Nagaland’s economy remains dismal compared to Assam. Of course, Assam is much bigger than Nagaland, but geographical size does not determine economic strength. Many smaller countries have far surpassed India in economic prosperity. In fact, all Northeastern states must learn from Assam in terms of economic development. Assam’s Gross State Domestic Product (GSDP) stands at Rs 6.43 lakh crore (US$74 billion), while no other northeastern state, including Nagaland, has a GSDP exceeding Rs 1 lakh crore.
The Gross State Domestic Product (GSDP) of Nagaland for 2024-25 (at current prices) is projected to be Rs 48,375 crore, amounting to growth of 6.5% over the advance estimates for 2023-24. Though positive, it is concerning to note that Nagaland’s entire annual budget is less than what a single company is investing in Assam.
The ongoing ‘Advantage Assam 2.0 Investment and Infrastructure Summit’ proves how proactive policy measures and strategic initiatives can attract large-scale investments. Assam has successfully positioned itself as a business-friendly destination, drawing industry giants like Reliance and the Adani Group, who have pledged Rs 50,000 crore each to the state’s development. This wave of investments underscores Assam’s commitment to promoting an attractive business climate. The summit also saw strong international participation, with foreign envoys and global investors acknowledging Assam’s potential as a key economic player in the region.
One of the key takeaways from Assam’s growth trajectory is its focus on infrastructure development. The state has made significant strides in expanding digital connectivity, improving transportation networks, and leveraging its natural resources to fuel economic expansion. Additionally, Assam’s historical industrial base, particularly in tea, oil, and natural gas, has been revitalized through policy support and investment facilitation.
Another lesson lies in Assam’s ability to align itself with national economic initiatives. The central government’s plan to build Asia’s largest hyperscale data centers in Assam highlights the state’s proactive engagement with large-scale projects. Assam has also capitalized on its strategic location, making it a gateway to Southeast Asia through trade and connectivity projects.
Nagaland can take inspiration from Assam’s success in creating a dynamic investment ecosystem. By studying Assam’s economic policies, governance models, and sectoral focus, Nagaland can gain valuable insights into building sustainable growth and attracting significant investment opportunities.