Economy of Arunachal Pradesh


Arunachal Pradesh is the land of tribal groups like Nishi, Mishmi,Mompa, Khamti, etc. The land has not yet tasted the effects of complete urbanization. Though it is a land blessed with varied resources, economy of Arunachal Pradesh has still not attained self-sufficiency. Economy in Arunachal Pradesh depends on the following:

Agriculture in Arunachal Pradesh

Arunachal Pradesh with a massive 94% rural population, is the largest state in the North-East India. Consequently, the economy of the state is based of agriculture. Jhum cultivation and Terrace farming are the major patterns that the farmers employ to uplift agriculture in Arunachal Pradesh. In Jhum cultivation, lands are prepared by cutting down or burning the unwanted cultivation, while in terrace farming hilly cultivated lands are shaped into multiple terraces to prevent soil erosion and quick runoff of water. The Government of Arunachal Pradesh Agricultural Policy in 2001 formulated these objectives:

  • Dissolve problems of Jhum Cultivation.
  • Supply sufficient inputs.
  • Encourage private investment
  • Developing agricultural infrastructure.
  • Modernize drought and flood management.
Out of 83,74,200 hectares, agriculture in Arunachal Pradesh occupies only 1.10 lakh hectares under Jhum cultivation and 90 lakh hectares under permanent cultivation. The topography and climate of Arunachal Pradesh is conducive for the cultivation of rice, millet, wheat, pulses, sugarcane and potatoes. There are 8 Government farms in Arunachal Pradesh. They are:

  • Government Agricultural Farm, Pasighat
  • Government Agricultural Farm, Pampoli
  • Government Agricultural Farm, Yazali
  • Government Seed Farm, Sonajuli
  • Government Seed Farm, Bolung
  • Government Seed Farm, Tezu
  • Government Seed Farm, Jomlo
  • Government Potato Foundation Seed Multiplication Farm, Tawang.
The institutions upgrading Agriculture in Arunachal Pradesh are:
  • Soil Testing Laboratory, Pasight
  • Gramesevak Training Center, Pasighat
  • Farmers Training Center, Pasighat, Kheram, Ziro, Salari
  • Organic Fertilizer Production Unit, Kheram
  • Seed Testing Laboratory, Sonajuli.
The agro-climatic conditions also promote Horticulture in Arunachal Pradesh, producing tropical and sub-tropical fruits like Apple, Pineapple, Orange, Pear, Plums, Chestnut, Walnut, Guava, etc. Other major Horticultural products in Arunachal Pradesh are bamboo, spices, aromatic and medicinal plants, ginger, cardamom and mushroom.



Economy

The diets and dishes of the locals of Arunachal Pradesh are predominantly non-vegetarian. Fish, along with meat and egg is the hot favorite item on the menu chart. But theproduction of fish in Arunachal Pradesh is far below the demand. So they has to import fishes from other states of India, mainly from Andhra Pradesh and West Bengal. This has prompted the governing bodies of the state to lay more stress on pisciculture and meet their own demands.Fisheries in Arunachal Pradesh has a bright prospect for the fact that the state has potential for both cold and warm water fisheries. The number of riverine, comprising of rivers and streams and the inland water bodies like lakes, reservoirs and ponds are huge in Arunachal Pradesh. But the rapid growth of weeds and hyacinth, polluted water bodies, deficiency of nutrients, insufficiency of fish seeds have been the prime reasons for nominal production of fishes in Arunachal Pradesh. To makepisciculture in Arunachal Pradesh productive, the water bodies of the state should be thoroughly cleaned and processed. The production of fish must be increased manifold and distributed among the fish-farmers. Private farms should be encouraged by the Government and integrated rice-fish systems must also be developed. Fisheries has been dealt with utmost importance in East Kameng district of Arunachal Pradesh and now contributes bulk of the production of the state. Simultaneously, Bomdilla, Itanagar and Zero have also become major sites forfisheries in Arunachal Pradesh.

Industries in Arunachal Pradesh

5 District Industrial Centers and 8 Sub-District Industrial Centers form the administrative infra-structure of industry in Arunachal Pradesh. Prospective entrepreneurs and new industries are provided with every guidance or help in these centers. They provide raw materials, identify suitable schemes, prepare reports and also look after the marketing parts of the local products. There are also two Industrial Training Institutes and one to update the local tribes and provide them employment.

Since Arunachal Pradesh is an agricultural land, most of the industries of Arunachal Pradesh are agro-based. Some of them are:

  • Guna Saw and Veneer Mill
  • Dibang Valley Timber Trade Ltd
  • Tirap Veneer and Saw Mills Ltd
  • Arunachal Saw and Veneer Mills
  • Node Timber Company Veneer
  • Arunachal wood based and Chemical Industries (p) Ltd
  • Jenney Plywood Industries Ltd
  • Narottam Co-operative Industries
  • Parsuram Cement Ltd
  • Banderdewa Saw Mills and Plywood
  • Arunachal Horticulture Processing Industries Ltd
  • Jam, Jelly and Squash Industry
  • Nampong Plywood Ltd
  • Slang Tea Industries (p) Ltd
  • Donl Polo Petro Chemicals Ltd.
There are many small scale and handloom industries in Arunachal Pradesh strengthening the economy of the state. Cane and bamboo work, weaving, mat making are some indigenous employments in Arunachal Pradesh. There is also bamboo gasifiers and bamboo shoot processing industries in Arunachal Pradesh set up at Namsai to support the small scale industries.

In 1991, Arunachal Pradesh Mineral Development and Trading Corporation Limited was set up to promote the mineral contents of Arunachal Pradesh. Mineral resources in Arunachal Pradesh includes coal, lime stone, graphite, dolomite, marble, pyrite. Coal is found at Namchik-Namphuk, Dibang Valley, Upper Subansiri and Tirap. Dolomite is found at Rupa, West Kameng. There are a number of hydro-electric projects in Arunachal Pradesh at Changlang, Pasighat, Seppa, Tezu, etc.

Tourism is yet another profitable industry in Arunachal Pradesh. The pristine beauty of the state and the adventurous sports allure tourists to Arunachal Pradesh from all the corners of the world.

Forestry in Arunachal Pradesh

Arunachal Pradesh is a land of biological diversity and that too not without a reason. About 500 species of birds, 85 species of mammal and as many as 5000 plants has earned Arunachal Pradesh this title. All these are naturally gifted to the state and the administration is doing every thing to maintain this diversity of nature. The forestry in Arunachal Pradesh can be categorized into many sub-groups. The sub-groups of the forests of Arunachal Pradesh are:

This type of forests can be further classified into two types:
  • Tropical evergreen forests
  • Tropical Semi evergreen forests.
  • Pine Forests in Arunachal Pradesh- Found in altitudes between 1000 to 1800 meters, this forest is comprised of trees like P. wallichiana, P.merkusii and Pinus roxburghii.
  • Alpine Forests in Arunachal Pradesh- Grown in altitudes between 4000 m to 5500 m, these trees remain snow capped most of the time. R. thomsonii, Festuca sp., Rhododendron nivale., Saussaurea sp, Arenaria sp are few of such trees.
  • Bamboo Forests in Arunachal Pradesh- Bamboo is one of the most important tree in Arunachal Pradesh, since it provides the bulk of the raw materials to the local small scale industries.


  • To protect deforestation, Government of Arunachal Pradesh has taken many schemes and programs and make the locals aware of the necessity of forests and promote forestry in Arunachal Pradesh. Apna Van, Aided Natural Regeneration, Minor Forest Produce, Minimum Need Program, Integrated Wasteland Development Project, Minor Forest Produce, Area Oriented Fuel wood and Fodder Project, etc are some of such initiatives.

Last Updated on : 09 March 2013