Northeast: From neglect to bulwark of India’s growth

Rajeev Ranjan Roy

(rranjanroy@rediffmail.com)

Over the past decade, Assam and the Northeast have undergone an extraordinary transformation, emerging as a cornerstone of India’s growth story. A region once synonymous with neglect and insurgency has been revitalized under the leadership of Prime Minister Narendra Modi, who championed the cause of inclusive development and peace-building. This paradigm shift, driven by robust investments, policy reforms, and an unwavering focus on industry growth, has cemented the Northeast’s position as a vital contributor to the nation’s progress.

The Northeast region is undergoing a remarkable transformation, fuelled by an unprecedented Rs. 5 lakh crore investment in infrastructure. Over 5,500 km of national highways have been constructed, alongside iconic projects like the Sela Tunnel and the India-Myanmar-Thailand Trilateral Highway, significantly boosting connectivity and integrating the region into the national and global economy. Additionally, railways and air connectivity have also seen exponential growth, with operational airports increasing from 9 to 17 and the first Vande Bharat train symbolizing the region’s infrastructural leap. Access to the Chittagong Port has further reduced transportation costs, positioning the Northeast as a strategic gateway to Southeast Asia. Additionally, its vast untapped hydropower potential of 56,000 MW presents a tremendous opportunity for renewable energy development.

With its rich agricultural and industrial diversity, including 35 GI-tagged products such as Assam’s Orthodox tea, Meghalaya’s Lakadong turmeric, and Tripura’s queen pineapple, the region offers immense potential for value addition.

Tourism and digital transformation are also shaping the region’s growth trajectory. Festivals like Meghalaya’s Cherry Blossom Festival and Arunachal Pradesh’s Ziro Music Festival are drawing global attention, making the Northeast a hub for ecotourism and adventure tourism. The digital landscape has been revolutionized, with over 95% of villages and 80% of the region now covered by 3G/4G networks, encouraging innovation through IT parks in Assam, Meghalaya, and Tripura. The rollout of 5G promises to further enhance technological capabilities. Meanwhile, infrastructure advancements, including over 2,000 km of newly laid railway tracks and the construction of the world’s highest railway bridge in Manipur, have boosted trade and industrial activity, cementing the Northeast’s position as a cornerstone of India’s growth story.

Union Minister Jyotiraditya Scindia recently emphasized the Northeast’s immense economic potential. With an impressive 11% GDP growth rate—well above the national average of 7-8%—the region has become a significant player in India’s economic resurgence. Its abundant natural resources, coupled with a young and dynamic workforce, position the Northeast as an attractive investment destination. Home Minister Amit Shah has aptly described the Northeast as the “pivotal gateway for India’s economic growth.” The Prime Minister’s vision of replacing red tape with a red carpet for investors has created a conducive environment for business. Initiatives like Tata Group’s Rs 27,000 crore semiconductor project signal growing industrial interest in the region.

The government’s emphasis on peace and stability has played a vital role in unlocking the region’s potential. PM Modi’s focus on peace-building has turned the region into a model of harmonious progress. Historic agreements have resolved long-standing border disputes, while thousands of youth have abandoned insurgency to embrace development. The reduction in violence and insurgency-related incidents has led to numerous districts being removed from the list of disturbed areas. This newfound stability has laid the foundation for sustained economic activity, tourism, and investments.

One of the critical drivers of growth in this region has been oil and gas. Oil is as essential to the economy as water is to life. A steady supply of oil not only fuels industries but also propels economic progress. Recognizing this, policymakers have consistently prioritized the vital role of oil and gas in India’s economic and social development. This is particularly relevant in Northeast India, which holds 18% of the nation’s hydrocarbon reserves, with vast unexplored areas offering immense potential. The region presents an opportunity for the government to cater to the energy demands of neighbouring countries. Assam, with its rich legacy in oil and gas exploration, stands at the forefront of driving economic advancement in the Northeast.

As per the Ministry of Petroleum & Natural Gas, Assam accounts for 14% of the country’s total crude oil production and 10% of its natural gas production. Over the last four financial years (2019-20 to 2022-23), the state government received Rs. 9291 crore in royalties for crude oil and Rs. 851 crore for gas production. No wonder, Assam has been at the heart of this transformation in the region. The state’s young workforce, high literacy rates, and abundant natural resources have positioned it as a leader in India’s development story.

PM Modi has often reiterated that the 21st century belongs to Asia and India, with the Northeast at the forefront. From enhanced connectivity and peace-building to encouraging innovation and industrial growth, the Northeast’s story is one of resilience and renewal. The journey from neglect to being a bulwark of India’s growth is a testament to what visionary leadership and dedicated efforts can achieve. The Northeast is no longer just a gateway to Southeast Asia; it is a gateway to a brighter, more prosperous India. As the nation marches towards its centenary in 2047, the Northeast will undoubtedly be a driving force in India’s journey from Amrit Kaal to Shreshtha Bharat.