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Arunachal Pradesh Trade and Commerce

Arunachal Pradesh is situated in the north eastern most part of India and is nearly 84,000 Sq. Km in area. It has a long international boundary with Bhutan to the west (160 Km), China to the North East (1080 Km) and Myanmar to the East (440 Km) stretching 1,680 Kms of international border.
The Department of Trade & Commerce was created and came into being in the state of Arunachal Pradesh during 1998.The main functions of the Department as per the Business of Allocation notified by the Govt. of Arunachal Pradesh are as under:

Issue of Trade License.
Facilities to Border Trade & Foreign Trade.
Development and expansion of export production particular in plantation of crops, orchids, flowers and Handlooms and Handicrafts.
Creation of Export commodities including Export Processing Zones etc

Activities of the Department by Department of Trade and Commerce Arunachal Pradesh

The Department of Trade & Commerce is the Nodal Department for issue of Trade Licences.
All the respective Deputy Commissioners/ ADCs of the Districts have been empowered to issue Trade Licences up to Rs. 10 lakhs.
Trade Licences involving more than Rs. 10 lakhs are also issued by the respective DCs after thorough examination by the Department of Trade & Commerce and subsequent approval of the Government.
Normally, Trade Licences are issued to Arunachal Pradesh Scheduled Tribe (APST) entrepreneurs only.
However, in exceptional cases where there is no APST entrepreneurs forth coming, Non-Tribals are also issued Trading licences with the approval of the Government subject to dully recommended by the respective DCs as a special case.
Moreover, trade licences can also be issued to industrial unit established by other than APST as per Arunachal Pradesh State Industrial Policy 2008

Facilities to Border Trade and Foreign Trade

By the advent of globalization and economic liberalization, The Government of India has given more emphasis on the development of Border Trade & Foreign Trade with the neighbouring countries for the overall economic development of the state in particular and country in general.
As a consequence, the Government of Arunachal Pradesh has taken up some ambitious proposals for re-opening of border trade with the neighbouring countries i.e. Bhutan, Myanmar & China.
In the past, the people of the state residing in the border areas had been maintaining trade relations with the neighboring countries though in traditional and unregulated manner.
People inhabiting in the border areas with Bhutan and Myanmar have been maintaining unregulated trade relation till today though trade relation with China was discontinued after Sino-Indian conflict in 1962.
The Government of Arunachal Pradesh has identified the following border trade points and further development of infrastructure is under active process in Indo-Myanmar and Indo-Bhutan sector.

BORDER TRADE

The Government of Arunachal Pradesh is presently planning to open a new horizon by opening Border Trade with our neighbouring countries, viz., China, Bhutan and Myanmar.
In most of the places, traditional way of trade is existing but Government is preparing proposals to create proper infrastructure for formal trade.
Border Trade in following sectors is being proposed:

Indo-China Sector

Indo-Myanmar Sector

Indo-Bhutan Sector

Various scheme for Trade Development

Export Development Fund (EDF)

Following the announcement of the Prime Minister on June, 21-22, 2000 at Shillong, an Export Development of Fund (EDF) has been set up for promotion of the export development in the North Eastern Region including Sikkim.
The fund was set up initially with a corpus of Rs 5 crores and thereafter further contribution to the fund is to be provided by the Ministry of Commerce & Industry from any other budgetary or non budgetary sources of the government which is to be managed by the Agriculture & Processed Food Products Export Development Authority (APEDA) under the instruction of the Department of Commerce.

Central Assistance to States for Developing Export Infrastructure and Other Allied Activities (ASIDE)

The Ministry of Commerce, Govt. of India is implementing a central scheme, ‘Central Assistance to States for Developing Export Infrastructure and Other Allied Activities’ (ASIDE) for promotion and facilitation of export commodities and creation of necessary infrastructure in the state in order to maintain lower cost of production so as to make our exports internationally competitive.
The objective of the scheme is to involve the state in the export effort by providing assistance to the state government for creating appropriate infrastructure for the development and growth of exports as the states do not often have adequate resources to participate in funding of infrastructure for exports.

Setting up of World Trade Centre (WTC) in Itanagar

The World Trade Centre, Mumbai (WTCM) which is the lone Centre in entire Country is very much interested to set up one more such centre in the state of Arunachal Pradesh at Itanagar in view of the high potentiality of Border Trade scope in the region in tune with “Look East Policy” of the Central Government.
The W.T.C can facilitate in numerous ways, such as, holding of business exhibitions, Business centre with rooms for holding meetings, conferences, workshops, video conferencing, W.T.C club, undertaking research studies and dissemination of information through on-line, periodicals, training in foreign languages and taking and receiving trade missions.
Moreover the WTC can be a catalyst for all round development of the region, such as, renewal of urban areas, attraction of new business in the region, boosting of airport and air traffic and enhancing the trade capabilities of the trading community of the region