CHAPTER FOUR

ECONOMIC BASE OF ASSAM

IMPORTANT POINTS

z Economic condition and development trend

z Types of crops and their production
z Production of cash crops and its impact on state economy
z Importance of medicinal and horticultural crops.
52 Swadesh Adhayan
Economic Condition : in 2015-16 against Rs. 166708.85 crores in
The plain state of Assam in North-East 2014-15. As such, the rate of economic
India is surrounded by the hill states on its development of the state stands at 7.73 per
three sides. Assam has only three hill districts– cent during the period. But, this development
Karbi Anglong, West Karbi Anglong and rate of the state is less than that of India by
Dima Hassao. The Brahmaputra is the life 0.15 per cent. During the above mentioned
line of the state. The overall economy of period, as published in a government rapid
Assam depends on its human resources. All survey report there were development rate
the economic activities including agriculture, of 9.41 per cent in the industrial sector and
industries, trade and commerce etc. are 8.21 per cent in the service sector against
controlled by a number of physical and socio- 3.88 per cent development rate in all the
economic factors. sectors.
The domestic production of the state in As per these statistics, there was
the case of agricultural and industrial sectors, notable development is the industrial sector
except the service sector was more or less in 2015-16 as compared to that in 2014-
same during 2011-12 and 2015-16. There 15. During this period there also increased
is, however a slight decrease from 19.89 per from 10.55 per cent to 12.75 per cent in the
cent in 2011-12 to 18.66 per cent in 2015- construction sector.
16 in the agriculture and allied production Occupational Structure
sector. In the case of industrial sector also,
Majority of the inhabitants of Assam
the income decreased from 30.66 per cent
primarily depend on agriculture. Agriculture
in 2011-12 to 28.82 per cent in 2015-16.
has become the main occupation of the
During this period the income from
people of Assam due to its fertile soils, vast
production of minerals indicated a decreasing
water resources of the Brahmaputra and its
trend from 33.4 per cent to 25.0 per cent.
tributaries and the climate congenial for
Against this, the income from service sector
agricultural activities. Since early time the
had increased from 43.97 per cent to 46.7
people of Assam have been carrying out
per cent during this period. Taking 2011-12
agricultural practices for their livelihood.
as the base year one report has revealed that
During the post-Independence period,
the total value of state’s domestic production
especially from the seventies, some changes
was estimated at rupees 179394.73 crores
 Economic base of Assam 53
have taken place in occupational structure agricultural production of Assam are the
of the state. Such changes in the occupational alluvial plains, fertile soils, adequate rainfall
structure have occurred due to growth of and congenial climate necessary for
agro-based and forest-based industries along agriculture. Paddy is the principal crop of
with agriculture and more employment Assam and thus rice happens to be the
generated in the service sector. staple food of its people. Besides rice, jute,
Agriculture sugarcane, tea, pulses, potato, cotton and
horticultural crops are also produced. As
The land area used under the agricultural
per data of 2015-16, paddy cultivated area
sector is more than that used under all other
in Assam is 24.84 lakh hectares which
sectors of the state. About 54.11 per cent of
accounts for 12.96 per cent area of the total
land of the state is used for agricultural
food crops producing areas of the state.
activities. Considering the entire agricultural
There are significant differences in
sector including the plantation agriculture,
production as well as areas under paddy
about 80 per cent of the people depend on
cultivation as found in seasons like summer,
agriculture. Along with population growth,
autumn and winter. The areas under paddy
changes in the methods of agriculture are also
cultivation during autumn season had
observed. The amounts of actual and total
decreased from 4.36 lakh hectares in 2004-
crop lands have increased more during the
05 to 1.96 lakh hectares in 2014-15.
last few decades (Table-1)
Similarly, the areas under summer paddy
Out of the total land area of Assam,
also decreased from 4.16 lakh hectares in
about 54.11 per cent land is brought under
2014-15 to 4.05 lakh hectares in 2015-16.
agriculture and about 80 per cent people of
Against this, the areas brought under winter
the state are dependent on agriculture.
paddy cultivation had shown an increasing
Because of expansion of agricultural activities
trend from 24.85 lakh hectares to 24.95
due to high growth of population, the forest
lakh hectares in 2015-16.
lands are decreasing. Although agricultural
As compared to that in the earlier years,
production has gone up, consequently there
the areas producing wheat and pulses
is adverse impact on the environment.
increased in 2015-16. On the other hand,
Agricultural Production the oil seeds producing areas were increasing
The favourable factors affecting from 3.07 lakh hectares in 2014-15 to 3.11
54 Swadesh Adhyayan
lakh hectares in 2015-16. principal crop in wet cultivation of Assam is
Assam records significant growth in the paady. Again depending on the crop
foodcrop production especially after 2007- production season, Assam’s agriculture can
08 (Table-2). However, during last few years be divided into three types : (i) Kharif
some ups and downs have been observed in cropping system, (ii) Rabi cropping system
the production of foodcrops. There was and (iii) Zaid cropping system.
foodcrop production of 54,18,000 tons in Kharif crops are grown during April-
the year 2013-14 which increased to May when rain starts and the same are
54,59,000 tons in 2014-15. But, this harvested during November-December. The
production had decreased to 53,59,000 tons principal Kharif crops of Assam are sali and
during 2015-16. In the case of paddy bao rice, jute, sugarcane etc. (Table-3)
production, the amount decreased from Rabi crops are sown during the early
52,23,000 tons in 2014-15 to 51,25,000 part of winter season, i.e. during October-
tons in the year 2015-16. In contrary to this, November and harvested during the later part
production of wheat and oilseeds had shown of spring season, i.e. during April to June.
an increase. Wheat production rose to The major rabi crops are ahu and Bodo rice,
34,000 tons in 2015-16 from 29,000 tons mustard, pulses, tobacco, wheat, maize and
in 2014-15. Similarly, the oilseeds various kinds of vegetables and fruits.
production also increased from 2,06,000 The crop cultivation carried out during
tons to 2,15,000 tons during the same the period between the kharif and rabi crop
period. On the other hand, the production of production, i.e. during March to June is called
pulses declined to some extent. During the zaid crop cultivation. This kind of agriculture
above mentioned period, the production of is dependent on irrigation. The major zaid
pulses decreased from 1,11,000 tons to crops grown in the state include peas, potato,
1,08,000 tons. onion, cabbage, water melon, pumpkin,
Cropping Pattern cucumber, bitter.
A different type of traditional agriculture
Cropping pattern in Assam depends on
is prevalent in the three hill districts of Assam.
a variety of factors. Wet cultivation is
The hill dwellers clear the forest and
practised depending on climate,
vegetations of the hill slopes through cutting
physiography, soil characteristics and
and burning methods. This kinds of agriculture
particularly the availability of water. The
 Economic base of Assam 55
is known as jhum cultivation. It is also called (a) Agriculture land plots are small in size
shifting cultivation due to the method of and so tilling using tractor and other
shifting involved in this cultivation system. In mechanical tools is difficult.
shifting cultivation crops like paddy, maize, (b) The farmers face difficulties in meeting
pumpkin, chilli etc. are produced in the same their livelihood needs as the per head
plot of land. Cultivation of crops on the hill agricultural land is very less.
slopes leads to erosion of the top fertile soils (c) Agricultural production per hectare of
washed away downslope due to rain. As a land is very low due to age-old
result, the crop production decreases as soil methods of cultivation adopted by the
fertility is lost. The hill farmers are thus farmers.
compelled to select a new plot of land. (d) There are limited irrigation facilities
Following the same procedure, the newly extended to only 15% of agricultural
selected plot of land is used for carrying out area for which agriculture is largely
the jhum cultivation. As a result of jhum affected due to scarcity of water.
cultivation practised in the three hill districts (e) Heavy damages of crops are caused
of Assam, the hill ecology has been changing. every year by recurring floods.
The statistics of agricultural production Besides these, there are also many other
of Assam are recorded and published by the causes like lack of required amount of
Economics and Statistics Department, manures, lack of experience of farmers etc.
Government of Assam. Such statistics and which offer hindrances to expected growth
data provide information to the government
in agricultural production.
and also the farmers for the development of
agriculture in the state. Cropping System in Assam
The trend of foodcrop production is In some parts of Assam mono cropping
presented in the table-2 (cultivation of only one crop) is practised,
while in different parts duo-cropping and
Problems of Agriculture in Assam multiple cropping are practised. Moreover,
After analysing the trend of agricultural interculture and crop rotation are also
development, data on crop production etc., adopted by the farmers in some areas.
some problems of Assam’s agriculture are Cultivation carried out for several years in
observed. The major problems are : the same plot of land causes reduction in soil
56 Swadesh Adhyayan
fertility and thus there is need to use fertilizer. of multiple cropping and intensive
But, in the case of rotation of crops, several agriculture. In order to met the required
crops are grown in the same plot of land and need of food for the fast growing
different other crops may also be cultivated population the duo-cropping and multiple
in the next year. As a result, the fertility of cropping system have been introduced
land remains unchanged for several years. instead of mono cropping system.
The problem of crop damaged by insects is Moreover, rotation of crops is also being
less in the case of rotation cropping system
taken up.
as compared to that in mono-cropping
Irrigation is necessary in the traditional
system.
methods of agriculture and also in the
Cropping Intensity advanced methods of agriculture like
The method of assessing crop intensity intensive agriculture and crop rotation.
is– Irrigation is essential, especially in agriculture
Crop intensity practised using high yielding seeds.
Total crop producing land Agricultural fields are irrigated from the
= × 100
Actual crop producing land small, medium and major irrigation projects.
Surface water, i.e. water from rivers, tanks,
In order to meet the scarcity of food
wetlands etc. are transported to agricultural
necessary for growing, population, there are
fields through drains or supplied from
two measurement which are (a) to increase
underground water source through power
crop production through expansion of
pumps. Irrigation is performed in the state
agricultural land and (b) to increase the
by the three departments such as, State
fertility of agricultural land than before. But,
Irrigation Department, irrigation department
there are disadvantages to expand
under Panchayat and the department for
agriculture land because it will cause
rural development. The Irrigation
destruction of forest lands and degradation
Department of Government of Assam is
of wetlands leading to decrease in forest
specially engaged in construction and
cover and wetland areas. So, as an
management of the minor, medium and
alternative measure the crop production can
major irrigation projects.
be increased following scientific methods
 Economic base of Assam 57
Crops Production : but crop production is more in this method
of cultivation. In terrace cultivation the same
Paddy
plot of land can be used for cultivation every
Paddy is the principal crop of Assam.
year. But in jhum cultivation forests are
paddy is cultivated in 64.52 per cent of total
cleared to get a plot of land on hill slopes
agricultural land of the state and out of the
and after few years the plot is abandoned
total foodcrop producing areas, 91.43 per
due to loss of soil fertility and the earlier jhum
cent areas are used only for paddy cultivation.
plots are again reused for cultivation.
Four varieties of paddy are generally
produced in Assam– Sali, Ahu, Bao and Jute
Bodo paddy. The method and trend of paddy Jute is the highest cash earning fibre
production in the state are noticeable. Paddy crop. Temperature and moist climate of
producing areas as well as paddy production Assam is suitable for jute cultivation.
per hectare are gradually increasing (Table- Generally the low-lying fertile land, where
3) water remains for considerable time is used
It has already been mentioned that for jute cultivation. Temperature range from
majority of the people of the three hill districts 20oC to 40oC, weekly rainfall from 5cm to
of Assam, i.e. Karbi Anglong District, West 8cm and relative humidity range from 70 per
Karbi Anglong District and Dima Hassao cent to 80 per cent are congenial for jute
District are engaged in shifting cultivation or production. All these conditions prevail in the
jhum cultivation. As a result of this method plain districts of Assam, especially the districts
of cultivation, soil fertility decreases and soil of western Assam and, so jute cultivation is
erosion increases. Due to these two reasons, suitably done in these districts. The stems of
the concerned government has laid emphasis mature jute plants are kept generally under
on conversion of jhum lands into terrace stagnant water for about 20 days. The rotten
cultivation lands. Terrace cultivation is carried and soft are removed from the stems which
out making steps on the hill slopes. The are then washed and dried to get the jute
method of terrace cultivation is scientific and fibres. Jute is mostly cultivated in Nagaon,
loss of soil fertility and soil erosion are less, Morigaon, Goalpara, Dhubri and Barpeta
58 Swadesh Adhyayan

districts of Assam. Generally, the jute plants In Assam tea leaves are plucked for two
grow in Assam upto the length from 1 to 4m. times in a year. First time plucking is done
Tea during March-April, and second time
plucking is done during June-July. Tea leaves
Tea is the principal cash crop of Assam.
plucked during the second time provide deep
Assam enjoys agro-climatic conditions
colour and more taste. This kind of tea gains
suitable for tea cultivation. Almost all the
more popularity in the international market.
districts of Assam enjoy annual rainfall from
150cm to 200 cm, temperature more than Medicinal Plants
30oC and acidic soils of low slopes. Thus Varieties of medicinal plants are found
Assam happens to be an important tea in the hills and forests of Assam. About 300
producing region in the world. There are more species of vegetables and edible plants are
than 850 large tea gardens and several available in Assam. Commercially about 5
thousand small tea gardens in Assam (Table- to 10 per cent plants are grown in the state.
4) As many of these plants have medicinal value,
Assam has 304,133 hectares of land there is ample scope for establishment of
under tea cultivation. The state produces 642 plant-based industries in the state.
million kilograms of tea annually. Next to tea
Horticultural Crops
producing region of South China, Assam
Horticultural crops of Assam can be
ranks second position as tea producing region
divided into three types–
in the world. There are, however quality
(1) Major fruits : Pineapples, bananas,
differences between the tea produced in the
coconuts, jack fruits etc.
highlands of Darjeeling and Nilgiri hills and
(2) Major citrus fruits : Orange, lemon
the tea produced in the gentle slopes in the
etc.
plains of Assam. Colour of Assam tea is deep
(3) Major spice-fruits : Ginger,
in comparison to teas produced in different
turmeric, bhot chilli, chilli, peper etc.
region of the world. Assam tea has occupied
unique position in the international market as Production of fruits in Assam is
it provides pleasant taste and freshness. presented in Table-5
 Economic base of Assam 59
Table-1

Agricultural Land Use (’000 hectares) in the Districts of Assam

Sl. District Actual Total Cultivated Land sown

No. Cultivated Land Cultivated Land more than once
1 Kokrajhar 86.6 172.6 86.1
2 Dhubri 134.3 173.1 387.1
3 Goalpara 80.8 125.2 44.5
4 Barpeta 159.3 254.7 95.4
5 Morigaon 92.0 127.8 35.8
6 Nagaon 235.6 299.3 637.0
7 Sonitpur 165.1 270.8 105.7
8 Lakhimpur 100.2 223.2 123.0
9 Dhemaji 67.5 121.2 53.7
10 Tinsukia 104.7 143.5 38.8
11 Dibrugarh 139.5 166.1 26.6
12 Sibsagar 136.8 149.9 13.0
13 Jorhat 120.2 174.9 54.0
14 Golaghat 119.0 182.0 62.3
15 Karbi Anglong 126.4 201.7 75.3
16 Dima Hassao 28.1 54.2 26.0
17 Cachar 115.1 163.1 47.7
18 Karimganj 76.0 104.1 28.1
60 Swadesh Adhyayan

Sl. District Actual Total Cultivated Land sown

No. Cultivated Land Cultivated Land more than once
19 Hailakandi 50.3 77.3 27.0
20 Bongaigaon 67.6 105.4 378.0
21 Chirang 46.8 88.7 42.0
22 Kamrup 177.3 186.6 9.8
23 Kamrup (M) 43.3 50.0 6.7
24 Nalbari 67.7 120.8 53.0
25 Baska 66.1 133.8 67.7
26 Darrang 103.8 145.6 41.7
27 Udalguri 99.9 158.9 59.0

Source : Directorate of Economics and Statistics, Assam

 Economic base of Assam 61
Table-2

Food Crop Production in Assam (’000 tons)

Year Rice Wheat Pulses Total food Oil seeds

crops (Except coconut)

2001-02 3854 85 66 4023 156

2002-03 3738 78 60 3894 149

2003-04 3880 73 63 4034 157

2004-05 3470 68 61 3617 146

2005-06 3552 54 56 3680 114

2006-07 2916 67 59 3060 134

2007-08 3319 71 61 3468 139

2008-09 4009 55 62 4142 141

2009-10 4409 65 66 4557 147

2010-11 5033 56 72 5178 159

2011-12 8716 49 73 4857 156

2012-13 5128 44 84 5279 187

2013-14 5193 40 104 5418 186

2014-15 5223 29 111 5459 206

Source : Directorate of Economics and Statistics, Assam

62 Swadesh Adhyayan
Table-3

Season-wise Pice Production in Assam (kg/hectare)

Year Autumn rice Winter rice Summer rice

2004-05 667 1598 1959

2005-06 1016 1543 1780

2006-07 899 1321 1017

2007-08 999 1380 2267

2008-09 1084 1641 2133

2009-10 982 1894 2180

2010-11 1155 1993 2577

2011-12 1242 1785 2744

2012-13 1317 1998 2965

2013-14 1340 2002 2981

2014-15 1454 2005 2940

Source : Directorate of Economics and Statistics, Assam

 Economic base of Assam 63

Table - 4
Number of Tea Gardens, Areas under Tea Cultivation and
Tea Production (kg./hectare) in Assam)

Years Number of tea gardens Area under tea Total tea

(larger than 10.12 hectare) cultivation (’000 hectare) production
(’000kg.)

2007 825 311.3 511885

2008 760 321.4 487497
2009 760 321.7 499997
2010 760 322 480286
2011 765 322 589110
2012 78856 322 590120
2013 69220 322 629050
2014 77710 304 610970
2015 83566 316 526185
2016 85344 304 642180

Source : Tea Board, India 2017

64 Swadesh Adhyayan

Table - 5
Production of Fruits in Assam During 2012-13 and 2013-14
(Production in ’000 metric tons)

Fruits 2012-13 2013-14

Banana 837.0 857.7

Pineapple 269.0 288.6

Papaya 175.5 149.1

Guava 105.8 43.8

Lemon 125.9 103.5

Litchi 49.6 48.1

Jack fruit 224.2 192.5

Mango 55.3 44.6

Orange 195.8 188.8

Others 36.8 33.0

Total 2073.8 2025.4

Source : Statistical Hand Book, 2014

 65

(Economoc Base of Assam)

Industries of Assam
IMPORTANT POINTS

z Trend of industrial development in Assam since the past.

z Causes of backwardness in the industrial sector.
z Types of industries developed in Assam.
z Importance of cottage industries.

Any activity associated with production decorative materials made of brass and bell
is called industry. Assam is a backward state metals, articles made of tusks and handicraft
in industries as compared to some states of products of bamboo-can industries.
India. Desides the major industries like tea and First mineral oil production in 1901 at
mineral oil iondutry, there are some industries Digboi, first tea industry established 1833 in
which contribute to the economic development old Lakhimpur district and production of
of Assam to certain extent. Although there are plywood for the first time before independence
plenty of forest, mineral and agricultural raw were some of the achievements of Assam in
materials necessary for establishment of the field of industries. But, the state is lagging
industries, Assm has not progressed much in behind in industrial development during
the field of industries. subsequent period due to various reasons. The
Assam is famous for handlooms and reasons may be as follows :
bamboo-based cottage industries since the 1. Assam and the entire North-East India
past. Assam has earned national and (former seven states) are located at a
international fame for hand-woven Eri, far distance from the other regions of
India. The 21-40 km narrow land
Maga and Pat cloths, various utensils and
66 Swadesh Adhyayan
corridor of Siliguri area connected with up necessary for establishment of
the other parts of the country has industries also offerd hindrence in
caused difficulties in road and rail industrial development of the state.
transport connectivity to Assam. 7. Defective government policies, lack of
Therefore, the cost of transportation proper motivation and orientation to be
of raw materials and finished products extended to the young generation by
becomes high and as a result, Assam the concerned families and societies also
and the entire North-East India lag discourage people to come forward for
behind in industrial development. industrial entrepreneurship. Thus
2. Assam and the North-East are majority of the youths have interest in
bordered by the foreign countries goverment job.
Myanmar, China, Bhutan and Inspite of the above-mentioned
Bangladesh. As India’s reletionship problems associated with industries of Assam,
with some of these countries is not some small and medium size industries are
cordial, the foreign investors and being registered in the districts of Assam
industrialists hesitate to come forward annually (Table 1). The noticeable point is
for establishment of industries in Assam that the number of registered industries has
and the North-East. generally increased from 2011-12 to 2013-
3. It is realy difficult to import the raw 14. But, comparatively employment in
materials and export the finished industrial sector has not increased so much
products to the large cities and markets during the period, rather it is decreasing. Data
in India due to distance factor. For this record shows that the newly registered
reason, expenditure involved is more industries have limited employment
and so reasonable prices for the opportunities. As published by the Industry
produced commodities are not and Commerce Secreatariat of Assam, all
obtained. total 5799 industries were registered in 2015
4. Assam is industrially backward in which a total of 2,19,903 persons got
because of non-availability of employment (Table 2). Taking Kamrup and
necessary machines and tools and Kamrup (Metro) districts together the
some special type of raw meterials and number of such registered industries is 1505,
also due to irreguler supply of electricity while Dhemaji district has only 8 industries.
and other sources of energy. The one-fourth of the people engaged in
5. Due to lack of huge capital necessary industrial sector belong to Kamrup (Metro)
for establishment, of large and medium district alone. Data on industries of Assam
type industries, Assam has been reveal that there are gross disparities in
suffering from industrial backwardness. establishment of industries in the state. It is,
6. The people of Assam are largely indeed imperative to remove such disparities
dependent on agricilture. Lack of skills, for eradicating the overall backwardness of
experience, courage and mental set- industrial sector in Assam.
 Economic base of Assam 67
Table 1
Number of minor, small and medium registered industries and industrial workers
in Assam
Serial District Number of registered industries Number of industrial workers
No 2011-12 2012-13 2013-14 2011-12 2012-13 2013-14
1. Kokrajhar 10 13 5 72 106 25
2. Dhubri 35 56 83 251 314 414
3. Goalpara 34 26 89 198 139 494
4. Bongaigaon 53 48 36 396 258 222
5. Barpeta 33 54 59 240 555 371
6. Kamrup 318 297 283 4274 3051 2381
(Metro+Rural)
7. Nalbari 70 89 78 399 439 375
8. Darrang 57 43 107 253 310 452
9. Morigaon 25 37 22 143 189 171
10. Nagaon 74 123 180 603 718 1286
11. Sonitpur 89 54 89 608 319 532
12. Lakhimpur 18 23 53 87 141 457
13. Dhemaji 41 27 39 209 104 156
14. Tinsukia 47 81 98 336 473 649
15. Dibrugarh 58 118 154 625 470 1705
16. Sibsagar 35 81 100 2646 760 632
17. Jorhat 69 82 86 985 565 471
18. Golaghat 62 42 63 390 245 609
19. Karbi Anglong 6 6 15 69 75 154
20. Dima Hassao 2 3 2 21 36 16
21. Cachar 62 50 72 524 1802 494
22. Karimganj 23 25 24 132 133 184
23. Hailakandi 23 37 47 100 155 263
24. Chirang 22 11 41 208 80 246
25. Baksa 7 11 32 44 134 166
26. Udalguri 11 14 3 73 99 28
Total 1287 1451 1860 13886 11671 12971
Source : Industry and Commerce Secretariat, Assam
68 Swadesh Adhyayan
Types of Industries : Agro based Industries :
Based on raw materials used in The agro based industries can again
industries, the industries of Assam may be be divided into two types :
(a) The industries based on tea,
divided into three types :
sugarcane, oilseeds, milk, rice, wheat and
(i) Agro based industries
fruits.
(ii) Mineral based industries
(b) The industries based on jute,
(iii) Forest based industries cotton, pat-muga-eri and other fibre crops.

Table 2
Number of Registered Industries and Industrial warkers in the Districts of Assam
(2015)
Serial District Number of registered Number of industrial
Number industries workers
1. Kokrajhar 42 1812
2. Dhubri 95 2762
3. Goalpara 23 598
4. Barpeta 71 2069
5. Morigaon 64 2352
6. Nagaon 373 16920
7. Sonitpur 475 19567
8. Lakhimpur 70 2148
9. Dhemaji 8 124
10. Tinsukia 641 25192
11. Dibrugarh 695 28495
12. Sibsagar 388 13639
13. Jorhat 348 9483
14. Golaghat 317 8185
15. Karbi Anglong 40 1254
16. Dima Hassao 27 591
17. Cachar 343 11,808
18. Karimganj 121 3950
19. Hailakandi 50 3450
 Economic base of Assam 69
Serial District Number of registered Number of industrial
Number industries workers
20. Bongaigoan 67 5559
21. Chirang 21 1139
22. Kamrup (Metro+Rural) 1505 50,673
23. Nalbari 33 1086
24. Baksa 16 1047
25. Darrang 92 2773
26. Udalguri 74 3227
Total 5799 2,19,903
Source : Office of the Chief Inspector of Industries, Assam
The major mineral based industries of registered industries of Assam, 30 per cent
Assam include the oil refineries, industries produce tea. Since inception
petrochemicals, cement and LPG bottling Assam’s tea industry has been producing
plants. black tea, but since 1980 green tea
Paper industries, plywood and production and export has increased, thereby
furniture manufacturing etc. are the major earning more foreign currency.
forest based industries of Assam. Tea industry is the highest foreign
Major Industries of Assam : currency earning industry in Assam.
Tea Industry : Out of India’s total tea production 54
Tea industry of Assam is based on the per cent tea is produced in Assam.
tea leafs produced through large scale tea Among the mineral based industries,
plantation in the state. It is the highest foreign the oil refineries and petrochemical are the
currency earning industry of Assam. India’s major industries. Based on refining mineral
54 per cent tea is produced in Assam. In the oil and different petroleum by – products,
tea industry of Assam more than 6 lakh people some allied industries are set up and among
are employed and among them 2.7 lakh or these the plastic (polymer) industry is the
about half of the people are women. During major one. The Assam Petro-Chemical
the last few years serveral thousands of samll Limited has been able to establish fertilizers
tea gardens have grown up and a good and thermal electric power producing plants
number of families are getting economically by using natural gas found in upper Assam
benefited. Among the total number of region. In order to check wastage of natural
70 Swadesh Adhyayan
gas the Assam Industrial Development 1901, which is the oldest refinery in India.
Corportation (AIDC) has been established Initially this refinery was functioning under the
under government sector in 1971 and thereby Assam Oil Company, but subsequently it was
the gas-based petro-chemical production attached to Indian Petrochemical unit. Later
plant, the first in the country was establised on in 1981, the Digboi Petrochemical unit
in Assam. was brought under Indian Oil Corporation
The first mineral oil based industry Limited. The produced substances and
under government sector is the Guwahati products of the Digboi petrochemical industry
perto-chemical industry. Its main industry is are naptha, high speed diesel, turpine oil,
oil refinery. Moreover, based on various by furnace oil, jute batching oil and mortor spirit.
– products obtained during refining of mineral Wax produced in Digboi petrochemicals is
oil, a number of small industries have been of high quality.
set up in the state. The major chemical Among the other mineral based
substances produced in Guwahati petro industries the three large industries located
chemical industry are – naptha, LPG, motor at Namrup are the Brahmaputra Vally
spirit, petroleum coke, kerosene and high Fertilizer Corporation Limited, Assam
speed diesel. Petrochemicals Limited and Namrup
The Bongaigaon Refinery and Petro- Thermal Power Station. The industrial
Chemical Limited was establised by the environment created at Namrup through
Government of India on February, 20, 1974. establishment of the first natural gas based
But in 2001 this idnustry was brought under fertilizer industry in 1960 was favourable for
Indian Oil Limited. In view of demand in the establishment of these industries at Namrup.
country the Indian Oil Limited had In Assam all total 64 Commercial
established one large methanol production Estates and 50 Industrial Estates have been
unit in 1989 and one formaldehyde developed. Moreover, three industrial growth
production unit in 1998 in collaboration of centres are also established in the state. These
England and the Netherlands. The products three growth centres are located at Balipara
and substances produced by the Bongaigoan in Sonitpur district, Matia in Goalpara district
Petrochemical industry are exported to West and Chhaygaon-Patgaon-Jambari in Kamrup
Bengal, Bihar, Delhi, Haryana, Uttaranchal district. Efforts are made for industrial
and even to the neighbouring countries like development in the state by establishing
Bhutan and Nepal. another 11 numbers of Industrial
Digboi Refinery was established in Infrastructure Development Centres. The
 Economic base of Assam 71
Software Technology Park established near bamboos as raw materials the two big
the Lokopriya Gopinath Bordoloi paper mills of Assam are the ‘Nagaon
International Airport is a significant step Paper Mill’ presently in Morigaon district
towards development of computer and and the ‘Pachgram Paper Mill’ in
software industries in the state. Under the Hailakandi district. These two paper mills
control of IIT Guwahati, the Bio-Technology are under government sector. Presently
Park, the Export Promotion Industrial Park there is no production in these mills. Due
covering 58 units developed on a plot of 68.1 to heavy financial loss, the ‘Ashok Paper
acre land area at North Guwahati, the North- Mill’ established at an expenditure of 15
East Mega Food Park at Tihu in Nalbari crores during the 4th 5 – year plan period
district, the Food Processing Park, Bamboo has also been closed. There is also a small
Park at Chhaygaon, the Plastic Park at paper mill at Amingaon of Kamrup district.
Lapetkota near Dibrugarh established with Timbers for plywood industries are
the by – products of the Gas Cracker collected from the forests of Assam. The
industry, the Jute Park at Dhing in Nagaon plywoods manufactured in Assam are
district and the Agro Food Processing units mainly used in making the boxes for
established at Silapathar, Dalgaon, Dhubri, packing teas. Assam manufactures about
Samaguri and Pawoi of Tinsukia district are 65 percent plywoods of India. However,
the initiatives in the industrial sector of the the government of Assam has taken some
state which may be expected to bring about measures to reduce plywood production
industrial development in Assam in near in view of increasing loss of forests. Almost
future. The export and import of raw all the plywood manufacturing industries of
materials and industrial products to and from Assam are located at Margherita and
the neighbouring country Bangladesh and Mariani. In the year 1984, there were 52
Bhutan via Assam have been emphasized. In plywood industries in Assam out of which
this regard, commercial centres are 13 were big and the rest were of medium
established at Sutarbandi of Karimganj type. But, some of these industries were
district, Mankachor and Golokganj of Dhubri closed down so as to check tree cutting
district and Darranga of Baksa district. and thus in 2001 the numbers of plywood
Forest based Industries : industries came down to 46. In these
industries, about 5,600 numbers of people
The medium scale industries based on
are directly engaged, while about one lakh
forest products of Assam are mainly the
people are indirectly engaged.
paper and plywood industries. Based on
72 Swadesh Adhyayan
Cottage Industries : these cottage industries, the notable ones are
During the post independence period, rice milling, oil seed milling, grinding of spices,
a survey conducted in 1954-55 revealed that sugarcane crusher, fibre extraction from
there were all total 72 numbers of cottage banana tree, pickles processing, flour milling
industries including handlooms and textiles, etc.
brass and bell metals, pottery industries etc. The forest based cottage industries of
Besides these industries, Assamese Assam include the industries which produce
ornaments manufacturing works, fire works, the bamboo and cane- made household
manufacturing of various items of bamboo - furnitures, doors and windows, various
cane and wood, locally manufacturing of silk decorative furnitures made of timbers, oil
thread and cloths, preparing and designing extracted from different plants and herbal
of different decorative items made of jute medicines etc.
fibre and waterhyacinth etc. are the varieties Footloose Industries :
of cottage industries presently growing in It is not that footloose industries should
Assam. Among the cottage industries, the silk be localised in any particular area. These
industries have occupied the leading position. industries can be set up in all places. The
Cloths made of eri and muga have been factors usually responsible for the growth of
gaining importance in the life and culture of industries, such as availability of raw
the Assamese since the past. Muga cloths materials, skilled labour, favourable transport
have been able to occupy a special position system and market facility are not supposed
now in the international market. Presently, to determine the location of footloose
different types of hand-woven cloths are industries. Therefore, such industries can be
produced in about 7 lakhs looms. Sualkuchi established at any place and thus these are
is famous for production of pat and muga called footloose industries. Although
clothes. Similarly, Palashbari-Chhaygaon footloose by nature, these industries also face
area is famous for production of eri thread difficulties without proper transport system,
and eri cloths. On the other hand, the cottage regular supply of electric power and very
industries of Hajo-Sarthebari are most famous skillful labourers. In these industries the raw
for manufacturing of utensils made of brass materials required and materials produced
and bell metals and varieties of decorative are less in amount, but their market values
items. are high. So, the transport cost involved in
There are also a good number of agro carrying the raw materials and finished
based cottage industries in Assam. Among products is less. Pollution is less in these
 Economic base of Assam 73
industries. However, pollution free Guwahati is such an example. Although the
environment is quite essential for some types footloose industries in Assam are presently
of footloose industries. For this reason, many less in number, the Government of Assam has
footloose industries are set up in the relatively been undertaking plans and necessary efforts
pollution free outskirt of the cities. The to establish a number of footloose industries
Software Technology Park, India localised in the state in the coming years.
near the L.G. B. International Airport at

EXERCISE
1. (a) What do you mean by kharif crops?
(b) What do you mean by rabi crops?
(c) What are medicinal plants?
(d) What is the percentage of people in Assam dependent on agriculture?
2. (a) Where is Jhum cultivation practised in Assam? How is it carried out?
(b) What do you mean by ‘rotation of crops’?
(c) What is intensity of cropping?
(d) What are the spices grown in Assam?
3. (a) Write about the drawbacks of the agricultural system of Assam.
(b) Explain how and in which seasons rice is cultivated in Assam.
(c) Write about the essential conditions necessary for tea cultivation.
(d) Give a short account of the economic condition of Assam.
4. (a) Where was mineral oil first drilled in Assam?
(b) How much percentage of India’s total tea production is produced in Assam?
(c) In which year the Assam Industrial Development Corporation (AIDC)
was formed?
(d) Where was the first fertilizer industry of Assam established?
5. (a) Classify the industries of Assam based on the raw materials used.
(b) Write a short note on the agro based industries of Assam.
(c) Write in brief about the speciality of Assam’s tea industry.
(d) Name the foreign countries bordering Assam.
6. (a) Explain the reasons responsible for industrial backwardness in Assam.
(b) Write about the major industries of Assam.
(c) Give an account of the mineral based industries of Assam.
74 Swadesh Adhyayan
7. Select the correct answer from the following alternatives :
(i) In which one of the following sectors, income increased during 2015-16 as
compared to that during 2011-12 in Assam?
(a) Agricultural Sector (b) Industrial Sector
(c) Mineral Production Sector (d) Service Sector
(ii) Kharif crops are cultivated during
(a) April-May to November-December
(b) March to June
(c) October to April
(d) January to May
(iii) Which one of the following is a zaid crop?
(a) Mustard (b) Paddy
(c) Pumpkin (d) Wheat
(iv) In which of the following districts the number of registered industries is the
lowest?
(a) Goalpara (b) Udalguri
(c) Morigaon (d) Dhemaji
(v) What percentage of India’s total tea production is produced in Assam?
(a) 30% (b) 45%
(c) 54% (d) 67%
(vi) The India’s oldest Digboi Oil Refinery was established in the year
(a) 1898 (b) 1901
(c) 1951 (d) 1974
(vii) Which one of the following industries can be set up at any place?
(a) Tea industry (b) Forest based industries
(c) Mineral based industries (d) Footloose industries