Last updated: Dec, 2023
Introduction
Arunachal Pradesh is the largest among the seven states located in the northeast of India, with an area of 83,743 sq kms. It shares its borders with the neighboring countries of Bhutan in the west, China (Tibet) in the north and northeast, Myanmar in the east and southeast, and the Indian states of Assam and Nagaland in the south. The geographic location of the state provides immense opportunities for international trade with South Asian countries such as Myanmar, Bhutan, and China. At current prices, Arunachal Pradesh’s GSDP is estimated to reach Rs. 37,870 crore (US$ 4.60 billion) in 2023-24.
The land is mostly mountainous with the Himalayan ranges. The state is divided into five river valleys - the Kameng, the Subansiri, the Siang, the Lohit, and the Tirap. These river valleys have immense hydropower potential, currently estimated at 50,328 Megawatt (MW), or approximately 22% of India's current power generating capacity. As of September, 2023, Arunachal Pradesh had a total installed power-generation capacity of 773.32 MW. The state's economy is largely agrarian, based on the terraced farming of rice and the cultivation of crops such as maize, millet, wheat, pulses, sugarcane, ginger, oilseeds, cereals, potato, and pineapple. In 2021-22* total horticulture production reached 205.34 thousand metric tonnes (MT).
Some of the other key industries of the state include art and crafts, weaving, cane and bamboo, horticulture, power, and mineral based industry. The state and central Governments have both offered huge fiscal and policy incentives for the development of thrust sectors in the state. Some of these policies include Public Private Partnership Policy 2011, the State Industrial Policy 2008, and the Hydro Power Policy 2008.
Recent Developments in Key Sectors
- According to the Department for Promotion of Industry and Internal Trade (DPIIT), the state attracted FDI inflow worth US$ 5.55 million between October 2019- June 2023.
- In 2022-23, construction of 2,000 km of road per year was announced by the State Government.
- Mr. Jyotiraditya M. Scindia, Minister for Civil Aviation and Steel inaugurated the newly developed infrastructure of Tezu Airport in Arunachal Pradesh on September 24, 2023. Airport Authority of India (AAI) re-developed the airport under the Regional Connectivity Scheme (RCS) UDAN at a cost of Rs. 170 Crores (US$ 20.68 million).
- The airport is developed on 212 acres of land, and capable of handling operations for ATR 72 type of aircraft. AAI undertook the development and upgradation work to operationalize Tezu Airport at the request of the State Government.
- The Prime Minister, Shri Narendra Modi inaugurated Donyi Polo Airport, Itanagar and dedicated 600 MW Kameng Hydro Power Station to the nation in November, 2022. The Prime Minister said that Donyi Polo Airport will be the fourth operational airport for Arunachal Pradesh, taking the total airport count in the North-East region to 16.
- The state has significantly scaled up its capacity by capitalizing on its hydropower potential. The state’s hydropower generation potential is estimated at 46,850.17 Megawatt (MW).
- According to the Telecom Regulatory Authority of India (TRAI), Arunachal Pradesh had 1.25 million wireless subscribers and 0.02 million wireline subscribers as of March 2023. The number of internet subscribers in Arunachal Pradesh stood at 0.78 million, as of March 2023. Arunachal Pradesh had a total tele-density of 81.16%, as of March 2023.
- In budget 2023-24, Chief Minister’s Comprehensive State Road Development Plan: Under this plan, 3,650 km of important roads which connect to areas such as: the Capital Complex, District Headquarters and state highways will be improved at a cost of Rs. 200 crore (US$ 24.33 million)
- Arunachal Pradesh has allocated 11.4% of its total expenditure towards roads and bridges, which is higher than the average allocation by states (4.5%).
- Under the state budget 2022-23, the state government has allocated Rs. 100 crore (US$ 12.58 million) each for Atmanirbhar Krishi Yojana (agriculture) and Atmanirbhar Bagwani Yojana (horticulture).
- In 2021-22 (as per third advance estimates), the total horticulture production reached 205.34 thousand metric tonnes.
- Tourist arrivals in the state was recorded at 103,097 in 2021, with 102,915 domestic and 182 foreign visitors. During September 2023, tourist arrival stood at 2,688 including domestic travelers (2673) and foreign travelers (15).
- Agriculture and Forest-Based Industries: The state is largest producer of kiwis in India and the second largest producer of large cardamom. The state also has various inland fisheries resources.
