Guwahati: The Government of Assam is actively promoting a suite of schemes and policies designed to invigorate the state’s manufacturing sector, foster entrepreneurship, and generate substantial employment opportunities. This comprehensive approach includes the Assam Industrial and Investment Policy, the North East Industrial Development Scheme (NEIDS), and various Prime Minister’s Employment Generation Programmes (PMEGP), among others, according to an overview from the Industries & Commerce Department.
These initiatives are crucial for Assam’s economic transformation, aiming to shift the state from a resource-exporting economy to a manufacturing and industrial hub. The policies seek to attract both domestic and international investments, create a business-friendly environment, and address the long-standing challenges of industrialisation in the region, ultimately boosting the Gross State Domestic Product (GSDP) and providing livelihoods for its youth.
What was announced
The Government of Assam, through its various departments, has highlighted an array of existing and recently updated schemes aimed at bolstering industrial growth and employment. Key among these are the Assam Industrial and Investment Policy, 2019, the Central Government-backed North East Industrial Development Scheme (NEIDS) 2017, and the Prime Minister’s Employment Generation Programme (PMEGP).
Other notable state initiatives include the Mukhya Mantri Atmanirbhar Asom Abhijan (CMAAA) 2.0, launched in February 2026, the Assam Start-up & Innovation Policy 2025, and the Mukhya Mantri Mahila Udyamita Abhiyan, which saw a major shift towards women’s entrepreneurship in 2025-26. Schemes like Boneej and SVAYEM (Swami Vivekananda Assam Youth Empowerment) also form part of this broader strategy to support Micro, Small, and Medium Enterprises (MSMEs) and youth entrepreneurship.
Why it matters
These schemes are pivotal for Assam’s economic trajectory, aiming to create a robust industrial ecosystem and generate significant employment. Chief Minister Himanta Biswa Sarma has stated that manufacturing is key to achieving “Viksit Bharat” and that Assam is poised to play an important role in India’s industrial growth story.
Assam’s GSDP is expected to surge to ₹7,41,626 crore in 2025-26 from ₹4,10,724 crore in 2020-21, with the state registering a 45 percent growth in the last five years, making it the country’s fastest-growing state economy, according to RBI data. The state has received investment proposals worth ₹5.14 lakh crore, which could potentially generate over two lakh jobs if the state develops the right absorption capacity, Chief Minister Sarma said in March 2025.
The MSME sector, in particular, is seen as the backbone of Assam’s economy, with over seven lakh registered MSMEs creating more than 25 lakh jobs between 2020 and February 2025. The government extended credit support of ₹80,000 crore to MSMEs during 2022-2025.
Background
Historically, Assam has been known for its oil, gas, tea, and timber industries, but large-scale industrialisation has faced challenges due to geographical isolation, inadequate infrastructure, recurring floods, and, in the past, socio-political instability. The state’s economy has traditionally been dependent on primary sectors, with manufacturing remaining comparatively underdeveloped.
To address these issues, the 2014 Industrial and Investment Policy of Assam was replaced by the 2019 edition, aligning with national strategies like Make in India, Startup India, and the Act East Policy. The state government has been aggressively pursuing industrial investments, particularly after the Advantage Assam 2.0 investment summit held earlier this year, which saw significant investment proposals.
Chief Minister Sarma has emphasised that improved connectivity, a friendly investment climate, enhanced security, and stable power availability are contributing to Assam’s emergence as a major investment destination.
Key details
The Assam Industrial and Investment Policy, 2019, effective from September 1, 2019, for a period of five years, offers various fiscal incentives for new manufacturing and service sector units. These include a two percent interest subsidy on working capital for five years (up to ₹50 lakh per unit), reimbursement of State Goods and Services Tax (SGST) for up to 15 years (ranging from 150 percent to 250 percent of Fixed Capital Investment), and power subsidy at ₹2 per unit for five years (up to ₹50 lakh per annum).
The policy also provides a 50 percent generating set subsidy (up to ₹20 lakh), 100 percent stamp duty exemption (up to ₹25 lakh), and a 75 percent subsidy on technology transfer (up to ₹10 lakh). Additionally, it offers an incentive of ₹10,000 to units for each local youth employed.
The North East Industrial Development Scheme (NEIDS), 2017, a Central Sector Scheme fully funded by the Union Government, was in force from April 1, 2017, to March 31, 2022, with an outlay of ₹3,000 crore. It covers eligible industrial units in manufacturing and service sectors across eight North Eastern states, including Assam.
NEIDS provides a Central Capital Investment Incentive of 30 percent of the investment in plant and machinery, with an upper limit of ₹5 crore per unit. Other benefits include a three percent interest incentive on working capital for five years, 100 percent reimbursement of insurance premium for five years, and GST reimbursement of the central government’s share for five years. It also offers an employment incentive by contributing an additional 3.67 percent to the employer’s EPF contribution.
The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy programme aimed at creating employment opportunities through micro-enterprises in both rural and urban areas. It merges the erstwhile Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP). The Khadi and Village Industries Commission (KVIC) is the nodal agency for its implementation.
Under PMEGP, beneficiaries can receive margin money subsidies for setting up projects. For projects costing above ₹10 lakh in manufacturing or above ₹5 lakh in the business/service sector, beneficiaries must have passed at least Class VIII. During the 15th Finance Commission cycle (2021-22 to 2025-26), PMEGP facilitated the establishment of over four lakh three thousand micro-enterprises nationwide, generating employment for approximately 36 lakh 33 thousand people. In Assam, PMEGP assisted 2,282 units, generating 18,256 jobs between 2017-18 and 2022-23.
The Assam Start-up & Innovation Policy 2025 aims to create 5,000 new startups and one lakh jobs by 2030, with a focus on promoting entrepreneurship and innovation. The Mukhya Mantri Atmanirbhar Asom Abhijan (CMAAA) 2.0, launched in February 2026, proposes to support over 75,000 entrepreneurs with a budget of ₹1,482 crore.
Reactions
“Manufacturing is the key to achieving #ViksitBharat, and Assam will play an important role in it. We are developing 15 sites under BHAVYA, a Government of India industrial vision to create plug and play infra parks to boost domestic manufacturing, push growth and create job opportunities,” Chief Minister Himanta Biswa Sarma said on X in May 2026.
“If you’re an industrial leader who wants to make Assam your home, feel free to reach out. I’m personally monitoring every effort to industrialise Assam to ensure the best results for our people and India’s growing economy,” Chief Minister Sarma appealed to prospective industrialists in May 2026.
Chief Minister Sarma has also expressed concern over protests against land acquisition for industrial projects, stating that such actions deter major investors. He cited instances where he had to “stall” visits by Japanese delegations interested in investing in Assam due to ongoing public protests.
What’s next
The Assam government continues to focus on strengthening manufacturing, IT, renewable energy, and tourism sectors to attract further investments. The state is developing 15 sites under the BHAVYA initiative of the Government of India, aimed at creating world-class plug-and-play infrastructure parks. Eight priority industrial parks across Assam are expected to attract an estimated investment of ₹33,600 crore.
The state is also actively working to transform into a major manufacturing and logistics hub in the Northeast region, leveraging its strategic location and improved connectivity. Efforts are underway to ensure that investment proposals translate into tangible outcomes through robust tracking mechanisms.
Quick FAQs
What is the primary goal of these schemes?
The primary goal is to boost manufacturing, promote entrepreneurship, and create employment opportunities across Assam by attracting investments and providing various financial and infrastructural incentives.
Which sectors are prioritised under the Assam Industrial and Investment Policy?
The policy identifies thrust areas in both manufacturing and services, including automobile, bamboo, cold chain, engineering, food processing, jute, pharmaceuticals, plastic, rubber, sugar, and textile industries, as well as hotels, river cruises, and green technology power generation.
How does NEIDS benefit industries in Assam?
NEIDS offers incentives such as capital investment subsidies, interest subsidies on working capital, reimbursement of insurance premiums, GST reimbursement, income tax reimbursement, and transport incentives for movement of finished goods.
What is the role of PMEGP in employment generation?
PMEGP provides credit-linked subsidies to individuals for establishing micro-enterprises in both rural and urban areas, thereby fostering entrepreneurship and generating employment opportunities.