The North-East's moment: turning record investment into lasting growth
Central spending on the North-East has never been higher. The region now needs projects that last, private investment that stays, and governance that keeps pace.
I began my career in Assam in 1989, when insurgency made even a district tour a matter of planning and risk. The North-East of today is a different place. Roads, rail and air links that were promised for decades are being built, and the region's states are competing for investment rather than waiting for it.
The Union Budget for 2026-27 raised the Ministry of Development of North Eastern Region's allocation to about ₹6,812 crore, from about ₹5,915 crore the year before. That includes ₹2,300 crore for PM-DevINE, the Prime Minister's Development Initiative for the North-East, and ₹2,500 crore for the North East Special Infrastructure Development Scheme. By January 2026, 48 projects worth over ₹6,000 crore had been sanctioned under PM-DevINE.
From connectivity to economy
The first phase of North-East development was about connection: highways, bridges, airports and rail lines to every state capital. The next phase is about what moves along those connections. A North-East Economic Corridor framework, with task forces led by the region's Chief Ministers, is meant to make the region an investment and trade hub, linked to the Act East policy and markets in South-East Asia.
The strongest opportunities build on what the region already has:
- Agro-processing and horticulture, including tea, spices, fruit and agar
- Tourism, including heritage and Buddhist circuits across several states
- Bamboo, handloom and other local manufacturing
- Logistics and inland waterways along the Brahmaputra and Barak
- Health and education services for a young population
What investors should know
Investing in the North-East rewards preparation. Each state has its own land laws, often with special protections for local communities. Autonomous councils have real powers in many areas. A project that works smoothly in one district may face very different conditions in the next.
- Understand land ownership and the role of councils and communities before choosing a site
- Use the state's investment incentives, but plan for timelines that allow genuine consultation
- Hire and train locally; projects that create local jobs build the support they need to last
- Track central schemes, which often fund the infrastructure a private project depends on
The North-East has waited a long time for this attention. The test now is whether the investment of these years creates enterprises and jobs that outlast the schemes that funded them. With careful planning, I believe it can.