Arunachal Pradesh is India’s “land of the rising sun”, with lofty, haphazardly aligned ridges that separate deep valleys and rise to the peaks of the Great Himalayas. Agriculture is the pillar of the economy here and forest products from its base. The state also has a number of fruit preservation departments, rice mills, fruit orchards, handloom handicrafts, and horticulture units.




Weaving industry

Cane & Bamboo Processing



Tourism and Horticulture.

NSIC: National Small Industries Corporation ltd. provides training to the entrepreneurs to develop skills for setting up of industry and to improve their marketing skills through the Demonstration-cum-Training Centre. Common facility is provided for Mechanical Engineering and Soft Leather Luggage manufacturing.

Schemes by NSIC(National small industries Corporation) :

1. Composite Term Loan Scheme:

Making available loans to tiny units wherein loan up to Rs. 25 lakhs are provided for Land & Building, Machinery & Equipment and Working Capital. The scheme has recently been launched for first generation entrepreneurs and the entrepreneurs who are unable to provide security against the assistance, Credit Guarantee Fund Trust provides guarantee cover against certain fees i.e. 2.5% of the loan amount initially and 1% annually for unpaid amount.
2. Preparation of Project Reports: NSIC in association with Small Industries Service Institutes (SISI) and District Industries Centre’s located in different States/Districts of North Eastern Region can prepare project reports for use by the small scale units preferably tiny units based on the demand/market or resources like local raw materials or agricultural or horticultural surpluses available. Wherever necessary services of qualified consultant firms of Chartered Accountants and Engineers can be taken to formulate product/service specific project reports

3. Hire Purchase Scheme : To provide finance for procurement machinery & equipment to the entrepreneurs on hired basis for five years & ownership is transferred thereafter

4. Bill Financing Scheme: To provide finance by way of Discounting of bills, which help entrepreneurs to overcome block-up of capital due to delay in payment of bills

Schemes by North eastern development finance corporation ltd.:

1. Rupee Term Loan (RTL) Scheme: To provide medium to long term financial assistance for setting up of new, expansion, diversification or modernization projects in various manufacturing or services sector. The assistance shall be in the form of Rupee Term Loan.

2. Equipment Finance Scheme: For financially sound companies, loans are provided for the purchase of equipment.

3. Corporate Finance Scheme: For providing finance such as normal capital expenditure, working capital margin, shortfall in working capital, repayment of high cost debt and general corporate purpose like funding of business acquisition or for brand building etc. where no tangible asset creation may be envisaged.

4. Working Capital Term Loan Scheme (WCTL): Upto a Maximum of 75% of the working capital requirement of business for one cycle of operation is provided to deserving units in the form of working capital term loan.

5. NEDFI Equity Fund Scheme: To invest in projects promoted by entrepreneurs in North-Eastern Region having sound business ideas with potential for high growth and more than normal returns on investment. Assistance under the scheme will be available for financing the items normally included in the cost of a project, startup working capital and selectively for core current assets during commercial operation.

6. NEDFi Opportunity Scheme For Small Enterprises : To provide long term financial assistance for setting up a new industrial and infrastructure projects as well as for expansion, diversification or modernization of existing industrial enterprises excluding Commercial Real Estates. Its purpose is to encourage local small entrepreneurs of North East India in setting up industrial units with reduced cost of fund and thus help in fast paced economic development.

7. North East Entrepreneur’s Development Scheme [NEEDS]: The objective of the scheme is to help first generation entrepreneurs who are short of equity.
Benefits can be extended to Proprietorship & Partnership Concerns and Companies. Technical qualification of the promoter in the relevant field is a pre-requisite.

8. Women Enterprises Development Scheme: It aims to provide financial assistance in the form of Term Loan to women entrepreneurs for taking up business ventures. Existing business ventures will also be eligible under the scheme for expansion, modernization and diversification to the skilled women entrepreneurs in the age group of 18 – 50 years.

9. Initiative for Development of Entrepreneurs in Agriculture (IDEA): It aims to promote Agri-business ventures in North East Region and assist in establishing Agri-business as a profitable venture. This scheme will provide gainful employment opportunities in Agri-business Ventures.

New Industrial Policy Arunachal Pradesh: Under this incentives will be provided to the beneficiaries. All incentives granted by the Central Government shall be transmitted to eligible entrepreneurs establishing industrial units in Arunachal Pradesh. Currently these include:
1. Central Capital Investments Subsidy Scheme.
2. Transport Subsidy Scheme
3. Central Investment Subsidy Scheme
4. Comprehensive Insurance scheme

PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP): The Government subsidy under the Scheme will be routed by KVIC through the identified Banks for eventual distribution to the beneficiaries / entrepreneurs in their Bank accounts. It aims to generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises.

Indian institute of entrepreneurship: (IIE Itanagar)-The Indian Institute of Entrepreneurship (IIE) was established in the year 1993 by Government of India as an autonomous national institute with an aim to undertake training, research and consultancy activities in small and micro enterprises focusing on entrepreneurship development. The institute began operating from April 1994 with the North East Council (NEC), Governments of Assam, Arunachal Pradesh and Nagaland and SIDBI as its other stakeholders.

It aims to promote and develop entrepreneurship and conduct research and provide consultancy for entrepreneurship development. It also conducts entrepreneurship and skill development programs in the state.

North-Eastern Regional Institute of Science & Technology- Centre for Management Studies: The institute provides training for entrepreneurship development.

In Summary – Arunachal Pradesh and Entrepreneurship:

With its abundant natural beauty, Arunachal has tremendous potential to become a key tourist destination in India, an opportunity that has so far been untapped due to unrest in the political and social scenario. Entrepreneurs, especially rural entrepreneurs can tap into this and other unexplored opportunities to help the state gain national and international interest.

Arunachal Pradesh

To know more about how Arunachal Pradesh is building a vibrant entrepreneurship ecosystem, click here.

Data Sources for Arunachal Pradesh:

Note: Policy details provided here are for the purpose of information only. Please verify the latest information from the relevant Government or MSME website of the state. Other data and information is curated from various websites and public documents. In case you have any corrections, additions, or suggestions, please share the same with us, and we’ll be happy to incorporate them here.