Guwahati: Assam Chief Minister Himanta Biswa Sarma has announced a five-year economic vision for the state, pledging to increase the daily wages of tea garden workers to Rs 450 and emphasising the promotion of entrepreneurship among the youth. The announcement was made during the third day of the state Assembly session on May 26, 2026.
This comprehensive plan aims to uplift the socio-economic conditions of a significant segment of Assam’s population, particularly the tea garden community, while also fostering a robust entrepreneurial ecosystem to generate employment beyond government jobs. The Chief Minister highlighted that while current wages have already seen increments, further progress is contingent upon strengthening the tea industry’s global competitiveness.
What was announced
Chief Minister Himanta Biswa Sarma, addressing the state Assembly on May 26, 2026, outlined a multi-pronged economic strategy for Assam. A central component of this vision is the commitment to progressively raise the daily wages for tea garden workers to Rs 450 over the next five years. Sarma acknowledged that the state government has already increased these wages to nearly Rs 300, but stressed that achieving the Rs 450 target necessitates collective efforts to enhance the tea industry’s ability to compete in international markets.
Beyond the tea sector, the Chief Minister reiterated his administration’s goal of creating two lakh government jobs for the youth. Crucially, he underscored the need to cultivate a generation of entrepreneurs who can create employment opportunities for others, thereby reducing reliance solely on public sector recruitment. Sarma also highlighted the importance of modernising agriculture and cottage industries to build a self-reliant economy and acknowledged the growing economic influence of women, particularly through self-help groups, urging increased support for these initiatives.
Why it matters
The Chief Minister’s five-year economic vision holds significant implications for Assam’s development trajectory. The pledge to increase tea garden workers’ daily wages to Rs 450 directly impacts a community that constitutes a substantial portion of the state’s population and workforce. Improving their wages is expected to enhance living standards, alleviate poverty, and contribute to the overall economic well-being of tea-growing regions.
Currently, tea garden workers in the Brahmaputra Valley receive Rs 280 per day, while those in the Barak Valley receive Rs 258, effective April 1, 2026, following a Rs 30 interim hike. The proposed increase to Rs 450 represents a substantial jump, potentially bridging the gap with wages in other tea-producing states like Kerala (around Rs 546) and Tamil Nadu (about Rs 475). This could address long-standing demands from worker unions for fair wages.
The emphasis on entrepreneurship is critical for addressing youth unemployment and fostering sustainable economic growth. Assam aims to create a Rs 10 lakh crore economy by 2028, with a focus on attracting industries, promoting investments, strengthening tourism, and supporting entrepreneurship. Schemes like ‘Startup Assam’ and ‘Sarothi’ are already in place to provide financial assistance and support to first-generation entrepreneurs and startups. By nurturing local businesses, the government seeks to diversify the economy and create a more resilient job market.
Background
Assam’s tea industry, over 150 years old, is a cornerstone of the state’s economy, employing over one million workers and contributing significantly to India’s global tea trade. Historically, tea garden workers, many of whom are descendants of indentured labourers brought by the British from central-eastern India, have faced low wages and challenging living conditions. Wages in the 19th century were as low as Rs 5 per month for men and Rs 4 per month for women, significantly less than other manual labour.
In recent decades, wage determination has evolved from collective negotiations to government-led revisions through the Minimum Wages Advisory Board. The state has seen several interim wage hikes. In March 2018, a Rs 30 interim hike was announced. In 2021, wages were increased by Rs 38, followed by a Rs 27 hike in August 2022. The daily wage was further raised by Rs 18 in October 2023, bringing it to Rs 250 in the Brahmaputra Valley and Rs 228 in the Barak Valley. The most recent interim increase of Rs 30, effective April 1, 2026, set the daily wages at Rs 280 for the Brahmaputra Valley and Rs 258 for the Barak Valley.
Despite these increases, tea garden-based organisations have often criticised the hikes as “meagre” and falling short of a justified minimum wage, with some demanding Rs 500 to Rs 551 daily. The industry itself faces challenges such as rising production costs, stagnant tea prices, labour shortages as younger generations seek better opportunities, and the impact of climate change. The government’s broader economic vision includes initiatives like the ‘Ten Cities Development Concept’ and schemes like ‘Orunodoi 2.0’ and ‘Mukhyamantri Mahila Udyamita Abhiyan’ to promote overall development and women’s empowerment.
Key details
The Chief Minister’s five-year economic plan, announced on May 26, 2026, includes two primary objectives: a phased increase in the daily wages of tea garden workers and a strong push for entrepreneurship.
- Tea Garden Worker Wages: The daily wage for tea garden workers is targeted to reach Rs 450 over the next five years. This is a significant increase from the current daily wages of Rs 280 in the Brahmaputra Valley and Rs 258 in the Barak Valley, which came into effect on April 1, 2026. The Chief Minister stated that achieving this target requires strengthening the tea industry to improve its global competitiveness.
- Entrepreneurship Promotion: The plan emphasises fostering a generation of entrepreneurs to create employment opportunities, moving away from sole reliance on government jobs. The state has an existing framework, ‘Startup Assam’, which aims to promote sustainable economic growth and generate large-scale employment. This includes schemes like ‘Sarothi’ (CM’s Startup Fund), which provides financial assistance with interest subvention, and MASI Incentives (grants and subsidies) for startups. The government also aims to create two lakh government jobs for the youth.
- Economic Transformation: The next five years are deemed crucial for Assam’s economic transformation, with a focus on modernising the tea sector, agriculture, and cottage industries to build a self-reliant economy. The government also aims to reduce the percentage of people living below the poverty line to two to three percent in the next five years from the current 17 percent.
Reactions
The government’s previous wage hike announcements have often elicited mixed reactions. While the recent Rs 30 increase, effective April 1, 2026, was welcomed by some, tea garden-based organisations like the All Adivasi Students’ Association of Assam (AASAA) and the Adivasi Youth-Students’ Association of Assam (AYSAA) have criticised it as “meagre” and a “lollipop.”
“The government’s statement that the final wage structure will be aligned with the new labour codes once the rules are [approved]… the exploitation of tea plantation workers cannot continue under the guise of interim measures and false assurances. Dignity, fair wages and constitutional rights are not charity; they are fundamental entitlements,” AASAA president Rejan Horo said, reiterating the association’s demand for fixing the daily wage at Rs 551.
AYSAA president Nipen Munda echoed these sentiments, stating that tea garden workers are entitled to a minimum daily wage of at least Rs 500. He described the Rs 30 hike as an “injustice and an insult to the tea worker community” and warned of a democratic movement if the wage structure is not reviewed and revised.
Tea plantation owners, on the other hand, have expressed concerns that wage hikes exert pressure on an industry already struggling with rising input costs and a slump in prices. They often argue that the wage structure includes “in-kind benefits” such as housing, rations, and medical facilities, which significantly add to the overall compensation.
What’s next
The Chief Minister’s five-year plan sets an ambitious target for tea garden worker wages, aiming for Rs 450 daily. This will likely involve further phased increases beyond the current Rs 280/Rs 258 rates. Chief Minister Sarma has indicated that future wage discussions may occur within the next six months, especially with the implementation of new Labour Codes by the Centre, suggesting that final daily wages could exceed Rs 300 after these discussions.
The government is expected to continue its focus on strengthening the tea industry’s global competitiveness and modernising agriculture and cottage industries to support the overall economic vision. Additionally, efforts to promote entrepreneurship through existing and new schemes will likely intensify, with a focus on youth and women. The establishment of 100 more model high schools in tea garden regions between 2026 and 2031 is also part of the broader socio-economic development agenda.