RBI data points to Assam as fastest-growing State economy: Himanta

Assam Chief Minister Himanta Biswa Sarma on Thursday (January 1, 2025) said that the Reserve Bank of India has recognised it as the fastest growing state economy in the country with a 45 per cent growth during the last five years.

The State's economy has undergone a massive transformation with Gross State Domestic Product (GSDP) expected to surge to ₹7,41,626 crore in 2025-26 from ₹4,10,724 crore in 2020-21, the CM said at an interaction with mediapersons in a programme titled 'Natun Diner Alap' (Conversations of a new day).

According to RBI data, Assam is the country's fastest growing State economy, rising to 45% during the last five years above the national growth of 29%, he said.

Mr. Sarma became the Chief Minister of Assam five years ago and another Assembly elections are due in a few months.

''This is not a political slogan but data from the RBI. The recognition as the fastest growing economy will be felt in all areas, and competing with states like Tamil Nadu, Karnataka and Maharashtra will give a boost to the people of the state,'' he said.

The growth in revenue has also been stable at the rate of 53 per cent during the last five years, he said.

''The State has consistently maintained a positive revenue balance, ensuring that public investments are sustainably funded and strategically directed toward activities that drive economic provisions,'' Mr. Sarma said.

The State government has made substantial strides in fiscal discipline and efficiency, culminating in a record-high budget utilisation rate of 85% in 2024-25.

''This performance marks a significant improvement when compared to 2020-21, when the utilisation rate stood significantly lower at 65%,'' the CM said.

The State has significantly ramped up its investment in infrastructure and asset creation, with capital expenditure rising from ₹20,230 crore in 2021-22 to ₹26,409 crore in 2024-25.

The per capita income (at current prices) in the State has also seen a significant increase, rising by 54% from ₹1,03,371 in 2020-21 to ₹1,59,185 in 2024-25, Mr. Sarma said.

The CM claimed that the state has experienced a growth in infrastructure construction at an unprecedented pace over the past five years.

''From construction of roads, bridges, waterway terminals, power infrastructure, telecommunication, hospitals, educational institutions and digital infrastructure, the state has laid the bedrock for growth and development,'' he said.

Currently, four major bridge projects are underway in the State — Jorhat-Majuli bridge, Palasbari-Sualkuchi bridge, Guwahati-North Guwahati bridge and the country's longest river bridge, connecting Dhubri with Phulbari, Mr. Sarma said.

The CM claimed that during the last five years, the state government has adopted a proactive investment promotion strategy aimed at attracting private capital and generating employment opportunities.

''The State has become an attractive investment destination in the region, and the Advantage Assam 2.0-Investment and Infrastructure Summit witnessed an investment commitment of ₹5.18 lakh crore,'' he said.

The Chief Minister said that the highest recognition for the State has come from the Centre's decision to include it in the delegation to the World Economic Forum (WEF) at Davos along with advanced States like Maharashtra and Andhra Pradesh.

''This will give us an opportunity to talk about Assam with leading industrialists'', he said.

An investment regarding the setting up of a mobile phone production unit in the state was also likely soon, he added.

'I cannot mention the company's name now but discussions are at an advanced State'', he said.

The ₹27,000 crore Tata Semiconductor Assembly and Test Project, ₹28,026 crore Numaligarh Refinery Limited's expansion project, ₹10,601 crore Brownfield Ammonia-Urea complex at Namrup are among some of the major industrial investments in the state, he added.

The State government has laid equal importance to the development of agriculture with the procurement of paddy increasing to 8.50 metric tonnes from 2 lakh metric tonnes.

''Our focus is on promoting both industrial and agricultural development to ensure that there is stability and consistent progress in the state's economy,'' Mr. Sarma said.

He claimed that the state has entered a new era of development with the '' focus in the last five years being to convince people that Assam can march ahead and compete with advanced States, while in the next five years we plan to forge ahead with world-class infrastructure in place.”