Northeast India: From Periphery to Pivot | 26 May 2025

India's northeastern region exemplifies the nation's diversity through its rich cultural heritage and natural resources. The government is transforming the region with massive infrastructure investments—from the Sela Tunnel to the Northeast Gas Grid. However, significant challenges persist, including stalled peace processes in Nagaland, inter-state border disputes, environmental concerns over hydroelectric projects, and social tensions fueled by immigration rhetoric. For the Act East Policy to truly succeed, India must integrate the Northeast into its mainstream economy and prioritize a model of development that is led by the region itself.  

What is the Significance of the Northeast Region in India’s Developmental Outlook?  

• Strategic Geopolitical Pivot for India’s Security and Foreign Policy: The Northeast’s geography as India’s eastern frontier, sharing porous international borders with China, Myanmar, Bangladesh, Bhutan, and Nepal, positions it as a frontline region in countering Chinese influence and safeguarding territorial integrity.  
  • The 2017 Doklam standoff (Operation Juniper) near the tri-junction underscored the vulnerability of the Chicken’s Neck. 
  • The region’s stability is thus directly linked to India’s Indo-Pacific ambitions and border security imperatives. 

• Untapped Hydrocarbon and Renewable Energy Potential: The Northeast’s vast natural resource base—comprising substantial oil and natural gas reserves alongside hydropower potential—makes it pivotal for India’s clean energy transition and energy security.  
  • For example, The Northeast holds an estimated 7,600 million metric tonnes of oil equivalent(MMTOE), but only around 2,000 MMTOE has been discovered so far. 
  • Arunachal Pradesh alone has over 50,000 MW of hydro potential.  
• Cultural Diversity as a Catalyst for Regional Integration: With over 135 tribes, Northeast India’s ethno-cultural plurality underpins its unique identity and provides India a distinct advantage in fostering cross-border cultural diplomacy with Southeast Asia.  
  • Promoting indigenous handicrafts, traditional festivals, and tribal art through initiatives like the North-East Festival enhances local livelihoods and projects India’s pluralistic ethos internationally. 
  • For instance, the 2022 North-East Festival in Delhi featured 100 MSMEs, significantly boosting handicraft exports and tourism.  
• Ecological Significance: Situated in the Indo-Burma biodiversity hotspot, the Northeast’s rich forest cover (Arunachal Pradesh ranking second in India in terms of forest cover in India State of Forest Report 2023) and endemic species—such as the Hoolock Gibbon (India’s only ape), the One-Horned Rhinoceros, and the endangered Red Panda—are vital for ecological balance and climate resilience.  
  • The region also hosts rare orchids, over 850 bird species, and serves as a critical corridor for migratory wildlife, underscoring its importance in India’s biodiversity and carbon sequestration efforts. 
• Economic Gateway for India’s Act East Policy and Regional Trade: The Northeast’s connectivity projects such as the India-Myanmar-Thailand Trilateral Highway and proposed extensions to Cambodia and Vietnam position it as a crucial hub linking India to ASEAN markets, supporting India’s vision of becoming a $5 trillion economy. 
  • Strengthening transport and trade linkages can transform the region into a vibrant corridor for commerce and cultural exchange with East Asia. 

What are the Key Issues Associated with India’s Northeast Region?  

• Ethnic Fragmentation and Enduring Insurgency Undermine Stability: Persistent ethnic fragmentation fuels violent insurgencies and inter-community clashes, eroding governance legitimacy and disrupting developmental trajectories.  
  • Lack of effective reconciliation and political accommodation perpetuates a cycle of mistrust and insecurity, deterring investments and social cohesion. The ongoing conflict in Manipur exemplifies how unresolved ethnic grievances destabilize the region and stall economic progress. 
    • Armed Forces Special Powers Act (AFSPA) continues to be enforced extensively, reflecting persistent security challenges. 
• Infrastructure Deficiency Perpetuates Economic Isolation: Geographical challenges coupled with inadequate multimodal connectivity constrain the Northeast’s integration with national and international markets.  
  • Underdeveloped road, rail, air, and digital infrastructure impede supply chains, health access, and disaster management, exacerbating the region’s economic backwardness despite strategic initiatives like NLCPR and NESIDS. 
  • The digital divide further marginalizes rural populations from mainstream opportunities. 
  • For instance, internet penetration at 43%, significantly below the national average of 55%. National Highway expansion reached 4,950 km (2014-23), yet rail connectivity remains underdeveloped. 
• Porous Borders Amplify Security Risks: The Northeast’s extensive 5,182 km international boundaries remain porous and inadequately surveilled, facilitating illegal immigration, arms trafficking, and insurgent movements.  
  • Inefficient fencing and coordination gaps compromise territorial sovereignty and fuel transnational insurgencies, complicating diplomatic ties with Bangladesh and Myanmar. This vulnerability remains a strategic concern for India’s internal security architecture. 
  • For instance,  Indo-Myanmar border fencing is incomplete, allowing cross-border mobility (like Rohingyas).  
• Environmental Conflicts Expose Fault Lines: Critics argue that aggressive pursuit of hydroelectric and mining projects without robust environmental safeguards has triggered local resistance, highlighting tensions between economic growth and ecological preservation. 
  • For example, the mega hydroelectric project, planned along the Siang River, has sparked outrage among indigenous communities fearing displacement, environmental degradation, and cultural erosion. 
• Land Scarcity and Inter-State Boundary Disputes: Population pressures and unclear land ownership exacerbate tensions and interstate boundary conflicts, obstructing development projects and social harmony.  
  • Several commissions have been set up to resolve the conflicts, but they have yielded little progress. 
    • For example, in the Assam-Meghalaya dispute, Meghalaya rejected the recommendations of the Justice Chandrachud Committee report, even though Assam had accepted them. Similarly, in 2014, it was Assam that disagreed with the proposed resolution. 
• Human Trafficking and Drug Abuse Crisis: The Northeast region is a hotspot for human trafficking, particularly of women and children, due to its porous borders and strategic location.  
  • The trafficking networks are often linked to broader transnational organized crime syndicates. In addition, the region faces a growing drug abuse crisis, with opioids and other narcotics being smuggled across the porous borders, exacerbating public health and security concerns.  
    • This drug abuse crisis is also fueling a rise in HIV cases, as the use of contaminated needles and unsafe drug practices spread the virus 
  • For example, the state of Manipur is witnessing an alarming rise in opium production, contributing to both local addiction problems and broader regional security challenges.  

What Measures can India Adopt to Mainstream Northeast in Economic Push? 

• Strengthen Peacebuilding and Formalize Recognition for Indigenous Communities: Implement comprehensive peacebuilding initiatives involving local stakeholders, security forces, and civil society to address insurgencies through dialogue, development, and trust-building.  
  • Expedited the formal recognition of indigenous communities, such as granting Scheduled Tribe (ST) status to deserving ethnic groups after verification (like Mising, Motok, and Moran in Assam), following recommendations from Lokur Committee 
    • The Lokur Committee recommended five criteria for identifying such communities, namely: primitive traits, distinct culture, geographical isolation, reluctance to interact with the larger community, and overall socio-economic backwardness 
• Strengthen Multi-Modal Connectivity and Digital Infrastructure: Prioritize integrated development of roads, railways, inland waterways, and airports complemented by expansive digital networks to overcome geographical isolation.  
  • Implement region-specific infrastructure corridors that link local economies to national and ASEAN markets, enhancing supply chain resilience and reducing transaction costs. 
    • Integrate physical connectivity projects like the National Infrastructure Pipeline (NIP) with the PM Gati Shakti Master Plan to create seamless transport corridors. 
  • Digital inclusion must be accelerated through rural broadband and e-governance platforms to bridge the urban-rural divide and foster innovation ecosystems. 
• Foster Inclusive and Participatory Governance Models: Encourage decentralization by empowering local self-governments through enhanced convergence of the Panchayati Raj Institutions with schemes like Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), building upon PM-DevINE Scheme.  
  • This would enable community-led development, ensuring socio-cultural sensitivities are respected while integrating grassroots voices in mainstream economic planning. 
• Promote Sustainable and Eco-Sensitive Industrialisation: Encourage green industries such as renewable energy, eco-tourism, organic agriculture, and forest-based micro-enterprises that leverage the Northeast’s ecological wealth without compromising biodiversity. 
  • Institutionalize rigorous Environmental Impact Assessments and incentivize circular economy practices, integrating sustainability with economic growth to balance development and conservation imperatives. 
• Develop Skill Ecosystems Aligned with Emerging Economic Sectors: Launch specialized vocational and technical training hubs tailored to local strengths such as agro-processing and healthcare.  
  • Create skill hubs linking the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) with the Aspirational Districts Programme focusing on Northeast states, to tailor vocational training in agro-processing, tourism, and digital skills.  
  • Embed digital literacy and innovation-driven curricula to prepare the workforce for future-ready economic participation. 
• Institutionalize Cross-Border Economic Corridors and Sub-Regional Cooperation: Leverage Northeast’s strategic location by formalizing trade and cultural linkages with ASEAN countries through customs facilitation, logistics hubs, and free trade zones. 
  • Strengthen frameworks like BIMSTEC and India-Myanmar-Thailand highway projects to boost regional integration, attract foreign investment, and create a transnational economic ecosystem that stimulates local manufacturing and services. 
• Promote Cultural and Heritage-Based Entrepreneurship: Capitalize on the Northeast’s rich cultural heritage by fostering creative industries—handicrafts, textiles, music, and festivals—linking them to global value chains.  
  • Establish incubation centers and digital marketplaces that empower artisans and cultural entrepreneurs, creating sustainable livelihoods and enhancing India’s soft power. Facilitate skill preservation alongside commercialization to maintain authenticity. 
• Advance Climate-Resilient Agricultural and Rural Livelihoods: Adopt precision agriculture, climate-smart farming, and value addition in horticulture and plantation sectors to increase farmer incomes and sustainability. 
  • Strengthen rural infrastructure such as cold storage, logistics, and market access to reduce post-harvest losses. Integrate traditional ecological knowledge with modern agri-tech to build resilient rural economies that reduce urban migration pressures. 
• Launch Comprehensive Anti-Drug Awareness and Rehabilitation Programs: Address the rising drug abuse challenge in the Northeast by deploying multi-pronged strategies combining community awareness, education, and strict enforcement against trafficking.  
  • Establish rehabilitation and de-addiction centers tailored to the cultural context of affected areas, integrating traditional healing with modern therapies. 
  • Engage youth through skill development, sports, and counseling to offer alternatives to drug use and create resilient social frameworks that mitigate the impact of narcotics on families and communities. 

Conclusion:  

To truly unlock the Northeast’s potential, India must go beyond infrastructure and security-driven narratives. A sustainable future lies in embracing the region’s unique identity while empowering its people through 3Ts: Trade, Tourism, and Training for Youth. By placing the Northeast at the heart of India’s growth story—not just as a frontier, but as a fulcrum—India can realize its Act East vision and foster a more inclusive, secure, and vibrant nation.