A new vision for the Northeast

India’s Northeast, comprising the “Ashtalakshmi” states, is emerging as a keystone in India’s growth and strategic vision. With 5,484 km of international borders, rich biodiversity, and vast renewable resources, it is no longer India’s periphery but its “strategic and digital frontier.” According to NITI Aayog’s North Eastern Region District SDG Index (2021-22), progress in basic indicators is improving, yet remains uneven. The Economic Survey 2024-25 identifies the Northeast as a high-potential zone for infrastructure and trade integration with ASEAN under India’s Act East Policy. With recent investments exceeding ₹1.5 lakh crore, the region is transitioning from insurgency to innovation.

What is The ‘Rising Northeast’ Investor Summit?

The “Rising Northeast: The Investor Summit,” organized by the Ministry of Development of North-Eastern Region (DoNER), marks a significant step towards showcasing the investment potential of the NER.  Key announcements and developments from the summit include:

1.     Infrastructure Development: The Ministry of Road Transport and Highways allocated 10% of its budget to the region, constructing 4,950 km of National Highways with investments over $5 billion.
2.     Renewable Energy Investments: A total of 115 Memoranda of Understanding (MoUs) worth ₹38,856 crore have been signed for renewable energy projects in the NER.
3.     Digital Connectivity: Over ₹1.5 lakh crore has been invested in digital and physical infrastructure, with ₹50,000 crore dedicated to BharatNet and the Digital North East Vision. Currently, more than 90% of the region enjoys 4G coverage, and 80% of rural households are digitally connected via fiber optics.
4.     Skill Development: Over 2,000 individuals in the region have been trained under various programmes such as Suryamitra, Varunmitra, and Jal Urjamitra, focusing on renewable energy skills.
5.     Strategic Vision: The summit emphasized the Northeast’s role as India’s gateway to ASEAN, leveraging its 5,484 km of international borders with five neighboring countries.

What is the significance of the North East for India?

1. Geo-strategic Gateway: The Northeast shares over 5,400 km of international borders, linking India to ASEAN and BIMSTEC markets. Its pivotal location enhances India’s Act East Policy and bolsters regional connectivity. Example: India-Myanmar-Thailand Trilateral Highway; Sittwe Port, Myanmar.
2. Renewable Energy Powerhouse: With over 218 GW of solar, hydro, wind, and biomass potential, the region can drive India’s green transition.
   It holds nearly 40% of India’s hydropower capacity, ideal for clean energy investments. Example: Champhai Solar Park, Mizoram; 20 MW Solar Project, Mizoram.
3. Cultural Capital: Home to 200+ ethnic groups, the Northeast fosters cultural diplomacy and strengthens India’s soft power.
   Its festivals, crafts, and languages enrich India’s global cultural presence. Example: Hornbill Festival, Nagaland; Ziro Music Festival, Arunachal Pradesh.
4. Biodiversity Hotspot: The region is among India’s richest ecozones, crucial for conservation and eco-tourism. It harbors endemic flora and fauna, including endangered species. Example: Kaziranga National Park (one-horned rhinos); Loktak Lake, Manipur.
5. Agricultural and Organic Hub: Diverse agro-climatic zones make it ideal for organic farming, horticulture, and floriculture. The region supports food security with rice, tea, fruits, and medicinal plants. Example: Sikkim’s organic farming model; Assam’s tea plantations.
6. Human Capital Potential: With high literacy, English fluency, and a young population, the region is ripe for skilling and innovation.
   Institutions and digital outreach are driving a tech-enabled workforce. Example: IIT Guwahati graduates; 5G Telemedicine in Arunachal Pradesh.
7. Tourism and Wellness Destination: Its scenic beauty, spiritual sites, and natural resources support eco-tourism and Ayurveda-based wellness.
   Mountains, lakes, and tribal culture draw global travellers. Example: Living Root Bridges, Meghalaya; Loktak Lake, Manipur.
8. Industrial and Connectivity Boost: Improved roads, digital networks, and manufacturing hubs are transforming the region’s economy. New-age industries like semiconductors and bamboo processing are emerging. Example: First semiconductor plant in Assam; Kaladan Multi-Modal Project.

What are the challenges faced by the North East?

1. Infrastructure Deficits: Despite increased investments, the region continues to face inadequate road, rail, healthcare, and educational infrastructure, limiting economic expansion. Example: Arunachal Pradesh’s low road density; poor rail access in interior Nagaland.
2. Insurgency and Security Concerns: Legacy of insurgencies and cross-border tensions still pose barriers to investments, development, and stable governance. Example: ULFA remnants in Assam; border skirmishes near Nagaland-Myanmar boundary.
3. Limited Industrial Base and Unemployment: The absence of major industries leads to high unemployment and youth migration, hindering sustainable local economies. Example: Youth migration from Manipur due to job scarcity.
4. Connectivity Gaps: Rugged terrain and complex geography delay infrastructure projects, limiting intra-regional mobility and market access. Example: Delayed highway projects in Arunachal interiors.
5. Environmental and Climate Vulnerabilities: Frequent natural disasters like floods, earthquakes, and landslides threaten infrastructure and fragile ecosystems. Example: 2022 Assam floods causing displacement and crop loss.
6. Administrative and Governance Issues: Overlapping jurisdictions and weak inter-agency coordination delay execution of developmental schemes. Example: Slow progress of Kaladan Multi-Modal Project due to bureaucratic delays.
7. Resource Underutilization: Vast renewable and mineral resources remain untapped due to policy gaps, poor access, and low private participation. Example: Less than 7% of 129 GW hydro potential harnessed.
8. Financial and Skill Inclusion Gaps: Limited credit access and skill mismatch restrict entrepreneurship and economic empowerment, especially in rural areas. Example: Low MSME loan penetration; 80% literacy with high skilling deficit.

What can be the way forward?

1. Integrated Infrastructure and Connectivity: Fast-track multimodal connectivity—road, rail, air, and waterways—to link the NER with national and ASEAN trade corridors. Example: Completion of Trans-Arunachal Highway; operationalization of ICP Moreh on India-Myanmar border.
2. Industrial Promotion and Investment Facilitation: Develop Special Economic Zones (SEZs), agro-processing clusters, and one-stop investor portals to boost employment and regional output. Example: Agri-processing SEZ in Assam; DoNER’s Invest North East portal.
3. Peacebuilding and Border Management: Sustain dialogue with insurgent groups, enhance border policing, and resolve disputes to foster a secure and cooperative environment.
   Example: Ongoing Assam-Meghalaya border settlement talks; enhanced deployment near Indo-Myanmar border.
4. Environmental Sustainability and Climate Resilience: Implement sustainable development policies, promote green energy, and build disaster-resilient infrastructure to safeguard fragile ecosystems. Example: Community forest conservation in Arunachal Pradesh; World Bank-funded resilience infrastructure.
5. Skill Development and Human Capital Formation: Align training with regional industries, expand vocational institutes, and bridge skilling gaps for youth employment. Example: NER Skill Plan 2022; handloom training centers in Nagaland.
6. Tourism and Cultural Diplomacy: Develop eco- and cultural tourism circuits and promote festivals to generate revenue and build soft power. Example: Living root bridge circuit in Meghalaya; Hornbill Festival in Nagaland.
7. Digital and Financial Inclusion: Expand broadband under BharatNet, promote e-governance, and improve credit access and digital banking in rural zones. Example: Digital land records in Tripura; BHASHINI real-time translation tool.
8. Healthcare and Educational Transformation: Upgrade medical facilities through telemedicine and enhance higher education with regional research institutes. Example: Telehealth services in remote Arunachal; North East Regional Institute of Education.

Conclusion:
The North Eastern Region holds immense potential to contribute significantly to India’s growth story. By addressing the challenges and leveraging its strengths, the NER can transform into a hub of economic activity, cultural exchange, and strategic importance. As Prime Minister Narendra Modi aptly stated, the Northeast is not India’s periphery but its strategic and digital frontier—a region “where policy meets possibility, nature meets networks, and heritage meets hyper-connectivity.”