Context: Inaugurating the Rising Northeast Summit, the Prime Minister of India said that the northeastern region would emerge as a gateway for trade with Southeast Asia over the next decade. Pitching for investments in the eight States, he described Northeast as the powerhouse of energy and ‘Ashta Lakshmis’ or the eight forms of Goddess Lakshmi.
It was a counter to recent remarks by Bangladeshi Chief Adviser Muhammad Yunus who referred to the northeastern region as a “landlocked” territory that could be an “extension” of the Chinese market.
Relevance of the Topic: Mains: Importance of Northeast Region in India's foreign policy paradigm.
India’s Foreign Policy and the Northeast Region:
India’s North-East Indian region borders five countries and plays a crucial role in India’s regional diplomacy. It is pivotal to several flagship foreign policy frameworks:
- Neighbourhood First Policy: Encourages deeper political and economic engagement with immediate neighbours like Bangladesh, Bhutan, and Myanmar — all of which share borders with the northeast.
- Act East Policy: Envisions enhanced connectivity with ASEAN through the northeast, positioning it as a strategic interface. The trade volume between India and ASEAN is nearly $1.25 billion. This trade volume will cross $200 billion in the coming years.
- BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) : The northeast connects key BIMSTEC countries, offering a corridor for sub-regional cooperation.
Infrastructure as a Strategic Tool:
- Kaladan Multimodal Transit Transport Project (KMTTP): Aims to connect Mizoram with Myanmar’s Sittwe Port via road, river, and sea.
- India–Myanmar–Thailand Trilateral Highway: Seeks to provide seamless overland connectivity to ASEAN, bolstering economic and strategic integration.
- Act East Roadmap & BBIN Corridor: Strengthen logistical links for trade and transit.
These projects are not only about physical connectivity but also about asserting India’s strategic autonomy and reducing dependency on routes vulnerable to China’s influence.
Key destination for two strategic sectors: Semiconductors and Energy:
1. Semiconductor Sector
- 2024: Tata Group commenced construction of a semiconductor unit in Assam, with a total investment of Rs 27,000 crore. The semiconductor plant has opened doors of opportunity for the semiconductor sector and other cutting edge-technology in the region.
- The country will soon get the first ‘Made in India’ chip produced at the semiconductor plant in the Northeast region.
2. Energy Sector:
- Beyond power generation, NE presents new avenues in the manufacturing of solar modules, cells, energy storage systems, and research and development.
- The government is making large investments in areas of hydro or solar power in every state of Northeast, and projects worth crores have already been distributed.
Important Schemes for development of North-East India
Bio-economy, bamboo, tea production, petroleum, sports and eco-tourism as some of the areas where the region is an emerging hub.
1. PM-DevINE Scheme:
- Prime Minister’s Development Initiative for North Eastern Region (PM-DevINE) is a Central Sector scheme (100% Central funding) announced in 2022.
- Objectives of PM-DevINE scheme:
- Fund infrastructure convergently in the spirit of PM GatiShakti.
- Support social development projects based on felt needs of NER.
- Enable livelihood activities for youth and women.
- Fill the development gaps in various sectors.
- Outlay: Rs. 6600 crore for 4 year period (FY23 to FY26)
- Implemented by: Ministry of Development of North-East Region.
2. 'Purvodaya': Vision for Eastern Development:
- The Government of India’s ‘Purvodaya’ initiative aims at unlocking the economic potential of eastern India, including the northeast.
- It involves large-scale investment in infrastructure, industry, and connectivity. This complements India's multi-vector diplomacy by fostering regional integration and inclusive development.
3. Uttar Poorva Transformative Industrialisation Scheme (UNNATI):
- Launched in: 2024
- It is aimed at extending support to the industries for enhancing regional infrastructure, creating employment opportunities, and promoting resilience and prosperity in the region.
- Under the UNNATI Scheme, the following specific incentives are provided to the industrial Units:
- Capital Investment Incentive
- Capital Interest Subvention
- Manufacturing & Services Linked Incentive
- It is mandatory for all the non-exempt Union Ministries/Departments to earmark at least 10% of their annual Gross Budgetary Allocation towards the development of NER.
Harnessing Soft Power Potential of North-East Region:
- India also seeks to harness the soft power potential of the northeast. During the 2023 G-20 meetings, several events were held in northeastern cities, showcasing local culture, biodiversity, and heritage. This aligns with India’s goal of building cultural diplomacy and regional identity.
India’s northeast is no longer a peripheral outpost but a fulcrum for regional connectivity, economic diplomacy, and strategic engagement. By promoting connectivity diplomacy, sub-regional integration, and transnational infrastructure, India is asserting its vision of a multipolar Asia rooted in cooperation, connectivity, and mutual growth.
As Mr. Jaishankar rightly put it, the northeast is not landlocked — it is land-linked.