Itanagar: A recent study by the MSME Export Promotion Council and the Confederation of Organic Food Products and Marketing Agencies (COII) has identified Arunachal Pradesh as a burgeoning gateway for the Asia-Pacific region.
The study, titled “Arunachal Pradesh Investment, Growth & Development with immense opportunities with Asian Countries,” was released today by Dr DS Rawat, chairman of the MSME EPC.
The findings indicate a significant shift in the state’s agricultural practices, transitioning from traditional jhum cultivation to settled agriculture.
Investment
According to the CMIE data for 2021-22, the state has seen a considerable influx of new investment projects worth Rs 5646.3 million, with completed projects amounting to Rs 27325 million and revived projects at Rs 1000000 million. The total outstanding investment projects were valued at Rs 3771630 million, with Rs 1611659 million under implementation.
Comparatively, in the fiscal year 2020-21, new investment projects announced were worth Rs 8435 million, completed projects totaled Rs 88602 million, and revived projects were valued at Rs 14850 million. The outstanding investment projects then were Rs 2823868 million, with Rs 1532280 million under implementation.
MSME boost
The study highlights the potential for growth in agro, forest, and mineral-based micro, small, and medium enterprises (MSMEs) in Arunachal Pradesh.
The state currently hosts approximately 0.23 lakh MSMEs, employing about 0.41 lakh people.
Notably, the MSME sector in Papum Pare district significantly contributes to the state’s economic development, second only to agriculture in terms of employment generation.
MSMEs, constituting about 60% of industrial units, 35% of manufacturing output, and 30% of the services sector, are poised for growth as ancillary industries. They offer advantages such as being less capital-intensive, more employment-friendly, and having easier access to raw materials, subsidies, and incentives.
However, the study also points out challenges and issues faced by MSMEs, including management-related factors like production, marketing, human resources development, financial, technology, and infrastructure.
Hydro potential
The report further notes Arunachal Pradesh’s hydro potential, estimated at nearly 57,000 MW, with only 1771 MW currently being generated. Harnessing this potential through small or large hydro projects could significantly boost the state’s GDP and revenue streams.
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