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The Rising Northeast!

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India’s Northeastern states, nestled between the Himalayas and the vast trade routes of Southeast Asia, have often remained untapped owing to logistical challenges and limited industrial exposure. However, with investments, policy support and infrastructure developments, this once remote region is rapidly transforming into a booming hub.

In the last 10 years, with multiple schemes at the level of the Centre and the states, India’s Northeast region has undergone a rapid transformation in terms of infrastructure, including rail and road connectivity, new industrial and technology parks, logistics hubs and cold chains, among others. With a significant increase in budget allocation, rising from Rs.361 billion in 2014-15 to Rs.1,058 billion in FY2025-26, the Northeast is set for accelerated growth. The Government’s ambitious Unnati 2024 scheme further reinforces the commitment to industrialisation and economic expansion in
the region.

Gateway to Southeast Asia
According to Manmohan Parkash, Former Senior Advisor, Office of the President, Asian Development Bank (ADB), the Northeast region can play a strategic role as India’s gateway to Southeast Asia and has the potential to become a trillion-dollar economy by 2050. He noted that the region’s economic growth rates, ranging from 11 per cent to 29 per cent across various states, reflect its strong development trajectory. “The Northeast is endowed with rich resources, a young workforce and geographical connectivity with ASEAN,” he pointed out. “By focusing on infrastructure, investment and innovation, we can position the region as a key driver of India’s economic expansion.”
He highlighted ongoing infrastructure projects such as the India-Myanmar-Thailand Trilateral Highway and the expansion of regional airports in Guwahati, Agartala and Silchar. Investments in high-speed rail connectivity and inland waterways, particularly in Assam, are expected to further enhance trade links with Southeast Asia. He also emphasised upon the importance of integrating digital infrastructure to boost e-commerce, IT services and fintech in
the region.

Emerging investment opportunities
Providing a comprehensive overview of investment trends in the North East, R E Zeliang, General Manager, North Eastern Development Finance Corporation (NEDFi) emphasised that the region is now a prime destination for business expansion. He highlighted key sectors attracting major investments, including agro-processing, tourism, renewable energy and manufacturing. “The Northeast is no longer just about potential; it is about tangible growth,” he averred. “With improved infrastructure, proactive state policies and an entrepreneurial culture, this is the right time for investment.”
Zeliang cited projects such as the Assam Semiconductor Manufacturing Plant and major investments from Tata, Reliance and Adani in hospitality, pharmaceuticals and real estate. The establishment of industrial parks in Tripura and startup incubation centres in Manipur is also facilitating a business-friendly environment. Additionally, he
drew attention to the region’s growing connectivity with Bangladesh and Myanmar through border trade agreements and logistics corridors, which are set to enhance cross-border commerce significantly.

Reducing costs with multimodal logistics parks
According to Sanjeev Patil, COO, National Highways Logistics Management (NHLML), the development of multimodal logistics parks (MMLPs) can be a gamechanger for the region’s supply chain ecosystem. He explained that India’s logistics performance index ranks lower than global counterparts, leading to high transportation costs. “To bring down logistics costs from 16 per cent to a single-digit percentage, the Government is setting up 35 multimodal logistics parks, with a special focus on Northeast India”, he said.
The MMLP at Jogighopa (Assam) – being developed by National Highways and Infrastructure Development Corporation (NHIDCL), a fully owned company of the Union Ministry of Road Transport and Highways – is set to enhance connectivity via rail, road and waterways. It will provide cold storage facilities, warehousing and customs clearance, significantly benefiting the region’s agricultural and export-oriented industries. Patil emphasised that these projects are being developed under a PPP model, ensuring private-sector participation in infrastructure development.

Ropeways revolutionising last-mile connectivity
Addressing the need for better last-mile connectivity, Prashant Jain, Vice President – Ropeways & Inter Modal Hub Infrastructure, NHLML spoke about the Parvatmala Pariyojana, which aims to establish ropeway networks in hilly and remote areas. The Northeast has already proposed 33 ropeway projects, with key developments underway in Kamakhya (Assam) and Tawang (Arunachal Pradesh). “The terrain of Northeast India demands innovative transport solutions,” stated Jain. “Ropeways are not just about tourism; they will play a critical role in urban decongestion, logistics and mobility for isolated communities.”
He explained that ropeways are ecofriendly, require minimal land acquisition, and offer a reliable transportation mode in challenging terrain. He also mentioned upcoming plans for an intermodal hub in Guwahati, integrating ropeways, airports and highways for seamless travel.

Unnati 2024
To boost development of newer industries in the region, the Union Government launched the Uttar Poorva Transformative Industrialisation (UNNATI) scheme in 2024. Pankaj Surana, Director (Tax and Regulatory Services), Ernst & Young LLP provided an in-depth analysis of the scheme, a Rs.100 billion initiative aimed at accelerating industrialisation.
The scheme offers substantial incentives, including capital subsidies, interest subsidies and GST-linked incentives to encourage new businesses. “This is a once-in-a-generation opportunity for businesses to establish themselves in the Northeast,” he said. “The Government has ensured strong financial support, making it attractive for both new and expanding industries.”
Under the scheme, new manufacturing units can claim up to 100 per cent reimbursement on net GST payments for 10 years, while industries in backward districts receive capital subsidies of up to 50 per cent. Key sectors eligible for incentives include electronics, pharmaceuticals, IT, tourism and renewable energy. Surana stressed the urgency for businesses to register under the Unnati Portal by March 2026 to avail of the benefits, highlighting that over 300 companies have already applied.

Time to unleash true potential
The FCC North East Webinar 2025 highlighted the transformative changes unfolding in the rapidly developing region. With large-scale infrastructure projects, favourable investment policies and government-led initiatives, Northeast India will soon become a major economic hub. As Parkash concluded, “The time to act is now. With bold investments and strategic planning, the Northeast can become a shining example of sustainable growth, innovation and global leadership.”
Indeed, strong collaboration between the public and private sectors will allow the region to emerge as a powerhouse of economic growth, intertwining India with the dynamic markets of Southeast Asia.

(The distinguished speakers shared their insights at a webinar titled ‘The Rising North East’ on March 18, 2025, hosted by the FIRST Construction Council (FCC) – in collaboration with CONSTRUCTION WORLD, Infrastructure Today and Equipment India magazines. The webinar highlighted infrastructure developments, investment opportunities and strategic policies that are shaping the economic future of the Northeast.)

Economy & Market

FORNNAX Appoints Dieter Jerschl as Sales Partner for Central Europe

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FORNNAX TECHNOLOGY has appointed industry veteran Dieter Jerschl as its new sales partner in Germany to strengthen its presence across Central Europe. The partnership aims to accelerate the adoption of FORNNAX’s high-capacity, sustainable recycling solutions while building long-term regional capabilities.

FORNNAX TECHNOLOGY, one of the leading advanced recycling equipment manufacturers, has announced the appointment of a new sales partner in Germany as part of its strategic expansion into Central Europe. The company has entered into a collaborative agreement with Mr. Dieter Jerschl, a seasoned industry professional with over 20 years of experience in the shredding and recycling sector, to represent and promote FORNNAX’s solutions across key European markets.

Mr. Jerschl brings extensive expertise from his work with renowned companies such as BHS, Eldan, Vecoplan, and others. Over the course of his career, he has successfully led the deployment of both single machines and complete turnkey installations for a wide range of applications, including tyre recycling, cable recycling, municipal solid waste, e-waste, and industrial waste processing.

Speaking about the partnership, Mr. Jerschl said,
“I’ve known FORNNAX for over a decade and have followed their growth closely. What attracted me to this collaboration is their state-of-the-art & high-capacity technology, it is powerful, sustainable, and economically viable. There is great potential to introduce FORNNAX’s innovative systems to more markets across Europe, and I am excited to be part of that journey.”

The partnership will primarily focus on Central Europe, including Germany, Austria, and neighbouring countries, with the flexibility to extend the geographical scope based on project requirements and mutual agreement. The collaboration is structured to evolve over time, with performance-driven expansion and ongoing strategic discussions with FORNNAX’s management. The immediate priority is to build a strong project pipeline and enhance FORNNAX’s brand presence across the region.

FORNNAX’s portfolio of high-performance shredding and pre-processing solutions is well aligned with Europe’s growing demand for sustainable and efficient waste treatment technologies. By partnering with Mr. Jerschl—who brings deep market insight and established industry relationships—FORNNAX aims to accelerate adoption of its solutions and participate in upcoming recycling projects across the region.

As part of the partnership, Mr. Jerschl will also deliver value-added services, including equipment installation, maintenance, and spare parts support through a dedicated technical team. This local service capability is expected to ensure faster project execution, minimise downtime, and enhance overall customer experience.

Commenting on the long-term vision, Mr. Jerschl added,
“We are committed to increasing market awareness and establishing new reference projects across the region. My goal is not only to generate business but to lay the foundation for long-term growth. Ideally, we aim to establish a dedicated FORNNAX legal entity or operational site in Germany over the next five to ten years.”

For FORNNAX, this partnership aligns closely with its global strategy of expanding into key markets through strong regional representation. The company believes that local partnerships are critical for navigating complex market dynamics and delivering solutions tailored to region-specific waste management challenges.

“We see tremendous potential in the Central European market,” said Mr. Jignesh Kundaria, Director and CEO of FORNNAX.
“Partnering with someone as experienced and well-established as Mr. Jerschl gives us a strong foothold and allows us to better serve our customers. This marks a major milestone in our efforts to promote reliable, efficient and future-ready recycling solutions globally,” he added.

This collaboration further strengthens FORNNAX’s commitment to environmental stewardship, innovation, and sustainable waste management, supporting the transition toward a greener and more circular future.

 

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Economy & Market

Budget 2026–27 infra thrust and CCUS outlay to lift cement sector outlook

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Higher capex, city-led growth and CCUS funding improve demand visibility and decarbonisation prospects for cement

Mumbai

Cement manufacturers have welcomed the Union Budget 2026–27’s strong infrastructure thrust, with public capital expenditure increased to Rs 12.2 trillion, saying it reinforces infrastructure as the central engine of economic growth and strengthens medium-term prospects for the cement sector. In a statement, the Cement Manufacturers’ Association (CMA) has welcomed the Union budget 2026-27 for reinforcing the ambitions for the nation’s growth balancing the aspirations of the people through inclusivity inspired by the vision of Narendra Modi, Prime Minister of India, for a Viksit Bharat by 2047 and Atmanirbharta.

The budget underscores India’s steady economic trajectory over the past 12 years, marked by fiscal discipline, sustained growth and moderate inflation, and offers strong demand visibility for infrastructure linked sectors such as cement.

The Budget’s strong infrastructure push, with public capital expenditure rising from Rs 11.2 trillion in fiscal year 2025–26 to Rs 12.2 trillion in fiscal year 2026–27, recognises infrastructure as the primary anchor for economic growth creating positive prospects for the Indian cement industry and improving long term visibility for the cement sector. The emphasis on Tier 2 and Tier 3 cities with populations above 5 lakh and the creation of City Economic Regions (CERs) with an allocation of Rs 50 billion per CER over five years, should accelerate construction activity across housing, transport and urban services, supporting broad based cement consumption.

Logistics and connectivity measures announced in the budget are particularly significant for the cement industry. The announcement of new dedicated freight corridors, the operationalisation of 20 additional National Waterways over the next five years, the launch of the Coastal Cargo Promotion Scheme to raise the modal share of waterways and coastal shipping from 6 per cent to 12 per cent by 2047, and the development of ship repair ecosystems should enhance multimodal freight efficiency, reduce logistics costs and improve the sector’s carbon footprint. The announcement of seven high speed rail corridors as growth corridors can be expected to further stimulate regional development and construction demand.

Commenting on the budget, Parth Jindal, President, Cement Manufacturers’ Association (CMA), said, “As India advances towards a Viksit Bharat, the three kartavya articulated in the Union Budget provide a clear context for the Nation’s growth and aspirations, combining economic momentum with capacity building and inclusive progress. The Cement Manufacturers’ Association (CMA) appreciates the Union Budget 2026-27 for the continued emphasis on manufacturing competitiveness, urban development and infrastructure modernisation, supported by over 350 reforms spanning GST simplification, labour codes, quality control rationalisation and coordinated deregulation with States. These reforms, alongside the Budget’s focus on Youth Power and domestic manufacturing capacity under Atmanirbharta, stand to strengthen the investment environment for capital intensive sectors such as Cement. The Union Budget 2026-27 reflects the Government’s focus on infrastructure led development emerging as a structural pillar of India’s growth strategy.”

He added, “The Rs 200 billion CCUS outlay for various sectors, including Cement, fundamentally alters the decarbonisation landscape for India’s emissions intensive industries. CCUS is a significant enabler for large scale decarbonisation of industries such as Cement and this intervention directly addresses the technology and cost requirements of the Cement sector in context. The Cement Industry, fully aligned with the Government of India’s Net Zero commitment by 2070, views this support as critical to enabling the adoption and scale up of CCUS technologies while continuing to meet the Country’s long term infrastructure needs.”

Dr Raghavpat Singhania, Vice President, CMA, said, “The government’s sustained infrastructure push supports employment, regional development and stronger local supply chains. Cement manufacturing clusters act as economic anchors across regions, generating livelihoods in construction, logistics and allied sectors. The budget’s focus on inclusive growth, execution and system level enablers creates a supportive environment for responsible and efficient expansion offering opportunities for economic growth and lending momentum to the cement sector. The increase in public capex to Rs 12.2 trillion, the focus on Tier 2 and Tier 3 cities, and the creation of City Economic Regions stand to strengthen the growth of the cement sector. We welcome the budget’s emphasis on tourism, cultural and social infrastructure, which should broaden construction activity across regions. Investments in tourism facilities, heritage and Buddhist circuits, regional connectivity in Purvodaya and North Eastern States, and the strengthening of emergency and trauma care infrastructure in district hospitals reinforce the cement sector’s role in enabling inclusive growth.”

CMA also noted the Government’s continued commitment to fiscal discipline, with the fiscal deficit estimated at 4.3 per cent of GDP in FY27, reinforcing macroeconomic stability and investor confidence.

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Concrete

JK Cement Crosses 31 MTPA Capacity with Commissioning of Buxar Plant in Bihar

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JK Cement has commissioned a 3 MTPA Grey Cement plant in Buxar, Bihar, taking its total capacity to 31.26 MTPA and placing it among India’s top five grey cement producers. The ₹500 crore investment strengthens the company’s national footprint while supporting Bihar’s infrastructure growth and local economic development.

JK Cement Ltd., one of India’s leading cement manufacturers, has announced the commissioning of its new state-of-the-art Grey Cement plant in Buxar, Bihar, marking a significant milestone in the company’s growth trajectory. With the commissioning of this facility, JK Cement’s total production capacity has increased to 31.26 million tonnes per annum (MTPA), enabling the company to cross the 30 MTPA threshold.

This expansion positions JK Cement among the top five Grey Cement manufacturers in India, strengthening its national footprint and reinforcing its long-term growth strategy.

Commenting on the strategic achievement, Dr Raghavpat Singhania, Managing Director, JK Cement, said, “Crossing 31 MTPA is a significant turning point in JK Cement’s expansion and demonstrates the scale, resilience, and aspirations of our company. In addition to making a significant contribution to Bihar’s development vision, the commissioning of our Buxar plant represents a strategic step towards expanding our national footprint. We are committed to developing top-notch manufacturing capabilities that boost India’s infrastructure development and generate long-term benefits for local communities.”

The Buxar plant has a capacity of 3 MTPA and is spread across 100 acres. Strategically located on the Patna–Buxar highway, the facility enables faster and more efficient distribution across Bihar and adjoining regions. While JK Cement entered the Bihar market last year through supplies from its Prayagraj plant, the Buxar facility will now allow the company to serve the state locally, with deliveries possible within 24 hours across Bihar.

Sharing his views on the expansion, Madhavkrishna Singhania, Joint Managing Director & CEO, JK Cement, said, “JK Cement is now among India’s top five producers of grey cement after the Buxar plant commissioning. Our capacity to serve Bihar locally, more effectively, and on a larger scale is strengthened by this facility. Although we had already entered the Bihar market last year using Prayagraj supplies, local manufacturing now enables us to be nearer to our clients and significantly raise service standards throughout the state. Buxar places us at the center of this chance to promote sustainable growth for both the company and the region in Bihar, a high-growth market with strong infrastructure momentum.”

The new facility represents a strategic step in supporting Bihar’s development vision by ensuring faster access to superior quality cement for infrastructure, housing, and commercial projects. JK Cement has invested approximately ₹500 crore in the project. Construction began in March 2025, and commercial production commenced on January 29, 2026.

In addition to strengthening JK Cement’s regional presence, the Buxar plant is expected to generate significant direct and indirect employment opportunities and attract ancillary industries, thereby contributing to the local economy and the broader industrial ecosystem.

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