India’s North Eastern states, nestled between the Himalayas and the vast trade routes of Southeast Asia, have often remained untapped due to logistical challenges and limited industrial exposure. However, with investments, policy support, and infrastructure developments, this once remote region is rapidly transforming into a booming hub.

In the last ten years, with multiple Central and State level schemes, India’s North East (NE) region has undergone a rapid transformation in terms of infrastructure, including rail & road connectivity, new industrial and technology parks, logistics hubs, and cold chains among others. With a significant increase in budget allocation, rising from Rs 361 billion in 2014-15 to Rs 1,058 billion in FY2025-26, the North East is set for accelerated growth. The government’s ambitious Unnati 2024 scheme further reinforces the commitment to industrialisation and economic expansion in the region.

In this context, the FIRST Construction Council (FCC) -- in collaboration with “Construction World”, “Infrastructure Today” and “Equipment India” magazines -- hosted a webinar, titled “The Rising North East”, on March 18, 2025 bringing together key stakeholders and experts to discuss the rapid transformation of India's north-eastern region. The event highlighted infrastructure developments, investment opportunities, and strategic policies that are shaping the region's economic future. 

The webinar featured insights from distinguished speakers, including Manmohan Parkash, Former Senior Advisor at the Asian Development Bank (ADB); RE Zeliang, General Manager, North Eastern Development Finance Corporation (NEDFi); Sanjeev Patil, COO, National Highways Logistics Management Ltd (NHLML); Prashant Jain, Vice President-Ropeways & Inter Modal Hub Infrastructure, NHLML; and Pankaj Surana, Director (Tax and Regulatory Services), Ernst & Young LLP. Their presentations covered critical areas such as regional connectivity, investment prospects, ropeway infrastructure, and fiscal incentives under Unnati 2024.

North East: Gateway to Southeast Asia

According to Parkash, the North East region can play a strategic role as India's gateway to Southeast Asia and has the potential to become a trillion-dollar economy by 2050. He noted that the region’s economic growth rates, ranging from 11 per cent to 29 per cent across various states, reflect its strong development trajectory. "The North East is endowed with rich resources, a young workforce, and geographical connectivity with ASEAN. By focusing on infrastructure, investment, and innovation, we can position the region as a key driver of India’s economic expansion,” stated Parkash.

He highlighted ongoing infrastructure projects such as the India-Myanmar-Thailand Trilateral Highway and the expansion of regional airports in Guwahati, Agartala, and Silchar. Investments in high-speed rail connectivity and inland waterways, particularly in Assam, are expected to further enhance trade links with Southeast Asia. He also stressed the importance of integrating digital infrastructure to boost e-commerce, IT services, and fintech in the region.

Emerging investment opportunities

Providing a comprehensive overview of investment trends in the North East, RE Zeliang, General Manager, North Eastern Development Finance Corporation (NEDFi), emphasised that the region is now a prime destination for business expansion. He highlighted key sectors attracting major investments, including agro-processing, tourism, renewable energy, and manufacturing. "The North East is no longer just about potential; it is about tangible growth. With improved infrastructure, proactive state policies, and an entrepreneurial culture, this is the right time for investment,” he noted.

He cited projects such as the Assam Semiconductor Manufacturing Plant and major investments from Tata, Reliance, and Adani in hospitality, pharmaceuticals, and real estate. The establishment of industrial parks in Tripura and startup incubation centres in Manipur are also facilitating a business-friendly environment. Additionally, he pointed out the region’s growing connectivity with Bangladesh and Myanmar through border trade agreements and logistics corridors, which are set to enhance cross-border commerce significantly.

Reducing costs with multimodal logistics parks

According to Patil, COO, National Highways Logistics Management (NHLML), the development of multimodal logistics parks (MMLPs) can be a game-changer for North East India’s supply chain ecosystem. He explained that India’s logistics performance index ranks lower than global counterparts, leading to high transportation costs. “To bring down logistics costs from 16 per cent to a single-digit percentage, the government is setting up 35 multimodal logistics parks, with a special focus on North East India”, he said.

The MMLP at Jogighopa (Assam)—being developed by National Highways & Infrastructure Development Corporation (NHIDCL), a fully owned company of the Ministry of Road Transport & Highways, Government of India – is set to enhance connectivity via rail, road, and waterways. It will provide cold storage facilities, warehousing, and customs clearance, significantly benefiting the region’s agricultural and export-oriented industries. Patil emphasised that these projects are being developed under PPP model, ensuring private sector participation in infrastructure development.

Ropeways revolutionising last-mile connectivity

Addressing the need for better last-mile connectivity, Jain introduced the Parvatmala Pariyojana, which aims to establish ropeway networks in hilly and remote areas. The North East has already proposed 33 ropeway projects, with key developments underway in Kamakhya (Assam) and Tawang (Arunachal Pradesh). “The terrain of North East India demands innovative transport solutions. Ropeways are not just about tourism, they will play a critical role in urban decongestion, logistics, and mobility for isolated communities”, Jain stated.

He explained that ropeways are eco-friendly, require minimal land acquisition, and offer a reliable transportation mode in challenging terrains. He also mentioned upcoming plans for an intermodal hub in Guwahati, integrating ropeways, airports, and highways for seamless travel.

Unnati 2024 for the progress of industries

To boost development of newer industries in the region, the Union government launched Uttar Poorva Transformative Industrialization (UNNATI) Scheme in 2024. Surana provided an in-depth analysis of the Unnati 2024 scheme, a Rs 100 billion initiative, aimed at accelerating industrialisation in North East India. The scheme offers substantial incentives, including capital subsidies, interest subsidies, and GST-linked incentives, to encourage new businesses. “This is a once-in-a-generation opportunity for businesses to establish themselves in the North East. The government has ensured strong financial support, making it attractive for both new and expanding industries,” he said.

Under the scheme, new manufacturing units can claim up to 100 per cent reimbursement on net GST payments for ten years, while industries in backward districts receive capital subsidies of up to 50 per cent. Key sectors eligible for incentives include electronics, pharmaceuticals, IT, tourism, and renewable energy. Surana stressed the urgency for businesses to register under the Unnati Portal by March 2026 to avail of the benefits, highlighting that over 300 companies have already applied.

Time to unleash true potential 

The FCC North East Webinar 2025 highlighted the transformative changes unfolding in the rapidly developing region. With large-scale infrastructure projects, favourable investment policies, and government-led initiatives, North East India, while under construction, will soon become a major economic hub. As Manmohan Parkash concluded, “The time to act is now. With bold investments and strategic planning, the North East can become a shining example of sustainable growth, innovation, and global leadership.”

Strong collaboration between the public and private sectors will allow the North East to emerge as a powerhouse of economic growth, intertwining India into the dynamic markets of Southeast Asia.