An introduction to

Assam Economy
 Overview of Assam
Economy

In 2022-23 (at current prices)

1. Agriculture- 35% (15 % in Indian context)

2. Manufacturing- 19% (17 %)
3. Services sector- 45% of Assam’s economy ( more than 50%)
The national income of a country for a given period is
equal to the: (2013)

A. total value of goods and services produced by the

nationals

B. sum of total consumption and investment expenditure

C. sum of personal income of all individuals

D. None of the above

The national income of a country for a given period is
equal to the: (2013)

A. total value of goods and services produced by the

nationals

B. sum of total consumption and investment expenditure

C. sum of personal income of all individuals

D. money value of final goods and services produced

1.Inflation

2.Disinflation

3.Deflation

4.Slowdown

5.Recession

6.Depression
 Agro- Based Forest- Based
Services - Based

INDUSTRIES OF ASSAM

Manufacturing- Mineral- Based Cottage Industry

Based
Agro- Based Industries & allied
sectors

1.Jute
2.Tea
3.Horticulture
4.Food processing
5.Dairy
 Jute

Significance:

• India contributes 40 % of the global jute production

• Assam is the second largest jute producing state in

India. It produces a huge amount of jute. Assam High Rainfall
alone produces 1.6 million bales of jute. High Temperature
High Humidity
• Important cash crop- huge employment potential- Swampy areas
labour intensive

• Environmental friendly products

• Geotextile material-
• Great export potential
 Jute

Important Jute producing areas of Assam

Dhubri,
Goalpara, Jute Mill at
Barpeta, Nagaon Silghat. This is
and Darrang the only Jute
districts are the Mill in the
main jute- Country in Co-
producing operative
district of Sector.
Assam.
 Jute

1. Grading: This involves sorting the jute fiber based on quality factors like color, length, strength, and
fineness. It ensures that the fiber meets specific standards and allows for pricing based on quality.

2. Ratting: This is the process of removing any remaining impurities, such as dirt, bark, or other plant
material, from the jute fiber. Ratting is typically done manually or with the help of simple tools.

3. Bailing: The graded jute fiber is compressed and tied into compact bales for easy storage, handling, and
transportation. Bailing also helps to protect the fiber from damage.
 Issues/ Challenges:

1. Climate Change- Cyclone, Drought impacting productivity

2. Encroachment of wetlands leading to reduction of swampy

areas

3. Issue with MSP of Jute- leading to diversification

4. Lack of Remunerative price & non implementation of tariff

commission report

5. International Competition

6. Challenge from synthetic fibre- Cheaper Alternatives

 Government Intervention Other Initiatives:
1. Improvement in Irrigation
2. Implementation of Tariff commission report
3. Higher MSP based on MS Swaminathan
1. Amendment of Packaging commodities Act 1987.
committee recommendations
2. Jute ICARE initiative of National Jute Board
4. Diversification of Jute
3. Jute Grading and Bailing schemes of Govt of Assam
4. No GST for Jute
5. Promotion of Crop Insurance schemes
 HORTICULTURE

Vegetables Fruits
What is Horticulture?
Spices Medicinal Plants
• It comes from two words- Hortus and culture

• It is the science of PUI of fruits, vegetables, Aromatic Plants Floriculture

flowers and other plants for human food, non
human food and social needs.
Horticulture crops producing areas of Assam

1. Kokrajhar- Mushroom
2. Goalpara- Pineapple, Kiwi, Dragon Fruit
3. Karbi Anglong- Ginger, Queen
Pineapple
4. Tezpur- Litchi
 Significance

1. Huge Export Potential- GI tagged products,

scented rice, aromatic plants etc.

2. Diversification of rice cultivation

3. Development of food processing industries

4. Production time is less

5. Generation of renewable energy

6. Huge Market nearby

7. Labour intensive
 Challenges

1. Small and fragmented Land Holdings

2. No MSP for horticulture crops

3. Poor forward and backward linkages

4. Lack of awareness

5. Climate change- Increase in temperature- Rise in pest

diseases- High use of pesticides- Problems in exports

6. Shortage of micro propagation and plant disease

diagnostic facility
 Govt Intervention

1. Infrastructure push- Food processing centres and Mega

Food Parks , Logistics Hub, Cold Storage facilities,
Refrigerated Vans, Promotion to Private players, Focus
on R&D etc

2. Market Access- Border Trade Centres, Export Promotion

Industrial Park

3. Govt schemes- Floriculture & Backyard Mission,

MOVCDNER, Horticulture Mission for Himalayan and
NER

4. Nursery set up in PPP mode

 Food Processing Industry

Food processing is the transformation of agricultural products into food, or of one form of food into
other forms.

1. Primary processing: Involves the initial transformation of raw agricultural commodities into food
ingredients. Examples include cleaning, sorting, grading, milling, and extracting.

2. Secondary processing: Involves converting food ingredients into finished food products. This
includes cooking, baking, freezing, canning, and packaging.

3. Tertiary processing: Involves the further processing of finished food products into ready-to-eat
meals or convenience foods.
 Food Processing Industry
Significance

1. Assam is a agro- based economy- necessary to tap on this.

2. Favorable Agro Climatic Zones & presence of niche products.

3. High Export Potential

4. Fortification to combat malnutrition

5. Reduced food wastage

6. Curbing inflation
Food Processing Industry
Food Processing Industry
 CHALLENGES GOVT INTERVENTION
1. Subsidy to entrepreneurs to set up food based
industries in Assam
1. Poor forward and backward linkages
2. Low Productivity in Horticulture 2. Assam industrial & investment Policy 2023
3. Dominance of SME
4. Lack of Standardization and Quality 3. Infrastructure Push

4. Promotion of one district, one product

5. Reducing Post harvest losses

 Tea Industry

Significance

1. High Contribution to agricultural income of Assam

2. FOREX earnings due to huge exports
3. High Production
4. High employment generation in PPR
 Tea Industry

Challenges

1. Growth of Unorganized tea industry

2. Increase of small and fragmented land holdings
3. High input cost and lower price realization to
producers
4. Climate change
5. Lack of quality infrastructure
 GOVT INTERVENTION

1. AROMA Strategy of Assam govt

2. Draft Assam Tea Policy
3. ATISIS
4. Promotion to cooperative tea processing centres
 AROMA STRATEGY

• Assistance to small tea growers

• Reenergize to create infrastructure
• Promotion of Organic Tea and GI tea
• Modernization
• Adaptability
 Draft Assam Tea Policy

• Capital subsidy for replacement of worn out machinery

• Subsidy for opening Tea Boutique
• Certification of Organic Tea
 Draft Assam Tea Policy

• Capital subsidy for replacement of worn out machinery

• Subsidy for opening Tea Boutique
• Certification of Organic Tea
 Assam Tea Industries Special Incentive Scheme

• Production subsidy for orthodox tea increased from Rs 10/kg to Rs 12/kg

• Interest subvention on working capital
• Tax holiday on agricultural income
 Other Initiatives
1. Improvement of irrigation facilities
2. Promotion to cooperative tea processing centres
 TEA TOURISM

1. Visiting tea Estates

2. Learn about production process
3. Living in guest houses/ bungalows amidst tea
gardens
4. Participating in various tea garden activities
5. Experiencing local culture and traditions
6. Visiting Tea Museum
 Promotion and Development of Tea Tourism
Infrastructure in Assam

1. Renovation of heritage bungalows

2. Renovation of heritage tea guest houses.
3. Renovation of the front side of the tea garden depicting all modern tea
tourism implications.
4. Dining hall/cafeteria with all modern amenities.
5. Development of swimming pool/spa as part of the facility.
6. Facilities including angling, boating, water fountain, etc.
7. Recreation facility/yoga center.
8. Development of golf courses.
9. Installation of solar light.
10. Involvement of local youths in proposed tea tourism activities to be
developed.
11. Facilities like tea testing shall be developed.
 Industrial and investment policy Assam 2023

• Industrial and 1. Customized incentives for Mega Project units: Businesses with minimum
investment policy Assam investment of Rs. 100 crore and 200 numbers of permanent employees may
2023 is an improvement seek subsidy on power tariffs, land, Stamp duty reimbursement etc.
over the 2019 policy.
2. 100% state GST reimbursement for a maximum up to 15 years
• This policy aims to
attract investments and 3. The policy also prioritizes ease of doing business. It provides for a single
accelerate industrial window clearance for approvals, streamlined procedures for land allotment
growth to make Assam a etc
globally competitive
investment destination 4. This policy also acknowledges the importance of infrastructural
development. Hence focus on creating connectivity, multi-modal logistics hub,
developing Inland water transport etc.
 UNNATI

• The northeastern region

of India holds immense
UNNATI- New outlook:
potential for industrial
• Focus on both new and expanding businesses
and services sector
• Includes both industry and services
growth due to availability
of resources.
UNNATI-Tailored approach:
• Districts are categorized into Zones –
• Recognizing this, Uttar
1. Zone A (Industrially advanced, less incentives)
Poorva transformative
2. Zone B (Industrially backward, more incentives)
industrialization scheme
promises to be a game
changer.
 UNNATI

• The northeastern region

of India holds immense
UNNATI- New outlook:
potential for industrial
• Focus on both new and expanding businesses
and services sector
• Includes both industry and services
growth due to availability
of resources.
UNNATI-Tailored approach:
• Districts are categorized into Zones –
• Recognizing this, Uttar
1. Zone A (Industrially advanced, less incentives)
Poorva transformative
2. Zone B (Industrially backward, more incentives)
industrialization scheme
promises to be a game
changer.
 UNNATI
Capital investment incentive:

• It will be significant for businesses looking to set up or expand operations in NE India by reducing
initial costs and improving project viability.

• Example- 30% reimbursement in Zone A for investment made in plant and machinery

Capital interest subvention incentive:

• It will significantly lower the financial cost of borrowings for businesses in NE India. The subsidized
interest rate can improve cash flow and project profitability

• Example- 5% annual interest subsidy in zone B for 7 years

Manufacturing and services linked incentive:

• It will provide a significant upfront investment subsidy with a long-term benefit on GST payments
• Example- Reimbursement of 100% of net GST for a maximum of 10 years.
DAIRY SECTOR OF ASSAM
 DAIRY & POULTRY SECTOR OF ASSAM

• Assam has achieved self-sufficiency in fish production. The total fish requirement
in 2022-23 was 4.49 lakh MT, while the production was 4.43 lakh MT. However,
the state still imports fish from Andhra Pradesh, Bihar, and West Bengal. Some
consumers prefer imported fish due to its lower cost.

• Milk Production: Assam lags in milk production. The average daily milk
requirement is 73 lakh liters, but the state only produces 29 lakh liters. To meet
the demand, Assam imports around 35 lakh liters of milk daily.

• Egg Production: The state also faces a shortfall in egg production. The average
daily egg requirement is 174 lakh eggs, while the production is only around 15
lakh eggs. This leads to the import of 30-35 lakh eggs daily.
CHALLENGES IN DAIRY SECTOR OF ASSAM

1. Low Productivity
2. Lack of organized marketing channels
3. Inadequate infrastructure for milk collection and
processing
4. High cost of feed and fodder
5. Lack of access to credit and financial services
6. Disease outbreak and lack of veterinary services
7. Climate change and impact on dairy farming
 DAIRY/ POULTRY SECTOR OF ASSAM

• The government is implementing schemes to boost milk production. These

include:

1. Providing high-yielding cows to self-help groups.

2. Focusing on productivity enhancement and organizing farmers into milk producer
institutions that will eventually become dairy cooperative societies.

3. Genetic upgradation of non-descript cows using artificial insemination.

4. Improved feeding through fodder production demonstrations.

5. Bulk supplement provisions through societies and developing linkages with crop
producers.
6. Village-based milk procurement system.
7. Door-step delivery services.
 DAIRY/POULTRY POULTRY SECTOR OF ASSAM

• The government has encouraged individuals and self-help groups to

produce chicks using low-cost technology under the National
Livestock Mission. Distribution of ducklings and one-day-old chicks.

• The Department of Animal Husbandry is promoting backyard poultry

rearing to enhance meat and egg production. This sector generates
employment and boosts rural income, attracting many people to the
poultry sector.
 FOREST BASED
INDUSTRIES OF ASSAM

BAMBOO SIGNIFICANCE

1. Great Export Potential

FACTS
2. Great employment potential Indian bamboo is currently
estimated to create value
3. Eco-friendly Industry
1. India contains 30% of equal to USD 4.4 billion –
4. Versatility in Usage approximately 130 times the
world bamboo resources USD 34 million recorded in
5. Strengthens fight against climate change 2003.
2. Assam- 9.6 % of total
6. Low cost of production
production in India
7. There is heavy involvement of women in this sector
 FACTS

• 4 districts cover 47.2% of total Bamboo area in Assam. Districts with a

high percentage of areas under bamboo in the forests are Karbi-Anglong,
Goalpara, Kamrup and Cachar & Karimganj

• 8.6 million people in India rely on the bamboo industry for their
livelihood. The bamboo industry is significantly underutilized and has the
potential to provide more than 516 million man days of work annually,
according to the Dalwai Committee report on Doubling Farmer's Income.
 BAMBOO

CHALLENGES

1. Limited Processing Facilities

2. Supply chain and Infrastructure
bottlenecks
3. Market Access constraints
4. Policy and Regulatory Hurdles
 GOVT INTERVENTION

1. Formation of bamboo cluster

2. Removal of bamboo from the tea category by
amending the Indian Forest Act of 1927
3. Promotion of FPO’s
4. Infrastructure development
5. Assam Bamboo and Cane policy 2019
BAMBOO INDUSTRY
 AGARWOOD

1. It is native to Assam and SE Asia

2. It finds mention in Mahabharata, Hadith and Buddhism

3. It requires warm, humid and subtropical climate as well as soft and sandy soil
 AGARWOOD

Economic Significance

1. High-Value Product: Agarwood is termed as "liquid gold." It presents a lucrative opportunity for
Assam to generate substantial revenue through exports.

2. Livelihood Generation: It has the potential to create jobs and boost rural incomes significantly.

3. Diversification of Agriculture: Assam's economy is heavily reliant on tea. The agarwood industry
offers a viable alternative for farmers.

4. Foreign Exchange Earnings: The global demand for agarwood, particularly from the Middle East,
opens avenues for Assam to earn valuable foreign exchange through exports.
 AGARWOOD

Environmental Benefits:
Socio-Cultural Significance
1. Reforestation and Conservation
1. Traditional Knowledge and Practices: The
industry helps preserve this valuable heritage
2. Low input for management and
and indigenous knowledge.
intercropping adaptation makes agar
a preferred cash crop
2. Community Development: Agarwood
cultivation can empower local communities,
3. Sustainable Resource Management:
particularly in rural areas, by providing them
The agarwood industry can contribute
with economic opportunities and fostering
to the conservation of this precious
sustainable development.
resource and its associated
ecosystems.
AGARWOOD
 Challenges
Govt Intervention
1. Long Gestation Period
2. Illegal Trade and Unsustainable 1. Assam Agarwood Promotion Policy
Practices 2020
3. Market Access and Value Addition 2. International Agarwood Trade Centre in
4. Research and Development Golaghat
Assam Agarwood Promotion Policy
 RUBBER INDUSTRY

• In Assam, according to the state Minister for Commerce and

• According to the sources, India imported
Industries Chandramohan Patowary, Rubber is being
6,01,000 tonnes of natural rubber in 2018.
cultivated currently on 60,000 hectares.
• It was 4,87,000 tonnes in 2019 and 4,57,000
• It is an annual production figure of around 32.000 million
tonnes in 2020.
tonnes.
• These imports came mostly from Malaysia,
• Nearly 200,000 people are engaged in the work, which
Indonesia, Thailand and Vietnam.
brings in Rs 430 crore as revenues.
 RUBBER INDUSTRY

• Rubber is obtained from a latex of tropical

tress

• The tress are mostly distributed in SE Asian

countries like Vietnam, Cambodia, Thailand,
Indonesia

• Rubber cultivation in India primarily takes

place in Kerala, Tamil Nadu, Karnataka etc
Soil

• Trees require well-drained, weathered soils.

Lateritic, alluvial, sedimentary, and non-lateritic red
soils are optimal for growing these trees.

• Deep, friable, well-drained soils are optimal for

root development, and acidic soils are also
suitable.

Temperature

• A humidity of roughly 80%, 2000 hours of

sunshine, and the absence of high winds are
also required.

• High temperatures all year, ranging from 20° to

35° C, or an average monthly mean of 27° C.

• Temperatures below 20°C are harmful.

 RUBBER INDUSTRY

Challenges
Significance
1. Fall in international prices- leading to poor
1. 40% of rubber is met through imports returns
2. Substitute for tea Industry 2. Rubber plantation in NE impacted by the
3. Natural rubber is preferred over synthetic cold winter months
rubber 3. Climate change
4. Versatility in usage 4. Environmental concerns
5. Employment potential 5. Low productivity

The national policy highlights that 92% of natural

rubber production is from small landholding sector (less
than 10 hectares)
Most of the 1.3 million rubber growers and 0.6 million
workers in country's rubber plantation sector belong to The prediction by the Rubber Research Institute of India, that if
tribal and other resource-poor communities. This present global warming trend continues productivity in Kerala,
exemplifies how expansion of natural rubber the largest producer, could be reduced by 4% to 7%
cultivation and increase in production can help
generating livelihood avenues for low-income
 RUBBER INDUSTRY

The national policy highlights that 92% of natural rubber

production is from small landholding sector (less than 10
hectares)
The prediction by the Rubber Research
Institute of India, that if present global
Most of the 1.3 million rubber growers and 0.6 million warming trend continues productivity in
workers in country's rubber plantation sector belong to Kerala, the largest producer, could be reduced
tribal and other resource-poor communities. by 4% to 7%

This exemplifies how expansion of natural rubber cultivation

and increase in production can help generating livelihood
avenues for low-income households in regions like the
Northeast.
 RUBBER INDUSTRY

Major Uses
1. Rubber is used for a wide range of applications, from erasing pencil
markings to creating tires, tubes, and a wide range of industrial products.

2. Because of its great tensile strength, vibration-dampening characteristics,

and tear resistance, natural rubber is favored over synthetic rubber.

3. As a result, it is critical for the construction and automobile industries.

4. The expansion of the vehicle business in several nations is expected to

enhance demand for natural rubber manufacturing.

5. The increased need for latex items such as gloves and belts is also expected
to contribute to the expansion of the rubber market.
 RUBBER INDUSTRY

Govt Intervention

1. Introduction of GM rubber plant

2. Collaboration between Rubber Board of India and ATMA to bring in investments.

The North East Mission of Tyre Industry for Rubber Augmentation (NE-MITRA) is
an ambitious project initiated by the Rubber Board for natural rubber expansion
in the region

3. Amendment to Assam fixation of Ceiling on Land Holding Act

4. The National Rubber Policy 2019 envisages bringing down the import to 25% of
total consumption so that domestic natural rubber can meet at least 75% of the
demand by 2030.
 PLYWOOD INDUSTRY

1. Assam Railways and Trading Company established a Plywood factory

at Margherita in 1881

2. In 1924 the company started manufacturing three ply chests

3. Timber became a necessity for this and other activities like railways,
building of bridges, use in coal mines etc
 PLYWOOD INDUSTRY

Historical Significance

Changes after Godavarman Judgement 1996

1. Pioneering role
2. Dominant player
3. Employment generation

Shift to Plantation wood after this

judgement to make Plywood.

Assam govt Assam wood based industries

Promotion and Development rules 2022.
PAPER INDUSTRY OF ASSAM
 PAPER INDUSTRY OF ASSAM

Early Success and Technological Prowess • Financial Mismanagement and Bureaucratic

Inefficiencies led to the mill's eventual closure in
• The Nagaon Paper Mill was established in 1973 2015 was a result of years of mismanagement
and was celebrated for its pioneering use of and neglect.
Kamyr Continuous Digester technology
• Financial mismanagement, including failure to
• It utilizes 100% bamboo as raw material. It modernize and adapt to market changes,
initially boasted impressive production figures, coupled with allegations of corruption, led to
exceeding its installed capacity until 2008. mounting debts and an inability to compete.
 PAPER INDUSTRY OF ASSAM

The Downfall of the Nagaon Paper Mill

• The entry of new players like ITC into • The closure of the Nagaon and Cachar Paper Mills has left
Assam's paper industry led to increased thousands of employees in dire straits, with unpaid salaries
paper prices and greater dependence on and dues for years.
imported paper.
• Despite assurances of assistance, the employees continue to
• The Nagaon Paper Mill struggled to grapple with financial uncertainty and hardship.
compete with the pricing and production
capabilities of these new entrants, • This situation underscores broader issues concerning labor
highlighting the need for modernization rights, corporate governance and the responsibilities of
and innovation in the local paper industry. state-owned enterprises towards their employees.
 SERICULTURE

Sericulture- also known as silk farming- It

is the process of rearing silkworms to
produce raw silk.

“ Every Assamese Women is a born

weaver and she weaves fairy tales in
her loom”- Gandhi
 SERICULTURE

Significance
Challenges

1. Unorganized sector
1. Historical and Cultural
2. Competition from Power loom sector
2. Employment generating Industry
3. Low pay to weavers- outside the cooperative fold
3. High dependency of women
4. High price of raw materials, presence of
4. One of the largest producer of Silk
middleman and lack of marketing facilities
5. High Export Potential
5. Climate Change
6. Beneficial character of Eri and Muga
 SERICULTURE

Govt Intervention

1. Silk Samagra Scheme

2. North East Region Textile Promotion Scheme
3. Assam Silk Outreach Mission
4. Handloom Training Centres
5. Promotion to Muga rearing
6. National Handloom day for Awareness
7. Swanirbhar Nari Scheme
8. Establishment of Golden Silk Park at
Reshamnagar, Guwahati
 BELL METAL INDUSTRY

Historical Importance

1. Written records during the time of

Bhaskaravarman
2. Growth during the Ahom times- Siva Singha

Significance

1. Cultural and Religious Importance

2. Socio- Economic Importance
3. Tourism and Recognition
4. Medicinal Properties
 BELL METAL INDUSTRY

Challenges

1. Lack of Technology Upgradation

2. Rising Raw Material Cost
3. Shrinking Markets
4. Limited Marketing and Branding
5. Skilled labour Shortage
 BELL METAL INDUSTRY

Govt Intervention

1. Mukhya Mantri Tholuwa Udhyog Vikash

Asoni

2. Loan Waiver for the bell metal industry to

reenergize and give a boost

3. NEDFi also providing financial assistance to

the bell metal industry
 TOURISM

• India ranks 6th in terms of

contribution of Tourism to GDP- 5.8 % to
GDP

• Assam’s tourism sector contributes about

5.5 % to GDP and 10.5 % to total
employment of the state
 TOURISM

Prospects of Tourism in Assam

1. Wildlife- Kaziranga, Manas etc

2. Ecotourism- It developed around the idea of travelling to places of natural beauty, moving
around and staying with the places of nature for a couple of days. It has the twin objectives of
conserving environment and improving the welfare of the local people.

3. Cultural- Sivasagar, Majuli, Tezpur etc

4. Religious- Kamakhya, Surya Pahar, Madan Kamdev
5. Adventure- Paragliding, River Rafting, Bungee Jumping
6. River- MV Ganga Vilas River Cruise
7. Medical
8. Tea Tourism
 SIGNIFICANCE

Economic significance

1. Revenue Generation: Tourism directly contributes to Assam's GDP. For

instance, in 2022, Assam witnessed a significant increase in both domestic
and foreign tourist arrivals, leading to increased revenue generation for
the state.

2. Foreign Exchange Earnings: Foreign tourists bring in valuable foreign

exchange.

3. Investment and Infrastructure Development: The tourism sector attracts

investment in infrastructure like hotels, transportation, and other
amenities. The Assam government has been actively promoting tourism
development, leading to increased investment in the sector.
 SIGNIFICANCE

Social and Cultural Significance

1. Employment Generation: Tourism creates numerous jobs- both directly

(hotels, tour guides, transportation) and indirectly (handicrafts,
agriculture).

2. Cultural Preservation: Tourism promotes the preservation of Assam's rich

cultural heritage, including its traditional arts, crafts, festivals, and
historical sites. For example, the popularity of destinations like Majuli
encourages the preservation of its monasteries and traditional practices.

3. Community Development: Tourism can empower local communities,

especially in rural areas- by providing them with alternative income
sources and promoting sustainable development practices.
 SIGNIFICANCE

Environmental Significance

1. Conservation Awareness: Tourism can raise awareness about

environmental conservation, particularly the importance of
preserving Assam's biodiversity hotspots like Kaziranga National
Park.

2. Sustainable Tourism Practices: The growth of ecotourism and

responsible tourism practices in Assam encourages sustainable
development and minimizes the negative impact on the
environment.
 CHALLENGES

1. Infrastructure Deficits: Lack of good hotels and tourist lodges, affordable and
reliable communication network, clean and hygienic food and accommodation etc

2. Marketing and Branding needs: Low awareness, Lingering Perceptions

3. Skill Gap in workforce, Lack of Tourist Guides etc

4. Lack of Coordinated Efforts- Inter ministerial coordination

5. Sustainability Concerns

6. Seasonal Dependence
 Govt Intervention

1. Industrial Sector status to the Tourism Sector

2. Infrastructure Development through PPP mode

3. Awesome Assam Campaign for branding and marketing

4. Axom Darshan Scheme

5. Amar Alohi Scheme

6. Efforts like Development of Sankardeva Circuit

7. Efforts to upgrade Historical monuments to UNESCO world heritage

sites to attract tourism.
 SEMICONDUCTOR INDUSTRY IN ASSAM

• Tata Semiconductor Assembly and Test Pvt Ltd

What is a semiconductor?
(TSAT) will set up a semiconductor unit at
Morigaon in Assam.
• A semiconductor is a material that has
electrical conductivity between that of a
• This facility is being built for ₹27,000 crore and
conductor and an insulator.
will have a capacity of producing 48 million
chips per day.
• Essentially, it's a substance that can conduct
electricity under some conditions but not
• It would be supplied to automotive, electric
others- making it a crucial component for
vehicles, consumer electronics, telecom, and
controlling electrical current.
mobile phones sectors.
 SEMICONDUCTOR INDUSTRY IN ASSAM

• India’s vision of Atmanirbhar Bharat and

Vikshit Bharat hinges on robust domestic
technological capabilities.

• In this context setting up a new

semiconductor plant in Assam in addition
to that of Gujarat augurs well for this vision.
 SIGNIFICANCE

ENHANCING ATMANIRBHARTA
FOSTERING VIKSHIT BHARAT
• Reduced dependence on imports
• Job Creation
• Strategic security
• Promotion to allied sectors
• Promote R&D:
• Infrastructure development
 SIGNIFICANCE

ENHANCING ATMANIRBHARTA
FOSTERING VIKSHIT BHARAT
• Reduced dependence on imports
• Job Creation
• Strategic security
• Promotion to allied sectors
• Promote R&D:
• Infrastructure development
 CHALLENGES

Skilled workforce

• This industry will require readily available highly skilled workforce.

• Bridging this gap through targeted training programs and skill development initiative is crucial.

Reliable infrastructure

• Reliable power supply, robust logistics network etc are essential for plants smooth operation.
• Upgrading infrastructure will be the key.

Supply chain

• The success of the plant hinges on reliable and cost-effective supply chain for raw materials anD
other essential components.

• Developing a robust domestic ecosystem for these inputs is vital for long term sustainability.
 Govt Intervention

1. Assam Industrial and Investment

Policy 2023
2. PM DEVINE
3. UNNATI Scheme
 COAL SECTOR OF ASSAM

• The coal industry in Assam

has a rich history that
intertwines with the region's • Lieutenant Wilcox, the Revenue
economic and social Surveyor posted at Sadiya, who
development. accompanied a party of the 46th
Regiment up the Disang River in April
• The discovery of coal in the 1825.
early 19th century,
specifically Lieutenant • Subsequently he found such belts in the
Wilcox's findings in 1825, bed of Buridihing River at Supkong
marked the beginning of this
journey.
 • But the establishment of the tea industry
Shortage of labour, difficult changed the entire scenario
terrain, inhospitable climate,
transportation difficulties and insecure • The availability of coal at reasonable rates
political conditions, dissuaded private as became an urgent necessity
well as state enterprise from
undertaking coal operations. • The government undertook an active search
for prospective coalfields.

• Exploration efforts intensified and the

establishment of the Assam Railways and
Trading Company in 1881 further accelerated
the industry's growth.
• To meet the growing
demand and to avoid the
wood fuel and to
increase the production
of coal different collieries
were set up.

• Namdang in 1895
• Ledo New West in 1904
• Namdang Dip in 1904
• Bargolai in 1909
• Tipong in 1924
In 1884, on 18th
February, first
time coal was
carried by
Railway from
Ledo to
Dibrugarh
• With the expansion of tea gardens and mining, there was a need for
workshops, offices, bungalows, quarter etc.

• For this construction the most important goods was bricks. So the
demand for bricks was increasing. First time the bricks were
imported from outside.

• But the cost of transportation was very high due to lack of

transportation, and the supply of bricks was less than that of
demand.

• The tea gardeners were trying to established brick field but could not
succeed. Under the patronage of Assam Railways And Trading
Company, the brick field was established in 1890 in Ledo.
• Under the patronage of Assam Railways and Trading Company, the
Plywood Industry was established in Makum in 1882

• It was to provide sleeper for the construction of rail lines, woods

for coal mining industry, to construct the bridge over the river Buri
Dihing and Doom Dooma river and also to construct the houses ,
bunglows as well as quarters.

• With the passage of time this ply wood industry was one of the
most important industries which provide different types of
plywood for various purposes.
 Factors Driving the Growth of the Coal Industry

1. Demand from Tea Industry: The burgeoning tea industry in Assam required a
reliable and affordable source of energy, which coal provided.

2. Improved Transportation: The construction of railway lines connecting the

coalfields to major towns and cities facilitated the transportation of coal and
made it economically viable.

3. Technological Advancements: The introduction of steam engines and other

technological advancements increased the efficiency of coal mining and
transportation.

4. Government Support: The British government's active encouragement and

support, including the formation of coal committees and the granting of mining
leases, contributed to the industry's growth.
 Impact of the Coal Industry on Assam

1. Economic Growth:
• Creation of new coal mines-
• Development of Tinsukia as Industrial & trading town
• Development of more tea gardens away from the Brahmaputra river
• Development of Brick and Plywood industries.

2. Infrastructure Development:
• Development of railways, roads, and other infrastructure, which further boosted
economic growth.
• 1st Railway line from Dibrugarh Steamer Ghat to Jeypore Road
• Creation of Dibru- Sadiya Railway system
• In 1904- first railway line connects Chittagong and Dibrugarh (undivided). This
helped the growth of tea and coal industries in Upper Assam and tea in the
Surma Valley
• In 1905- Assam Bengal Railway Company began its operation
 Impact of the Coal Industry on Assam

3. Social Changes:

• Due to coal mining industry, the British brought with them their Indian
collaborators like Marwari businessman
• The English educated Bengalis as clerks.
• Migrant laborers also arrived from different parts of India

• The demographic change led to cultural change of the region- resulting in

development of Cosmopolitan culture
• Conversion of rural society to urban society- urbanization started
 Impact of the Coal Industry on Assam

4. Environmental Impact:

• The coal industry also had an environmental impact, particularly in terms of

deforestation and pollution.

• Coal dust generated from mining in Tinsukia district (Makum coal field) affected
the health of the local workers and inhabitants.

• Health hazards included inhalation of dust containing crystalline silica during high
wall drilling and mining which could lead to black lung disease

• As an impact of coal mining in Makum Coal Mines of Margherita, metals like

fluoride, manganese, nickel, and sulphate were high in concentration in drinking
water.
 Oil Industry on Assam

• In April 1825, a year before the EIC concluded the Treaty of Yandaboo with the
Burmese to occupy Assam. R Wilcox, an army lieutenant and geologist, was the
earliest observer of oil in an upper Assam village. This occurred while he was
surveying river Burhidihing at a place called Namchik.

• Several others followed Wilcox’s chance encounters with oil. These included
botanical surveyors, military personnel or commissioned travelers, who noted
the richness of mineral resources in the region’s geology. Their findings were
reported in the Journal of Asiatic Society of Bengal (JASB).

• A European speculator, John H Wagentreiber, was the first entrepreneur to take

steps to exploit oil in Assam. He got a 10 years lease over a tract of land
between Bappapoong and Namchik in 1854. However, the venture met with
failure.
 Petroleum Industry on Assam

• By 1865 the importance of petroleum as a fuel became well known due to the exploitation in the
U.S.A.

• Mr. H.B. Medlicott of the Geological survey of India visited the areas of upper Assam where the
existence of oil was reported. A few oil wells were drilled during 1866-68 near Margherita and
Naharpung in the district of Lakhimpur and a small quantity of oil was produced.

• But due to the absence of transport facilities work did not proceed further, and later it was
abandoned altogether.

• The commercial initiative to extract petroleum was taken by the Assam Railways and Trading
Company (hereafter ARTC) from 1881. The ARTC acquire the license in 1888 to exploit oil in the area
now known as Digboi field.
 Petroleum Industry on Assam

• AR&T established Assam Oil Company (AOC) in 1899 to take

over the petroleum interests of AR&T, including the Digboi
Bulk of the oil and gas,
and Makum concessions and set up a small refinery at
discovered in Upper Assam
Margherita (Upper Assam) with a capacity of 500 bopd to
has been found in the Barail
refine the Digboi-oil.
Group of Upper Eocene to
Lower Oligocene age and the
Tipam Group of Upper
• Two years later in 1901, Asia's first oil refinery was set up in at
Miocene age.
Digboi. It is still functional and world's oldest operating
refinery.