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APSC Mains GS Paper 3: 2023: Describe, in detail, the Uttar Purva Transformative Industrialization Scheme (UNNATI), 2024. How will it enhance industrial development and job creation in North-East India? (15 Marks, 250 words)

Model Answer:

The Union Cabinet approved the UNNATI 2024 scheme in March 2024 with a massive financial outlay of ₹10,037 crore to radically strengthen the industrial ecosystem across the eight North-Eastern states. It serves as a transformative policy intervention for the next decade (2024–2034).

Key Details of UNNATI 2024

Zonal Categorization: To ensure equitable spatial development, NER districts are divided into Zone A (Industrially Advanced) and Zone B (Industrially Backward) based on the NER district index.
Trifecta of Financial Incentives:
- Capital Investment Incentive (CII): Provides up to 30% (Zone A, capped at ₹5 Cr) and 50% (Zone B, capped at ₹7.5 Cr) of eligible investment.
- Capital Interest Subvention (CIS): Offers 3% (Zone A) and 5% (Zone B) interest subvention for 7 years.
- Manufacturing & Services Linked Incentive (MSLI): A GST-linked incentive for new units, reaching up to 100% of the eligible investment value in Zone B.
Institutional Implementation: NEDFi acts as the nodal agency for direct e-transfer of benefits, with a maximum cap of ₹250 crore per unit.

Enhancing Industrial Development and Job Creation

De-risking Investments: By covering substantial capital and interest costs, the scheme offsets the high logistical and terrain-induced capital expenditure characteristic of the Northeast.
Sectoral Diversification: It purposefully includes the Service Sector (minimum ₹50 lakh investment), pushing employment in IT, BPO, and eco-tourism without compromising the region’s fragile ecology.
Empowering Grassroots MSMEs: The lowered eligibility threshold for micro-industries (₹50 lakhs) will formalize indigenous sectors like bamboo, silk, and food processing, driving massive indirect rural employment.
Checking Out-migration: By mandating a 4-year commercial commencement window, it creates immediate localized economic ecosystems, absorbing the local demographic dividend and reversing the brain drain.

By leveraging targeted financial architecture to overcome geographic bottlenecks, UNNATI 2024 will seamlessly integrate the North-East into the global supply chain, serving as a powerful catalyst for the Act East Policy and regional self-reliance.

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