The Core Committee (Composition as in 2002) Dr. K. Venkatasubramanian Member, Planning Commission Chairman Shri S.C. Das Commissioner (P&D), Government of Assam Member Prof Kirit S. Parikh Indira Gandhi Institute of Development Research Member Dr. Rajan Katoch Adviser (SP-NE), Planning Commission Member-Convener Ms. Somi Tandon for the Planning Commission and Shri H.S. Das & Dr. Surojit Mitra from the Government of Assam served as members of the Core Committee for various periods during 2000-2002. Project Team Indira Gandhi Institute of Development Research, Mumbai Professor Kirit S. Parikh (Leader and Editor) Professor P. V. Srinivasan Professor Shikha Jha Professor Manoj Panda Dr. A. Ganesh Kumar Centre for North East Studies and Policy Research, New Delhi Shri Sanjoy Hazarika Shri Biswajeet Saikia Omeo Kumar Das Institute of Social Change and Development, Guwahati Dr. B. Sarmah Dr. Kalyan Das Professor Abu Nasar Saied Ahmed Indian Statistical Institute, New Delhi Professor Atul Sarma Acknowledgements We thank Planning Commission and the Government of Assam for entrusting the task to prepare this report to Indira Gandhi Institute of Development Research (IGIDR). We are particularly indebted to Dr. K. Venkatasubramanian, Member, Planning Commission and Chairman of the Core Committee overseeing the preparation of the Report for his personal interest in this project and encouragement and many constructive suggestions. We are extremely grateful to Dr. Raj an Katoch of the Planning Commission for his useful advice, overall guidance and active coordination of the project, which has enabled us to bring this exercise to fruition. We also thank Ms. Somi Tandon, who helped initiate the preparation of the Report, all the members of the Core Committee and officers of the State Plans Division of the Planning Commission for their support from time to time. We have received help, support and suggestions from many people in the Government of Assam. We thank H.S. Das, Commissioner and Secretary, Dr. Surojit Mitra, Commissioner and Secretary, Shri Pritam Saikia, Joint Secretary and all the officers of the Planning and Development Department for their enthusiastic and untiring support and all help. The background work for different themes were mainly done by different members of the team as follows: Strategy for Assam’s Development - Kirit Parikh; Prospects for Economic Growth - Manoj Panda; Reorienting Fiscal Strategies - Shikha Jha; Poverty, Health and Education - P.V. Srinivasan; Infrastructure - Kirit Parikh; Industries - Atul Sarma; Transport on the Brahmaputra - Sanjoy Hazarika and Biswajeet Saikia; Agriculture: Constraints and Policy Options - A. Ganesh Kumar; Shallow Tubewell survey - B. Sarmah; Pisciculture and Forestry - Kalyan Das; and Tourism - Abu Nasar Saied Ahmed. We have also benefited from the many suggestions made by the participants (names listed in the Appendix) at the Workshop held in February 2002 at Guwahati to discuss the draft report. They have helped us improve the Report. We had had discussions with many people from which we gained a lot. Their names are listed in an Appendix. We thank them all for their interest and support. They should not however be held responsible for the content of the report. We thank the students of IGIDR who have provided research assistance, Bijan Borah, Phanindra Goyari, Sarika Kansal, Ishita Das, Ibotombi Longjam and Pramod Dabrase. Finally, we thank Mahesh Mohan who has typed repeatedly various drafts and formatted the final report in this attractive form. Kirit S. Parikh & Project Team Dr. K. Venkatasubramanian YOJANA BHAWAN MEMBER PARLIAMENT STREET PLANNING COMMISSION N EW DELHI - 110001 GOVERNMENT OF INDIA Tel. : 3719575(0) 3384606 (R) Fax : 3715219 E-mail: [email protected] INTRODUCTION 1. The Assam Development Report, prepared by the Union Planning Commission and Government of Assam with the assistance of the Indira Gandhi Institute of Development Research (IGIDR), Mumbai, is one of the seminal State Development Reports being prepared by the Planning Commission, thanks to the in-itiative taken by our Hon'ble Deputy Chairman Shri K. C. Pant. 2. We have initiated under his direction and in coordination with the States concerned, preparation.of State Development Reports (SDR) for thirteen States so far. Over the Tenth Plan period, this exercise will be expanded to include most of the States in the country. The salient aim of these Reports is to provide a quality reference document on the development profile and strategies for accelerating the growth rate of the States. These SDRs are to act as major inputs in Development. 3. This exercise is particularly relevant in the case of Assam, since in the period 1993-94 to 1999-2000, when the all India rate of growth of Gross Domestic Product (GDP) was around 6.68%, the growth of the State Domestic Product (SDP) of Assam was only 2.49%. In the Tenth Plan we are aiming to achieve a national growth target of 8% per annum, and this would require achieving a growth rate of over 6 per cent per annum even in less developed States like Assam. The Assam Development Report hopes to catalyse policy action towards the desired growth strategy that will enable Assam to achieve the growth rates of over 6% per annum, that are now being targeted for the State for the Tenth Plan and beyond. 4. Assam is a very important border State and a developed Assam will be a great asset to the Nation as a whole. I trust that the report will also be a useful working document, which will impart value for development practitioners interested in the State. I commend this report to the people of Assam, and look forward to it setting out a road map for accelerated growth and intensified poverty reduction for the State in the future. 5. I would like to place on record my deep sense of appreciation of the significant work of Prof. Kirit Parikh, Chairman, IGIDR, Mumbai and Dr. Rajan S. Katoch, IAS, Adviser (SP- NE) of the Planning Commission in addition to officers of the Assam Government. (1 New Delhi Date (K Venkaiasubra#rfanian) 20.08.2002 Chiei Minister, Assam G uw aha ti Tarun Gogoi Assam Development Report Foreword Contrary to what was envisioned in our constitution, the five decades of planning could not reduce the regional disparity in our country; in fact, in many spheres the gap has widened further. The rate of economic growth in a vast majority of areas is abysmally poor and Assam is not a case in exception in this trend. Therefore, it is high time we looked back at the strategies of development adopted during the last five decades and make an in depth analysis of the net results thus arrived at. It is clear that, for the country to prosper as a single entity, there has to be all round uniform development across the length and breadth of the country and for that purpose the areas of low growth syndrome needs special attention from the top policy makers. The Assam Development Report prepared by the Planning Commission along with the Government of Assam and Indira Gandhi Institute of Development Research suggests a framework for the de\elopment of Assam. It also makes a number of policy recommendations for accelerating the pace of development in Assam. We will strive to take all the measures that are within our means to accelerate the process of development in the state, however difficult it might be. At the same time, we do urge for the required attention and help from the Central Government, in a proactive manner, particularly for issues where it alone can act. The present Government in Assam is committed to ensure that the standard of living of the people in the state continues to improve. I hope that the present report will help all of us to come to grips with today's realities and help make quick rational development decisions. I look forward to the Assam Development Report becoming a valuable input in focusing attention to key development issues by all concerned. (Tarun Gogoi) Date : 14.8.2002 Chief Minister, Assam Executive Summary State of Assam’s Development - The Point of Departure 1. The most striking fact of Assam’s economic development 1s that it 1s falling behind the rest of the country. In 1950-51, per capita income in Assam was 4 per cent above national average. In 1998-99 it was 41 per cent below the national average at current prices and 45 per cent below the national average at 1980-81 prices. What is even more alarming is that the gap is growing. Between 1980 and 1990, per capita income at 1980-81 prices grew by 20 per cent in Assam compared with 40 per cent for all-India. Between 1980 and 1998, per capita income in Assam grew by 10 per cent compared with 39 per cent for all India. 2. During 1951-79, Assam’s economy grew at more or less the same rate as the rest of India. Yet, Assam’s per capita income fell due to higher rate of population growth in Assam due to immigration. Over the period Assam’s population grew at an average rate of around 4 per cent per year. The widening disparity since 1980-81 is, however, due to slower growth of its economy. While the Indian economy grew at 6 per cent over 1981 to 2000, Assam State GDP grew only at 3.3 per cent. And though the growth rate of the Indian economy accelerated in the 1990s over 1980s, Assam’s economy decelerated in the 1990s. The poor growth performance is in all sectors. Agriculture has grown only at 2.1 per cent per year over the 1980s and 1990s and has slowed down in the 1990s to 1.6 per cent.