Assam's GSDP will reach Rs 6.43 lakh crore by 2024–2025, predicts Himanta Biswa Sarma

Assam Chief Minister Himanta Biswa Sarma recently took to his official X handle to highlight the state's remarkable economic growth trajectory, presenting data that showcases Assam's consistent rise in economic performance over the last decade. The figures, as shared by the Chief Minister, reflect both the resilience of the state's economy and the sound financial management undertaken by the government in recent years.

The numbers speak volumes: Assam’s Gross State Domestic Product (GSDP) stood at Rs 1.77 lakh crore in 2013-14 and is projected to reach Rs 6.43 lakh crore by 2024-25. This impressive rise underscores the state’s emergence as a growing economy and its potential to contribute meaningfully to India's broader economic progress.

The chief minister’s emphasis on Assam’s fiscal health, particularly its debt-to-GDP ratio being lower than the national average, highlights the importance of sound governance and sustainable growth practices. The debt-to-GDP ratio serves as a crucial economic indicator, reflecting a state's ability to manage debt without compromising its fiscal stability. In Assam’s case, remaining below the national average suggests that the government’s strategies to stimulate economic growth while avoiding excessive borrowing have been effective. This combination of growth and fiscal responsibility has laid a solid foundation for the state’s development journey.

Sectoral growth and infrastructure development

The significant increase in Assam’s GSDP points to broad-based progress across multiple sectors, including infrastructure, agriculture, industry, and services. The chief minister’s statements highlight the government’s efforts to boost infrastructure development, which has been a key driver of economic growth in the state. Infrastructure projects such as roads, bridges, rail connectivity, and industrial corridors are critical for attracting investment and facilitating economic activities. Assam’s strategic location in the Northeast makes it a gateway for trade and commerce with Southeast Asia, further amplifying its economic potential.

The externally aided projects worth Rs 58,064 crore currently underway in Assam reflect a growing confidence among external agencies and stakeholders in the state’s economic vision. These projects, which span sectors like infrastructure, water resource management, urban development, and health, will not only accelerate growth but also improve the quality of life for the people of Assam. By focusing on these key sectors, the government has demonstrated its commitment to long-term, sustainable development.

Rising per capita income and poverty reduction

An equally significant achievement highlighted by CM Himanta Biswa Sarma is the steady increase in Assam’s per capita income. For the year 2023-24, the state’s estimated per capita income stands at Rs 1,35,787. This figure is indicative of the rising standard of living among the people of Assam and the positive economic outcomes of the state’s developmental policies. While challenges remain in bridging the gap with states that have higher per capita income levels, Assam’s upward trajectory is a promising sign.

Moreover, the significant reduction in Assam’s poverty headcount ratio from 36.97 per cent to 14.47 per cent marks a historic improvement. Poverty reduction on this scale is no small feat and highlights the state’s success in implementing welfare programs, job creation initiatives, and targeted policies aimed at uplifting marginalized communities. This development aligns with the government’s vision for a “Viksit Assam” (Developed Assam), where economic progress is inclusive and benefits all sections of society.

Faster economic Growth

Another notable achievement is Assam’s nominal economic growth rate of 19.9 per cent for 2022-23, which is significantly higher than the national average of 16.1 per cent. This faster growth indicates that Assam is outperforming many other states in terms of economic expansion. The government’s focus on creating a favorable business environment, supporting small and medium enterprises (SMEs), and promoting industrial investments has played a pivotal role in driving this growth.

The budgetary expenditure of Rs 1,27,283 crore in 2022-23, along with a capital expenditure of Rs 16,338 crore, showcases the government’s commitment to spending on productive assets that generate long-term benefits. Capital expenditure, which includes spending on infrastructure and development projects, is essential for stimulating economic growth, creating jobs, and attracting private investments.

Governance and promise of a “Viksit Assam”

CM Himanta Biswa Sarma’s acknowledgment of Assam’s economic progress over the past three years underscores the importance of good governance in driving development. Since 2021, Assam’s economy has witnessed consistent growth across various parameters, demonstrating the government’s ability to implement effective policies and deliver results. The Chief Minister’s promise to “get better” reflects an understanding that sustained growth requires continuous improvement, innovation, and adaptability.

The vision of a “Viksit Assam” extends beyond economic indicators; it encompasses social progress, poverty eradication, and enhanced governance. For Assam to become a developed state, it is crucial to address challenges such as unemployment, rural-urban disparities, and skill development gaps. The state’s economic growth trajectory, as highlighted by CM Sarma, provides a strong platform to tackle these issues and work towards holistic development.

Assam’s role in national economic growth

Assam’s economic success is not just significant for the state but also for India’s overall growth story. As a key state in the Northeast, Assam plays a pivotal role in the development of the entire region, which has immense untapped potential. By improving infrastructure, enhancing connectivity, and creating a conducive environment for business, Assam can serve as a model for other states in the region.

Furthermore, Assam’s growth contributes to India’s goal of becoming a $5 trillion economy. The Northeast, with its strategic location and rich resources, is poised to play a more prominent role in national development, and Assam’s progress is central to that vision.

Conclusion

The data and achievements shared by Assam Chief Minister Himanta Biswa Sarma highlight a remarkable economic transformation over the past decade. From a GSDP of Rs 1.77 lakh crore in 2013-14 to a projected Rs 6.43 lakh crore by 2024-25, Assam’s growth trajectory reflects the state’s resilience, sound financial management, and commitment to development. The poverty reduction, rise in per capita income, and faster economic growth underscore the government’s success in driving inclusive and sustainable progress.

As Assam moves forward with its vision of becoming a “Viksit Assam,” it is essential to continue focusing on infrastructure, social development, and governance reforms. By addressing remaining challenges and building on its achievements, Assam is well on its way to emerging as a key contributor to India’s economic growth and a shining example of progress in the Northeast.