MoUs from local investors being signed at Kar Bhawan in Guwahati on Day 1 of Advantage Assam 2.0 (AT Photo)
The first edition of the Advantage Assam summit, held in February 2018, had witnessed the signing of 200 MoUs worth Rs 100,000 crore. Despite an extraordinary glitz and glamour, the event turned out to be a damp squib. Only seven projects of NRL, ONGC and OIL worth Rs 1621.64 crore and a private sector project worth Rs 39.85 crore have been commissioned till last year.
Clearly, the ecosystem was not geared up to welcome the investors. Once the curtains of the summit came down, the ecosystem was back to square one and the departments and agencies came back to their own way of working.
Post-event facilitation was poor and handholding was lacking. Bureaucratic inefficiencies and slow project approvals led to perceptions of scepticism. Inability to follow up on numerous MoUs signed at the summit created a trust deficit by not allowing desired projects to come to fruition. Even though policies that favoured investment were made, the implementation of those policies was inefficient and vague.
The Assam government appeared more conditioned in the second edition of the investment summit, which concluded in February, with the Chief Minister himself aggressively engaging with prospective investors, including those from other countries. Two months later, the Cabinet has okayed investment proposals of over Rs 7000 crore, which included some in the cement industry, and a few in the petrochemicals and hospitality sectors. These sectors, undoubtedly, have immense potential.
Massive infrastructure projects – both ongoing and upcoming – have shot up the demand for construction materials in the State and limestone reserves have made it ideal for the cement industry to make greater forays in the region. Increasing economic activities has the potential to drive the hospitality sector, and the State needs to cash in on the prospects.
Attracting investments is a key driver of economic growth, job creation, and technological advancement. Attracting investment goes beyond policy announcements. It requires sustained engagement, a facilitative environment, and responsive governance mechanisms.
By institutionalising follow-up procedures, maintaining an investor-centric approach, and strengthening single-window systems, governments can not only attract but also retain and grow investments in a sustainable manner.
While securing investment proposals is an important first step, it is equally critical to follow up diligently to ensure their timely implementation. A lack of consistent engagement, bureaucratic delays, or ambiguity in policy execution often lead to stalled or withdrawn proposals.
Therefore, proactive follow-up mechanisms must be institutionalised to maintain investor confidence and ensure that commitments translate into actual investments on the ground. Creating a conducive business environment is essential to support and sustain these investments. This involves simplifying regulatory procedures, ensuring policy stability, protecting investor rights, and offering adequate infrastructure. A transparent, predictable, and investor-friendly ecosystem minimises the risk perception for investors and enhances a region’s competitiveness in the global investment landscape.