Dr. Tulika Devi
(tulika29thjan@gmail.com)
Northeast India (NER), renowned for its vibrant cultural diversity and breathtaking natural beauty, stands on the cusp of a transformative future as a powerhouse in strategic infrastructure and multimodal logistics. With its unparalleled geographical advantages, rich natural resources, and growing government support, NER has the potential to become India’s gateway to Southeast Asia. By harnessing these strengths, the region could not only overcome its connectivity challenges but also emerge as a global leader in efficient, sustainable, and resilient logistics. This article explores the comparative and competitive advantages that position NER as a frontrunner in this promising journey toward a connected and prosperous future. This article explores the comparative and competitive advantages that make NER a frontrunner in this transformative journey.
Comparative Advantages: NER’s inherent strengths
NER’s 5182 km of international borders with Bhutan, Bangladesh, Myanmar, Nepal, and China place it at the heart of India’s trade ambitions with ASEAN, BBIN, and BIMSTEC regions. Unlike landlocked central states or distant southern ports, NER offers direct access to Southeast Asian markets. For instance, the planned Kokrajhar-Gelephu railway, linking Assam’s Bodoland Territorial Region to Bhutan’s Gelephu Mindfulness City, will reduce transit times to under two hours, leading seamless trade. This strategic positioning makes NER indispensable for India’s Act East Policy.
The Brahmaputra River, designated as National Waterway 2, stretches 891 km and supports cost-effective inland water transport with terminals like Pandu and Jogighopa. Unlike coastal-heavy regions like Gujarat, NER’s river systems enable integrated road-rail-water nodes. The planned water-road-rail interchange at Karimganj, for example, is expected to reduce transshipment delays by 30-40%, offering a model for efficient logistics absent in siloed systems elsewhere.
Central schemes like PMGSY-II, UDAN 2.0, and the Act East Policy are pouring over Rs 50,000 crore into NER’s infrastructure between 2025 and 2030, a disproportionate boost for a region with just 8% of India’s population. Unlike Bihar, where funds are spread thin, NER’s projects, including Asian Highway corridors, are on track for completion by 2030, outpacing the Delhi-Mumbai Freight Corridor.
The NER is also embracing smart technology. By 2030, IoT-enabled slope stability sensors, GIS dashboards, and AI-driven traffic management centres in Agartala and Itanagar will cut freight delays by 15-20%, making NER’s highways 20% more efficient than Maharashtra’s. Green logistics, powered by inland waterways and renewable energy hubs, align with global ESG standards, potentially attracting $1-2 billion in foreign investment by 2035—something fossil-fuel-heavy Gujarat can’t match.
With a population density of 173 persons per sq.km (compared to India’s 460), NER offers vast tracts of land for logistics hubs, dry ports, and special economic zones. Assam’s proposed Core Transshipment Hub, for instance, leverages over 1,000 acres of contiguous land, enabling scalable infrastructure without the acquisition hurdles faced in densely populated states like Uttar Pradesh. Remote tribal areas, prioritised under PMGSY-II, allow for greenfield highway and rail alignments, bypassing urban bottlenecks prevalent in metro-centric regions. Historical trade routes, such as the Dadgiri-Hatisar market with Bhutan and the Stilwell Road to Myanmar, provide established cross-border networks. These routes facilitate cultural and economic exchanges, reducing market entry barriers for NER exporters. Linguistic and ethnic ties, like Assamese-Bengali connections with Bangladesh, ease trade negotiations and customs harmonisation, an advantage absent in distant hubs like Chennai.
Competitive Advantages: NER’s Edge in Global Markets
NER is set to capture 20-30% of India’s ASEAN trade volume by 2030 through early completion of Asian Highway 1 & 2, Kaladan Multimodal Transit, and the India-Myanmar-Thailand Trilateral Highway. These projects will outpace competing regions like West Bengal, where port congestion delays exports by 2-3 days. The planned rail link to Bangladesh’s Chattogram Port and Gelephu’s international airport will establish NER as a transshipment hub, cutting transit times to Southeast Asia by 50% compared to Mumbai’s Nhava Sheva Port. This first-mover advantage positions NER as a critical node in Asia’s trade network.
The planned Core Transshipment Hub in Assam, supported by eight satellite logistics parks, will integrate road, rail, water, and air cargo, achieving turnaround times under 24 hours by 2040. This surpasses siloed logistics in hubs like Hyderabad, where modal interchange adds 1-2 days. Digital customs facilitation and e-logistics platforms, piloted by 2025, will reduce clearance times to 4-6 hours, outpacing congested ports like Chennai (12-24 hours). This integrated ecosystem ensures NER’s logistics are both efficient and scalable.
NER’s focus on dry ports, bonded warehouses, and cold chains caters to high-value exports like kiwi, ginger, and bamboo, capturing niche markets in Bhutan and Bangladesh. Unlike generic cargo hubs in Mundra (Gujrat), which prioritize bulk goods, NER’s specialised infrastructure supports premium products. The planned e-customs single-window system, integrated with fintech for trade finance, will attract MSMEs, boosting export volumes by 25% by 2035 compared to traditional customs processes elsewhere.
NER’s diversified connectivity spanning road, rail, water, and air airmitigates risks from geopolitical tensions (e.g., India-China border issues) or environmental disruptions (e.g., coastal flooding). Unlike port-dependent Tamil Nadu, where cyclones disrupt 10-15% of annual trade, NER’s inland systems ensure stability. Slope stabilisation technologies, like plastic bitumen and IoT sensors, maintain 95% uptime in NER’s hilly terrain, compared to 80-85% in monsoon-prone Western Ghats.
Northeast India’s potential to become a global logistics hub is within reach. Its geostrategic position, natural corridors, and government support lay the foundation, while its smart, sustainable, and resilient infrastructure promises a competitive edge. By embracing this vision, NER could redefine India’s trade landscape, connecting the nation to global markets and driving prosperity for generations.