📋 Tender Overview
Project Name
Tripura Industrial Infrastructure Development Project
Project Number
58021-001
Country / Economy
India
Project Status
Active
Project Type / Modality of Assistance
Loan
Source of Funding / Amount
Loan 4586-IND: Tripura Industrial Infrastructure Development Project
Ordinary capital resources US$ 85.40 million
Sector / Subsector
Industry and trade / Industry and trade sector development
Gender
Description
Industrial estates are critical drivers of industrialization. The proposed project will support Tripura's industrial infrastructure development. The state government has prioritized the development of nine industrial estates with ADB's support. The project builds on due diligence and preparation completed under a $2.0 million project readiness financing (PRF) loan to develop integrated, inclusive, climate-resilient, and sustainable infrastructure at the industrial estates. The project is aligned with the following impact: boost manufacturing sector's competitiveness, enhance product diversification, promote job creation and foster regional cooperation.
Project Rationale and Linkage to Country/Regional Strategy
Tripura is a landlocked state in India's NER that shares domestic borders with Assam and Mizoram states, plus an 856-kilometer (km) border with Bangladesh that offers good potential for international trade. Tripura's economy grew by 8.9% in FY 2022-2023 and per capita GSDP (at constant prices) grew by 7.9% during the same period. The state is rich in natural resources such as natural gas, rubber, bamboo, tea, and medicinal plants. However, Tripura's manufacturing potential is relatively underutilized, and it has yet to take full advantage of its resources because of its remoteness, capacity constraints, and a low manufacturing base. In fiscal year (FY) 2023 its secondary sector accounted for 12.5% of total gross state domestic product (GSDP). However, within the secondary sector, value added of manufacturing to GSDP was only 3.74% in FY2023. The primary sector (including agriculture and mining) accounted for 36.4% and the tertiary sector accounted for 46.8% of GSDP in the same year. Other NER states exhibit higher manufacturing activity, with the manufacturing output accounting for about 14% of the GSDP of Assam, 11% of the GSDP of Meghalaya, and 34% of the GSDP of Sikkim, highlighting disparity in industrial development across the region.
Sector context. In FY2022-2023, the contribution of the industrial sector to state GDP was recorded at 21.37%, which is below the All-India average of 28.25% during the same period. Within the industrial sector, manufacturing sector's value added was only 3.7% in FY2022-2023. The industrial sector employs 23% of the state's workforce with only 3% employed in manufacturing. The state has a concentrated manufacturing base with natural gas, bamboo, rubber, plastics, agricultural, horticultural and food products being some of the key industries. Owing to the relative lack
