Key Objectives

• Encourage entrepreneurship and self-employment among youth, women, and marginalized communities.

• Facilitate the growth and competitiveness of MSMEs through financial support and innovation incentives.

• Promote value addition to local resources such as bamboo, horticulture, handloom, handicrafts, and agro-based industries.

• Strengthen industrial infrastructure in rural and semi-urban regions through cluster and park-based development.

• Simplify processes and create a business-friendly environment to attract local and outside investments.

Key Features & Benefits for Business Owners

💰 Capital Investment Subsidy

• MSMEs are eligible for capital investment subsidy on fixed capital investment (plant, machinery, and equipment).

• Micro enterprises: up to 35% subsidy.

• Small and Medium enterprises: up to 25%, depending on location and sector.

• Additional incentives for enterprises owned by women, SC/ST entrepreneurs, and those located in border or remote areas.

🏭 Infrastructure Support

• Establishment of MSME industrial estates, parks, and clusters to provide ready-to-use industrial plots and common facilities.

• Priority allotment of land/sheds for MSMEs in identified industrial zones.

• Development of plug-and-play infrastructure for startups and small industries.

⚙️ Technology & Quality Upgradation

• Financial assistance for technology modernization, adoption of energy-efficient machinery, and quality certification (ISO, BIS, etc.).

• Incentives for participation in industry exhibitions, trade fairs, and market linkage programs.

📈 Interest Subsidy

• Reimbursement of interest on term loans up to 5% per annum for a fixed period to reduce capital cost burden.

• Applies to both new and expansion projects approved by banks/financial institutions.

👩‍💼 Entrepreneurship Development

• Regular Entrepreneurship Development Programmes (EDPs) and Skill Development Training through District Industries Centers (DICs).

• Support for startup incubation centers and innovation hubs in partnership with educational institutions.

🌾 Focus on Resource-Based Industries

• Encouragement of industries based on local raw materials such as:

  • Bamboo, cane, and woodcraft

  • Agro and food processing

  • Horticulture products

  • Handloom and handicrafts

  • Eco-friendly and sustainable products

🌍 Marketing & Export Support

• Assistance for marketing and branding of Arunachal-made products through fairs, expos, and digital platforms.

• Support for export-oriented MSMEs through reimbursement of logistics costs and facilitation of export clearances.

Eligibility Criteria

To avail benefits under the Arunachal Pradesh MSME Policy, businesses must:

• Be registered as Micro, Small, or Medium Enterprises under the Udyam Registration Portal.

• Have their business operations located in Arunachal Pradesh.

• Operate in eligible sectors such as manufacturing, services, agro-processing, handicrafts, or technology-based industries.

• Comply with state and national laws regarding environment, labor, and taxation.

• Submit a feasible business plan/project report approved by a recognized financial institution.

How to Apply

1. Registration

   • Register your enterprise on the Udyam Portal and with the District Industries Centre (DIC) of your district.

2. Application Submission

   • Fill out the prescribed MSME Incentive Application Form (available at the DIC or state MSME department website).

   • Attach necessary documents such as:

     • Business registration certificate

     • Project report

     • Bank sanction letter

     • Land/lease documents

     • Investment proof

3. Verification & Sanction

   • Applications are scrutinized by the State Level Empowered Committee (SLEC) for approval.

   • Sanctioned incentives are disbursed upon project implementation and verification.

Important Considerations for Business Owners

• Preference for Local Entrepreneurs: Arunachal residents are prioritized for land allotment, subsidies, and training programs.

• Timely Project Implementation: Subsidy disbursement is contingent upon starting production within the specified timeframe.

• Sustainability Focus: Enterprises adopting green technologies and eco-friendly processes receive additional incentives.

• Cluster Development: MSMEs are encouraged to join or form industrial clusters to access shared infrastructure and common facilities.

• Skill-Linkage Programs: Partnerships with ITIs, Polytechnics, and Universities ensure continuous skill availability for MSMEs.

Why This Policy Matters for Entrepreneurs

• Reduces initial investment risk through capital and interest subsidies.

• Provides easy access to land, finance, and infrastructure for new businesses.

• Encourages value addition to local resources, creating new income opportunities.

• Boosts employment generation in both rural and urban areas.

• Promotes inclusive growth by supporting women, tribal, and youth entrepreneurs.