Arunachal Pradesh is the largest state among the North Eastern States, having an area of 83743 Sq Km, with a population pf just above 1 million. The per capita income is Rs.8744. Though the State of Arunachal Pradesh has successfully launched various socio-economic development programmes and though the literacy rate has also been rising, it is still one of the most backward States in India where industrial activity is insignificant. Hence, there is a need for a well-defined Industrial policy. The Industrial Policy of Arunachal Pradesh has been framed considering the following factors, peculiar to the State:
Rich resource endowment so far as forest, minerals and other natural resources are concerned.
Extremely difficult terrain of the state resulting in glaring transport and communication bottlenecks.
Easy availability of hydropower in the medium term as the state is endowed with vast potential for hydropower for exploitation of which one large project is already under progress.
Endless scope for agrobased industries especially in the plantation sector.
Special place of the state in the overall ecosystem of the North Eastern Region.
In order to meet genuine aspirations of the local people, top priority will be assigned to all round development of industrial sector with emphasis on economic and commercial exploitation of its natural resources in such a manner so as not to disturb permanently the overall ecological balance within the state and at the same time maximize benefits to the society. While aiming at an all round development, interests of the local people in the matter of employment opportunities and gainful self employment in industrial and allied sectors will be given high priority. Industries based on plantation, agriculture, horticulture, medicinal plants, etc. shall be reserved exclusively for Arunachal Pradesh Tribal entrepreneurs.
Special thrust will be given for the development of priority sector industries. Industrial units in the following sectors will be considered as priority sector industries:
Agrobased industries specially plantation based, such as tea, coffee, rubber, etc.
Industries based on locally available raw materials.
Industries manufacturing goods which are having local demand and demand in neighbouring states.
Industrial units devoted to revival and improvement of handloom and handicraft sector either directly or indirectly.
Electronics industries in view of unpolluted dust free environment.
Industries based on minor forest produce keeping in view the overall ecosystem of the state.
The New Industrial Policy of Arunachal Pradesh- 2001
Policy Resolution
The State Government will encourage the establishment of industrial undertakings in the private and cooperative sectors for the sustainable development of the state.