The Impact of Bank Credit on Industrial Development in Assam, India:Assam is situated in the North-Eastern part of India and is recognized as an industrially backward state compared to other advanced states of India. In spite of its vast natural resources, Assam remained backward industrially even after forty years of independence. Industrial development can be an important path to economic development and this fact accounts for a considerable emphasis that is placed on rapid industrial growth in under-developed countries.
Assam's backwardness in industrial field may be attributed to a number of correlated factors and amongst them lack of sufficient finances to set up viable industrial establishment is one factor, which needs an in depth analysis. Since independence, some specific industries like Tea, Petroleum (Oil),have flourished in Assam. Some other industries like Cement, Paper, Sugar, industries based on forest products came up also. But in many instance particularly in private sector, it has been observed that non-availability of adequate and timely finance is the greatest bottleneck.
As of now, no systematic study has been taken up in Assam to analyze the role of credit institutions in the process of industrialization of the state. The present study makes a humble attempt to analyze this problem
A study has been undertaken with the following broad objectives in mind
1. To review the industrialization process in Assam after independence.
2. To analyze assistance rendered by various financial institutions for the development of different types of industries in the state.
3. To assess industrial development in Assam in relation to the credit advanced.