Assam Finance Minister Jayanta Mallabaruah stated that the state’s human resource is its greatest strength for industrialisation. He stressed that the government’s focus is on creating quality employment for youth within Assam to prevent migration.
Assam Finance Minister Jayanta Mallabaruah on Thursday highlighted the State’s human resource as its greatest strength for industrialisation, saying that the ongoing investment-led transformation must translate into quality employment, entrepreneurship and economic opportunities for the youth within Assam.
Expanding Beyond Traditional Strengths
Addressing the 13th SBI Banking & Economics Conclave at The Taj Mahal Palace, Mumbai, Baruah said Assam is expanding beyond its traditional economic strengths of tea, petroleum and agriculture and building new growth ecosystems across semiconductors, electronics, food processing, tourism, logistics, renewable energy, healthcare, aerospace and defence, according to the release. “Assam’s greatest resource for industrialisation is its human resource, and that makes Assam one of the most attractive destinations for investment today,” Baruah said.
The Minister said Assam has a young and increasingly skilled population with growing aspirations for quality employment. He said the State’s industrialisation strategy is therefore closely linked to creating opportunities for young people within Assam. “Our children should be able to stay at home, work here and earn here instead of having to go to Bengaluru for employment,” he said.
Strengthening Infrastructure and Policy
Baruah said the State’s approach, under the leadership of Chief Minister Himanta Biswa Sarma, is focused on strengthening infrastructure and human capital, undertaking business-friendly reforms, introducing sector-specific policies and improving single-window mechanisms to facilitate investment, according to the release.
Major Investment Highlights
Highlighting the emerging industrial ecosystem, the Minister cited the approximately Rs 27,000 crore semiconductor facility in Morigaon. He said the impact of the facility would extend beyond the anchor investment to component suppliers, precision engineering, logistics, testing, specialised maintenance and MSMEs, thereby creating a wider ecosystem of employment and enterprise, as per the release.
He also highlighted the ₹778 crore PepsiCo India food manufacturing facility in the Nalbari region, which he represents as an MLA. Referring to the emergence of such investment in an area that had earlier experienced insurgency and instability, Baruah said the development reflects the changing economic environment in Assam. He added that such projects can create opportunities for farmers, MSMEs, transporters, warehousing, packaging and service providers.
Investment Mobilisation and Economic Projections
On investment mobilisation, the Finance Minister said Advantage Assam 2.0 generated investment commitments of approximately Rs 5.18 lakh crore. He said the immediate focus is now on converting investment commitments into projects on the ground by reducing approval timelines and transaction costs and strengthening institutional support for investors.
Outlining the State’s economic position, Baruah said Assam’s GSDP at current prices is estimated at approximately Rs 7.42 lakh crore in 2025-26, with real growth estimated at around 10.1 per cent. The nominal GSDP for 2026-27 is projected at approximately Rs 8.71 lakh crore. Revenue receipts for 2026-27 have been budgeted at around Rs 1.19 lakh crore, including approximately Rs 42,449 crore from the State’s own resources and Rs 36,000 crore in own-tax revenue. He said the State has proposed an Rs 2,000 crore Assam Industrial Momentum Fund and a High-Powered Industrial Promotion Board to further strengthen industrial promotion. Sector-specific support has also been proposed for electronics and semiconductors, logistics and warehousing, aerospace and defence, and start-ups. An Electronics City and Electronics Manufacturing Cluster is also being developed at Jagiroad.
Fiscal Position and Institutional Credit
On Assam’s fiscal position, Baruah noted that the State’s inter-se share in tax devolution has increased from 3.13 per cent under the 15th Finance Commission to 3.26 per cent under the 16th Finance Commission for 2026-31. He said the Union Budget 2026-27 provides approximately Rs 49,725 crore in tax devolution to Assam. The State has budgeted a fiscal deficit of approximately Rs 26,186 crore, equivalent to 3 per cent of GSDP, while outstanding liabilities are estimated at around 24 per cent of GSDP.
The Minister also highlighted the deepening of institutional credit in the State. Assam’s Credit-Deposit ratio has increased from 41.10 per cent in March 2016 to 73.52 per cent in March 2026. Cumulative priority-sector advances since 2021-22 have crossed Rs 3.69 lakh crore.
Calling for greater participation of banks in Assam’s growth process, Baruah said financial support should extend beyond major anchor investments to the wider ecosystem of MSMEs, vendors, transporters, component manufacturers and service providers that develop around such projects. He particularly emphasised the need for cash-flow-based lending for first-generation entrepreneurs. He said banks could make greater use of verified digital trails, including GST data, digital payments, Udyam registration and invoices, to assess businesses and reduce excessive dependence on traditional collateral.
Connectivity and a Synergistic Future
The Minister also highlighted Assam’s improving road, rail, air and waterways connectivity, including the Brahmaputra and National Waterway-2. He said the State has the potential to emerge as a production and logistics platform for the wider Northeast and for India’s engagement with neighbouring economies.
At the outset, Baruah acknowledged SBI Chairman CS Setty and complimented the SBI team for bringing policymakers, bankers, economists and industry leaders together on a common platform. He shared the panel with Uttar Pradesh Finance Minister Suresh Kumar Khanna. Andhra Pradesh Minister for Finance, Planning, Commercial Taxes and Legislative Affairs Payyavula Keshav and Maharashtra Minister of State for Finance Adv. Ashish Umadevi Nandkishore Jaiswal participated digitally.
The Finance Minister said Assam’s economic strategy rests on a synergy between government, industry and finance, with the government creating an enabling environment, investors building productive assets and banks providing the financial bridge that converts opportunities into economic activity.
“Assam today has economic momentum, a growing investment pipeline, improving infrastructure and a stronger institutional-credit environment. But above all, we have our people — our human resources — who must ultimately become the greatest beneficiaries and drivers of this transformation,” he said. (ANI)
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