The region of Northeast India, once perceived as a peripheral border, is now emerging as a potential investment zone. In the last eleven years, the government has introduced a holistic development strategy combining policy changes with a special package backed by a robust infrastructure boom. The impact of this is unfolding as the region is already gaining major investments.
When Prime Minister Narendra Modi emphasised the region as India’s Astalakshmi, greater economic significance was attributed to the eight states of Northeast India. The journey of making Northeast India a desired investment destination started in 2014. The initial and most significant measure involved the implementation of policy reforms. In November 2014, when PM Modi announced the transition from the erstwhile Look East Policy to the Act East Policy, a major focus was given to the region after many decades of India’s independence. This policy shift completely led to the reimagination of Northeast India as the gateway to Southeast Asia rather than a troubled periphery or landlocked region. Beyond economic opportunities, this shift further promotes cultural ties and strategic relationships with neighbouring nations.
This policy transition led to greater emphasis on infrastructure development in the region, further making the region investment-friendly. Since 2014, the region has witnessed a complete overhaul in terms of infrastructure and connectivity. In the domain of railways, the average annual commissioning of railway sections increased by 170%, rising from 66.6 km/year during 2009–2014 to 179.78 km/year between 2014-2023. Notably, several Northeastern states were connected to the Broad Gauge Network for the first time during this period. Indian Railways electrified 44,199 route kilometers between 2014-2024—more than double the 21,801 kilometers achieved in the preceding six decades.,
Air connectivity has also expanded considerably. The number of airports in the region has doubled since 2014. Under the UDAN scheme, eight new airports have been constructed, and 72 new air routes have been operationalised over the past decade., Road connectivity also underwent substantial progress. The total length of National Highways (NHs) constructed in NER during the last ten years is 9,984 km, with an expenditure of more than Rs 1,07,000 crore. Waterways infrastructure also improved from only one inland waterway in 2014 to 20 designated waterways in 2024, securing the base for an enhanced logistics facility.,
Further, the Union Cabinet approved a significant greenfield high-speed corridor project spanning 166.80 km from Mawlyngkhung in Meghalaya to Panchgram near Silchar in Assam. This initiative is expected to substantially improve intra-regional connectivity and bolster national logistics efficiency. Another recent development complements the infrastructure boom is India’s first Multi-Modal Logistics Park in Jogighopa, built at Rs. 694 crore. This facility promises a paradigmatic shift in cargo movement.
When it comes to investing in a region, a key concern that crosses investors' minds is the overall peace and security in the region. For many decades after independence, the region of Northeast India has undergone prolonged episodes of insurgency and violence. However, a major shift has been witnessed since 2014. Due to 12 agreements signed by the current government in Northeast India over the last ten years, over 10 thousand militants laid down their arms and joined the mainstream. Violent incidents have declined by nearly 70% between 2014 and 2024 compared to the previous decade. Such development led to an investor-friendly environment in the region.
The current government adopted a targeted approach towards developing the region. The region is witnessing a major thrust in budget allocation, which has replaced decades of undermining the economic potential of the region. There is an increase of 208 % from the budget allocation between 2004-05 to 2013-14, and 2014-14 to 2024-25. To ensure the holistic development of the region, a central sector scheme, PM-DevINE (Prime Minister’s Development Initiative for North Eastern Region) announced in 2022 with a total outlay of Rs. 6,600 crore for the period from FY 2022-23 to FY 2025-2026.
The region has attracted several major investment projects, signaling growing investor confidence and economic potential. For instance, the Rs. 27,000 crore semiconductor manufacturing facility in Assam was announced in 2024. It is set to generate 15,000 direct and up to 13,000 indirect jobs, transforming the region into a tech hub and marking Assam’s presence on the global map. In addition, the recently held Advantage Assam 2.0 summit attracted Rs 5.18 lakh crore investment proposals that amount to 80% of the state’s projected GDP. In addition, an investment of Rs. 2.5 lakh crore is coming to Northeast India, which will boost the employment landscape in the region.
The handholding efforts of the current government are empowering the entrepreneurial ventures of the region. North East is emerging as a vibrant startup hub, with 2,109 DPIIT-recognised startups as of 31st January 2025. Between 2020-2024, these ventures have attracted significant investment and are reported to have created over 23,000 direct jobs across the region. Further, the Uttar Poorva Transformative Industrialization Scheme (UNNATI), launched in 2024 with a total budgetary allocation of Rs 10,037 crore, facilitated the registration of 56 industrial units. This has laid the groundwork for long-term manufacturing and investment expansion.
The region is getting international investments opportunities as well. In February 2024, Japan invested JPY 60 billion in diverse infrastructure projects in Northeast India and a healthcare development project in Nagaland. In 2025, Japan also invested in the Assam State Aquaculture Promotion and Livelihood Improvement Project. The current government is organizing targeted events to secure more investments for the region. Whether it was the Astalakshmi Mahotsav of 2024, the recently held Ambassadors' Meet organised by MDoNER, or the annual Northeast Investment Roadshows conducted across India, these initiatives have played a pivotal role in catalysing investment flows into the region. As a result, investment proposals (MoU and LoI) of more than Rs. 1.10 lakh crore have been received for all 8 states so far. Similarly, during Astalakshmi Mahotsav, a total of Rs. 2,500 crore project proposal was received under the B2G sessions.
The region has an abundance of potential to attract further investment in sectors like tourism, hospitality industry, food processing, handicrafts and handloom products, renewable energy, and agro-based industries. There is ample availability of raw materials generally makes the region a suitable destination for investors.
The transition of Northeast India from a region marred by insurgency and lack of development to the core of Viksit Bharat is a remarkable story of resilience and renewed development. Now, the region is not only garnering the wider attention of the Central government but also emerging as a gateway for major international investments, marking its rightful place in India's growth story.