Industrial investment: NE recieved 7754 Cr against Rs 201,402 Cr  invested in Gujarat in past 25 years

Northeast is way behind to catch up with advanced states of India like Maharashtra, Gujarat and Andhra Pradesh as far as industrial investment is concerned. Data presented by North East MP's Forum, in a memorandum submitted to Union Minister of state for Commerce and Industries Nirmala Sitharaman on December 15, show that total investment in the region was not even 5 to 7 per cent of the total investments in individual advanced state.  

Comparative data ( Table 1) reveal that during the period 1992- 2016, the entire Northeast region received investment to the tune of Rs. 7754 crore. During this period, Maharashtra received investment of Rs. 139,056 crore while Gujarat received investment of Rs. 201,402 Crore.

Industrial Growth in North East vis-a-vis other Industrial states of India

Data presented before the Centre by the Forum also show that the North East Industrial Investment Promotion Policy (NEIIPP), 2007 balanced the focus from small and medium ticket investment to big ticket investments. Altogether 31361 MSME and 586 large units set up in the region led to creation of 232,058 direct jobs during the period between 2001 and 2016 when the Northeast industrial promotion policy was in existence.

The NEMP Forum has insisted that the policy support for MSME, large units and service sector in region is essential to ensure that regional imbalances are ironed out.

Industrial investment in Northeastren States

The North East Industrial Policy introduced in 1997 to promote industrial investment in the region was followed by the NEIIPP 2007. The Narendra Modi-led government at the Centre suspended registration of new industrial units under NEIIPP between 2014 and 2016 but Union Government clarified in its 2016 budget about availability of excise duty and income tax benefits despite the suspension. The NEIIPP is due to expire in 2017.

The memorandum also highlighted that on an average less than Rs. 100 Crore per annum has been spent by the Central government on capital formation in the region between April 1, 2007 and Nov 30, 2016.  The capital formation has been mostly in Assam and Meghalaya. Of the total amount of Rs. 915 Crore Capital Investment Subsidy disbursed by the Centre under the NEIIPP Assam has received Rs. 469.80 Crore, Meghalaya- Rs. 329.61 Crore, Manipur- Rs. 1.59 Crore, Arunachal Pradesh-Rs. 15. 38 Crore, Mizoram- Rs. 3.40 Crore, Sikkim- Rs. 64.54 Crore, Tripura- Rs. 30.68 crore and Nagaland – Rs. 0.07 Crore.  

The memorandum signed by its chairman Bhubaneswar Kalita states that the “NEMP Forum strongly feels that the North East requires focused hand holding from the central government for removing regional imbalances.”

A copy of the memorandum was made available by the Federation of Industries & Commerce of North Eastern Region(FINER).

-  nezine.com Editorial Bureau