A BRIDGE TO THE FUTURE
Though Assam is rich in natural resources, socio-political strife has kept the state from achieving its true potential. However, on a range of indicators, the rate of development is on the rise, with notable improvements in health, education and industry
Assam is the largest state in India’s northeast, spread over 78,438 square kilometres and with a population of about 32 million. It’s often described as the land of the red river and blue hills, referring to the mighty Brahmaputra— which is called ‘Lohit’ (blood red) in Assam—and the surrounding hills that merge with the blue sky. With the added greenery of the state’s forests, tea gardens and paddy fields, Assam boasts an unparalleled natural beauty. Situated south of the eastern Himalayas, the state has two fertile valleys across two rivers—the Brahmaputra and the Barak— making it rich in water resources. Known across the globe as the home of the one-horned rhinoceros, Assam is also home to two UNESCO World Heritage Sites—Kaziranga National Park and Manas Wildlife Sanctuary.
However, in contrast to the abundant natural serenity, the state has often witnessed social and political turbulence post-Independence, which have disrupted its economic growth. From the language agitation in the 1960s and the Assam agitation in the 1980s to militant activities by extremist organisations in the 1990s, the state’s history is replete with incidents of violence and bloodshed. That is one of the main reasons why Assam, despite its strategic geographic location as India’s gateway to southeast Asia, has failed to exploit its full potential. Between 1981 and 2000, Assam’s economy grew at just 3.3 per cent annually, against the national growth rate of 6 per cent. Though Assam provides the country with two of the primary requirements of almost every household—tea and petroleum—it ranks 17th in terms of GSDP (gross state domestic product) among India’s states.
The relative peace that returned to the state by the turn of this century, however, has slowly permitted a shift toward growth and the expansion of social welfare. While social (and increasingly, communal) divides over contentious issues such as the National Register of Citizens and the Citizenship (Amendment) Act, 2019, still haunt the state’s socio-political environment, in recent times Assam has implemented several initiatives to push for economic growth, to build a positive perception of the state and reduce its geographic alienation from mainstream India. For instance, in 2018, the Sarbananda Sonowal government organised a mega trade exposition—Advantage Assam: Global Investors’ Summit—which saw the participation of business titans like Mukesh Ambani. It also launched the North East Industrial and Investment Promotion Policy & Industrial Policy of Assam to facilitate business through fiscal incentives and multi-year concessions to investors. At the same time, the state’s IT and tourism policies have given special attention to specific sector development. “We were able to successfully implement multiple government schemes and developmental projects because of the spontaneous support from the people and our relentless focus on transparency and accountability,” says Chief Minister Sonowal. Assam has also benefitted
“Assam’s progress is a shining example of people’s participation in governance in a democracy and of cooperative federalism. We are confident that Assam is moving steadily towards becoming self-reliant, fulfilling Prime Minister Modi’s dream of an Aatmanirbhar Bharat” SARBANANDA SONOWAL Chief Minister, Assam
immensely from the intensified focus of the central government, particularly under Prime Minister Narendra Modi, who has often described the northeast states as the new drivers of India’s growth. These efforts are showing results, as seen in the India Today State of the States rankings. For the past three years, Assam has topped the list of the most improved big states. “Assam’s progress is a shining example of people’s participation in governance in a democracy and of cooperative federalism. We are confident that Assam is moving steadily towards becoming self-reliant, fulfilling Prime Minister Modi’s dream of an Aatmanirbhar Bharat,” says Sonowal.
For instance, in the past five years, the state has seen significant progress when it comes to road connectivity. This includes the inauguration of two major bridges over the Brahmaputra—the 9.15 km Dhola-Sadiya, India’s longest bridge, and the 4.9 km Bogibeel bridge, Asia’s second longest rail-cum-road bridge. This year, the prime minister also laid the foundation stone of what will become India’s longest bridge—a 19-km-long span over the Brahmaputra, connecting Dhubri in Assam to Phulbari in Meghalaya. Another much-awaited infrastructure project, now being pushed by the prime minister, is a two-lane bridge connecting Majuli, the world’s largest river island, with the rest of Assam. (The chief minister represents Majuli in the state assembly.) Besides these big-ticket projects, the chief minister says the state government has converted more than
1,000 wooden bridges into concrete ones. In a recent speech in Assam, Modi acknowledged the state’s progress in terms of infrastructure development: “Assam is a significant part of Aatmanirbhar Bharat, where 11,000 km of roads have been constructed.”
ASSAM’S 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. The GSDP grew at a CAGR (compounded annual growth rate) of 12.58 per cent between 2015-16, when the current BJP-led government took charge, and 2020-21. At current prices, the state’s per capita income was Rs 1,30,970 in 2020-21, finding place among the bottom-ranked states. “We were bogged down by a legacy of social unrest and political indifference to Assam’s progress,” says state finance minister Himanta Biswa Sarma. “But the pace of activities in the past five years and the leadership provided by Prime Minister Narendra Modi ensure that Assam will soon be among the top states of the country.”
AGRICULTURE & SERICULTURE
Assam is primarily an agrarian state, with 85 per cent of the population residing in rural areas and nearly 70 per cent of the work force engaged in agriculture. The sector’s contribution to the state GSDP, however, is just 17 per cent. Rice being the staple food, Assam primarily produces paddy, but the rate of productivity is poor. For instance, according to 2018 data, 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 and accounting for over four per cent of total rice production. In contrast, Tamil Nadu, the fourthlargest producer of rice, produced 7.98 million tonnes rice from just 2.04 million hectares, accounting for nearly seven per cent of total production. Other crops grown in the state include pineapples, bananas, cauliflower, broccoli, papayas, sugarcane, turmeric, jute and potatoes. The state government has been focusing on promoting sustainable development in agriculture and increasing the use of technology and skill development in this sector. The Centre has also provided several incentives—for instance, it has sanctioned a food processing park with a total project cost of $1.2 million (Rs 8.7 crore) at Chaygaon in Kamrup (rural) district. An agri-export zone for fresh and processed ginger has also been sanctioned.
Nearly 60,000 families are dependent on the silk industry in Assam. Apart from eri and pat, Assam produces muga silk or “golden silk”, another unique contribution, accounting for around 97 per cent of global muga production. However, the production of muga silk has faced major challenges in recent times due to increased pollution levels. The state government has undertaken several steps to overcome this situation, including the launch of the ‘Muga Mission’ in 2018, worth
Rs 460 crore, for a period of 10 years. There has also been the threat of fakes flooding the market—powerloom-made Banarasi silk products masquerading as Assamese silk. This led to violent protests in the silk-producing town of Sualkuchi in March 2013. In 2016, the Centre gave its approval for an official trademark for silk products made in Sualkuchi. There have been some encouraging trends—157 tonnes of raw muga was produced in 2017-18, compared to 139 tonnes the previous year.
INDUSTRY
Though tea, oil and natural gas continue to dominate the state’s industrial scene, the Assam government has been attempting to incentivise other industries as well, such as tourism, telecom and pharmaceuticals. Sun Pharma, for instance, has invested around Rs 700 crore in the state to set up a production unit.
In the past four years, 20,971 MSMEs (micro, small and medium enterprises) and 105 large industrial units were set up in Assam. The state’s proximity to SAARC countries like Bangladesh, Nepal and Bhutan gives it increased investment potential because of the possibility of cross-border trade. The state currently has 20 industrial estates, three industrial growth centres, 11 integrated infrastructure development depots, 17 industrial areas, 12 growth centres, eight miniindustrial estates, one export promotion park and one food processing industrial park. The Export Promotion Industrial Park at Amingaon near Guwahati has nearly 40 companies, offering direct employment to over 4,000 people and indirect employment to about 12,000. There are also 11 integrated infrastructure development centres across the state, of which two are under construction. The Centre has approved two more projects under the MSE-CDP (micro and small enterprises cluster development programme) at Pathsala in Barpeta district and Moran in Dibrugarh district. A software