Industrial and Investment Policy of Assam
The Indian state of Assam, situated in the northeastern region, is fast becoming a hub of industrial potential. To attract investors, promote inclusive economic development, and position Assam as a leading investment destination in the northeast, the state government launched the Industrial and Investment Policy of Assam. This transformative policy aims to boost manufacturing, infrastructure development, and employment generation by offering fiscal incentives and creating an investor-friendly ecosystem.
In this blog, we explore the features, objectives, benefits, and sectors promoted under the policy, along with how businesses can take advantage of Assam’s growing industrial ecosystem.
Overview of the Industrial and Investment Policy Assam
The 2014 Industrial and Investment Policy of Assam (IIPA) had been replaced by the 2019 edition. It was crafted to sync with national development strategies like Make in India, Startup India, and Act East Policy. With Assam acting as a gateway to Southeast Asia, this policy focuses on industrial growth while leveraging the state’s strategic location, rich natural resources, and demographic advantage.
Key Objectives of the Policy
1. Promote Investment in Manufacturing and Service Sectors
The policy encourages both domestic and foreign investments in sectors like agro-processing, textiles, handicrafts, IT & electronics, and tourism.
2. Balanced Regional Development
Special focus is given to underdeveloped and backward areas to ensure balanced economic development across the state.
3. Employment Generation
By promoting Micro, Small, and Medium Enterprises (MSMEs), the policy intends to create large-scale employment opportunities, especially for youth and women.
4. Ease of Doing Business in Assam
The government has implemented a single-window clearance system, simplified compliance procedures, and minimized red tape to attract investors.
Target Sectors for Investment
The policy outlines specific sectors for priority development:
- Agro and Food Processing Industry
- Handloom, Handicrafts, and Textiles
- Tea and Bamboo Industry
- Plastic and Petrochemical Sectors
- Pharmaceutical and Herbal Products
- Electronics and IT/ITeS
- Renewable Energy (Solar, Bioenergy)
- Logistics, Warehousing, and Cold Chains
- Tourism and Hospitality
- Education and Healthcare Services
Fiscal Incentives and Subsidies
To make Assam more attractive for investors, the policy offers a range of financial and non-financial incentives:
1. Capital Investment Subsidy
For qualified businesses, there is a 30% maximum subsidy on the value of plant and machinery.
2. Interest Subsidy
Interest reimbursement of 3–5% on term loans taken for capital expenditure.
3. GST Reimbursement
Eligible units are entitled to reimbursement of SGST for a period of 7 years, subject to certain conditions.
4. Power Subsidy
Industries get subsidies on power tariffs along with reimbursement on electricity duty for a specified time.
5. Employment Generation Incentive
A subsidy of up to ₹20,000 per employee for units hiring local youth.
6. Patent and Quality Certification Support
MSMEs can avail of financial support for patent registration and obtaining quality certifications like ISO, BIS, etc.
Infrastructure Support and Industrial Corridors
The Assam government is aggressively developing industrial parks, logistics hubs, and export promotion zones. Major infrastructural initiatives include:
- Bodoland Industrial Park
- Bongaigaon Integrated Infrastructure Development Centre (IIDC)
- North East Mega Food Park (NEMFP) at Nalbari
- Tea Park in Chaygaon, Kamrup
These parks are equipped with ready-to-use industrial sheds, power supply, water, roads, and connectivity to highways, railways, and airports.
Single Window Clearance and Ease of Doing Business
To reduce regulatory hurdles, Assam has created an online Single Window Clearance System (SWCS) for faster approvals and tracking of applications. Entrepreneurs can apply for all licenses and incentives via a centralized digital platform, saving time and ensuring transparency.
Additionally, Assam ranks among the top northeastern states in India’s Ease of Doing Business Index, a testament to its reformed governance model.
Focus on Startups and MSMEs
The state government is nurturing a vibrant startup ecosystem under the Assam Startup Policy. Early-stage entrepreneurs can access funding opportunities, co-working spaces, mentorship, and incubation support through the Assam Startup – The Nest initiative.
Moreover, under the Industrial and Investment Policy, MSMEs enjoy:
- Priority in land allotment
- Enhanced capital and interest subsidies
- Marketing assistance through trade fairs and expos
Investment Opportunities under the Act East Policy
With proximity to Southeast Asia and neighboring countries like Bangladesh, Bhutan, and Myanmar, Assam is pivotal to India’s Act East Policy. The government’s industrial vision for Assam includes making it an international trade hub through improved connectivity and bilateral trade agreements.
The Kaladan Multimodal Project, India-Myanmar-Thailand Highway, and BBIN initiative further position Assam as a logistics and industrial gateway to ASEAN markets.
Environmental and Sustainable Growth
The policy also emphasizes green industries, sustainable manufacturing, and environmental compliance. Units opting for renewable energy sources and eco-friendly technologies get additional incentives and faster clearances.
Challenges and Government Response
While Assam faces challenges like floods, limited logistics infrastructure, and skilled manpower shortage, the government is actively addressing these through:
- Skill development programs via ASDM
- The North East Special Infrastructure Development Scheme (NESIDS) provides funds for infrastructure.
- Public-private partnerships for industrial training institutes (ITIs) and polytechnics
The Final Thought: Cretum Advisory – Your Industrial Policy & Incentive Partner
Navigating industrial policies and applying for state incentives can be complex, but that’s where Cretum Advisory comes in.
At Cretum Advisory, we help startups, MSMEs, and large-scale investors seamlessly understand and leverage schemes under Assam’s Industrial and Investment Policy. From business registration, incentive eligibility evaluation, documentation, single-window approvals, subsidy claims, and ongoing compliance and we also offer end-to-end support for services like Accounting & Advisory Services, Startup Consulting & GST Advisory services etc .
Frequently Asked Questions (FAQs) – Industrial and Investment Policy, Assam
Q1. What is the Industrial and Investment Policy of Assam?
The Industrial and Investment Policy of Assam is a state-level policy aimed at promoting investments, boosting industrial growth, and generating employment in Assam across various sectors.
Q2. Which sectors are prioritized under the policy?
The policy promotes agro-processing, textiles, IT & electronics, tourism, pharmaceuticals, handloom & handicrafts, plastics, logistics, and renewable energy, among others.
Q3. What fiscal incentives are offered to industries under this policy?
Eligible units can avail capital investment subsidies, interest reimbursement, SGST refunds, electricity duty exemption, and employment incentives.
Q4. How does Assam support ease of doing business?
The state has a dedicated Single Window Clearance System for faster approvals, online applications, and simplified compliance for new and existing businesses.
Q5. Are startups eligible for incentives under this policy?
Yes, startups registered under the Assam Startup Policy and operating in eligible sectors can access funding, incubation, and policy incentives.
Q6. What kind of infrastructure support is available?
Industrial parks, logistics parks, export promotion zones, and food processing clusters are being developed to support investment.