The correct answer is: b) Micro, Small, and Medium Enterprises (MSMEs).
Arunachal Pradesh’s industrial sector is primarily dominated by Micro, Small, and Medium Enterprises (MSMEs). MSMEs are defined as enterprises with investment in plant and machinery up to Rs. 10 crore for manufacturing enterprises and Rs. 5 crore for service enterprises. MSMEs play a vital role in the Indian economy, accounting for over 90% of the total industrial units and over 45% of the total manufacturing output. They also provide employment to over 60% of the total workforce in the manufacturing sector.
The main reasons for the dominance of MSMEs in Arunachal Pradesh are:
- The state has a large population of young people who are looking for employment opportunities.
- The state has a favorable climate for the development of MSMEs, with abundant natural resources and a low cost of living.
- The state government has been providing various incentives to MSMEs, such as tax breaks, subsidies, and land allotments.
The main challenges faced by MSMEs in Arunachal Pradesh are:
- Lack of access to finance: MSMEs often face difficulty in obtaining loans from banks and other financial institutions.
- Lack of skilled manpower: There is a shortage of skilled manpower in the state, which makes it difficult for MSMEs to find skilled workers.
- Lack of infrastructure: The state has inadequate infrastructure, such as roads, power, and water supply, which makes it difficult for MSMEs to operate.
- Lack of marketing support: MSMEs often face difficulty in marketing their products and services.
Despite the challenges, the MSME sector in Arunachal Pradesh has the potential to grow significantly in the coming years. The state government has been taking various measures to promote the growth of MSMEs, and the sector is expected to benefit from the implementation of the National MSME Policy 2015.
The other options are incorrect because:
- Heavy manufacturing is not a major sector in Arunachal Pradesh.
- Technology and IT industries are not yet well-developed in the state.
- Petroleum refining is not a major industry in the state.