Why in News?
At the “Rising Northeast: Investor Summit 2025”, the Prime Minister emphasized that the Northeast Region (NER) is no longer a “frontier” but a “frontrunner” in India’s economic journey. Organized by the Ministry of Development of North Eastern Region (DoNER), the summit attracted an investment interest of ₹4.3 lakh crore.
Why Northeast is Emerging as a Growth Leader
1. Natural Wealth and Bio-economy
| Resource / Potential | Details |
|---|---|
| Hydropower | 40% of India’s potential; only 6.9% tapped |
| Solar Power | 57,360 MW potential; 17% capacity installed |
| Bamboo & Tea Industries | Assam leads in tea; Arunachal in bamboo |
| Eco-Tourism & Agro-Based Industries | Rich biodiversity, forests, and scenic beauty |
2. Tourism & Human Capital
- High literacy (~80%) and English-speaking population
- Strong in sports: Manipur & Mizoram (football, boxing, weightlifting)
- Top tourism sites: Meghalaya’s living root bridges, Kaziranga, Loktak Lake, Sikkim’s eco-tourism
3. Gateway to Southeast Asia
- Key projects: India-Myanmar-Thailand Highway, Kaladan Project, Sittwe & Chittagong Ports
- Expected to raise India-ASEAN trade from $125 bn to $200 bn in a decade
- Aligns with India’s Act East Policy
4. National Security Significance
| Feature | Explanation |
|---|---|
| Border Length | 5,484 km shared with 5 countries (Myanmar, Bangladesh, Nepal, Bhutan, China/Tibet) |
| Siliguri Corridor | Vital strategic link connecting NER to rest of India |
5. Infrastructure Development
- 10% of MoRTH budget allocated to NER
- NESIDS: $1 billion for roads, water, power
- Key projects: Sela Tunnel (Arunachal), Semiconductor Plant (Assam)
Key Challenges
| Challenge Area | Description |
|---|---|
| Security & Insurgency | Past of ULFA, Naga & Mizo movements; 2023 Manipur violence |
| Agricultural & Employment Issues | Low productivity, middleman dominance, skill mismatch |
| Weak Industrial Base | High logistics cost, limited private investment |
| Environmental Vulnerability | Frequent floods, landslides (e.g., 2022 Assam floods) |
| Drug Trafficking | Manipur & Mizoram close to Golden Triangle |
| Dependence on Central Funds | Low state-level fiscal independence |
Key Government Initiatives
| Scheme/Program | Objective |
|---|---|
| PM-DevINE | Targeted development of NER |
| NEIDS | Industrial development incentives |
| MOVCDNER | Organic agriculture & value chains |
| UNNATI Scheme | Industrial cluster development |
| National Bamboo Mission | Promotes bamboo industry |
| Bharatmala Pariyojana | Highway & logistics connectivity |
Way Forward: Making NER a True Frontrunner
| Strategy | Action Points |
|---|---|
| Boost Tourism | Develop circuits via Swadesh Darshan 2.0, promote homestays |
| Build Human Capital | Set up universities, skill hubs, train in local strengths |
| Revive Agriculture | Promote organic farming, remove middlemen, support branding |
| Industrial Push | Faster NEIDS implementation, Border Economic Zones |
| Infrastructure & Digital | Expand BharatNet, 5G, improve air links via UDAN |
| Conflict Resolution | Promote inclusive governance, youth programs, ST welfare (Lokur Committee suggestions) |
Basic Concepts Explained
- Act East Policy: India’s diplomatic strategy to strengthen ties with Southeast Asian countries.
- Border Economic Zones (BEZs): Industrial zones near borders to promote trade and manufacturing.
- Siliguri Corridor (Chicken’s Neck): A narrow stretch connecting mainland India with NER.
- MOVCDNER: Supports organic farming through value chains.
- NESIDS: Scheme to fund infrastructure in remote NER areas.
UPSC Prelims Practice Questions
Q1. The “Rising Northeast Investor Summit” was organized by:
A. Ministry of Home Affairs
B. Ministry of Commerce
C. Ministry of DoNER
D. NITI Aayog
✅ Answer: C
Q2. The Siliguri Corridor is also known as:
A. Silk Gateway
B. Eastern Express
C. Chicken’s Neck
D. Bamboo Path
✅ Answer: C
Q3. Which of the following schemes aims to promote organic agriculture in Northeast India?
A. PM-DevINE
B. NEIDS
C. MOVCDNER
D. Bharatmala
✅ Answer: C
UPSC Mains Question
Q. Discuss the opportunities and challenges of transforming the Northeast Region of India into an economic and strategic hub, with special reference to India’s Act East Policy.
