Arunachal Pradesh is the largest in the north-eastern states of India. It shares borders with the neighbouring countries of Bhutan in the west, China (Tibet) in the north & northeast & Myanmar in the east and southeast. The Indian states of Assam & Nagaland border it in the south. The state’s location provides opportunities for international trade with South Asian countries such as Myanmar, Bhutan and China. The hilly terrain & abundant rivers make the state a potential powerhouse of the Northeast. The state’s diverse topography offers ample of opportunities for non-timber based industries such as bamboo, cane and medicinal plants. Horticulture has a vast potential, owing to good agro-climatic conditions and topography, for the development of varied varieties of fruits and vegetables.

Between 2011-12 and 2019-20, the Gross State Domestic Product (GSDP) increased at a Compound Annual Growth Rate (CAGR) of 12.33 per cent to Rs 293.51 billion (US$ 4.19 billion) whereas the per capita GSDP increased at a CAGR of 11.79 per cent to Rs 154,229 (US$ 2,393).

The state’s location provides opportunities for international trade with South Asian countries such as Myanmar, Bhutan and China. Textiles and handicrafts from the state are in demand in neighbouring countries. In FY19, commodity exports from the state were valued at US$ 2.23 million. According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflows to the Northeast states1 totalled to US$ 122 million between April 2000 and June 2019.