New Delhi: On May 23, 2025, Prime Minister Narendra Modi addressed a diverse gathering of industry leaders, foreign delegates, and development strategists at the Rising Northeast Investors Summit 2025 in New Delhi. The event, attended by Chief Ministers including Himanta Biswa Sarma (Assam), Konrad Sangma (Meghalaya), Manik Saha (Tripura), Lalduhoma (Mizoram), and Prem Singh Tamang (Sikkim), marked a significant milestone in redefining the Northeast’s role in India’s economic and strategic landscape.
Modi introduced the Vision of EAST—Empower, Act, Strengthen, and Transform—as a policy framework to drive the region’s development. “East does not mean just direction for us. It means Empower, Act, Strengthen, and Transform. This is our government’s policy for eastern India,” he said, underscoring the shift from the earlier “Look East” policy to the more proactive “Act East” mantra. He noted that Union Ministers have visited the Northeast over 700 times in the past decade, reflecting the government’s commitment to transforming the region.
Strategic Significance of Northeast India
The Northeast’s geographical proximity to China, Bangladesh, Myanmar, and Bhutan positions it as a critical frontier for national security and a strategic trade hub. The Siliguri Corridor, often referred to as the “Chicken’s Neck,” serves as a vital link connecting the Northeast to the rest of India, emphasizing its geopolitical importance. Modi highlighted the region’s role as India’s gateway to Southeast Asia, strengthening the Act East Policy. Key connectivity projects like the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project are set to enhance regional integration, providing direct access from Myanmar to Thailand and linking Kolkata Port to Myanmar’s Sittwe Port through Mizoram. These projects are expected to significantly reduce travel distances and boost trade and industrial growth.
The Prime Minister also emphasized the development of Multi-Modal Logistics Hubs in Guwahati, Imphal, and Agartala, alongside the establishment of Land Custom Stations in Meghalaya and Mizoram. These initiatives are positioning the Northeast as a rising force in trade with Indo-Pacific nations, unlocking new avenues for investment and economic growth. Modi projected that India’s trade with ASEAN, currently valued at $125 billion, could surpass $200 billion within a decade, with the Northeast playing a central role.
Economic Opportunities and Industrial Growth
The Northeast is emerging as a powerhouse across multiple sectors, including the bio-economy, bamboo, tea production, petroleum, sports, and eco-tourism. Modi described the region as the “most diverse part of our diverse nation,” with its products and people reflecting a rich tapestry of culture and tradition. “From trade to tradition, textile to tourism, Northeast’s diversity is a very big strength of the region,” he said.
Major conglomerates have recognized this potential. Reliance Industries, led by Mukesh Ambani, announced an investment of ₹75,000 crore in the Northeastern states, while Gautam Adani committed an additional ₹50,000 crore over the next decade. These investments are expected to bolster local infrastructure and manufacturing, particularly in high-tech sectors like semiconductors. Modi highlighted Assam’s growing role in India’s semiconductor ecosystem, announcing that the first Made in India chip from a Northeast-based semiconductor plant would soon be introduced, marking a significant milestone for the region’s high-tech industrial growth.
The region’s energy sector is also witnessing substantial growth. The government has approved projects worth several thousand crore rupees in hydropower and solar power across all Northeastern states. Beyond infrastructure, there are significant opportunities in manufacturing solar modules, cells, storage solutions, and research, which Modi emphasized as critical for achieving greater self-sufficiency and reducing import dependence.
Connectivity Initiatives Driving Regional Integration
Several regional initiatives are enhancing the Northeast’s connectivity with Southeast Asia and neighboring countries. The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), established in 1997 under the Bangkok Declaration, connects Northeast India with Bangladesh, Myanmar, and Thailand. Similarly, the Mekong-Ganga Cooperation (MGC), launched in 2000, fosters collaboration in tourism, culture, education, and more among India, Cambodia, Lao PDR, Myanmar, Thailand, and Vietnam. The Bangladesh, Bhutan, India, Nepal (BBIN) Motor Vehicle Agreement, signed in 2015, facilitates seamless cross-border transportation and strengthens regional supply chains, including in the Northeast.
Recent infrastructure developments, such as the Sela Tunnel in Arunachal Pradesh and the new Semiconductor Plant in Assam, are further boosting the region’s economic integration. The government’s decision on May 17, 2025, to close land ports with Bangladesh, as ordered by the Directorate General of Foreign Trade, aims to provide the Northeast with a level playing field to develop its commercial potential and competitive manufacturing capabilities.
Northeast as a Wellness and Eco-Tourism Hub
Modi also highlighted the Northeast’s potential in the Heal in India initiative, which is being developed as a global movement. The region’s rich biodiversity, pristine natural environment, and organic lifestyle make it an ideal destination for wellness-driven industries. “The Northeast’s climate and ecological diversity offer immense potential for wellness,” Modi said, urging investors to explore opportunities in this sector.
Eco-tourism is another area where the Northeast is gaining prominence. With its lush landscapes, diverse flora and fauna, and vibrant cultural heritage, the region is attracting tourists seeking sustainable and immersive experiences. The Prime Minister’s vision positions the Northeast as a key player in India’s tourism and wellness sectors, complementing its economic and industrial growth.
Addressing Regional Challenges
Despite its potential, the Northeast faces challenges, including geopolitical tensions. In March 2025, Bangladesh’s Chief Advisor Mohammed Yunus described the Northeast as “landlocked” and offered Bangladesh as a “guardian of the ocean” to facilitate China’s access to the region’s commercial space. This characterization drew strong objections from India, with Assam Chief Minister Himanta Biswa Sarma calling the comments “offensive and condemnable.” Modi’s address at the summit reaffirmed India’s commitment to leveraging the Northeast’s strategic location for its own economic and security interests, countering external narratives.
The region’s security concerns, given its proximity to multiple international borders, were also addressed. The Prime Minister emphasized the need for robust infrastructure and connectivity to strengthen national security while fostering economic growth. Projects like the Kaladan Multi-Modal Transit Project and the India-Myanmar-Thailand Trilateral Highway are not only economic enablers but also strategic assets in this context.
A Frontrunner of Growth
The Rising Northeast Investors Summit 2025 underscored the region’s transformation from a peripheral frontier to a central hub of economic and strategic activity. Modi’s address highlighted the government’s proactive approach, with initiatives like the Act East Policy, significant investments in infrastructure, and a focus on emerging sectors like semiconductors and renewable energy. The Northeast’s role as a trade gateway to ASEAN, coupled with its rich cultural and natural assets, positions it as a key driver of India’s economic ambitions.
As the region continues to develop, the government’s Vision of EAST—Empower, Act, Strengthen, and Transform—serves as a roadmap for unlocking its full potential. With major investments from industry leaders, enhanced connectivity, and a focus on sustainable growth, the Northeast is set to redefine India’s economic and strategic landscape, emerging as a vital link to Southeast Asia and beyond.
Frequently Asked Questions (FAQs)
1.What is the strategic significance of Northeast India in India’s Act East Policy?
Northeast India serves as a critical gateway to Southeast Asia due to its geographical proximity to countries like China, Bangladesh, Myanmar, and Bhutan. The region strengthens India’s Act East Policy through major connectivity projects like the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project. These initiatives enhance regional trade and integration, positioning the Northeast as a vital trade bridge to ASEAN nations, with the potential to boost India-ASEAN trade from $125 billion to $200 billion in a decade.
2.What are the key regional initiatives boosting Northeast India’s connectivity?
Several initiatives are enhancing the Northeast’s connectivity:
BBIN Motor Vehicle Agreement (2015): Facilitates seamless cross-border transportation and strengthens regional supply chains, including in Northeast India.
BIMSTEC (1997): Connects Northeast India with Bangladesh, Myanmar, and Thailand for multi-sectoral cooperation.
- Mekong-Ganga Cooperation (MGC) (2000): Promotes collaboration in tourism, culture, and education among India, Cambodia, Lao PDR, Myanmar, Thailand, and Vietnam.
3. What economic opportunities are emerging in Northeast India?
The Northeast is becoming a hub for sectors like bio-economy, bamboo, tea production, petroleum, sports, eco-tourism, energy, and semiconductors. Major investments, such as Reliance’s ₹75,000 crore and Adani’s ₹50,000 crore commitments, are driving growth. Infrastructure projects like the Sela Tunnel in Arunachal Pradesh and a new Semiconductor Plant in Assam, along with developments in hydropower and solar power, are unlocking opportunities in manufacturing and high-tech industries.
4. How is the Northeast contributing to India’s Heal in India initiative?
The Northeast’s rich biodiversity, natural environment, and organic lifestyle make it an ideal destination for wellness-driven industries. Prime Minister Narendra Modi highlighted its potential as a key component of the Heal in India initiative, which aims to position India as a global wellness hub. The region’s climate and ecological diversity offer significant opportunities for eco-tourism and wellness tourism.
5. What steps is the government taking to address security and connectivity challenges in the Northeast?
The government is focusing on robust infrastructure and connectivity projects to enhance both economic growth and national security, given the region’s borders with multiple countries. The Siliguri Corridor (Chicken’s Neck) is a critical link, and projects like the Kaladan Multi-Modal Transit Project and Multi-Modal Logistics Hubs in Guwahati, Imphal, and Agartala are strengthening connectivity. The closure of land ports with Bangladesh, as ordered on May 17, 2025, aims to develop the Northeast’s commercial potential and competitive manufacturing capabilities.
