Not just Advantage, Assam is set for a 4D Advantage

Assam enters the second half of 2026 riding high with one of the strongest electoral mandates bestowed to the incumbent government for a straight 3rd term. Under the dynamic leadership of its CM Dr Himanta Biswa Sarma, the state is now gearing up to realise it’s ambitious Viksit Assam plan and to become a ₹10 lakh crore state economy by 2028. 

With specific local targets of igniting revenue-generating streams along with focus on poverty reduction and employment generation, armed with consistent support both in the letter and spirit from the centre, Assam made its first appearance at the World Economic Forum (WEF) in Davos earlier this year. It can be aptly termed as an entry into the global stage as an active seeker of partnerships while securing major international investments to boost sectors ranging from green energy, agriculture, electronics among others.

This powerful pact strongly highlights the relevance of three ‘D’s– first ‘D’ forDispur, the capital of the state that is driving transforming policy decisions for the state, second ‘D’ forDelhi – India’s power centre, which is having a deeper engagement with Assam now particularly through the Act East Policy ensuring overall development in the region with innovative industry &financial gain and third ‘D’ forDavos, that hosts WEF, paving way for Assam to access international market as well as investments through economic diplomacy. And then there’s this fourth ‘D’for Development, which is becoming a reality with the other 3Ds coming together with ease and efficiency.

While everything appeared to be falling in place, Hon’ble PM Modi’s call for austerity on May 10th, 2026, came as a little jolt. There he appealed his fellow citizens with suggestions to cut fuel consumption, regulate gold purchase and avoid non-essential foreign travel in view of a dwindling global economy and rising fuel price owing to the closure of Strait of Hormuz.

For a government, which has returned to power with a bigger mandate for the work it has done and the commitments it made during the election campaign, now suddenly is faced with a bigger question – what is the best option between ambition and restraint? Whereas ambition will lead to increase in expenditure on the other hand restraint might slow down the growth.

In such a conundrum, will it be wise to pick a side or wouldn’t be better to find a middle path that will allow us to be mindful of our expenses yet remain on course of a “Atal, Avichal, Agragami Asom” that defines a proactive and progressive Assam.

Assam’sHon’ble Finance Minister Mr Jayanta Mallabaruah, has already indicated that the fiscal discipline and efficient governance will go hand in the state’s ambitious growth plan ensuring a balance between productive and unproductive expenditure. There is a clear indication that the government will continue to push for productive expenditure with investments that will result in 200,000 government jobs and reduction in poverty rate to below 3% towards a strong ₹10 lakh crore state economy by 2028.

Given this backdrop, and as anticipated earlier, the budget 2026-27 is bringing ray of hope to a number of sectors, including agriculture, MSMEs, community empowerment, self-help groups, industrial development, disaster management, renewable energy among others, reflecting Assam's electoral commitments.

Such a tide-turning approach adopted by the government in these times of global crisis, finds resonance with a famous statement made by former Chief of staff, White House, Rahm Emanuel, that one shouldn’t waste a moment of crisis as it can be turned into an opportunity of a lifetime by doing things differently. 

This year’s budget further shows strong commitment towards catalysing the growth trajectory following a cleaner and green pathway. The announcement of 'green cess' on polluting activities adopting ‘polluters pay principle’ and government’s past three years of work on the green budget clearly signify that Assam’s environmental ambition is not just a policy pitch, but it carries fiscal commitment too.

Government of Assam’s Japan outreach has already indicated its proactive approach in bringing foreign investment to the State. Despite the cancellation of the much-anticipated visit by Japanese Prime Minister Sanae Takaichi to Assam, Assam was able to seal partnerships with major Japanese businesses across multiplesectors including semiconductor, biogas, dairy and skill development as part of Japan’s commitment to invest Rs 5.8 Lac crore in India over the next decade.In another major breakthrough, it has collaborated with European Union as well to push Flavours, Fragrance, and AYUSH sectors by launching a unique programme on Blue Valley Sector June this year.

While domestically, the state has already secured a major funding from the Ministry of Development of North Eastern Region for the Mission Senehjori that aims to transform the Muga silk value chain. This is besides major investments made towards developing TATA semiconductor project at Jagiroad, Namrup Brownfield Ammonia-Urea Complex and multiple road infrastructure projects.

And top of that, the Sixteenth Finance Commission recommends that the state's share of tax devolution is increased from 3.128% to 3.258% further strengthening Assam's fiscal position.

It appears that Government is foraying in the right direction with appropriate planning and armed with increased credibility. Whereas, the Reserve Bank of India (RBI) has earlier rated Assam as the fastest-growing state economy in the country with Gross State Domestic Product (GSDP) growth touching 45% during 2020-25, which is well above the national average of 29%.

Government of Assam’s proactiveness to engage with corporations and private investors across sectors will only ensure revenue growth and job creation further reiterating its willingness to nurture coexistence of meaningful spend vis-à-vis restrained spending. And it is obviously so given the decisive mandate it received in the elections to take up ambitious projects as well as schemes. However, doing too much or too quickly may dent the government exchequer, and with such times of stress, Assam will have very little room to absorb shock of price hike, disasters, among other things, particularly with the current flood situation that has impacted several areas across the state. While Assam may like to demonstrate that the growth and prudence are not two opposing ideas, it would however like to proceed with caution. 

This formidable combination of 3Ds - Dispur, Delhi and Davos shows how’s Assam is pushing for local institutional development while drawing strength from strategic support of the centre under Act East policy and actively seeking international investments and collaboration simultaneously rather than sequentially to realise the 4th D i.e. a Developed Assam.

Dr Pranab J Patar, is an award-winning environment and sustainability expert, currently associated with the Clean Development & Climate Finance PMU at Finance Department, Govt of Assam, contributing towards building a resilient and clean development pathway for the state.