Arunachal Pradesh Cabinet Introduces Key Reforms to Boost MSMEs and Infrastructure

The Arunachal Pradesh Cabinet has recently approved significant reforms aimed at enhancing the business environment for micro, small, and medium enterprises (MSMEs) and improving rural infrastructure. Key initiatives include a new ordinance to simplify business regulations, a comprehensive deregulation drive, and a major rural road development program. These measures are expected to attract investments, create jobs, and foster a transparent business climate while preserving the state's cultural heritage. The Cabinet also approved amendments to land settlement rules and provided age relaxation for candidates in public service examinations. Read on to learn more about these transformative initiatives.

By Narendra Chaudhary Jun 16, 2026, 18:07 IST

Cabinet Meeting Highlights

Arunachal Pradesh cabinet meeting chaired by CM Khandu on Tuesday (Photo: @PemaKhanduBJP/X)

Itanagar, June 16: The Cabinet of Arunachal Pradesh convened on Tuesday to endorse a range of governance and economic reforms aimed at bolstering micro, small, and medium enterprises (MSMEs), enhancing rural connectivity, and improving the business environment.

The state administration also launched a significant deregulation initiative designed to alleviate compliance burdens across 51 reform areas identified in the Centre's Business Reforms Action Plan (BRAP).

Under the leadership of Chief Minister Pema Khandu, the Cabinet sanctioned the Arunachal Pradesh Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Ordinance, 2026, which seeks to streamline business regulations and foster entrepreneurship within the state.

This ordinance, which will be presented to the Assembly, permits qualifying enterprises to initiate operations via a self-declaration process, adhering to existing laws.

It also includes provisions for self-certification, conditional approvals, and a three-year exemption from routine inspections for qualifying MSMEs.

An official statement indicated that these measures are anticipated to enhance the ease of doing business, attract investments, create jobs, and foster a more transparent and investor-friendly atmosphere while preserving the state's ecological, cultural, and tribal heritage.

The government has also embarked on a comprehensive deregulation effort under the auspices of the Department for Promotion of Industry and Internal Trade (DPIIT).

Out of the 51 reforms outlined in BRAP, 16 priority reforms have already been executed and sanctioned by the Centre.

These reforms encompass various sectors, including land management, urban development, labor, environmental clearances, building approvals, educational infrastructure, and utility services.

The Cabinet was also informed about the implementation framework for the Chief Minister's Comprehensive State Rural Road Development Programme (CM-CSRRDP).

This initiative aims to connect 1,129 unconnected habitations with populations under 250 through all-weather roads by 2029.

The program plans to construct approximately 6,567 km of roads through phased investments totaling Rs 2,000 crore over the next three financial years.

To support planned urban development, the Cabinet approved modifications to the Arunachal Pradesh Land Settlement and Records Rules, 2012.

Under the updated framework, agricultural land within designated master plan areas will automatically be considered converted to the specified land use without the need for separate permissions. The amendments also aim to modernize land records for digital integration and enhanced transparency.

Additionally, the Cabinet approved a one-year age relaxation for eligible candidates taking examinations conducted by the Arunachal Pradesh Public Service Commission (APPSC).