In contrast to UPA years, NER's economy has seen gradual growth in NDA rule

Shifting focus to population, the NER housed 45.5 million individuals, accounting for 3.7 per cent of the country's total population of 1.21 billion, according to the 2011 Census

Northeast India (officially the North Eastern Region, or NER), comprising eight states, witnessed an economy that expanded in alignment with the national gross domestic product (GDP) during the tenure of the Narendra Modi government. However, the NER’s economy experienced a gradual growth, ranging from 2.7 per cent to 3 per cent of the country’s GDP during the National Democratic Alliance (NDA) regime, in contrast to the 2.6 per cent it achieved during the concluding year of the prior United Progressive Alliance government in 2013-14.

As of 2021-22, the region’s economy reached Rs 6.8 trillion, contributing 2.9 per cent to the national GDP at current prices (Rs 234.7 trillion), according to the latest available data for all Northeast states. The preceding year saw the NER economy at Rs 5.9 trillion in 2020-21, equivalent to 3 per cent of the national GDP. This marked the highest proportion of the region’s contribution to the national economy during the Modi administration.

Given that the NER encompasses 8 per cent of India’s area, the acceleration of its economic contribution is essential. One could argue that the NER is predominantly characterised by challenging terrain — 70 per cent of its expanse is hilly — thus, a mere comparison of economic size based on this parameter seems inadequate. The NER housed 45.5 million individuals, accounting for 3.7 per cent of the country’s total population of 1.21 billion, according to the 2011 Census.

By mid-2021 (July 1), with an estimated population of 51.3 million, the region still maintained the same proportion — 3.7 per cent — of India’s total population of 1.37 billion, as indicated by data extracted from the North Eastern Council website.

The NER’s economic contribution to the national GDP ought to mirror at least the proportion of its population within the country.

This broader perspective possibly explains why the NER’s per capita income continues to be lower than the national average per person, despite the gap (in percentage terms) narrowing during the NDA regime.

For example, in 2013-14, the NER’s per capita income stood at Rs 52,144, equivalent to 65.9 per cent of the country’s per capita income of Rs 79,118. However, by 2021-22, this had risen to Rs 1,15,560, constituting 77.8 per cent of the country’s per capita income of Rs 1,48,524. Intra-regionally, a substantial disparity in per capita income existed. Sikkim boasted the highest per capita income in the country at Rs 4,72,543 in 2021-22, despite being the least populous state in the NER.

Conversely, Manipur reported the lowest per capita income that year at Rs 84,345. Meghalaya, with a per capita income of Rs 90,638, and along with Assam (Rs 1,02,965), Nagaland (Rs 1,42,363), and Tripura (Rs 1,40,803), also had a lower average income per person than the country’s per capita income for the same period.

Of these five states, three — Assam, Meghalaya, and Nagaland — registered higher rates of multidimensional poverty than the national average in both 2015-16 and 2019-21, according to NITI Aayog data.

During a debate on a no-confidence motion, Prime Minister Narendra Modi expressed in the Lok Sabha, “Humare liye Northeast jigar ka tukda hai” (For us, the Northeast is a part of our heart).