On Thursday, Finance Minister Nirmala Sitharaman emphasized the significant attention the Modi administration has dedicated to the northeastern states, noting their substantial gains from the implementation of the goods and services tax (GST), which has considerably enhanced their indirect tax revenues.

During her address at the Indian Institute of Technology in Guwahati, Sitharaman highlighted that the GST revenue’s compounded annual growth rate (CAGR) for the northeastern states soared to 27.5% since its roll-out in 2017-18, significantly surpassing the previous indirect tax regime’s CAGR of 14.8%. This surge in revenue collection has empowered these states to amplify their development spending, she further explained.

The Finance Minister also praised the Tata Group’s decision to inaugurate a ₹27,000-crore domestic semiconductor assembly and testing facility in Assam as a “historic” move, indicating the state’s appeal to cutting-edge businesses beyond its traditional industries.

Sitharaman encouraged investors to leverage the northeastern region’s strategic location near Southeast Asian countries such as Myanmar, Malaysia, Singapore, Thailand, Cambodia, Laos, and Vietnam, to broaden their market reach and connectivity.

In an effort to position the region as a medical hub, Prime Minister Narendra Modi has initiated the construction of seven cancer hospitals in Assam, she noted.

Sitharaman cited the latest Multidimensional Poverty Index by Niti Aayog, revealing a dramatic poverty reduction in Assam, with 8.04 million individuals lifted out of poverty over approximately nine years. This reduction brought the state’s poverty rate down to 14.47% in 2022-23 from 36.97% in 2013-14.

Addressing the government’s commitment to the northeastern region, Sitharaman mentioned that Prime Minister Modi has made as many as 65 visits to the area over the last decade, underscoring the importance placed on its development.

Source from: https://www.a2ztaxcorp.com/finance-minister-highlights-gst-success-and-development-initiatives-in-northeast-india/