Gifted with hilly terrain covered with thick tropical and alpine forests, perennial rivers and wild flora and fauna, Arunachal is yet to tap its natural resources to its full potential for economic growth.
Languishing in industrial and social backwardness, the people look upon both the state and central governments to lift them from their rudimentary lifestyle to get in sync with modern life like that of their counterparts in Assam and rest of India.
Facing the existential threat from China, which claims the entire state as South Tibet, the Centre has taken up on a fast track basis the development of road and other connectivity projects across the 19 districts whose remote towns and villages are yet to be discovered by the rest of the world.
Here are some of the prospects Arunachal offers in terms of win-win situation for all stakeholders in the industrial space:
Its diverse topography offers opportunities for non-timber based industries such as bamboo, cane and medicinal plants.
At current prices, the gross state domestic product (GSDP) of Arunachal was US$ 2.2 billion in 2013-14.
The GSDP increased at a CAGR of 16.1% from 2004-05 to 2013-14.
In 2013-14, the state's per capita income at current prices was US$ 1,511.1 compared to US$ 649.7 in 2004-05.
The per capita income had risen at a CAGR of 13.5% between 2004-05 and 2013-14.
The primary and tertiary sectors continue to dominate thecomposition of GSDP of Arunachal Pradesh.
In 2013-14, the primary sector contributed 43.1% to the state'sGSDP at current prices, followed by the tertiary sector (30.9%) and the secondary sector (26%).
At a CAGR of 18%, the primary sector has been the fastest growing sector among the three sectors from 2004-05 to 2013-14.
The growth was driven by agriculture,forestry and logging.
The tertiary sector expanded at a CAGR of 15.3% between 2004-05 and 2013-14.
The growth has been driven by trade, hotels, real estate, banking, insurance, transport,communications and other services.
The state's economy is mainly agrarian based on theterraced farming of rice and the cultivation of crops such asmaize, millet, wheat, pulses, sugarcane, ginger, oilseeds,cereals, potato, and pineapple.
According to the Department of Industrial Policy and Promotion (DIPP), cumulative FDI inflows from April 2000 toJanuary 2015 amounted to US$ 80 million.
In 2013-14, outstanding investments in the state were US$52.8 billion.
The biggest chunk of investment has been in electricitygeneration.
Of the total outstanding investments in 2013-14, the electricity sector accounted for around 93.8%, followed by the services sector (5.9%).
The central government has invested heavily in the hydro electricpower generation projects in Arunachal Pradesh.