ITANAGAR, 24 Jan: Arunachal Pradesh is fast emerging as the gateway for Asia-Pacific, with the northeastern state currently witnessing subsistence farming, making a transition from shifting jhum cultivation to settled agriculture fast, according to a study released on Wednesday.
The study conducted by the MSME Export Promotion Council and the Confederation of Organic Food Products & Marketing Agencies (COII), for the period of 2018-19 to 2022-23, stated that Arunachal has a huge potential for agro, forest, mineral-based micro, small and medium enterprises.
According to central government data, the estimated number of MSMEs in the state is only 23,000 and employ 41,000 people.
The study revealed that the MSMEs have significantly contributed to the economic development of the Papum Pare district, which occupies the second position, next to agriculture, in
terms of employment generation.
The sector accounts for about 60 per cent of industrial units, 35 per cent of manufacturing output, and 30 per cent of the service sector.
“MSMEs have greater opportunities to grow as ancillary industries to unleash higher industrial growth. The sector, being less capital intensive and more employment friendly, has easier access to raw materials, subsidies and other incentives,” the study said.
The sector, however, is facing many challenges and issues due to internal and external factors hampering MSMEs’ performance. These include management-related factors like production, marketing, human resources development, financial, technology and infrastructure. It said that the state has a huge untapped hydro potential, estimated at nearly 57,000 MW, of which 1771 MW, is generated at present.
Tapping this potential through small hydro projects, say 1,000 MW capacity or even large run-of-the-river projects could increase the state’s GDP and revenues, the study suggested.
Releasing the study on “Arunachal Pradesh Investment, Growth & Development with immense opportunities with Asian Countries”, in New Delhi Chairman of the MSME EPC, Dr D S Rawat, said that the farmers in Arunachal Pradesh are tapping the untapped opportunities in commercial agriculture and floriculture.
“If this trend continues, this will help the farming community in the state to enhance their income, and provide sustainable livelihood,” Dr Rawat said.
He added that as per the CMIE data, during 2021-22, new investment projects announced for Arunachal Pradesh were Rs 564.63 crore. (PTI)
