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India By State - Arunachal Pradesh- Business Opportunities

Business Opportunities



The geographic location of the state provides immense opportunities for international trade with the South Asian countries through its shared borders with Myanmar, Bhutan and China.

Arunachal Pradesh can be seen as an attractive investment opportunity. The undulating topography and varied agro- climatic conditions offer vast potential for horticulture and growing a variety of fruits, vegetables, spices, aromatic and medicinal plants, flowers and mushroom.

The state also offers a wide range of fiscal and policy incentives and assistance for businesses under the Industrial Policy, 2008. Additionally, the state has sector-specific policies for industries related to power and agriculture.

There are 13 established industrial estates in the state confirmation of the government's support of industrial growth. To aid with the development the government has notified integrated infrastructure development centres, industrial growth centres and industrial areas.

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Key Industries


The state of Arunachal Pradesh is estimated to have hydro power potential of over 50,000 MW. Over 50 percent of Arunachal Pradesh's installed power capacity is based on hydro energy; a substantial share is based upon thermal power. Despite the availability of such huge potential, the state has witnessed restricted development of the power infrastructure under the state sector. The government has encouraged domestic power companies in the region to develop hydro power plants.

Mineral-based Industry

Arunachal Pradesh has a mineral-based industry with immense potential due to its considerable mineral reserves. The state is rich in minerals such as, coal, graphite, limestone, marble, dolomite, and lead.

The states mining activities are managed by the Arunachal Pradesh Mineral Development and Trading Corporation Limited (APMDTCL).

Agriculture and forest-based industries

The new Industrial Policy, 2008, of Arunachal Pradesh lists agriculture and non-timber forest produce-based industries as thrust sectors. Non-timber based industries include bamboo, cane and medicinal plants.


The tourism industry has grown rapidly in recent years with eco and adventure tourism, cultural tourism, and religious tourism being the major areas of growth. The government, through the Industrial Policy, encourages the development of tourism sector in areas such as tour operations, hotels and resorts.


The textile industry is in its early stages of development and is at the grass root levels. The industry provides employment to mainly women and most the units are small-scale in operations and/or home-based.

Carpet making is one of the most important occupations in the state. The carpets produces have received national and international repute owing to its quality.

The state has unique and appealing handloom designs from each of its tribes. The products include skirt (gale), shirt (galuk), cotton shawl, side bag and curtain cloth.

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Key Players

National thermal power corporation (NTPC)

National Thermal Power Corporation is a Navratana public sector unit (PSU) engaged in thermal power production. It is a leading thermal power generator, and has now entered the hydro power generation and nuclear power generation segments.

NHPC Limited

NHPC limited (formerly known as National Hydroelectric Power Corporation Ltd) is a public sector major in hydro electric power generation. The company has three ongoing projects with an installed capacity of 4,500 MW.

North Eastern Electric Power Corporation (NEEPCO)

The NEEPCO is a central PSU involved in power generation in North-eastern region. The company controls over 50 per cent of the states installed capacity and is one of the oldest power generating companies around. The company recently completed the prestigious 405 MW Rangnandi project in Arunachal Pradesh.

Bhilwara Energy

Bhilwara Energy Limited is a part of Delhi-based LNJ Bhilwara group. The company has recently signed three hydro power projects in the Tawang district of the state, with installed capacity of 290 MW.

Reliance power

Reliance power is a well known private sector company involved in power generation and distribution. The company has presence in coal based, gas based and hydro generation. The company has recently signed a MoU with the Government of Arunachal Pradesh for developing two hydro power plants in Arunachal Pradesh with an installed power capacity of 1,700 MW.

Jaiprakash Hydro Power Limited

Jaiprakash hydro power limited (JHPL) is a private sector company engaged in generating hydro power, the company has recently signed MOU with the government of the state for developing two hydel projects in Arunachal Pradesh, with an installed capacity of 2,100 MW.

Indiabulls Real Estate Limited

Indiabulls Real Estate Limited (IREL) is an Indian company with operations in real estate, infrastructure, financial services, securities, retail, multiplex and power sectors. The company currently has four hydro power projects under implementation in the kameng district of Arunachal Pradesh.

GMR Energy Limited

The GMR group is Bengaluru based infrastructure major, with interests in the airports, energy, highways and urban infrastructure. The company has signed a MoU with the government of Arunachal Pradesh for a hydro power project in the Kameng district.

KSK Energy Venture Limited

KSK Energy Ventures limited is a fully-owned subsidiary of KSK power Venture Plc., a power project development and investment company, listed on Alternative Investment Market (AIM) of the London Stock Exchange.

The company has signed an MoU with the government of Arunachal Pradesh for developing nine hydro power projects in the state.

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More Information on Arunachal Pradesh

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