GUWAHATI: The renewed focus on the development of Northeast India has been brought about by the Union Budget for 2025-26, with a huge 47.6% increase in allocation to the Ministry of Development of North Eastern Region, or DoNER.
The budget estimate for 2025-26 is Rs 5,915 crore, marking the government's commitment to accelerating growth in the region. The Northeastern region has Rs 2,615.38 crore for various schemes, though big-ticket projects remain scarce, except for the recently announced gas-based urea plant in Assam.
The largest state in the region stands to gain the most from the Union Budget, and that's Assam. Among the announcements made was a 12.7 lakh metric tonne gas-based urea plant at Namrup in Assam. The Assam Chief Minister, Himanta Biswa Sarma, called it "a game-changer for Assam's agricultural sector," but this one would increase agricultural productivity and self-sufficiency in urea production.
Although no specific allocation is provided for the tea industry, an important sector driving the regional economy, schemes are announced in the areas of agriculture, tourism, and connectivity.
Apart from these direct allocations, many initiatives in the Budget would have indirect impacts on the Northeast. The Northeast is to be indirectly impacted through initiatives in the Ministry of Women and Child Development and Civil Aviation.
Key among these announcements would be the increase in the scope of the UDAN (Ude Desh Ka Aam Nagrik) scheme, to improve regional connectivity. The government aims to connect 120 new destinations and ferry 4 crore passengers over the next decade. It also looks to include facilities for helipads and small airports in the Northeast, further enhancing accessibility for hilly and remote districts that have long lacked it.
One other important initiative is the Saksham Anganwadi and Poshan 2.0 program that will provide nutritional support to more than 8 crore children, 1 crore pregnant women, and lactating mothers in the country. Northeast will also get the benefit from this scheme with 20 lakh adolescent girls falling under the category of this scheme.
Another significant scheme would be that of Prime Minister Dhan-Dhaanya Krishi Yojana, which is a major initiative to support farmers in this region. The scheme is to crop diversification, irrigation, and storage facilities in 100 agricultural districts across the country. It will potentially affect 1.7 crore farmers across the country, including those in the Northeast.
The budget has been welcomed by the business community in the Northeast. The Federation of Industry and Commerce of North Eastern Region (FINER) appreciated the focus on agricultural reforms, which are expected to uplift the agrarian economy of the Northeast. According to Bajrang Lohia, FINER's president, rural development programs are very important for sustainable economic growth.
Moreover, Sarat Kumar Jain, chairman of the ICC Assam and Meghalaya Committee, believes that more doles for the DoNER "can work wonders in transforming northeast in the longer run".
To recognize tourism value in the Northeast also, Union Budget 2025-26 launched several major programs. It added special incentives under the Buddhist Tourism Circuit, which in turn shall cater to the boost of the respective spiritual and heritage tourism circuits.
Performance-linked incentives for destination management and connectivity improvement have also been incorporated to give a boost to the tourism sector. The MUDRA loan scheme for homestays is another significant initiative, which will empower local entrepreneurs and encourage grassroots tourism. All these measures are in line with the vision of the government to make the Northeast the premier tourism destination, taking into account its natural beauty and rich cultural heritage.
Political leaders throughout the Northeast hailed the budget focusing on connectivity, agriculture, and rural prosperity.
Meghalaya Chief Minister Conrad K Sangma appreciated the revised UDAN scheme, which in his opinion improves air connectivity between remote districts of the state.
Manipur Chief Minister N Biren Singh praised the UDAN scheme, terming it instrumental in promoting tourism, trade, and commerce within the region.
Nagaland Chief Minister Neiphiu Rio also welcomed the budget, saying it effectively supports farmers, improves connectivity, and empowers women entrepreneurs. Other Chief Ministers and Members of Parliament (MPs) from the Northeast, most of them from the BJP-led NDA, have also welcomed the budget's provisions.
The Rs 5,915 crore allocation to DoNER is a strong indicator of the government’s commitment to accelerating development in the Northeast. While there are no major new projects apart from the urea plant in Assam, the region is set to benefit from enhanced connectivity, agricultural reforms, and tourism initiatives. However, the absence of direct relief for the tea industry remains a concern.
Overall, the Union Budget 2025-26 provides a very good foundation for the economic transformation of the Northeast. Regional connectivity, agriculture, and tourism would emerge as important focus areas for the Northeast region. Time alone will tell whether these initiatives work or not as they will take time to ground.
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