Economy of Assam

Economy of Assam

Guwahati, the capital of Assam as viewed from atop of Nilachal hill.
Currency	Indian rupee (INR, ₹)
Fiscal year	1 April – 31 March
Country group	Developing/Emerging[1] Lower-middle income economy[2]
Statistics
30th)
Unemployment	4.0% (Nov 2020)[5]
Public finances
Government debt	25.74% of GSDP (2022-23 est.)[3]
Budget balance	₹−15,354 crore (US$−1.9 billion) (3.19% of GSDP) (2022-23 est.)
Revenues	₹99,674 crore (US$12 billion) (2022-23 est.)[3]
Expenses	₹1.15 lakh crore (US$14 billion) (2022-23 est.)[3]

The Economy of Assam is largely agriculture based with 69% of the population engaged in it.

Macro-economic trend

The economy of Assam today represents a unique juxtaposition of backwardness amidst plenty.^[6] Growth rate of Assam's income has not kept pace with that of India's during the Post-British Era; differences increased rapidly since the 1970s.^[7] While the Indian economy grew at 6 percent per annum over the period of 1981 to 2000, the same of Assam's grew only by 3.3 percent.^[8] In the Sixth Plan period Assam experienced a negative growth rate of 3.78 percent against a growth rate of 6 percent of India's.^[7] In the post-liberalised era (after 1991), the gaps between growth rates of Assam's and India's economy widened further.

In the current decade, according to recent analysis, Assam's economy is showing signs of improvement. In the year 2001–2002, the economy grew in 1993-94 constant prices at 4.5 percent, falling to 3.4 percent in the next financial year.^[9] During 2003-2004 and 2004–2005, in the same constant prices, the economy grew more satisfactorily at 5.5 and 5.3 percent respectively.^[9] The advanced estimates placed the growth rate for the year 2005–2006 at above 6 percent.^[10]

In the 1950s, soon after the independence, per capita income in Assam was little higher than that in India;^[11] it is much lower today. In the year 2000–2001, per capita income in Assam was INR 6,157 at constant prices (1993–94) and INR 10,198 at current prices, which is almost 40 percent lower than that in India.^[12] According to the recent estimates,^[10] per capita income in Assam at 1993-94 constant prices has reached INR 6520 in 2003-2004 and INR 6756 in 2004–2005, which is still much lower than the same of India.

This is a chart of trend of gross state domestic product of Assam at market prices estimated by Ministry of Statistics and Programme Implementation with figures in millions of Indian Rupees.

Assam's gross state domestic product for 2004 is estimated at $13 billion in current prices.

Sectoral analysis again exhibits a dismal picture. The average annual growth rate of agriculture, which was only 2.6 percent per annum over 1980s fell to 1.6 percent in the 1990s.^[13] The manufacturing sector showed some improvement in the 1990s with a growth rate of 3.4 percent per annum than 2.4 percent in the 1980s.^[13] In the past five decades, the tertiary sector has registered the highest growth rates than the primary and secondary sectors, which have slowed more in the 1990s than in the 1980s.^[13]

Agriculture and Livestock

Agriculture accounts for more than a third of Assam's income

Given below is a table of 2015 national output share of select agricultural crops and allied segments in Assam based on 2011 prices^[15]

Assam's agriculture has yet to experience modernisation in a real sense and is lagging behind.^[11] With implications to food security, per capita food grain production has declined in past five decades.^[16] On the other hand, although productivity of crops increased marginally, still these are much lower in comparison to highly productive regions. For instance, yield of rice, which is staple food of Assam, was just 1531 kg per hectare against India's 1927 kg per hectare in 2000-2001^[16] (which itself is much lower than Egypt’s 9283, United States's 7279, South Korea’s 6838, Japan's 6635 and China's 6131 kg per hectare in 2001^[17]). On the other hand, although having a strong domestic demand, 1.5 million hectares of inland water bodies and numerous rivers and streams and 165 varieties of fishes,^[18] fishing is still in its traditional form and production is not self-sufficient.^[19]

Oil and Gas

Assam is a major producer of

Paper mills at Jogighopa, Jagiroad and Panchagram are no longer functioning.

References