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ARUNACHAL PRADESH November 2010 ARUNACHAL PRADESH November 2010

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ARUNACHAL PRADESH November 2010 ARUNACHAL PRADESH November 2010 ARUNACHAL PRADESH November 2010 ARUNACHAL PRADESH November 2010 Investment climate of a state is determined by a mix of factors • Skilled and cost-effective labour • Procedures for entry and exit of firms • Labour market flexibility • Industrial regulation, labour regulation, other • Labour relations government regulations • Availability of raw materials and natural • Certainty about rules and regulations resources • Security, law and order situation Regulatory framework Resources/Inputs Investment climate of a state Incentives to industry Physical and social infrastructure • Condition of physical infrastructure such as • Tax incentives and exemptions power, water, roads, etc. • Investment subsidies and other incentives • Information infrastructure such as telecom, IT, • Availability of finance at cost-effective terms etc. • Incentives for foreign direct investment (FDI) • Social infrastructure such as educational and • Profitability of the industry medical facilities 2 ARUNACHAL PRADESH November 2010 Contents Advantage Arunachal Pradesh State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Arunachal Pradesh 3 ADVANTAGE ARUNACHAL PRADESH Arunachal Pradesh November 2010 Arunachal Pradesh – State profile • Covering an area of 83,743 sq km, Arunachal Pradesh is the largest state in the Northeast India. • The state is located in the extreme Northeastern corner of the country. It shares its border with the neighbouring 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. • Itanagar is the state capital. Arunachal Pradesh has 16 administrative districts. • Naharlagun, Tawang, Tezpur, Bomdila, Ziro, Pasighat and Tezu are the major towns in the state. • Brahmaputra is the major river flowing through the state. Other smaller rivers include Kameng, Subansiri, Lohit and Tirap. • The most commonly spoken languages are Assamese, Bengali and Hindi. English is the primary medium of education in the schools. 4 ADVANTAGE ARUNACHAL PRADESH Arunachal Pradesh November 2010 Advantage Arunachal Pradesh … (1/2) Rich and varied agro-climatic conditions Undulating topography and varied agro-climatic conditions offer vast potential for horticulture and growing a variety of fruits, vegetables, spices, aromatic and medicinal plants, flowers and mushroom. Policy and fiscal incentives The state offers a wide range of fiscal and policy incentives and assistance for businesses under the State Industrial Policy, 2008. Additionally, the state has sector- specific policies for industries related to power and agriculture. 5 ADVANTAGE ARUNACHAL PRADESH Arunachal Pradesh November 2010 Advantage Arunachal Pradesh … (2/2) Facilitating industrial infrastructure The state has 12 industrial estates, established across districts. To support industrial growth, the State Government has also notified integrated infrastructure development centres, industrial growth centres and industrial areas. International trade opportunities The geographic location of the state provides immense opportunities for international trade with the South Asian countries through its shared borders with Myanmar, Bhutan and China. 6 ADVANTAGE ARUNACHAL PRADESH Arunachal Pradesh November 2010 Arunachal Pradesh in figures … (1/2) Parameter Arunachal Pradesh All-states Source Economy GSDP as a percentage of all states‟ 0.1 100.0 CMIE, as of 2007-08, current prices GSDP Average GSDP growth rate (%)* 11.7 11.8 CMIE, 2000-01 to 2007-08, current prices Per capita GSDP (US$) 811.4 992.5 CMIE, as of 2007-08, current prices Physical infrastructure Installed power capacity (MW) 201.9 159,398.49 Central Electricity Authority, as of March 2010 Cellular Operators Association of India, GSM cellular subscribers (No) 5,519,150^ 456,586,162 as of June 2010 Broadband subscribers (No) 14,202# 4,981,976 As of October 2008 Ministry of Road Transport & Highways, Annual National highway length (km) 1,992 70,548 Report 2008-09 Airports (No) 1 133 Airport Authority of India * In terms of Indian rupee ^ Figures for the Northeastern region comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura # Figures for the Northeastern region comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura 7 ADVANTAGE ARUNACHAL PRADESH Arunachal Pradesh November 2010 Arunachal Pradesh in figures … (2/2) Parameter Arunachal Pradesh All-states Source Social indicators Literacy rate (%) 54.3 64.8 Census of India, 2001 Ministry of Health & Family Welfare, RHS Bulletin, Birth rate (per 1,000 population) 21.8 22.8 March 2008 Ease of doing business Outstanding investments (US$ 23.7 1,972.6 CMIE, as of March 2010 billion) 8 ADVANTAGE ARUNACHAL PRADESH Arunachal Pradesh November 2010 Key industries with policy thrust and factor advantages Industry attractiveness matrix High Power Agro- and forest-based industries Handloom Medium Policy thrust Policy Minerals Tourism Low Medium High Factor advantage *Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital 9 ARUNACHAL PRADESH November 2010 Contents Advantage Arunachal Pradesh State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Arunachal Pradesh 10 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Arunachal Pradesh November 2010 Socio-economic snapshot of Arunachal Pradesh Parameters Arunachal Pradesh Capital Itanagar Geographical area (sq km) 83,743 Administrative districts (No) 16 Population density (persons per sq km) 13 Total population (million)^ 1.1 Male population (million) 0.6 Female population (million) 0.5 Population growth rate 1991-2001 (%)^ 27 Sex ratio (females per 1,000 males)^ 901 Literacy rate (per cent)^ 54.3 Male (%) 63.8 Female (%) 43.5 Average life expectancy (years)* 54.1 Source: Arunachal Pradesh Human Development Report, 2005 *As of 2000 ^Census 2001 11 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Arunachal Pradesh November 2010 Arunachal Pradesh‟s GSDP • At current prices, the Gross State Domestic Product (GSDP) of Arunachal Pradesh was US$ 986.2 million in 2008-09. • Arunachal Pradesh‟s GSDP grew at a compound average growth rate (CAGR) of 12.3 per cent from 1999-2000 to 2008-09. Arunachal Pradesh‟s GSDP (US$ million) 1,000.0 967.2 986.2 CAGR 812.6 800.0 12.3% 631.3 648.5 600.0 541.8 438.4 454.2 370.1 400.0 345.9 200.0 0.0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Source: CMIE 12 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Arunachal Pradesh November 2010 Arunachal Pradesh‟s NSDP • At current prices, the Net State Domestic Product (NSDP) of Arunachal Pradesh was US$ 873.1 million, in 2008-09. • Arunachal Pradesh‟s NSDP at current prices grew at a CAGR of 11.8 per cent between 1999-2000 and 2008-09. Arunachal Pradesh‟s NSDP (US$ million) 1,000.0 858.3 873.1 800.0 CAGR 721.3 11.8% 576.1 600.0 564.0 501.8 408.5 421.0 400.0 321.2 344.7 200.0 0.0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Source: CMIE 13 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Arunachal Pradesh November 2010 Arunachal Pradesh‟s economy is driven by the secondary sector • In 2008-09, the tertiary sector contributed 39.9 Percentage distribution of GSDP per cent to state‟s GSDP at current prices, 100% CAGR followed by the secondary sector, contributing 80% 39.9 10.5% 31.5 per cent. 46.3 60% 19.1% 40% 18.6 31.5 • Growth in the state‟s economy has been driven 20% by secondary sector including electricity, gas and 35.1 28.5 9.8% water supply, manufacturing and construction, 0% which has grown at a CAGR of 19.1 per cent 1999-00 2008-09 between 1999-2000 and 2008-09. Primary Sector Secondary Sector Tertiary Sector Source: CMIE 14 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Arunachal Pradesh November 2010 Per capita GSDP • In 2008-09, the state‟s per capita GSDP, at current prices, was US$ 817.7. • The per capita GSDP grew at a CAGR of 10.9 per cent between 1999-2000 and 2008-09. In terms of actual value, the per capita GSDP has grown around 2.5 times during the same period. Per capita GSDP 1,000.0 817.7 811.4 800.0 CAGR 689.8 10.9% 600.0 549.4 557.6 477.4 US$ 394.9 405.2 400.0 339.2 323.2 200.0 0.0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Source: CMIE 15 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Arunachal Pradesh November 2010 Key industries in Arunachal Pradesh • The resources, policy incentives and climate in the Key industries in Arunachal Pradesh state support investments in mining and mineral products (including cement), tissue culture and • Art and crafts floriculture, plantation crops (tea, rubber, etc.) and • Weaving agro-based industries. • Cane and bamboo • The North Eastern Development Finance • Carpet weaving Corporation Limited is engaged in catalysing the • Wood carving industrial growth of the Northeastern region (including Arunachal Pradesh) by providing • Ornaments counselling, timely advice and assistance for building • Tourism quality enterprises. • Horticulture • The Department of Industries, Government of • Saw mills and plywood Arunachal Pradesh, is responsible for promoting industrial activities in the state to provide employment opportunities to the rural and urban people. • The Department of Industries has set up district industries centres (DICs) and sub-district industries centres (sub-DICs) for the industrial development of small scale, tiny and village industries. 16 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Arunachal Pradesh November 2010 Employment profile of Arunachal Pradesh • The primary sector employs around 67.4 Sector-wise distribution of workers per cent of the total workforce in Percentage Arunachal Pradesh, followed by tertiary Sector of total workforce employed sector (23.9 per cent) and secondary sector (8.7 per cent).
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