Arunachal Pradesh is a state of India, its capital is Itanagar. More than half of the population of Arunachal Pradesh is engaged in agriculture, but only a very small portion of the land is under cultivation. Land is cleared by burning the vegetation, is cultivated for several years, and then is abandoned in favor of another site when the productivity of the soil declines. Rice, corn (maize), millet, and buckwheat are among the chief crops grown by this method. Arunachal Pradesh has significant, though largely unutilized, resource potential. Among its resources for generating energy are rivers, coal, and petroleum; most of the state’s power is provided by hydroelectric plants. The Indian state of Arunachal Pradesh has a total population of roughly 1.4 million (as of 2011) on an area of 84,000 km2, amounting to a population density of about 17 km−2.

TOURISM

Tourism is service-oriented sector which has made rapid strides globally in terms of gross revenue and foreign exchange earnings. The tourism sector stimulates other economic sectors through its backward and forward linkage and cross-sectional synergies with sectors like agriculture, horticulture, poultry, handicrafts, transport and construction. Tourism to Arunachal Pradesh needs to be promoted by an aggressive and well coordinated marketing strategy and to be successful as a Brand in the market place. Arunachal Pradesh is on the northeastern tip of India, bordering Bhutan on the west, China on the north, Myanmar on the east and the states of Assam on the south. Part of the Eastern Himalayan ranges, this state covers 83,743 sq. km. Trekking, mountaineering, wildlife tourism, river rafting and other water sports as well as its peaceful retreats can be promoted under such pristine natural environment. Arunachal Pradesh is a natural garden of more than 20,000 identified species of medicinal plants and many more still remain unidentified.

INDUSTRY

The Village and Small Scale Industries and Traditional un-organized industries constitute an important segment of our planned economy. This sector has not only continued to play to vital role in fulfillment of Socio-economy objectives but also offer an excellent opportunities for the industrial self employment and is an ideal answer to the problem like un-employment and proper exploitation of available resources. The District Industries Centres(DICs) and Sub-District Industries Centres(Sub-DICs) play a prominent role for the industrial development of SSI, Tiny and Village Industries. This is an institution at the district level which extends all possible help and guidance to the prospective entrepreneurs for taking up of various industrial ventures in the district. Besides, these Centres offer all facilities to artisans, entrepreneurs and support them with maximum effort under single roof. There are two Industrial Training Institutes and one Rural Industries Development Centre is functioning in the State technical manpower in the State. Besides, these Institutes are also helping the local youth to generate self employment.

INDUSTRIAL POLICY

•             The State Government will encourage the establishment of industrial undertakings in the private and cooperative sectors for the sustainable development of the state.

•             Employment opportunities and gainful self-employment in industrial and allied sectors for the local populations.

•             Outside entrepreneurs may be allowed to hold land on lease for a period of 30 years, after which the lease may be renewed for a further period of 30 days.

•             Development of all industries will be encouraged. To begin with, the following industries will have priority.

•             Industries based on locally available raw materials.

•             Electronics and knowledge based industries.

•             Industries based on non- timber forest produce.

IDENTIFICATION OF THRUST AREAS

•             Weaving

•             Cane and Bamboo work

•             Wood Carving

•             Ornaments

•             Paper Making

•             Ivory work

•             Carpentry

•             Horticulture

•             Tourism

•             Industries based on locally available raw materials.

•             Textiles (handlooms and power looms) and handicrafts.

•             Electronics and knowledge based industries.

•             Industries based on non- timber forest produce.

INVESTMENT OPPORTUNITIES

1.            Industries based on locally available raw materials.

2.            Textiles (handlooms and power looms) and handicrafts.

3.            Electronics and knowledge based industries.

4.            Industries based on non- timber forest produce.

5.            Infrastructure, such as power and communications.

6.            Tourism

7.            Medical services

8.            Educational services

INVESTMENT INCENTIVES

The incentives applicable to entrepreneurs for establishing industrial units in Arunachal Pradesh are-

•             Central Capital Investments Subsidy Scheme.

•             Transport Subsidy Scheme

•             Central Interest Subsidy Scheme

•             Comprehensive Insurance Scheme, etc.

•             Price Preference

Despite being rich in natural resources and even after the implementation of various development programmes in the state during the five year plans, the level of economic development in Arunachal Pradesh continues to be very low compared with most of the other states of the country. The major factors that have impeded the industrial development in the state are-

•             Limited and dispersed market for goods within the region coupled with higher cost of marketing outside the region.

•             Increasing threat from national competitors using modern technology, larger units and better distribution network resulting in saturation of accessible markets.

•             Lack of inflow of investible funds from outside the state.

•             Lower productivity of labour and higher wage rate.

•             Absence of technical and business information.

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