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.)