Arunachal CM Unveils Creative Economy Initiative, 'Mini NITI Aayog' to Drive Startups and Investment

Arunachal Pradesh Chief Minister Pema Khandu has announced a series of initiatives to strengthen the state's startup ecosystem, attract investment and create new opportunities for young entrepreneurs. The key announcements include the Arunachal Creative Economy (ACE) programme and the Institute for Transforming Arunachal (ITA), an expert think tank that Khandu described as a “mini NITI Aayog” for the state. The announcements were made during an event celebrating the graduation of Cohort 4 and the launch of Cohort 5 of the Arunachal Pradesh Entrepreneurship Development Program (APEDP). The event also marked the inauguration of satellite incubation centres at seven higher education institutions and the signing of memorandums of understanding (MoUs) with five additional institutions. Deputy Chief Minister Chowna Mein, senior government officials, representatives of NITI Aayog and young entrepreneurs attended the programme.

The Arunachal Creative Economy initiative, which will operate through the Chief Minister's Office, aims to help young people transform innovative and creative ideas into viable businesses. The programme is expected to encourage entrepreneurship across different sectors while creating opportunities for young people to turn their skills and ideas into sustainable sources of income. Alongside this initiative, the proposed Institute for Transforming Arunachal will bring together subject experts to advise the government on policy development and economic planning. Agriculture, allied activities and tourism are among the sectors expected to receive attention as the state looks to diversify its economy and identify new areas for growth.

Khandu also announced plans to strengthen connections between local startups and potential investors. He said he had been in contact with venture capitalists and intended to organise a conference where entrepreneurs from Arunachal Pradesh could present their business ideas and explore funding opportunities. The initiative is expected to help promising startups connect with investors who can provide the capital and guidance required to expand their operations.

The state government is also considering additional incentives for businesses graduating from the APEDP programme. Khandu directed the Planning and Investment Department and the APEDP cell to consult the Department for Promotion of Industry and Internal Trade (DPIIT) on possible support measures, including income tax-related benefits for startups transitioning from proprietorships to private limited companies or limited liability partnerships. A policy decision is expected in the coming days, according to the announcement.

To help entrepreneurs reach customers beyond the local market, the Chief Minister instructed the Chief Secretary to organise workshops for APEDP alumni. Experts will guide participants on using digital platforms to promote their products and services nationally and internationally. He also asked the CEO of the Arunachal Pradesh Innovation and Investment Park (APIIP) to accelerate its conversion into a Section 8 company, a step he had approved after announcing it at the previous year's programme.

Launched in 2021 during the COVID-19 pandemic, the Arunachal Pradesh Entrepreneurship Development Program has helped establish more than 150 startups, Khandu said. The programme has now expanded its intake from 50 to 100 startups, while seed funding has increased from Rs 5 lakh to Rs 10 lakh in one category and from Rs 4 lakh to Rs 8 lakh in another. Around 100 entrepreneurs in Cohort 5 will undergo a nine-month incubation programme at APIIP, receiving mentorship and business support from established institutions, including the Indian Institute of Management.

The Chief Minister also highlighted Arunachal Pradesh's performance in the National Startup Ranking Framework. He said the state was among the top three states recognised on the occasion of the 10th anniversary of Startup India and was the only state in the Northeast to receive that distinction.

Several businesses supported by the state's entrepreneurial ecosystem have already gained recognition at national and international levels. Arunachal Ivory and Ornaments, which creates 3D-printed replicas of traditional animal headgear, was featured in the Prime Minister's 113th episode of Mann Ki Baat and received a Rs 10 lakh grant under the AIC-SMUTBI Digi Sapne programme. KT Marketing from Ziro won the Bharat Entrepreneur Award 2025, while Popil Tunes was selected for the STPI Octane Programme 2025 under the Ministry of Electronics and Information Technology.

Other successful ventures include House of Macnok from Pasighat, which was selected for a Global Entrepreneurship Consulting Project with the University of Oklahoma in the United States, and CK Bliss Health & Rhythm, which received an appreciation letter from the Governor. Mete Foods and Slot Allot were also included in the North Eastern Council's list of the top 50 incubation ventures. These examples underline the potential of local businesses to expand their reach when supported by mentorship, funding and access to wider markets.

Expanding incubation facilities across educational institutions is another important part of the state's strategy. Satellite incubation cells were inaugurated virtually at Rajiv Gandhi University, Arunachal Pradesh University in Pasighat, Arunachal University of Studies in Namsai, the National Institute of Technology in Jote, NEDIS in Nirjuli, Dera Natung Government College in Itanagar and Dorjee Khandu Government College in Tawang. These institutions had signed MoUs with the programme in the previous year. The government also signed agreements with five additional institutions: Donyi Polo Government College in Kamki, Government College in Bomdila, Indira Gandhi Government College in Tezu, Government Model College in Seppa and St. Claret College in Ziro. The expansion is intended to make entrepreneurial guidance and incubation support more accessible to students and aspiring business owners across the state.

During the event, Khandu launched the YES (Youth Empowerment Sphere) Arunachal portal, a single-window platform hosted on APIIP that brings together information about central and state government schemes. He encouraged young people to explore the opportunities available through the portal and participate in the National Innovation Challenge under the Sewa Sankalp Abhiyan. He also thanked NITI Aayog for supporting the establishment of Atal Tinkering Labs in schools across Arunachal Pradesh to encourage innovation and practical problem-solving among students.

The Chief Minister urged entrepreneurs to explore opportunities in the micro, small and medium enterprises (MSME) sector, which he described as an important contributor to India's economic growth. He noted that MSMEs account for approximately 31 per cent of the country's gross domestic product and 45 per cent of its exports. He also highlighted the role of banking networks in helping businesses obtain capital and, where required, land to support their operations.

Khandu drew attention to several government schemes that could support entrepreneurs, including the UNNATI scheme for the Northeast, Deen Dayal Upadhyaya Swavalamban Yojana, Chief Minister Paryatan Vikas Yojana and the state's Atmanirbhar initiatives for agriculture, horticulture and fisheries. These programmes could provide opportunities for businesses operating in tourism, food processing, traditional products and other sectors connected to the state's economic strengths.

Arunachal Pradesh is also looking towards its natural resources to attract investment and generate additional revenue. Khandu said hydropower projects with a combined capacity of 19,000 MW were at various stages of development. He added that five mineral blocks, including graphite and vanadium, had been auctioned in collaboration with the Union Ministry of Coal and Mines. The government plans to explore additional mineral blocks and investigate rare earth deposits, which could open further avenues for industrial development.

The Chief Minister said these projects could improve the state's financial position over time and create more resources for public welfare. Under the Rising North East Investment Summit, five investments worth Rs 809 crore have reached the implementation stage, while proposed investments totalling Rs 7,941 crore remain under pursuit, according to the announcement. Khandu appealed to local communities to support investors and help establish Arunachal Pradesh as a business-friendly destination.

Women-led development and rural entrepreneurship also featured prominently in his address. The Chief Minister credited the self-help group movement with contributing to the state's progress, noting that around 1.5 lakh women are actively involved in these groups. He emphasised that strengthening rural businesses and creating better opportunities for women entrepreneurs would be important to building a more resilient economy and achieving the vision of a developed Arunachal Pradesh by 2047.

Khandu also stressed the importance of sound financial management for the state's entrepreneurs. He encouraged business owners to understand government policies, company law, the Arunachal Pradesh State Industrial and Investment Policy and the new labour laws. Highlighting bookkeeping as a common weakness among local businesses, he advised entrepreneurs to engage chartered accountants, prepare annual balance sheets and file income tax returns even when no tax is payable. He further urged businesses to make greater use of the state's 20 Geographical Indication tags by improving product quality, investing in value addition and adopting digital marketing strategies. GI recognition can help traditional and region-specific products stand out in competitive markets, but effective branding and distribution are essential to turning that recognition into sustainable commercial success.

Congratulating the graduates of Cohort 4 and welcoming the entrepreneurs joining Cohort 5, Khandu assured them of the government's continued support. He acknowledged the contributions of Deputy Chief Minister Chowna Mein, the Planning and Investment Department, APIIP CEO Tabe Haider and the wider programme team. He said the state's efforts were aligned with the national vision of Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas and the broader goal of building a developed India.

The new creative economy programme, proposed expert think tank and expanded startup support network reflect Arunachal Pradesh's effort to diversify its economy and encourage innovation. By combining financial assistance, mentorship, investor connections and wider access to government schemes, the state aims to help young entrepreneurs build sustainable businesses. The long-term success of these initiatives will depend on effective implementation, access to markets and the ability to translate local ideas and resources into lasting economic opportunities.

Disclaimer: This image is taken from ANI.