The industrial landscape in India has been going through a phenomenal change. Entrepreneur-driven and globally networked industrial enterprises are fast becoming the emblems of the new India. India's Northeastern states are also taking steps in the industrial sector reform. The North East Industrial Policy has attracted number of multi-national corporations (MNCs) in the last few years. Prior to 1998, the scenario of industrial sector in the Northeast was limited to some small-scale sector except the oil, tea, plywood and some state owned public sector units. But in present days, a number of multinational companies have come set up  industries either themselves or through franchise. The New Industrial Policy of North East  offers competitive advantages to foreign investors in settings up industries. Northeast offers certain unique opportunities for investment and the region has a favorable investment environment. There is a perceptible air of optimism, which was missing till few years back.

Restriction on entry, diversification and expansion of multinational corporations had been recklessly lifted in the nineties. Direct foreign investment up to 100 per cent equity in a business venture is being allowed on a wide-ranging basis. In a very liberal investment atmosphere, the benefits for MNCs in India's Northeast is very high. There are enormous potential in the large market the Northeast  and more so because of  the availability of  cheap labour.

In addition to these State Government incentives, the units will also enjoy all the incentives offered by the Central Government. Most of the Northeast governments are ready for allotment of land on long-term lease for selected projects and also for sale tax exemption. Apart from that, verity of subsidies on technology, pollution control, quality control, infrastructure facilities, manpower development, investment, project preparation, equipment and furniture are available. Equity participation in projects up to 26 percent is also available in the region.

The export-oriented units have some special incentives, which are:

• Additional state capital investment subsidy of 10 percent subject to a ceiling of Rs.10 lakh and 20 percent subsidy on purchase of testing equipment for obtaining ISO 9000/BIS 1400 series registration subject to a ceiling of Rs. 2 lakh.
   

• Special incentives for units other then 100 percent export oriented units with an export effort of minimum of 25 percent of the value of the turnover will be as below subsidy on purchase of testing equipment for obtaining ISO 9000/BIS 14000 series registration@ 30 percent of the cost of the equipment subject to a ceiling of Rs. 5 lakh. This is proposed to support quality improvement effort.

The Export Promotion Industrial Park (EPIP) in Amingaon is a highly sophisticated and environment friendly industrial park developed to provide infrastructure facilities of high standard for export oriented units. The thrust areas are tea blending and packaging, jute yarn and jute blended fabrics, diversified jute products, silk garments, handloom and handicrafts, food processing, ayurvedic medicine, spice based units, software development , cane and bamboo products. Apart from the above projects, any viable and potential export oriented units is welcome in the park.

In the shifting industrial atmosphere, the Assam Industrial Development Corporation Limited also stands as the catalyst in all aspects of support to MNCs. Under the Industrial Development Corporation, growth centers at Chariduar, Matia, and Integrated Infrastructure Development Center at Bhomoraguri, Dalgaon, are already in progress.

MNCs are changing the rules of the game and coming to India's Northeast in traditional and non-traditional sectors. North East Pure Drinks, a franchise of the Pepsi, was the first MNC in the Northeast region. This has an investment of Rs. 450 million. Having different products like mineral water, juice, and soft drinks, this company has started a new industrial climate in this region. Like North East Pure Drinks, many other companies like Cosmo, a franchise of the Joolen International from America has also set up a unit for the production of toothpaste, hair dye, and shampoo. In a very short span of time the turn-over has increased many folds. The company has started trading products inside and outside India. In the financial year 2002-03, the total export of this unit is around Rs.  600 million..

Acknowledging this fact, various MNCs have opened their units in this region. Prominent MNC, M/s Glaxo SmithKline Consumer Health Care has also set up a Horlicks Processing & Packaging Plant at Mongaldoi with an investment of Rs 60 million. and an employment of 100 persons in franchisee with M/s SRD Nutrients. It is true that these are only a few MNCs that have taken interest after the incentives provided by the Northeast but it is also possible that many MNCs will come very soon to this region because the region itself is a gateway of trade with China, Bangladesh and South East Asia.