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Since 1947, Arunachal Pradesh was a part of the North East Frontier Agency and was later made a Union Territory. Arunachal Pradesh was made a full fledged state on 20th February, 1987.
 
 
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The village and small-scale industries and traditional un-organized industries constitute an important segment of Arunachal’s planned economy. This sector has not only continued to play a vital role in fulfillment of socio-economic objectives but also offers an excellent opportunity for industrial self employment. The aim and objective of the department of industries in the state is to promote the industrial activities in the state and thereby to provide employment opportunities to the rural and urban and to improve the economic conditions of the people. At present, there are 5 district Industrial centers and 8 sub-district industrial centers in the state and the promoting these centers are summarized below:-

 
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The District Industries Centers (DICs) and Sub-District Industries Centers (Sub-DICs) play a prominent role for the industrial development of SSI and village industries. This is an institution at the district level which extends all possible help and guidance to the prospective entrepreneurs for taking up of various industrial ventures in the district. Besides, these Centers offer all facilities to artisans, entrepreneurs and support them with maximum effort under single roof. These institutions are providing services like identification of suitable schemes, preparation of project report, and arrangement for providing required plant and machineries and raw-material for entrepreneurs and marketing opportunities. Beside, assisting the entrepreneurs to avail themselves a series of package incentives and facilities provided by both Central and State Govt. towards the repaid industrialization in the State. In addition to above, the DICs and Sub-DICs are not only acting as a co-coordinating agency but also maintaining close liaison with all Development Department and Financial Institutions in providing assistance to the prospective entrepreneurs.
   
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There are two Industrial Training Institutes and one Rural Industries Development Center that are functioning in the State who are also helping the local youth to generate self employment.
 
Though Arunachal Pradesh has successfully launched various socio-economic development programmes and though the literacy rate has also been rising, industrial activity is insignificant. Hence, there was a need for a well-defined Industrial policy which came to be known as "The New Industrial Policy of Arunachal Pradesh 2001".
   
 
 
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