Economy of Assam today represents a unique juxtaposition of backwardness amidst plenty. Growth rate of Assam’s income has not kept pace with that of India’s during the Post-British Era; differences increased rapidly since 1970s. While the Indian economy grew at 6 percent per annum over the period of 1981 to 2000, the same of Assam’s grew only by 3.3 percent. In the Sixth Plan period Assam experienced a negative growth rate of 3.78 percent against a growth rate of 6 percent of India’s. In the post-liberalised era (after 1991), the gaps between growth rates of Assam’s and India’s economy widened further.

In the current decade, according to recent analysis, Assam’s economy is showing signs of improvement. In the year 2001-2002, the economy grew in 1993-94 constant prices at 4.5 percent, falling to 3.4 percent in the next financial year.During 2003-2004 and 2004-2005, in the same constant prices, the economy grew more satisfactorily at 5.5 and 5.3 percent respectively. The advanced estimates placed the growth rate for the year 2005-2006 at above 6 percent.

Agriculture is the main occupation of the people and along with the allied occupations it accounts for 63 percent of the states work force. Rice is the staple diet of the people and cultivation of rice is the main occupation of those engaged in agriculture. Different pulses, jute, tea and fruit cultivation are the other agricultural crops. Sugarcane, potatoes, cotton, oil seeds, coconut and arecanut cultivation is also practiced on a substantial scale apart from the horticulture. But 67 percent of the gross cropped area is taken up by rice cultivation, of this about 67 percent again is taken up for the cultivation of Sali paddy on about 16-17 lakh hectares of land. Both the centre and the state are engaged in giving agriculture a big thrust and a second green revolution is to be brought about in the north east. Jhum cultivation or shifting cultivation, under which the tribal farmers burn selected areas of forest land and use it for cultivation in a cyclic period, is a problem in Assam. Confined to its two hill districts which are inhabited by tribal people, efforts are being constantly made to wean the people away from this rather expensive form of cultivation.

It is an important producer of silk of different kinds and known for weaving of silk products into saris and fabrics. Production of tusser and other silks and weaving of fabrics is an important occupation for a number of people. Other types of industries are food products, wood and wood products, chemicals and chemical products, non-metallic mineral products. Tea and oil are of prime importance to Assam's economy and also plays a significant role in the economy and life of the state. At Digboy on the border with Burma, Assam has the oldest Indian oil venture and one of the oldest in the world.

In Assam, mining is at present concentrated mainly to four industrial minerals, namely, coal, oil and gas, limestone and sillimanite. The history of coal mining in Assam goes back to the year 1834 when extraction of this mineral on a small scale was being carried out at Cherapunji in upper Assam. Coal was first mined in 1840 near Jaipur by the Assam Tea Co. But the most important phase in the development of the coal mining industry in Assam was the incorporation of the Assam Railway and Trading Co. in 1882 for the exploitation of the upper Assam coal. The most important coal mines in Assam are situated in the Ledo and Jaipur areas of upper Assam. In the Mikir hills, two small collieries exist -one at Koilajan and other at Seelbhata. The coal mining activity in the Khasi hills is mostly concentrated around the Laitryngew area. In addition to these small collieries, three mines exist in the Khasi hills. Messrs Thanginath colliery and the Mawsynram colliery are important among them.

Agriculture accounts for more than a third of Assam’s income and employs 69 percent of total workforce. Assam's biggest contribution to the world is its tea. Assam produces some of the finest and most expensive teas in the world. Other than the Chinese tea variety Camellia sinensis, Assam is the only region in the world that has its own variety of tea, called Camellia assamica. Assam tea is grown at elevations near sea level, giving it a malty sweetness and an earthy flavor, as opposed to the more floral aroma of highland (e.g. Darjeeling, Taiwanese) teas. Assam also accounts for fair share of India’s production of rice, rapeseed, mustard, jute, potato, sweet potato, banana, papaya, areca nut and turmeric. Assam is also a home of large varieties of citrus fruits, leaf vegetables, vegetables, useful grasses, herbs, spices, etc, which are mostly subsistence crops.

Apart from tea and petroleum refineries, Assam has few industries of significance. Industrial development is inhibited by its physical and political isolation from neighbouring countries such as Myanmar, China and Bangladesh and from the other growing South East Asian economies. The region is landlocked and situated in the eastern most periphery of India and is linked to the mainland of India by a flood and cyclone prone narrow corridor with weak transportation infrastructure. The international airport in Guwahati is yet to find airlines providing better direct international flights. The Brahmaputra suitable for navigation does not posses sufficient infrastructure for international trade and success of such a navigable trade route will be dependent on proper channel maintenance, and diplomatic and trade relationships with Bangladesh.