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Industrial Policy of Arunachal Pradesh, 2008

Arunachal Pradesh, the largest in area amongst the Northeastern States of India, is endowed with plenty of natural resources, which need to be converted into goods and services for the development of the State and its people. Having the potential of industrial growth, the state is just at emerging stage.

The Industrial Policy, 2008 of Arunachal Pradesh has been formulated  in order to make it investor friendly and to facilitate optimum utilization of locally available raw materials by encouraging setting up of appropriate industrial units for value addition. The prospective investors and entrepreneurs will find this policy attractive enough to select Arunachal Pradesh as their most attractive investment destination.


  1. To create an investment-friendly environment in the State for industrial growth in the private/ joint venture / cooperative sectors for sustainable economic development of Arunachal Pradesh.
  2. To generate employment opportunities in the State and make it a preferred destination for outside investors.
  3. To promote export oriented industrial units and encourage local entrepreneurs to set up enterprises based on locally available raw materials. .
  4. To take steps to promote hand loom and handicrafts.
  5. To ensure fast track clearance of industrial proposals.


All the industrial units/enterprises, registered with the Directorate of Industries, Government of Arunachal Pradesh and fulfilling the following conditions shall be eligible for the package of state incentives.

  • The industrial units/ enterprises setup after the commencement of this policy.
  • The existing industrial units/ enterprises which have undertaken substantial expansion / modernization / diversification to the extent of 25% of the original cost of plants and machineries; and
  • The existing units/enterprises which are yet to complete five years of its commercial production from the date of the commencement of this policy.


  1. Government provides 99% Sales Tax (VAT) / Entry Tax exemption to eligible industrial units on import of actual raw materials, machineries and equipments into Arunachal Pradesh as also on sale of finished goods in the State for a period of 7 years from the date of commencement of commercial production.
  2. All the entrepreneurs and investors will be issued the trading license for the industries/ enterprises involving investments of minimum Rs. 5 Crore in plant and machineries, whereas in case of service sector the minimum investment on equipments should not be less than Rs. 2 Crore.
  3. An enterprise would be eligible for subsidy on payment made towards preparation of project report to the professional Consultant/Agency on the condition that the project report should be approved and sanctioned by the Financial Institution /Commercial Bank in a ceiling limit as prescribed below:
  1. Micro Sector: 90% of the cost but not more than Rs. 9000/-
  2. Small Sector: 75 % of the cost but not more than Rs. 25,000/-
  3. Medium/Large Sector: 50% of the cost but not more than Rs.1,00,000/-
  1. The State Government shall subsidize the cost of quality testing equipments procured by the industries from recognized firms by 50% of the cost of equipments. Besides, the State Government shall also reimburse 100 % cost of the tests incurred by the micro and small enterprises /industries with a ceiling limit of Rs.50,000/- only.
  2. Approved industrial units / enterprises projects will be exempted from payment of Stamp Duty upto 80 percent of the applicable amount in execution of deeds for a period of 5 years.
  3. Special incentives will be provided to eligible Food Processing Units as additional State Capital Investment Subsidy @ 20 % subject to a ceiling of Rs.25 lakhs.
  4. All incentives granted by the Central Government under NEIIPP 2007, shall be made available to eligible enterprises established in the state of Arunachal Pradesh.

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