The Prime Minister at the “Rising Northeast: The Investor Summit” called the Northeast Region (NER) a “frontrunner” in India’s growth, not just a frontier.
- Organized by the Ministry of Development of North Eastern Region (DoNER), the summit aims to unlock NER’s investment and trade potential.
- The summit attracted Rs 4.3 lakh crore in investment interest, marking NER as a future economic powerhouse.
Northeast Emerging as a Growth Frontrunner:
1. Bio-economy & Natural Resources
- Known as ‘Ashta Lakshmis’, the region is rich in:
- Renewable energy (hydro, solar, biomass)
- Agro-industries and eco-tourism
- Strategic manufacturing
- Key data:
- 40% of India’s hydropower potential (~62,000 MW) – only 6.9% tapped.
- Solar potential: 57,360 MW – only 17% capacity installed.
- Assam: major tea hub, Arunachal: leader in bamboo industries.
2. Tourism & Human Capital
- Unique eco-tourism assets: Living Root Bridges (Meghalaya), Kaziranga NP, Loktak Lake (Manipur).
- High literacy (~80%) and English proficiency supports workforce readiness.
- Sporting talent: Manipur & Mizoram – leaders in football, boxing, weightlifting.
3. Gateway to Southeast Asia
- Central to India’s Act East Policy.
- Key projects:
- India-Myanmar-Thailand Trilateral Highway
- Kaladan Multi-Modal Transit Project
- Development of Sittwe and Chittagong Ports to boost Indo-ASEAN trade.
4. Strategic & National Security Importance
- Borders 5 countries: Myanmar, Bangladesh, Nepal, Bhutan, Tibet/China (5,484 km).
- Siliguri Corridor (Chicken’s Neck): vital economic and security link.
5. Infrastructure Development
- 10% of Road Ministry’s budget allocated to Northeast.
- Flagship schemes:
- NESIDS (USD 1 billion) for roads, water, power.
- Sela Tunnel (Arunachal) for all-weather connectivity.
- Semiconductor Plant in Assam for high-tech growth.
Challenges in Making NER a Growth Leader
1. Security & Ethnic Tensions
- Past insurgencies: ULFA, NDFB, Naga, Mizo movements.
- 2023 Manipur violence exposed deep community divides.
- Inner Line Permit system limits inward investment and mobility.
2. Agricultural & Employment Issues
- Low productivity, outdated practices.
- Middlemen dominate markets, keeping farmers in poverty.
3. Underutilized Tourism Potential
- Poor connectivity, safety perceptions, and low promotion hinder growth.
4. Economic Dependency
- Heavy reliance on Union transfers, limited state fiscal capacity.
5. Limited Industrialization
- Uneven industrial base, high logistics costs discourage investment.
6. Geographical & Environmental Constraints
- Terrain challenges: floods, landslides, and climate change.
- Example: 2022 Assam floods displaced millions.
7. Drug Trafficking
- Proximity to Golden Triangle fuels narcotics trade.
- Rising youth addiction affects health and social structures.
Key Government Initiatives
- PM-DevINE (Development Initiative for NER)
- NEIDS (North East Industrial Development Scheme)
- MOVCDNER (Organic Value Chain Development)
- UNNATI (Uttar Poorva Transformative Scheme)
- National Bamboo Mission
- Bharatmala Pariyojana (road infrastructure)
Way Forward: Making NER India’s Growth Catalyst
1. Boosting Tourism & Cultural Economy
- Use Swadesh Darshan 2.0, Dekho Apna Desh.
- Support homestays, ethnic tourism, micro-enterprises.
- Organize global festivals like Hornbill and Pang Lhabsol.
2. Skilling & Human Capital
- Regional skill centers, university-industry partnerships (IIT-Guwahati).
- Focus on local strengths: handicrafts, eco-tourism, disaster response.
3. Promote Organic Agriculture
- Use NE-RACE for better market access.
- Branding, incentives under MOVCDNER.
4. Deepen Industrialization
- Reform NEIDS for real-time tracking and faster approvals.
- Build Border Economic Zones (Nagaland, Mizoram, Manipur).
5. Infrastructure & Digital Push
- Expand UDAN for air links.
- Roll out BharatNet, 5G, and tech hubs in state capitals.
6. Address Conflicts & Rebuild Trust
- Promote inclusive governance, job creation, and inter-community engagement.
- Implement Lokur Committee suggestions for ST welfare and representation.
