Syllabus: GS-III & V – Investment

Why in the News?

During the Advantage Assam 2.0 Investment & Infrastructure Summit 2025, the Assam government signed 297 Memorandums of Understanding (MoUs) worth ₹2,77,438.97 crore with various departments. Industries Minister Bimal Borah informed the State Assembly that a significant portion of these agreements has already been implemented.

Overview of the Summit

Advantage Assam 2.0 is the State’s flagship investment summit aimed at attracting domestic and global investors.

Focus sectors include: infrastructure, manufacturing, agriculture, tourism, energy, IT, transport, tea, and skill development.

Key Highlights

1. Scale of Investment

• 297 MoUs signed → ₹2.77 lakh crore investment potential.
• 70 MoUs worth ₹1,20,958.93 crore have already been implemented.

2. District-Level Agreements

• 2,678 agreements signed at District Industries and Commercial Centres (DICCs).
• Total value: ₹7,122.24 crore.
• 494 grounded, 1,174 under process.

3. Rising Foreign Direct Investment

This indicates renewed investor confidence in the State.

Significance

Investment Outcomes

• Boost employment generation across sectors.
• Improve connectivity and logistics under Act East Policy.
• Strengthen industrial ecosystems around major hubs—Guwahati, Dibrugarh, Nalbari, Tinsukia, Bongaigaon.
• Expand exports through strategic links to Bangladesh, Bhutan, and Southeast Asia.

Policy & Governance Alignment

The MoUs support:

• Assam Industrial and Investment Policy
• Start-up Assam framework
• North East Industrial Development Scheme (NEIDS)
• PM Gati Shakti for infrastructure mapping
• Make in India
• Ease of Doing Business reforms

Sectors Attracting Major Investments

• Green energy (solar, biofuel, waste-to-energy)
• Petrochemicals & refinery expansions
• Tea value addition
• Tourism circuits (Kaziranga, Majuli, Haflong)
• Skill development & IT parks
• Agro-processing and food parks
• Transportation and logistics hubs

Issues & Challenges

• Implementation delays due to land acquisition hurdles.
• Need for faster clearances via single-window system.
• Infrastructure constraints in interior districts.
• Skilled workforce shortage—requires alignment with Skill India Mission.

Way Forward

• Strengthening district-level industrial facilitation committees.
• PPP push in logistics, health and tourism.
• Faster digitalisation of land records (ULPIN, Mission Basundhara).
• Policy continuity ahead of 2026 elections to maintain investor trust.

Conclusion

The signing of 297 MoUs marks a major step toward transforming Assam into a competitive investment destination. With over ₹1.20 lakh crore already implemented, the State is poised to leverage its strategic geography, natural resources, and emerging industrial clusters to drive inclusive development.

Exam Hook: Key Takeaways

• 297 MoUs → ₹2.77 lakh crore investment.
• 70 MoUs → already implemented (₹1.2 lakh crore).
• 2,678 district-level agreements → 494 grounded.
• Highest recent FDI inflow: USD 16.81 million (2025–26).
• Supports NEIDS, PM Gati Shakti, Act East Policy.

Mains Practice Question (One Line)

Q. Discuss the significance of the Advantage Assam 2.0 Summit in transforming Assam into an emerging investment and industrial hub. What challenges must the State overcome to fully realise the potential of the 297 MoUs signed?