Assam Advantage 2.0 Scheme - Key Features of the Assam Advantage 2.0 Scheme

The Assam Advantage 2.0 Scheme is an initiative launched by the Government of Assam aimed at fostering economic growth, encouraging industrial development, and enhancing the overall investment climate of the state. This comprehensive scheme seeks to leverage Assam's natural resources, strategic

location, and rich human capital to attract both domestic and foreign investments. Building on the previous version of the Assam Industrial Policy, Assam Advantage 2.0 adopts a more aggressive approach in promoting industrialization, infrastructure development, and job creation, while ensuring the benefits are widely distributed across various sectors and communities.

Background of the Assam Advantage 2.0 Scheme

The Assam Advantage 2.0 Scheme is a refined and more ambitious iteration of the Assam Industrial Policy of 2017. The primary motivation for launching Assam Advantage 2.0 was to create a dynamic, investor-friendly environment that promotes industrial growth, employment generation, and regional development, capitalizing on the state’s strengths. Assam, known for its abundant natural resources, has long been viewed as an economic powerhouse with immense untapped potential. However, there has historically been a need to create an enabling ecosystem for businesses to thrive in the region. Assam Advantage 2.0 addresses this need while building on the state’s existing advantages.

The scheme aligns with the vision of Atmanirbhar Bharat (Self-reliant India), which encourages the promotion of local industries, innovation, and self-sufficiency. Assam Advantage 2.0 is designed to ensure that the state benefits from India’s growing industrial output, the global supply chain, and the increased emphasis on reducing dependency on imports.

Read Also: Atmanirbhar Assam Scheme

Objectives of the Assam Advantage 2.0 Scheme

The key objectives of the Assam Advantage 2.0 Scheme are as follows:

1.Promoting Industrial Growth: The scheme aims to create a conducive environment for industrial development in Assam by offering a range of incentives, subsidies, and support mechanisms for investors. The goal is to position Assam as a prominent manufacturing and industrial hub in India, particularly for sectors such as tea, petrochemicals, textiles, food processing, handicrafts, and renewable energy.

2. Encouraging Job Creation: A primary focus of the Assam Advantage 2.0 Scheme is job creation. The scheme aims to generate a significant number of employment opportunities for the local population, particularly the youth, across various sectors, including manufacturing, services, and skill-based industries.

3. Infrastructure Development: To foster an investor-friendly environment, the scheme emphasizes the need for infrastructure development, including transportation networks, connectivity, and energy resources. Improved infrastructure enables businesses to access resources more efficiently and reduce operating costs, making Assam a more attractive destination for investment.

4. Attracting Investment: A major goal of the Assam Advantage 2.0 Scheme is to attract both domestic and foreign direct investment (FDI). By offering various incentives and facilities, the state government aims to draw industries from diverse sectors, including manufacturing, agriculture, biotechnology, IT, and renewable energy.

5. Supporting MSMEs and Startups: Assam Advantage 2.0 provides support to micro, small, and medium enterprises (MSMEs) and startups through financial incentives, access to markets, and the necessary ecosystem for innovation. This initiative aligns with the government’s broader vision of fostering an entrepreneurial culture and driving economic growth from the grassroots level.

6.Sustainable Development: The scheme emphasizes sustainable growth, focusing on renewable energy, eco-friendly industries, and environmentally responsible manufacturing processes. It encourages industries to adopt green technologies and ensures the preservation of Assam's natural beauty and resources for future generations.

Key Features of the Assam Advantage 2.0 Scheme

The Assam Advantage 2.0 Scheme offers various incentives and benefits to attract and retain businesses and investors in the state. Some prominent features include:

- Fiscal Incentives:

  - Subsidy on Capital Investment: The scheme provides capital investment subsidies for new industries establishing units in Assam. This subsidy reduces the initial investment burden on entrepreneurs, facilitating the setup of manufacturing units in the state.

  - Tax Benefits: Various tax incentives are available, including Goods and Services Tax (GST) reimbursements, stamp duty waivers, and income tax exemptions for businesses operating in specific sectors. These benefits help businesses lower their operational costs.

  - Interest Subsidies: The Assam Advantage 2.0 Scheme includes interest subsidies on loans taken by industries for setting up their units, which helps reduce the financial cost of industrial operations.

- Infrastructure Development: The government plans to invest in improving infrastructure to support industrial activities and enhance the overall business environment in Assam.The Assam Advantage 2.0 Scheme is an initiative launched by the Government of Assam with the goal of fostering economic growth, encouraging industrial development, and boosting the state’s overall investment climate. It is a comprehensive scheme that aims to leverage Assam’s natural resources, strategic location, and rich human capital to attract both domestic and foreign investments. Building upon the previous version of the Assam Industrial Policy, Assam Advantage 2.0 seeks to take a more aggressive approach in promoting industrialization, infrastructure development, and job creation, while also ensuring that the benefits are widely distributed across various sectors and communities.

Background of the Assam Advantage 2.0 Scheme

The Assam Advantage 2.0 Scheme is a refined and more ambitious version of the Assam Industrial Policy of 2017. The primary motivation behind the launch of Assam Advantage 2.0 was to create a dynamic, investor-friendly environment that promotes industrial growth, employment generation, and regional development, while capitalizing on the state’s strengths. Assam, being a resource-rich state with abundant natural resources, has long been seen as an economic powerhouse with immense untapped potential. However, there has historically been a need to create an enabling ecosystem for businesses to thrive in the region. Assam Advantage 2.0 seeks to address this need and build on the state’s existing advantages.

The scheme aims to align with the vision of Atmanirbhar Bharat (Self-reliant India), which encourages the promotion of local industries, innovation, and self-sufficiency. Assam Advantage 2.0 is designed to ensure that the state benefits from India’s growing industrial output, the global supply chain, and the increased emphasis on reducing dependency on imports.

Objectives of the Assam Advantage 2.0 Scheme

The key objectives of the Assam Advantage 2.0 Scheme are:

1. Promoting Industrial Growth: The scheme aims to create a conducive environment for industrial development in Assam by offering a range of incentives, subsidies, and support mechanisms for investors. The goal is to position Assam as a prominent manufacturing and industrial hub in India, especially for sectors like tea, petrochemicals, textiles, food processing, handicrafts, and renewable energy.
2. Encouraging Job Creation: One of the main focuses of the Assam Advantage 2.0 Scheme is job creation. The scheme aims to generate a significant number of employment opportunities for the local population, particularly the youth, in various sectors such as manufacturing, services, and skill-based industries.
3. Infrastructure Development: To create an investor-friendly environment, the scheme emphasizes the need for infrastructure development, including transportation networks, connectivity, and energy resources. With improved infrastructure, businesses can access resources more efficiently and reduce operating costs, thus making Assam a more attractive destination for investment.
4. Attracting Investment: A major goal of the Assam Advantage 2.0 Scheme is to attract both domestic and foreign direct investment (FDI). By offering various incentives and facilities, the state government aims to attract industries from various sectors, including manufacturing, agriculture, biotechnology, IT, and renewable energy.
5. Supporting MSMEs and Startups: Assam Advantage 2.0 aims to provide support to micro, small, and medium enterprises (MSMEs) as well as startups by offering financial incentives, access to markets, and the necessary ecosystem for innovation. This is in line with the government’s broader vision of fostering an entrepreneurial culture and driving economic growth from the grassroots level.
6. Sustainable Development: The scheme also emphasizes sustainable growth, with a focus on renewable energy, eco-friendly industries, and environmentally responsible manufacturing processes. The initiative encourages industries to adopt green technologies and ensures that the natural beauty and resources of Assam are preserved for future generations.

Key Features of the Assam Advantage 2.0 Scheme

The Assam Advantage 2.0 Scheme offers a variety of incentives and benefits to attract and retain businesses and investors in the state. Some of the prominent features include:

1. Fiscal Incentives:
   • Subsidy on Capital Investment: The scheme offers capital investment subsidies for new industries setting up units in Assam. This subsidy reduces the initial investment burden on entrepreneurs and makes it easier to set up manufacturing units in the state.
   • Tax Benefits: There are various tax incentives, including Goods and Services Tax (GST) reimbursements, stamp duty waivers, and exemptions on income tax for businesses operating in certain sectors. These benefits can help businesses reduce their operational costs.
   • Interest Subsidies: The Assam Advantage 2.0 Scheme also includes interest subsidies on loans taken by industries for setting up their units. This support helps in lowering the financial cost of industrial operations.
2. Infrastructure Development:
   • The government plans to invest in improving the state’s infrastructure, such as roads, railways, ports, and airports. Special attention is being paid to improving connectivity with the rest of India and neighboring countries, as Assam shares international borders with Bhutan and Bangladesh.
   • Logistics and Warehousing: The scheme also aims to develop logistics hubs and warehousing facilities, which will make it easier for industries to transport goods, reducing delays and costs.
3. Land Acquisition and Development:
   • For industries looking to set up in Assam, land acquisition processes are being streamlined under Assam Advantage 2.0. The government plans to provide land at competitive prices to businesses willing to invest in the state. The state also has a dedicated land bank, making it easier for businesses to acquire land for industrial purposes.
4. Skilled Workforce Development:
   • Assam Advantage 2.0 focuses on human resource development. The scheme promotes skill development through partnerships with industrial training institutes, universities, and private training centers. Special training programs are designed to upskill the local workforce, making them employable in various industries.
   • Additionally, the government is working on enhancing the quality of higher education and vocational training in the state to support the growth of high-tech industries like information technology, biotechnology, and engineering.
5. Sector-Specific Support:
   • The scheme offers sector-specific incentives. For example, the tea industry, a cornerstone of Assam's economy, benefits from dedicated incentives such as subsidies for tea processing units, support for the development of export markets, and assistance for the adoption of modern technologies in tea plantations.
   • Other sectors such as agro-processing, renewable energy, biotechnology, textiles, and electronics manufacturing are also given special focus under the scheme.
6. Ease of Doing Business:
   • A key component of the Assam Advantage 2.0 Scheme is the improvement of the ease of doing business in Assam. The state government has introduced several reforms to reduce bureaucratic delays, simplify licensing processes, and provide transparent systems for clearances and permits. This is aimed at making it easier for investors to establish and run businesses in the state.
7. Financial Support for Startups and MSMEs:
• To encourage entrepreneurship, the Assam Advantage 2.0 Scheme provides financial support, mentoring, and networking opportunities for startups and MSMEs. Startups in innovative sectors such as fintech, agritech, and healthcare will receive special incentives like seed funding, tax exemptions, and access to state-backed venture capital funds.

Expected Outcomes and Impact

1. Job Creation: The implementation of Assam Advantage 2.0 is expected to create thousands of new job opportunities across various sectors, including manufacturing, services, and agriculture. This will help reduce unemployment in the region, particularly among the youth, and improve the overall standard of living.
2. Industrial Growth: By attracting investment and providing a supportive ecosystem for businesses, the scheme will contribute to the industrial growth of the state, leading to higher production capacity and increased exports. This will improve Assam’s position in national and global markets.
3. Improved Infrastructure: The development of infrastructure under the scheme will improve transportation, communication, and logistics, facilitating trade and commerce and reducing operational costs for businesses.
4. Sustainable Development: The emphasis on green industries and renewable energy will help ensure that the state’s growth is environmentally sustainable, preserving Assam’s rich natural heritage.

Conclusion

The Assam Advantage 2.0 Scheme is a forward-thinking initiative designed to unlock the economic potential of Assam by promoting industrial growth, improving infrastructure, and creating job opportunities. With a focus on investment attraction, skill development, and sector-specific support, the scheme is poised to transform Assam into one of India’s most dynamic industrial hubs. By creating a favorable ecosystem for businesses and promoting sustainable development, Assam Advantage 2.0 could play a crucial role in the state’s economic growth, benefiting both the local population and the broader Indian economy.