Assam allows rural youth to set up small units on agricultural land

In a move aimed at boosting rural entrepreneurship and improving the ease of doing business, the Assam government has allowed eligible rural youth to establish small industrial and Khadi units on agricultural land without obtaining prior land conversion approval.Chief Minister Himanta Biswa Sarma announced the decision on Monday, saying the reform is designed to simplify procedures for aspiring entrepreneurs and encourage self-employment in rural areas."Our vision of #EaseOfDoingBusiness is to make it simpler for people to pursue their entrepreneurial dreams,"Sarma said in a post on social media.

Our vision of #EaseOfDoingBusiness is to make it simpler for people to pursue their entrepreneurial dreams.

Eligible enterprising youth can now set up a small unit on their agricultural land without having to seek land conversion approvals. pic.twitter.com/Le99U9Cru8

— Himanta Biswa Sarma (@himantabiswa) July 6, 2026

According to media reports,under the new provision, eligible entrepreneurs can set up small industrial or Khadi units on agricultural land without seeking land conversion permission from the District Commissioner. The government has introduced an automatic land conversion mechanism for such eligible projects, eliminating a major procedural hurdle that often delayed the establishment of rural enterprises.According to officials the reform is expected to reduce bureaucratic delays, improve the business environment in rural Assam and encourage more young people to launch micro-enterprises alongside or beyond traditional farming.The initiative is also likely to benefit beneficiaries of various state government entrepreneurship and self-employment schemes by enabling them to establish production units on land they already own, reducing both costs and administrative formalities.
According to the state government, the measure is expected to generate employment, strengthen village-based industries and promote value addition to agricultural produce through small-scale manufacturing and processing activities.The decision forms part of Assam's broader strategy to improve its investment climate through administrative reforms and simplified approval processes. Over the past few years, the state has introduced several measures to digitise government services, streamline business approvals and promote industrial development under its ease-of-doing-business agenda.