The Planning Commission has decided to prepare State Development Reports (SDRs) for all States and Union Territories. The purpose of bringing out these reports is to provide quality reference document on the development profile of the States. The SDRs aim at spelling out the constraints and challenges facing the States and suggest blueprints for their overall progress and prosperity. Each SDR is being prepared mainly by the experts and specialised institutes under the supervision of a Core Group, headed by a Member of the Planning Commission as Chairman and a representative of the concerned State Government as a member. The publication of the Arunachal Pradesh Development Report follows the earlier published SDRs of Andaman and Nicobar Islands, Delhi, Haryana, Himachal Pradesh, Kerala, Karnataka, Lakshadweep, Maharashtra, Rajasthan, Sikkim, Tamil Nadu and Uttar Pradesh, while SDRs of many other States and Union Territories are under various stages of preparation. The Arunachal Pradesh Development Report attempts to assess the main strengths and weaknesses of the State in achieving a high level of development. In the light of the analysis of the fundamentals of the State's economy and the policies adopted earlier, it has identified the strategies for faster development of the State that takes into account the expeditious development of connectivity both under the National and the State programmes, capacity building of the youths, need for public-private partnership and encouraging entrepreneurship development for utilising the available potentialities in efficient manner, aiming at reduction of transaction costs for higher productivity, strengthening of the contract-enforcing mechanism, addressing the problems of unemployment, development of proper institutional set up like supply of inputs linking with product marketing, expeditious completion of large hydro-electric projects, transmission and distribution network, grid connectivity, expansion of horticulture, plantation, tourism and establishment of agro-industries etc.