The Brahmaputra, ever-flowing and unrelenting, has witnessed Assam's centuries-long struggle with identity, economic marginalisation, and unrealised potential. As the state prepares to host the Advantage Assam 2.0 - Investment and Infrastructure Summit in February 2025, the script is being rewritten—or so the government would like to believe. Over 300 industry experts, five partner countries, and a slew of investment roadshows in Kolkata, Bengaluru, and Tokyo mark an ambitious endeavour to portray Assam as India's gateway to Southeast Asia. However, underlying the promises of wealth lurks an unpalatable truth: Assam's economic change will take more than flashy summits and diplomatic pleasantries.
ALSO READ: Editorial | Lessons Must Be Learnt From Mahakumbh Mela Stampede
It is unambiguous that Assam sits at a geographical crossroads, with connections to South Asia, the ASEAN region, and mainland India. The state is close to markets in Bangladesh, Myanmar, and Bhutan, making it an ideal hub for trade and logistics. The administration is vigorously selling this story, and on paper, the infrastructure drive appears to be positive. The much-anticipated Dhubri Phulbari Bridge, India's longest, would revolutionise connectivity across the Brahmaputra, reducing travel time and facilitating smoother commerce flows.
The much anticipated Semiconductor Manufacturing Hub at Jagiroad represents a step toward diversifying the business beyond tea and oil. The expansion of the Lokpriya Gopinath Bordoloi International Airport, together with anticipated logistics parks and new roadways under Bharatmala Pariyojana, is an acknowledgement that connectivity is the key to unlocking growth.
But optimism must be balanced with realism. Delays, bureaucratic entanglements, and inadequate upkeep have long plagued Assam's infrastructure projects. The Dhola-Sadiya Bridge, which was hailed as a game changer when it opened in 2017, has already showed symptoms of deterioration due to inadequate maintenance, raising worries about the long-term viability of such megaprojects. The Northeast's monsoon-heavy climate and unpredictable flooding necessitate a level of infrastructure resilience that previous initiatives have not fully addressed. While investment in connectivity is critical, it must be followed by stringent project monitoring, execution accountability, and climate conscious planning—all of which have frequently been Assam's Achilles' heel.
Chief Minister Himanta Biswa Sarma's diplomatic overtures to Japan appear fruitful, with talks underway to establish a specific Japanese Industrial Park in Guwahati. The government's strong pursuit of Japanese investments, notably in electronics, renewable energy, and skill development, is a welcome change from the region's previous over-reliance on public-sector-driven growth. However, obtaining investors is only half the battle; the true issue is retaining them.
Assam has not always been a welcoming ground for private investment. The single-window clearance system, which was supposed to simplify business registration, still struggles with efficiency bottlenecks. Land acquisition remains a bureaucratic labyrinth, and despite assurances, political unpredictability and historical concerns over insurgency continue to cast a shadow over long-term investment commitments. While Assam has made strides in law and order, investor confidence is built on consistency, and the state must prove it can sustain a business-friendly climate not just for five years but for decades.
States like Tamil Nadu, Gujarat, and Karnataka have been able to cement themselves as industrial powerhouses because they offer policy predictability, investor-friendly taxation, and reliable infrastructure. Assam, despite its resources and geographical advantage, still lacks this crucial mix. If Advantage Assam 2.0 is to be more than just a well-organised summit, it must result in concrete, enforceable policy reforms that provide long-term certainty to investors.
For decades, Assam's economy has been tied to its extensive tea farms, which generate more than half of India's entire tea output. However, the sector, which was once its backbone, is now its Europa' heel, beset by fluctuations in worldwide demand, dropping auction prices, and labour unrest. The government recognises that Assam's economic future cannot be founded solely on tea, as seen by its push for industrial diversification.
What remains puzzling is why Assam has not harnessed its other indigenous businesses for worldwide prominence.
The state's bell metal crafts, a heritage of skilled artisanship, have enormous promise in premium markets, but they need regulated manufacturing and branding. Jute goods, which match with the world's growing emphasis on sustainability, have remained a small-scale sector despite their potential to be a key export driver. Bamboo, the so-called "green steel" of the future, is abundant in Assam, yet the state lags far behind China in realising its full commercial potential. Even Assam's famous Muga and Eri silks—luxurious, organically produced fabrics—have not received the intensive marketing that has catapulted other Indian textiles to global prominence.
If Assam is to fully realise its economic potential, it must adopt an industrial strategy that not only focuses on large-scale industry but also integrates its artisanal and agricultural capabilities into mainstream global trade. A specialised Assam Export Mission, which focuses on branding, trade negotiations, and technology integration, might assist these industries in entering foreign markets. Without such systematic actions, Assam will continue to underutilise some of its most important resources.
The rise of the Startup ecosystem in the state is a testament to the entrepreneurial spirit that is slowly taking root in the state. With over 400 registered startups, incubators like The Nest providing crucial support, and government-backed seed funding, the ecosystem is showing promise. But the path ahead is fraught with obstacles.
Unlike in Bengaluru, where venture capital companies encourage risk-taking endeavours, Assam's startup culture is mostly reliant on government grants. There is a noticeable scarcity of angel investors and private accelerators, leaving many firms unable to expand. Furthermore, industries such as agritech and sustainable materials, in which Assam has a natural edge, lack the ecosystem support required to develop.
The next obvious step for Assam is to establish a Venture Capital & Innovation Fund to encourage private investment in businesses rather than depending solely on state support. If the government is serious about transforming the state into an innovation hotspot, it must offer incentives for private investors to participate in Assam's rising businesses.
Advantage Assam 2.0 is a moment of reckoning. The Northeast has long been India’s economic afterthought, spoken of in terms of potential but rarely in terms of execution. This summit must be more than an exchange of MoUs and diplomatic courtesies; it must be the inflection point where Assam finally transitions from aspiration to realisation.
The state must ask itself hard questions. Will infrastructure projects be completed on time, or will they languish in bureaucratic limbo? Will investors find a climate of ease and opportunity, or will they encounter the familiar roadblocks of policy ambiguity? Will Assam’s indigenous industries be scaled to global markets, or will they continue to exist only in isolated pockets of brilliance?
There is every reason to believe Assam can succeed. Its resources, its location, and its people offer immense promise. But success will not come through grand summits alone—it will require meticulous planning, relentless execution, and an unwavering commitment to reform. The world is watching. The investors are listening. If Assam can commit to this long-term vision— playing the patient, strategic game of economic transformation—it has the potential to emerge as the true gateway to Southeast Asia. The real challenge now is not just securing investment but ensuring that it translates into enduring, widespread prosperity for the people of the state.
The Brahmaputra has seen many waves of change, but perhaps, this time, the tide is finally turning in Assam’s favour.
(All views and opinions expressed are author’s own)
