Northeast focus picks up pace as Centre steps up infrastructure spending

The Centre has accelerated infrastructure and connectivity projects across the Northeast, positioning the Ashtalakshmi region as a gateway to Southeast Asia under the Act East Policy

It has been 12 years since Prime Minister Narendra Modi took to collectively describing India’s northeastern states as Ashtalakshmi, likening the eight states to the eight forms of Goddess Lakshmi. Until then, the states in the northeast were described as “seven sisters”, and the “brother” state of Sikkim.

 

The Centre has maintained that it has successfully resolved some of the region’s contentious issues in the last 12 years and allocated more money for infrastructure development. The period has also witnessed the BJP expanding its electoral footprint in the region, while the Opposition has since May 2023 castigated the Centre for failing to resolve the ethnic strife in Manipur.

 

The sobriquet Ashtalakshmi comprises eight states of the Northeast, which are Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim. In January 1972, the phrase ‘Land of the Seven Sisters’ was coined to coincide with the inauguration of the new states of Tripura, Manipur and Meghalaya by journalist Jyoti Prasad Saikia. Sikkim merged with India in 1975 and was termed as a “brother” state to the “seven sisters”.

 

Since 2014, the Centre during the tenure of the Narendra Modi-led National Democratic Alliance governments has sought to revitalise the Ministry of Development of North Eastern Region (MDoNER). The ministry co-ordinates with 54 non-exempted ministries and departments to spend at least 10 per cent of their Gross Budgetary Support (GBS) for Central Sector and Centrally Sponsored Scheme in the North Eastern Region across various sectors, such as agriculture and allied activities, communication, education, healthcare, industries, infrastructure, power, roads and bridges, regional air connectivity, science & technology, sports, tourism and water supply.

 

According to government data, MDoNER is providing financial assistance to the eight Northeast states through five Central Sector Schemes. A total of 3,746 projects have been sanctioned. Out of these, 2,730 projects have been completed at an approved cost of over Rs 27,963 crore. Under these schemes, PM-DevINE for targeted infrastructure and social development is a 100 per cent centrally funded scheme with an outlay of Rs 6,600 crore for 2022–23 to 2025–26. Under the North East Special Infrastructure Development Scheme (NESIDS) – Roads, launched in 2017–18 and extended until March 2026, 70 projects have been completed for construction and widening of roads while 57 projects are under implementation. The NESIDS – Other Than Roads Infrastructure (OTRI) 1,234 projects have been completed. These include primary and secondary healthcare, education, power, water supply, roads and bridges and 376 projects are under implementation. The schemes under the North Eastern Council (NEC) project selection is done in coordination with the respective state governments, and 495 projects are under implementation and 1,344 projects have been completed.

 

The Special Development Packages (SDPs) for Assam and Tripura has 40 ongoing projects and 79 projects have been completed.

 

According to a reply by MDoNER in Parliament last year, an expenditure of Rs 5,22,081 crore has been incurred by the different ministries and departments under their 10 per cent GBS during 2014-24. It said these efforts have helped in enhancing the contribution of the North East Region to the country’s GDP (at current prices with base year 2011-12) from 2.66 per cent in 2014-15 to 2.91 per cent in 2022-23.

 

The Act East Policy has been a pillar of India’s external engagement since 2014. The policy places the Northeast at the centre of India’s engagement with Southeast Asia. It recognises its strategic location and economic potential. Over the past decade, the policy has focused on connectivity, trade, cultural linkages, and border infrastructure. It is transforming the region into a bridge between India and Association of Southeast Asian Nations (ASEAN). This shift marks a transition from viewing the Northeast as a frontier region to the gateway for regional integration and growth.

 

A central focus of the Act East Policy has been the development of cross-border connectivity infrastructure. This links the Northeast with neighbouring countries. The India-Myanmar-Thailand Trilateral Highway is a flagship project under this framework. It aims to connect Moreh in Manipur to Mae Sot in Thailand via Myanmar. The project is steadily advancing the development of a vital land corridor for cross-border trade and movement.