

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ASSAM ECONOMY

10. Asom Mala


● Transformation of 57,617 Km of State highways and Major District and
other Roads
● Rs. 250 Crore for upgradation of Industrial Roads in 7 districts
● 1000 timber bridges to be converted to RCC structures

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ASSAM ECONOMY

11. Pragyan Bharati


● Admission fee waiver, free textbooks and uniforms in
Government Schools
● Rs. 1000 to 1 Lakh students for textbooks
● Textbook assistance of Rs. 1500 and Rs. 2000 for student at graduate
and postgraduate levels
● Rs. 1000 per month to all students towards their mess dues
● One time Education Loan Subsidy of Rs. 50000
● Scooties to 20000 top ranked female students in Class 12th

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ASSAM ECONOMY

12. Assam Cancer Care Foundation


● 3 tier Cancer Care Grid
● State contributed Rs. 550 Crore and Rs. 250 Crore by Tata Trusts so
far
● Construction in progress in 8 districts, Phase 1 within 2020-21
● Unified Technology Platform; 34,544 detections in 3 years

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ASSAM ECONOMY

13. Bhraman Sarathi


● Free and dedicated bus services for women and senior citizens
in Guwahati
● Pink buses in busiest routes will provide safe and comfortable
Rides
● Free ride in ASTC for youth appearing in examination / interviews

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ASSAM ECONOMY

14. Asom Darshan


● Development of tourist spots and religious places of all faiths
● Rs. 10 Lakh transferred for infrastructure development to 915 religious
institutions
● Rs. 2 Lakh Annuity Grant for each Devalaya in 2020-21
● Rs. 2.5 Lakh to 8000 Namghars for infrastructure
● Rs. 614 Crore for road connectivity improvement

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ASSAM ECONOMY

15. Yuva Arohan


● Development of entrepreneurial mindset in youth for a ‘Resurgent
Assam’
● Introduction of ‘Entrepreneurship’ as a curricular subject from Class XI
onwards
● ‘Nano-entrepreneurship Grant’ as Seed Capital for real life projects

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ASSAM ECONOMY

16. Sonali Shaishab Rupali Pathsala


● Infrastructure development grant to school management committee
● Upgradation to be completed by October, 2020
● School infrastructure upgradation at Rs.25 Lakh per School for
● 200 Elementary Schools on pilot basis

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ASSAM ECONOMY

17. Teachers Provincialization Drive


● Provincialisation of services of all teachers within August 2020
● Provincialisation of 20,288 teachers under consideration

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ASSAM ECONOMY

18. Orunodoi
● Minimum guarantee to the poorest for nutrition and health
● Annually Rs. 12000(1000/month) to 27 lakh poor households through
Direct Benefit Transfer
● Transfer of money directly to the primary caretakers of households i.e.,
women

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ASSAM ECONOMY

Important Indices
Bare Necessities Index
The Economic Survey 2020-21 of India has constructed a composite
index to measure the progress of delivery of bare necessities between
2012 and 2018 in 5 dimensions-
1. water
2. Sanitation
3. Housing
4. Micro environment
5. Other facilities such as ventilation of dwelling type and kitchen type.

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ASSAM ECONOMY

The value of the index ranges between 0 and 1. Higher value of the index
indicates better access of the household to the basic necessities. Assam
scored below 0.5 in 2012 and between 0.50-0.70 in 2018
NITI Aayog SDG Index 2020-21
What is NITI Aayog SDG Index?
● It evaluates the progress of States and Union Territories in
achievement of SDG targets.
● This is 3rd edition of NITI Aayog SDG Index as it started in 2018.
● A composite score is computed in the range of 0–100 for each
State/UT based on its aggregate performance across 17 SDGs.
● Bihar, Jharkhand and Assam were the worst performing States.
● Assam is 3rd worst performer after Bihar and Jharkhand.
● Assam’s score is 57 less than overall India’s average of 66.

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ASSAM ECONOMY

Human Development Index


● Human Development report is published by UNDP.
● UNDP is an organization created by General Assembly of United
Nations.
● In the Human Development Report of UNDP Human Development
Index is published
● HDI is a comprehensive approach to measure development of a
country.
● HDI indicators were developed for UNDP by a Pakistani economist
Mahbub- ul- Haq.
HDI score is given between 0 to 1. 0 is the worst score 1 is the best.
● The indicators taken for this purpose are-
1. Health- Life expectancy at birth
2. Education- Mean years of schooling and expected years of schooling
3. Economic status- Per capita income
Currently only four indicators are used in calculation of HDI score-
1. Life expectancy at birth
2. Expected years of schooling

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3. Meaning of schooling
4. Per capita income

Currently only four indicators are used in calculation of HDI score-


1. Life expectancy at birth
2. Expected years of schooling
3. Meaning of schooling
4. Per capita income

Human Development Index 2020-21


● HDI in Assam is 0.613 which is below the Indian average of 0.645.
● Assam ranks 30/36 states and UTs.
Issues:
1. Low literacy levels(73%).
2. High IMR, MMR.
3. Per capita income is lower than the country(only 66% of National
average).

Aspirational District Programme

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Aspirational District Programme


● Aspirational District Programme was started in 2018 .
● The programme is anchored by NITI Aayog in partnership with
state governments and district level administrations.
● The main objective of the programme is to bring improvement in
lifestyle of people living in backward districts of India.
● For this purpose total 117 backward districts were identified from 28
states, at least one from each state.
● Objective is to work in 5 dimensions- Health and Nutrition,
Education, Basic Infrastructure, Financial inclusion and Skill
development, Agriculture development.
● India aims to improve its Human Development Ranking with help of
this programme which is very poor now.
● In 2020 India was ranked 131st in HDI in total 189 countries.

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ASSAM ECONOMY

List of Aspirational Districts in Assam

NITI Aayog has framed the implementation strategies of Aspirational


Districts Programme.
● According to a UNESCO report titled ‘2021 State of the Education
Report for India’-
1. The working conditions of teachers in the Northeast and
“aspirational districts” are very poor.

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2. There is a marked rural urban disparity in terms of basic amenities


as well as information and communications technology (ICT)
infrastructure. This has led to huge loss of learning of children in
rural areas during the pandemic.
3. The teaching workforce has a deficit of over 1 million teachers at
current student strength and the need is likely to grow.
4. There is a need to improve both availability and quality of teachers
in the north-eastern states of India.

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India Innovation Index 2020
● By NITI Aayog
Major states
● Best Karnataka, Worst Bihar
NE/ Hilly states
● Best Himachal, Worst Meghalaya
● Assam Rank 6(in NE and Hilly) Score 16.38
UTs
● Delhi-Best
● Lakshadweep-worst

Ease of Living Index Ranking


● The ranking, prepared by the Union ministry of housing and urban
affairs
● It evaluates the quality of life and impact of various initiatives for
urban development.
● Ease of Living Index Ranking 2020 - In 1 million plus category
Guwahati was ranked 46 out of 49 cities

Municipal Performance Index


● The ranking, prepared by the Union ministry of housing and urban
affairs
● In the category of cities with a population of more than a million
altogether 51 municipalities of the country in this category were
assessed based on several parameters including health and
education.
● GMC, scoring 18.14 on a 100-point scale, was ranked 51st.
● Indore was best performer.

Multidimensional Poverty Index


● The first-ever Multidimensional Poverty Index (MPI) prepared by
government think tank NITI Aayog.
Method adopted

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● The MPI uses the globally accepted methodology developed by the


Oxford Poverty and Human Development Initiative (OPHI) and the
United Nations Development Programme (UNDP).
● The MPI has three equally weighted dimensions – health,
education, and standard of living – which in turn are represented by
12 indicators such as nutrition, school attendance, years of schooling,
drinking water, sanitation, housing, bank accounts among others,
according to the report.

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Multidimensional Poverty Index

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Poverty in Assam
World Bank Report published in 2017

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Smart City Mission


● The Mission had sought to make 100 selected cities “smart” in five
years(2015-2020).
● 'Smart city' is a city equipped with basic infrastructure to give a
decent quality of life, a clean and sustainable environment through
application of some smart solutions.
● It includes basic infrastructure like adequate water supply, electricity
supply, sustainable sanitation and solid waste management,
efficient urban mobility, affordable housing and ensuring robust IT
connectivity and e-governance.
● It is a Centrally Sponsored Scheme.

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Guwahati as a Smart City


Household water supply
● 70% households in Guwahati don’t have access to water supply in
Guwahati
● Leading to corrupt practices like tanker mafia doing illegal deep
boring
● Japan Industrial Corporation Agreement(JICA) water supply project
of Guwahati has been delayed multiple times.
● Started in 2009 and is yet to be completed.

Flood in Guwahati
● The city has been getting flooded during the monsoons since the
past several years.
● Its problems have less to do with the vagaries of nature.
● A document of “Mission Flood Control Guwahati” — a programme
of the Assam government and the Guwahati Metropolitan
Development Authority — points out, “the unplanned expansion of
the city leads to artificial / urban flooding in Guwahati.

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Artificial/urban flooding
Caused by poor urban planning- like choking of drainage system due to
pollution

Smart City projects in Guwahati

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ASSAM ECONOMY

Gandhi Mandap redevelopment is one of the successful example of


Smart City project in Guwahati.

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Population & Women Empowerment Policy of
Assam,2017

Roadmap of the proposed Population & Women’s Empowerment


1. Shift from a primarily medical led policy to holistic social reform
2. Encouraging behavioural change;
3. Promoting Informed Choice and Participation;
4. Long term Sustainability and acceptance

Population growth rate

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● The population of Assam increased to 3.12 crores (2011, Census


report) (2.66 crore in 2001 census).
● The rate of increase of 17.07 is at an unsustainable level.
● The state’s population density is 398 as per 2011 census as against
340 in 2001.
● The 11 districts which has witnessed high population growth as per
Population Census 2011, are Dhubri (24.44 pc), Morigaon (23.34 pc),
Goalpara (22.64 pc) Darrang (22.19 pc) Nagaon (22.00 pc), Karimganj
(22.90 pc), Hailakandi (21.45 pc), Barpeta (21.43 pc), Bongaigaon
(20.59 pc) Cachar (20.19 pc), Kamrup (M) (18.34 pc)]

Fig: Decadal variation of Population In Percentage.


Goals and Strategies
GOAL I: Maintain current declining trends in fertility so as to achieve a
stable population size at least by the middle of the 21st Century.
Strategies

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● Formulate better and comprehensive family planning information,
education, communication and services through government, NGO
and private sector sources.
● Improve quality of service delivery to enable couples to decide freely
and responsibly the number and spacing of their children. Improve
primary care facilities.
GOAL II: Ensure safe motherhood and reduce reproductive health
system related morbidity and mortality.
Strategies
● Expand reproductive health care services while improving its quality.
● Introduce measures targeted at encouraging girl child education.
● Empower women to take responsible decisions with regard to
reproductive health.
GOAL III: Achieve gender equality in the truest sense; although Assam
is one of the states with a perceived improved situation for women in
society, this is not enough.
Strategies
● A special strategy to lower dropout rates for girls will be implemented.
● Girls’ education may be made free up to University level education.
More educational Institutions, both formal and vocational, for girls may
be established.
GOAL IV: Promote responsible adolescent and youth behaviour.
Strategies
● Ensure adequate information on prudent sexual behaviour.
● Prevent violence against women and drug abuse in school curricula
and through NGOs etc. at the appropriate levels.
● Provide the legal, and institutional support to protect their children from
sexual abuse and harassment.

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GOAL V: Provide adequate health care and welfare services for the
elderly and differently abled.
Strategies
● Encourage the private sector, NGOs, and the local community to
provide community care and services to the elderly and differently
abled.
● Initiate social security schemes for the elderly and differently abled not
already covered.
● Establish old age homes as last resort, if necessary, in PPP mode, to
provide safe and dignified living for those elderly who have no other
shelter/support.
GOAL VI: Promote the economic benefits of migration and urbanisation
while controlling their adverse social and health effects.
Strategies
● Provide family planning and reproductive health counselling and
services in the community, particularly in urban slums.
● Ensure the physical protection of displaced persons, in particular that
of displaced women and children against exploitation.
GOAL VII: Increase public awareness of population and reproductive
health issues.
● Population education shall be introduced in the academic curriculum.
● Encourage use of media both electronic and print for public discussion
of population and reproductive health issues.
Specific challenges in achieving goals
There are several challenges for ensuring an effective and inclusive policy
for the state of Assam-
1. Diverse communities

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● Assam represents a highly diverse demographic canvas with people of
different linguistic, ethnic and religious backgrounds inhabiting this
ancient land.
● Customary laws, social practices and traditions pertaining to child
births and marriage,underage marriage and polygamy are practiced in
certain communities
● Some communities and geographical regions do much better than
others.Example MMR is very high among the inhabitants of char areas
and the tea tribes.
2. Geographical Accessibility
● The geographical terrain of the state contributes significantly to the
variability seen in socio-economic data; accessibility is thus a major
issue in implementing various government schemes.
a. Hill districts (a) Karbi Anglong and ( b) Dima Hasao
b. Riverine areas or Char- Chapori areas
c. Remote Areas especially in the foothill borders regions
d. Flood prone areas during the monsoon season
There are several challenges for ensuring an effective and inclusive policy
for the state of Assam-
3. Socio-religious beliefs
● Existence of religious prejudices and conservative values against
family planning is high among some communities. Only a tiny fraction
of men opt to have vasectomies. Male sterilisation is viewed as
culturally unacceptable among most of the communities.
4. Issues related to healthcare delivery and infrastructure
● For a sustainable and effective population policy that focuses on
women empowerment, access to medical facilities is a precondition. In
Assam, there is still patchy coverage of medical infrastructure and
resources, especially in geographically remote areas.

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NFHS 5 report on Assam

● According to the latest National Family Health Survey (NFHS-5) total


fertility rate (TFR) of Assam declined from 2.2 in 2015-16 to 1.9 in
2020-21.
● A total fertility rate (TFR) of about 2.1 children per woman is called
replacement-level fertility-leading to constant population.
● This means future population of Assam will only be less than the
current population.
● Hence there is no question of an increase in population.
Why CM talked about population control measures?
● TFR is not uniform across all communities.
● Communities with high TFR continue to have poor lifestyle.

Vital Stats of NFHS-5


● 61% families in Assam adopt family planning measures.

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● TFR in Assam is 1.9(less than replacement rate 2.1).

● Sex ratio at birth is the number of female children born per 1,000
male children born.
● SRB in Assam is 964.
● In Assam SRB has slightly increased in NFHS 5 wrt NFHS 4.

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Medical facilities in Assam


● Out of pocket expenditure increased to Rs 5,415 for delivery.
● Institutional birth 80%.
● This data indicates poor implementation of Janani Shishu
Suraksha Karyakram (JSSK) in Assam.

Janani Shishu Suraksha Karyakram (JSSK)


● Launched in 2011.
● Scheme is to benefit pregnant women who access Government
health facilities for their delivery.

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● The scheme was launched in view of high out of pocket expenses
incurred by pregnant women and parents of sick newborn.
● The initiative entitles all pregnant women delivering in public
health institutions to absolutely free and no expense delivery,
including caesarean section.
Infant Mortality Rate
● IMR is defined as deaths of infants per 1000 births.
● IMR has marginally declined in nearly all states.
● Assam has seen one of the largest drops in IMR, from 48 deaths
(per 1,000 live births) to 32 deaths.

Nutrition level of Children


● Percentage of stunted children has decreased marginally in NFHS
5 wrt NFHS 4.
● Percentage of wasted children has increased.

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Obesity level
● Overweight or obesity is measured through the Body Mass Index of
persons.

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Infrastructure
● Both sanitation facilities and internet penetration has improved in
Assam.

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Vital Stats of NFHS-5-Women related data

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Inland Waterways in Assam


Indian Waterways
● India has close to 15,000 km of inland waterways network
comprising rivers, channels, backwaters, creeks etc.
● The NDA government in 2016 notified 111 inland waterways as
National Waterways of India under the National Waterways Act,
2016.
● Of these, 13 National Waterways are operational for shipping and
navigation and cargo/passenger vessels are moving on them,
according to the government.
● The Inland Waterways Authority of India under the Ministry of
Shipping is developing the National Waterways for commercial
navigation, including with assistance from World Bank.

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What are National Waterways?
● Like National Highways are used for transportation on roads,
National Waterways are used for transportation on rivers.
● Out of total 111 National Waterways only 13 are operational now.
They are used for transportation of cargo/passenger vessels.
● Like National Highway Authority of India regulates National
Highways, Inland Waterways Authority of India regulates National
Waterways.

Advantages of National Waterways over Road Transport-


1. Less Maintenance Cost:
Maintenance cost in rail and road transport is quite high but maintenance
cost of water transport is quite less.
2. Cheap:
The transport channel is quite cheap as compared rail and road Transport.
This is cheap because fuel cost is very low
3. Useful for Bulky Goods:
Heavy and bulky goods can be transported easily at little cost through water
transport.
4. Useful During Natural Calamities:

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During natural calamities like flood and rains, when rail and road transport is
disrupted, relief operations can be operated through water transport.
5. Important for Foreign Trade:
Water transport plays important role in foreign trade. India’s foreign trade is
mainly dependent on water transport.
6. Environment Friendly
Since Waterways uses less fuel so it emits less air pollution.
Disadvantages of National Waterways over Road Transport-
1. Risky
Water transport is more risky as compared to other means because there is
always danger of sinking ships or boats.
2. Slow Speed:
It is a slow means of transport. Failure of monsoon results into fall in the
water level of rivers making navigation difficult.
National Waterways in Assam

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ASSAM ECONOMY

Current initiatives in Assam


1. New Ship repair facility
● Inland Water Authority of India and Hooghly Cochin Shipyard Ltd
signed an agreement for setting up a new ship repair facility at
Pandu.
● It is Rs 75-crore slipway-to be developed on a land of 3.67 acres
● It can boost the region's economy through enhanced waterways
connectivity for the movement of big cargo.
2. Maritime Institute in Assam

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● Union Minister of Ports, Shipping and Waterways Sarbananda
Sonowal announced that as per request of Chief Minister Himanta
Biswa Sarma, his ministry would set up a maritime institute in Assam.
3. Jibon Dinga Scheme
● Under the scheme, the State government is providing modern boat
engine at 100 per cent subsidies rate.
● The implementation of the scheme is very important to minimize the
boat mishap cases in Assam.
Nimati ghat boat accident
The head-on accident between a larger government vessel and a smaller
private ferry occurred around roughly 100m from the Nematighat bank in
Jorhat district. Over 50 people are feared drowned in the accident.

Practical Question
Q1. Critically evaluate the recent measures taken by the government to
ensure the development of the North-Eastern region.
Answer-

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The North East States are categorized as Special Category States and
receive central assistance on a liberal 90:10 sharing pattern.Ministry of
Development of North Eastern Region (DoNER) has been created for
development of NE region.
The Ministry of Development of North Eastern Region (DoNER) has made
the following schemes for the development of North-Eastern region during
the last three years:
1. North East Special Infrastructure Development Scheme (NESIDS)
● A sum of Rs.1600 crore has been allocated for funding physical
infrastructure relating to connectivity, power, water supply enhancing
tourism and social Infrastructure relating to education and health
sectors in North Eastern States.
● It is a Central Sector Scheme.
2. North East Venture Fund (NEVF)
● North Eastern Development Finance Corporation Ltd. (NEDFi) under
the Ministry of Development of North Eastern Region (DoNER) has set
up the North East Venture Fund (NEVF) for North East Region. The
capital commitment to the fund is Rs.100.00 crore.
3. Science & Technology Interventions in the North East Region
(STINER)
● STINER aims to bring relevant technologies developed by the
academic, scientific and research institutions to the artisans and
farmers especially women.
4. North Eastern Region Vision 2020
● North Eastern Region Vision 2020 document provides an overarching
framework for the development of the North Eastern Region.
● Released by Ministry of Development of North-East Region.
● The main objective is to bring the north eastern region at par with
other developed regions.

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Resource availability (Extra reading if direct question comes on NE
Region Vision 2020)
● Mandatory earmarking of at least 10% of GBS of Central
Ministries/Departments for North Eastern Region (NER).
● Creation of Non-Lapsable Central Pool of Resources (NLCPR).
Major initiatives:
1. Government of India has set a target of increasing oil production from
the Northeast by 67%, from 4.11 MMT in 2020-21 to 6.85 MMT, in the
next four years, and gas production from 5.05 BCM in 2020-21 to
10.87 BCM in the next four years.
2. Regional Connectivity Scheme (RCS-UDAN) has been launched to
provide connectivity to unserved and underserved Airports within the
country.
3. In respect of Rail Connectivity, during the last four years the entire
North East Region has been converted to the Broad Gauge (BG)
network.
4. North East Region Textile Promotion Scheme (NERTPS).
5. Agartala-Akhaura Rail-Link to connect the existing Agartala station
in Tripura to Akhaura Station of Bangladesh Railways.
Given the north-eastern region’s strategic location, India has been keen to
involve countries of South East Asia and East Asia in its development. The
ten key areas for development of north east are highways, railways, power,
internet, BPOs, Organic food, assistance, timely implementation of projects
for job creation, tourism and development of rural areas. The proactive
approach in the northeast region is the key to give fillip to development of
the region.
Q2. Where is the bell metal industries in Assam located? What are the
problems faced by the industry in the state?
Answer-

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Brass and bell metal products are an important traditional craft form in
Assam. Some historical events and
local legend point to the industry’s existence since the Mauryan period
(321185 BC). Written documents, on the other hand, trace its existence to
7th century AD when Kumar Bhaskar Barman, king of Kamrupa, presented
aKangsha patra (a bell metal item) to king Harshavardhana of north India.
Mostly the bell metal industries are located in Sarthebari town of Barpeta
district and Hajo region of Kamrup(Rural) district of Assam. The people in
the town are experts and make high quality utensils and other items, such
as sarais, ban batis, glasses, plates etc. this is part of the cultural tradition of
Assam, which has passed from one generation to the other.
Some of the problems faced by bell metal industries in Assam are-
1. Scarcity of Raw material- Scarcity of charcoal and broken bell metal
products – much of it without the right copper-zinc proportion has led
to the decline of the industry.
2. Hazardous working conditions-Informal set-ups in the households
affect work during the rainy season, long periods of inhaling toxic gases
from burning charcoal have make the workers vulnerable to chest pain,
respiratory disorders and, in some cases, premature graying of hair.
Long hours of beating metal have also lead to posturerelated disorders.
The physical strain invariably cuts the artisans’ careers short and
pushes them into abject poverty.
3. Low return on the Brass metal products- The artisans involved in Brass
bell metal industry are facing poverty due to- middlemen or Mahajans
who set the prices according to their convenience. Stiff competition
from machine-made products made outside Assam. These
machinemade products have betterer polish, are cheaper and are thus
preferred as gift items.
4. Duplication of Work-Customers fail to differentiate between the
originals and replicas and open take products that retailers procure
from outside the state for a higher margin

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This internationally famous handicraft can be made a viable livelihood option
with government intervention in the form of steady supply of raw material,
easy loans, minimum health insurance and proper marketing facilities.
Initiatives should also be taken to provide training and capacity-building
measures to the artisans.

Q3. What are the problems and prospects of tourism industry in


Assam?
Answer-
Assam has vast potential for tourism. Assam with hills, mountains, lush green
forests and numerous rivers make it ideal for tourism. Cultural heritage of
Assam especially legacies of Mahapurush Sankardev makes Assam
potentially a favorite tourist spot for tourists from India and abroad. But
tourism in Assam has not developed up to its potential due to -
● Poor transport links with rest of India
● Lodging and boarding problem in tourist spots
● Poor transport faciliƟes in the state
● Lack of publicity
● Extremist activities and social political unrest
Thus, tourism has still not prospered up to its potential. State tourism
department earns only about Rs 2 cr from tourism while 45 Lakhs tourists
visit the state every year.
The State government has taken some steps to promote tourism like -
Tourism Policy 2017, adopt tagline- Awesome Assam, Heritage walk,
promotion of Raas festival of Nalbari.
Q4. Discuss the present status of industrial development in North East
region. In what possible ways economic development of the region can
be done?
Answer:

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Industries in Assam are not developed except Tea and petroleum


refineries. Reasons behind poor development of industries are
1. Geographical isolation- Assam is landlocked from and situated in the
eastern periphery of India. It is connected with mainland India with a
narrow land mass- Chicken neck or Silliguri corridor.
2. Political isolation- Assam and other North Eastern states have not
been in the focus area of development for the Central government.
Reason may low population of North East leading to less seats in
Parliament making North East less important.
3. Security concerns- North Eastern states including Assam have been
struggling because of so many insurgents groups. To a great extent
lack of peace and stability has hindered industrial development of
Assam.
● The international borders in the North east are extremely porous. Thus,
cross border infiltration of militants, and smuggling of arms are rampant
in the region.
1. Poor Infrastructure- Lack of proper infrastructure like roadways,
railway line, industrial zones has affected industrial development of
Assam.
2. Lack of interest of investors from other parts of India
Recently CM Himanta Biswa Sarma Said-"We were bogged down by a
legacy of social unrest and political indifference to Assam's progress,"
In order to achieve industrial development of North East following areas
should be focussed-
1. Connectivity with mainland- This requires early completion of projects like
Kaladan Multi Modal Project.
Myanmar has delayed the project.
2. Leverage on policies like Act East.
3. More Infrastructural development conducive for industries should be
established like one recently set up in Amingaon, Guwahati.

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ASSAM ECONOMY
4. Social stability should be ensured by using technology equipped security
agencies. This will boost confidence of industries to come up and invest
in North East.

Q5. What are the main objectives of the scheme Atal Amrit Abhiyan?

Answer-

Atal Amrit Abhiyan is a health insurance scheme announced by the state


Government of Assam.
Atal Amrit Abhiyan is aimed at providing health insurance coverage of up
to Rs. 2 Lakh to the state residents.
● The Atal Amrit Abhiyan health insurance scheme would cover treatment
for cancer, kidney
disease, brain and heart-related ailments and burn injuries. People
suffering from these diseases
would be able to get treatment at all govt and CGHS empaneled hospitals
for up to Rs. 2 Lakh.
● Under the scheme, the government would provide unique identification
number and a health
card to each beneficiary. The scheme will be free for the BPL families.
● The state government would bear an additional burden of Rs. 200 crore
to implement the scheme
in the state.
Atal Amrit Abhiyan Scheme will help the residents of the state from
incurring out of pocket expenditure
for tertiary treatment. This will provide social security to the residents of
Assam.
• It is a method of framing budget in a manner that could ensure-
1. Women Empowerment
2. Mainstreaming of Women
3. Reducing Gender based discrimination
4. Gender Disparity
• This concept was first brought by Australia in 1985.
It includes 2 steps-
1. Examining all the Budgetary allocations from Gender lens- means
examining impact of every scheme on women status in society.

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ASSAM ECONOMY

For example: DBT for LPG subsidy PAHAL- Subsidy will be transferred in
the account of a woman of the family.
2. Introducing Women specific Schemes
Eg- Beti Bachao Beti Padhao, Sukanya Samriddhi yojana
From year 2006-07 onwards India has started Gender Based Budgeting.

Q6. What do you mean by Gender budgeting? Give instances of


Gender budgeting in Assam budget?
Answer-

● It is a method of framing budget in a manner that could ensure-


1. Women Empowerment
2. Mainstreaming of Women
3. Reducing Gender based discrimination
4. Gender Disparity
● This concept was first brought by Australia in 1985.
It includes 2 steps-
1. Examining all the Budgetary allocations from Gender lens- means
examining impact of every scheme on women status in society.
For example DBT for LPG subsidy PAHAL- Subsidy will be transferred in
the account of a woman of the family.
2. Introducing Women specific Schemes
Eg- Beti Bachao Beti Padhao, Sukanya Samriddhi yojana
From year 2006-07 onwards India has started Gender Based Budgeting.
Answer-
● Like Union budget the Assam government also practices the concept
of gender budgeting in formulation of Assam budget since 2018-19.
● Women specific allocation increased from Rs. 3532 crore in 2017-18
to Rs 13,031 crore in 2018-19.
Some of the examples of gender budgeting in Assam budget 2021-
22
1. Orunodoi Scheme
● Monthly amount to ₹ 1000 per family to an adult woman member
account.
2. Chief Minister’s Covid-19 Widows Support Scheme
● Provide Rs 2.5 lakh to each widow who lost their husband due to
the Covid-19 pandemic.

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ASSAM ECONOMY
3. Swanirbhar Naari
● Scheme dedicated to the women weavers of Assam.
4. Microfinance Incentives
● The Assam Microfinance Incentive and Relief Scheme (AMFIRS)
2021.
● The main objective of this scheme is to protect to women borrowers
from exploitation of microfinance institutions.
5. Tribal Research Institute (Research and Training)
● To enhance the capability of tribal women in Assam.
6. Grants of Rs 25000/- to 1000 women SHG
● Financial assistance in the form of grants to women self-help
groups of tea tribes' community to enhance their livelihood.
7. Poshan Abhiyan
● To end all forms of malnutrition, stunting and wasting in children
under 5 years of age, and address the nutritional needs of
adolescent girls, pregnant and lactating women.

Q7. Assam has a vast potential in coal sector. Discuss the


possibilities and challenges faced by coal industry of Assam.
Answer:

Coal is the most important and abundant fossil fuel in India. It accounts
for 55% of the country's energy need.
Assam having large Reserve of coal has huge potential in the field of coal
sector which can be highlighted from following points-
1. Huge untapped reserve-Assam has a coal reserve of 525 mn tonnes
out of which a paltry 17.90 mn tonnes have been extracted so far.
2. Ash content is much lower than Jharia and Raniganj coal fields.
3. Fast economic growth of northeast creates a huge demand for Coal
sector.
Challenges
1. Low Calorific value-Almost all the coals are tertiary coals. Or they are
mostly lignite coals. So the calorific value is low.
2. Sulphur content is very high as compared to Jharia and Raniganj coal
fields.
3. Local protest against coal mining

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ASSAM ECONOMY

● CIL suspended of all its mining operations last year following protests
against the company’s activities inside the Dehing Patkai forest.
1. Environmental concerns-An agreement at CoP 26 at Glasgow of
UNFCCC decided for phase down of coal uses.
2. The government is looking forward to utilise the available coal
resources while keeping the environmental concerns in mind. Recently
chief minister of Assam conducted in meeting with North Eastern
coalfield officials in order to resume coal operations in Assam.

Q8.Assam’s current MMR status might overshadow the strides the


state has made in maternal healthcare. Discuss

Answer:

According to sample registration survey report of Government of India for


2016 -18 Assam has registered highest maternal mortality rate in
India.Assam has registered 215 maternal mortality for everyone lakh birth.
But Assam’s current MMR status might overshadow the strides the state
has made in maternal healthcare. In just over a decade, Assam has
reduced its MMR from 480 to 215--that is a greater than 50% reduction.
Steps taken to reduce MMR
1. Maternal care to tea garden workers
● In 2018, the Assam government launched the Wage Compensation
Scheme for pregnant women in tea gardens. Under this cash transfer
programme, pregnant women working in the tea gardens are provided
with ₹18,000 by the government.
2. Promotion of institutional delivery
● Free of cost delivery at government hospitals.
● Assam government has deployed 130 Mobile Medical Units (MMUs)
for smooth transportation of pregnant women to hospitals.
● To provide healthcare services in the riverine and char areas, one-of-
its kind boat clinics have been deployed with 15 Boat Clinics operating
across 13 districts
3. Assam National Health Mission has also entered public private
partnership with 150 tea garden management to provide health
services to pregnant women.
4. Drugs Stock Monitoring System

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ASSAM ECONOMY
● Drugs availability status is being constantly monitored through Drugs
Stock Monitoring System and it is also made available in the public
domain to increase transparency in the system.
5. Nutritional care under POSHAN Abhiyan
Still a long distance is yet to be covered for Assam as far as maternal
mortality rate is concerned.
In Budget Sonali Xaishab Bikkashit Axom In budget 2021-221,000 model
Anganwadi centres will be set up with Rs 13.50 crore. Each centre will
be constructed at a cost of Rs 25 lakh.

Q9. What are the key features of The Assam Microfinance Incentive
and Relief Scheme (AMFIRS) 2021.Also highlight its potential
benefits and challenges.

Answer:

The Assam Microfinance Incentive and Relief Scheme (AMFIRS) 2021


introduced in Budget 2021-22.
Its key features are-
● Budgetary allocation of Rs 7,500 crore.
● Categorisation of the borrowers in three groups
a. Regularly repaying-Rs 25,000 money assistance
b. Who didn’t pay for 1-89 days- Rs 25,000 and clearing off of overdues
c. “stressed and destitute” whose loans have been rendered Non
Performing Assets (NPA)-complete waive off
For the third category, applicants need to apply through a format for
consideration under the scheme.
Potential benefits
1. Monetary relief to people who have suffered livelihood losses due to to
the pandemic
2. Prevention of harassment by microfinance institution to the women
borrowers.
3. Regularise the the balance sheet of microfinance institutions that
where suffering due to use outstanding debt.
Challenges

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ASSAM ECONOMY

1. Setting a wrong precedence-It may encourage a tendency of of not


paying the debt by the borrowers in hopes that a government will
compensate on their behalf
2. Pressure on government exchequer-The Assam government will have
to spend rupees 7500 crore on the skin which could have been used
for other developmental purposes.

Q10.Give an account of the state of Human Development and


Poverty levels in Assam.

Answer:

The Human Development Index (HDI) is a composite statistic (composite


index) of life expectancy, education, and per capita income indicators.
● HDI in Assam is 0.613 which is below the Indian average of 0.645.
● Assam ranks 30/36 states and UTs.
Issues:
1. Low literacy levels(73%).
2. High IMR-32 per 1000 births(as per NFHS-V) , MMR 215(as per SRS
2016-18).
3. Low Life Expectancy-66.2 years as compared to national average of
69 years as per SRS 201 3-17
4. Per capita income is lower than the country (only 66% of National
average).
The incidence of poverty in Assam remains higher than the national
average.
● According to a world bank report published in 2017 in Assam about
32% population is below poverty line.
● According MPI 2021 published by NITI Aayog Head Count MPI ratio of
poverty is about 32% higher than national average of 26%.
● Most of the the poor districts are are in the border region with
Bangladesh for example Hailakandi Dhubri Karimganj Cachar.

Q11.Infant Mortality Rate of Assam continues to be the worst in


India. Give a brief picture
of the scenario in the state.

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ASSAM ECONOMY

Answer:

Infant mortality rate (IMR) is the number of deaths per 1,000 live births of
children under
one year of age. The Infant Mortality Rate in Assam is one of the worst
among all the other states
of the country.
● As per 5th National Family Health Survey (NFHS), although Assam did
show an improvement from last time’s 48 to 32 now. Still Assam still
features fourth on the list after Bihar,Tripura and Meghalaya.
● There is a huge gap if compared with Kerala’s 4.4, the best IMR in the
country.
Reasons for high IMR
1. Premature birth: It contributes to more than 80% of newborn death.
2. Asphyxia: Asphyxia is the state of being unable to breath. Asphyxia in
the new born is one of the leading cause of deaths. This is mainly due
to lack of health infrastructure in rural areas. Also, it occurs due to
infections such as pneumonia, meningitis, sepsis.
3. Female literacy rates:Babies born to illiterate mothers face twice the
risk of early deaths as compared to those born to educated mothers.
4. Child marriage: Anemia in young women and inadequate focus on
adolescent sanitation
5. Shortage of midwives and trained health workers
6. 40% of IMR occurs due to poverty
7. Lack of basic health practices related to immunization and
breastfeeding
● As per Population & Women Empowerment Policy of Assam,2017 the
aim is to bring down IMR below 30 per live birth by 2030.

Q12.Write a short note on 'Asom Mala.

Q13.Give an overview of the Economy of Assam. Why Assam’s per


capita income continues to be lower than most of the other Indian
states? What are major challenges Assam Agriculture is facing?

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ASSAM ECONOMY

Q14.Give a brief account of the demographic profile of Assam.


Explain why Assam has a
higher rate of population growth.

Q15.Discuss the steps taken for the development of tribal


communities in Assam.

Q16. Write about the Assam Tea Industry and its Crisis.

Q17.Give a description of the recent economic scenario of Assam.

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