Guwahati, Jan 31: The Economic Survey 2024-25, tabled in Parliament by Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman has spotlighted a stark disparity in industrial development across India, with significant implications for the Northeastern region. The report underscores that while states like Gujarat, Maharashtra, Karnataka, and Tamil Nadu collectively account for nearly 43% of India’s total industrial Gross State Value Added (GSVA), six Northeastern states—excluding Sikkim and Assam—contribute a mere 0.7%.
The Survey emphasizes the need for “geography-appropriate industrial strategies” tailored to the distinct challenges of the Northeast. Despite its rich biodiversity, abundant resources, and strategic location as a gateway to Southeast Asia, the region’s industrial development remains limited. Poor infrastructure, difficult terrain, and fragmented markets have historically constrained industrial investments.
However, Assam’s prominence in the mining sector is noted as a bright spot, with the state contributing significantly to India’s mining GSVA alongside Chhattisgarh, Gujarat, Maharashtra, and Odisha. This highlights the untapped potential for mineral-based industries in the region.
Interestingly, the Survey draws parallels with Kerala, which despite being less industrialized, stands as a “positive outlier” in construction activity, contributing half of its industrial GVA. This insight offers a potential growth pathway for Northeastern states. With increased investments in infrastructure development, real estate, and urbanization, the region could leverage construction as a key driver for industrial diversification and economic growth.
The Survey underscores the pivotal role of state policies in shaping industrial growth, emphasizing factors like regulatory reforms and infrastructure development. States that prioritize business-friendly policies can create an environment conducive to industrial expansion, resulting in faster income convergence and improved living standards.
