Northeast India’s industrial sector remains uanswered Budget 2023

Northeast India's industrial sector remains uanswered Budget 2023

Guwahati: The demand for a new industrial policy for the North-East region has not been answered in the Union Budget 2023-24.The North East Industrial Development Scheme, which expired on March 31, 2022, is yet to be renewed, raising concerns in the region’s industrial sector. Delays may deter potential investors from entering the region.
“The budget did not meet our expectations for the Northeast. The much-anticipated industrial policy is not included in the budget, which has made foreign investment in the region wary due to the lack of a viable industrial policy,” said a prominent industrialist from Assam. Car and Indian Chamber of Commerce Chairman Sarat Kumar Jain said. , in an interview with Media.
During the third Northeast Dialogue, in New Delhi on December 15, 2022, while interacting with North East Members of Parliament, Union Minister for Law and Justice and Chairman of NEMPs Forum Kiren Rijiju spoke about the need for a New and New Delhi. was admitted Better policy and its impact on growth and development of the region.
“Despite being happy with the comprehensive growth outlook in the budget, we in the North East are disappointed that there is no mention of the long awaited industrial policy for the region. The North East Industrial and Investment Promotion Policy 2007 Since the completion of (NEIIPP), the share of private investment in the Northeast has come down significantly. We hope that the new policy will be announced soon,” said the Federation of Industry. Trade North East Region (FINER).

The budget's focus on improving infrastructure, including roads
The Standing Committee on Commerce, in its 175th report tabled in Parliament, said: “The Department has not provided any information regarding the continuation of the scheme beyond the prescribed date. The Committee is of the view that extending the scheme for a longer period It is essential for the rapid industrial growth of the North-Eastern region, especially due to the constraints caused by the COVID-19 pandemic. Therefore, the Committee recommends that the Department of Industries stakeholders and concerned State Governments should consider this scheme. Consult for extension beyond April 1, 2022, to allow registration of new industrial units.
The report of the committee states that the North East state governments and the Federation of Industry and Commerce of North Eastern Region (FINER) have expressed strong dissatisfaction over the North East Industrial Development Scheme (NEID) 2017.
FINER welcomed the allocation of Rs. 2491 crore for the North East Special Infrastructure Development Scheme. The scheme provides 100% central funding to the state governments of the North East region for projects related to water supply, electricity, connectivity, tourism, education and health. This is being seen as a big relief for the industry and trade sector in the region.
The 2023-24 budget proposes the rehabilitation of 50 additional airports, heliports, water aerodromes, and modern landing grounds to “improve regional air connectivity.” In recent years, the central government has been improving regional air connectivity through its flagship scheme UDAN, which focuses on connecting tier-2 and tier-3 cities.

The budget's focus on improving infrastructure, including roads
“The Northeast region, which includes difficult areas, will greatly benefit from the rehabilitation of these airports. However, the Indian Chamber of Commerce feels that there could have been a special package for the development of Northeast infrastructure and hopes that The government will consider it,” the Indian Chamber of Commerce said in a statement.
The budget has proposed a record allocation of Rs 22,138 crore for the Ministry of Micro, Small and Medium Enterprises (MSMEs) in the 2023-24 budget, which aims to boost employment in the country. In addition, the government has announced a revised credit guarantee scheme for MSMEs, which will come into force from April 1, 2023, with a fund of Rs 9,000 crore. This will result in additional collateral-free credit of Rs 2 lakh crore and reduce the cost of credit by about 1 percent. This will help in the recovery of MSMEs who are still struggling with the impact of the COVID-19 pandemic.
The Indian Chamber of Commerce has appreciated the government’s initiatives to support the growth of the MSME sector. Sarat Kumar Jain, Chairman, Indian Chamber of Commerce, Assam Chapter, said this boost for MSMEs will go a long way in accelerating the growth story of the Northeast, especially since most of the industries in the region are in the small sector.
However, the tea sector, which is so important to Assam, has been completely ignored without even mentioning it in the budget. The tea industry has been reeling from falling prices and exports and was hoping for some relief.

Meanwhile, the FICCI North East Advisory Council has hailed the Union Budget 2023-24 as a progressive budget that prioritizes inclusive growth.
According to FICCI Northeast Advisory Council Chairman Ranjit Barthakur, the budget takes a better approach to growth and the proposed investment in sectors like infrastructure, agriculture, healthcare, education, manufacturing and digitalization is a positive step.

The budget’s focus on improving infrastructure, including roads, railways, ports, airports and urban transport, is expected to create employment opportunities and increase connectivity in the Northeast region. Barthakur said the 33.4% increase in investment spending is particularly significant.
“This will be a major boost to the economy across the country, but particularly in the Northeast where infrastructure is heavily emphasized. We are confident that these investments will result in substantial improvements in the quality of life of the people of the region. It will improve.
Barthakar welcomed the initiatives aimed at promoting business activities in the Gift City and suggested that the government consider setting up a similar model in the Northeast. They believe that it can attract business and investment from Southeast Asian countries including the ASEAN region, which will significantly boost India’s Act East policy.
FICCI appreciated the government’s initiative to extend agricultural credit of Rs. 20 lakh crore, focus on sectors like animal husbandry, dairying and fisheries, and launch initiatives like Horticultural Clean Plant Program to increase production of high-value crops. “These measures will significantly enhance the livelihood of farmers in the region and ensure food security for the country,” Barthakur said.
Barthakur also appreciated the allocation for the Amrit Dharohar scheme. “Conserving our biodiversity is critical, and wetlands in the Northeast, in particular, play an important role in this,” he said. Will be helpful.
Mr. Abhijit Barooah, Immediate Past Chairman of CII North East Council and Managing Director of Premier Cryogenics Limited welcomed the Union Budget 2023 and appreciated the announcement of setting up of 157 new Nursing Colleges along with 157 Medical Colleges. He said that with this India will be able to take advantage of its demographic dividend. Barooah also highlighted that Indian nurses, especially from the northeastern states, are in high demand globally and identifying a few such colleges in the region would benefit the region.
He added that upgrading support to self-help groups in procurement of raw materials and skill development would give strong returns to the North-Eastern economy.
The budget focuses on the energy sector and the Northeast, with its four oil refineries, is expected to benefit from the allocation of Rs 19,700 crore for the National Hydrogen Mission. The mission aims to increase hydrogen production capacity to 5 million metric tons by 2030, in line with the country’s net zero and green commitments.
The government’s plan to promote tourism on mission mode in 2023 will also help the North East region. The development of destinations in the region will introduce new tourist destinations and increase the presence of North East on the tourism map.
The proposed increase in the number of teachers and support staff in Eklavaya model residential schools will improve the quality of education in remote areas of the Northeast. Support for capacity building and market linkages for artisans, as announced in the budget, will also transform the region and empower the large-scale handloom and handicrafts sector.
Pradeep Bagla, Chairman of CII North East Council and Managing Director of Amrit Cement Limited, said that initiatives to promote agriculture in the region will benefit start-ups, entrepreneurs and farmers.

He welcomed the availability of quality planting material for millet, the Agri Accelerator Fund to support agricultural start-ups, and greater focus on natural farming. He noted that the Rs 20 lakh crore credit target for the agriculture sector, with a focus on animal husbandry, dairying and fisheries, will drive growth and improve farmers’ incomes.
“Reduction of over 39,000 compliance and decriminalization of over 3,400 statutory provisions will provide a major boost to ease of doing business for startups in the Northeast. National Data Governance Policy for Startups, aimed at de-anonymizing data Access is to be provided, and the establishment of three AI Centers of Excellence in partnership with the private sector in India will also promote AI startups in the country and the region.”

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