Arunachal Pradesh to Become Premier Investment Hub

BNE News Desk

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Guwshati: Arunachal Pradesh to transform into a thriving investment destination as the Arunachal Pradesh State Industrial and Investment Policy 2020 gets amended. 

This amendment in the policy will foster technology upskilling, and a business conduscive ecosystem that promotes employment opportunities and balanced regional development.

The amended policy, which encompasses a range of strategic measures, is designed to incentivize large-scale industries and attract investors, ultimately bolstering the state's economy and facilitating the creation of substantial job opportunities. 

One of the foremost attractions for potential investors under the new policy is an enhanced package of power subsidies. 

The power subsidy in the state for small and medium enterprise is Rs 2/unit and for large scale factories/ bulk electricity consumers its Rs 1/ unit. The state also offers other subsidies, including 30% subsidy on investment in plant and machinery, 50% subsidy on investment in plant and machinery for women entrepreneurs, 80% interest subsidy to micro enterprises, 50% to small enterprises, and 50% to medium enterprises, 25% reimbursement of the cost of putting up public charging infrastructures and stations for local entrepreneurs as well subsidies for tractors, power tillers, PDMs, rotary tillers, power sprayers, sugar cane crushers, and atta chakkis.

These subsidies, specifically amended to benefit large-scale industries, are expected to significantly reduce operational costs, making Arunachal Pradesh an even more enticing destination for industrial ventures.

Additionally, the amended policy incorporates tax incentives to further sweeten the deal for investors. The provision of tax benefits is anticipated to ease the financial burden on industries and create a favorable environment for business expansion and investment.
CM Khandu said that, this will further develop the state as a prominent hub for industrial and economic growth in the northeastern region as well as open up new vistas for the local and outside investors.

Arunachal Pradesh Industrial and Investment Promotion Policy 2020 with this amendment will bridge the gap between potential and investments in the state, said Tumke Bagra, minister of industries, skill development & entrepreneurship, textile & handicrafts, trade & commerce.

Furthermore, the new policy streamlines the bureaucratic process by offering a single-window clearance mechanism for all mandatory licenses. This simplification of administrative procedures is expected to expedite the establishment of new businesses, contributing to a more efficient and investor-friendly environment.

The objective of the amended policy is to foster a conducive ecosystem for generating employment and promoting balanced regional development. With its forward-looking approach and comprehensive set of incentives, the policy amendment is set to make Arunachal Pradesh an increasingly attractive choice for both domestic and international investors, propelling the state toward economic prosperity and job creation.


In alignment with the broader goals of the policy, Arunachal Pradesh is committed to providing skill development opportunities that empower its workforce with the latest technological skills. This strategic focus on skills training is intended to meet the evolving demands of modern industries and ensure that the local workforce remains competitive and job-ready.

BNE News Desk