Northeast’s rise from frontier region to economic growth under PM Modi

Shillong, June 15: Union Minister for Ports, Shipping and Waterways  (MoPSW), Sarbananda Sonowal said the transformation of the Northeast from a region long associated with infrastructure deficits and limited investment into a major economic growth hub represents one of India’s most significant development success stories of the past decade under the leadership of Prime Minister Narendra Modi.

Addressing the North-East India Infrastructure Summit and Exhibition 2026 in here today, Sarbananda Sonowal said the region has emerged as a strategic growth engine of the Indian economy under Prime Minister Narendra Modi’s leadership, driven by unprecedented investments in connectivity, digital infrastructure, logistics, energy and industry.

“From frontier region to economic growth hub, Prime Minister Narendra Modi ji has led the Northeast’s transformation and it is one of India’s biggest success stories. The region has moved from the margins of national policymaking to the centre of India’s development agenda,” Sarbananda Sonowal said.

The Union Minister said the Northeast, once viewed primarily through the lens of geographical remoteness and infrastructure challenges, is now increasingly recognised as India’s gateway to Southeast Asia and a key pillar of the country’s Act East Policy.

According to Union Minister Sarbananda Sonowal, the scale of public investment in the region since 2014 has fundamentally altered its economic trajectory.

The allocation for the Northeast under the Gross Budgetary Support framework has increased from around ₹20,000 crore in 2014 to more than ₹1.08 lakh crore in 2025-26, while cumulative expenditure in the region has crossed ₹7.3 lakh crore over the past decade. Ministry of DONER’s Budget increased more than 3 times from Rs. 2,000 Cr. in 2014 to Rs. 6,812 Cr during this Budget.

“These investments are not merely creating infrastructure; they are creating opportunities. They are connecting farmers to markets, entrepreneurs to capital, students to education, and the region itself to national and global value chains,” Sarbanandna Sonowal said.

The Union Minister highlighted the rapid expansion by the Narendra Modi Government of transport infrastructure across the Northeast, noting that nearly 10,000 kilometres of national highways have been built since 2014 at an investment of more than ₹1.07 lakh crore, while over 46,000 kilometres of rural roads have connected previously isolated communities to economic activity.

Railway investment in the region has increased nearly fivefold compared to the pre-2014 period, with projects worth approximately ₹77,000 crore currently under implementation. Landmark projects such as the Bogibeel Bridge, the first passenger rail connectivity to Mizoram and the ongoing Dhubri-Phulbari Bridge project have significantly strengthened regional integration and market access.

Sarbananda Sonowal said the expansion of air connectivity has further accelerated economic integration. The number of operational airports in the Northeast has increased from nine in 2014 to sixteen today, while Arunachal Pradesh and Sikkim have been connected to regular commercial air services for the first time since Independence.

Calling digital infrastructure one of the defining achievements of the past decade, Sonowal said nearly 96 per cent of villages in the Northeast are now connected through mobile networks, while more than 40,000 villages have access to 4G services. Digital connectivity has become economic infrastructure.

“Broadband has become economic infrastructure. Digital connectivity is empowering entrepreneurs, enabling digital commerce, expanding access to education and healthcare, and integrating the Northeast into the knowledge economy,” Sarbananda Sonowal said.

Highlighting Meghalaya’s development trajectory, Sonowal said the state has emerged as one of the leading examples of how improved connectivity, tourism, digital infrastructure and governance reforms can accelerate economic growth in the Northeast.

Sonowal noted that Meghalaya has leveraged its natural advantages, entrepreneurial ecosystem and strategic location to attract investments across sectors such as tourism, information technology, logistics, agriculture and renewable energy.

The state’s growing reputation as a destination for business, innovation and sustainable development reflects the broader transformation underway across the region.

The Union Minister also pointed to Meghalaya’s progress in ease of doing business (EODB) and governance reforms, noting that the state secured the third rank nationally in Compliance Reduction and Deregulation 1.0 after successfully completing all 23 priority reform areas.

Sonowal said that Flagship events such as the Cherry Blossom Festival, investments in digital and transport infrastructure, and the proactive leadership of CM Conrad Sangma have strengthened Meghalaya’s position as a key contributor to the Northeast’s growth story.

“Meghalaya today exemplifies how visionary leadership of PM Narendra Modi ji, policy reforms and targeted investments can unlock economic opportunities while preserving the region’s unique cultural and environmental heritage,” Sonowal said.

The Union Minister pointed to the emergence of advanced manufacturing in the region as evidence of its changing economic profile.

Sonowal cited the ₹27,000-crore Tata Semiconductor Assembly and Test Facility at Jagiroad in Assam and the first Made-in-India semiconductor chip manufactured in Assam as milestones in the Northeast’s industrial evolution.

“A region once associated with connectivity deficits is now participating in one of the world’s most advanced manufacturing sectors. This represents the new Northeast that is emerging before us. Under Modi ji’s leadership, the region is evolving from agriculture to chip technology, ensuing an all round, sustainable development for the benefit of the people,” Sarbananda Sonowal said.

As Union Minister for Ports, Shipping and Waterways, Sonowal highlighted the growing role of inland waterways in unlocking the region’s economic potential.

He said the Brahmaputra and Barak river systems are being developed into strategic logistics corridors connecting the Northeast with mainland India and international markets through the Indo-Bangladesh Protocol Route (IBPR).

Sarbananda Sonowal noted that projects worth over ₹750 crore have already been completed on inland waterways infrastructure in Assam, while projects exceeding ₹1,170 crore are currently under implementation.

The Jogighopa Inland Waterways Terminal and Bogibeel Inland Water Transport Terminal, he said, are creating a multimodal logistics ecosystem that will strengthen trade connectivity with Bangladesh, Bhutan and Southeast Asia.

“The Northeast is no longer a landlocked region. It is increasingly becoming a logistics, trade and connectivity corridor linking South Asia with Southeast Asia,” Sonowal said.

The Union Minister also highlighted the export of products such as Tripura’s Queen pineapple and Assam’s Lychees to international markets as examples of how improved infrastructure and connectivity are translating into economic gains for farmers and producers.

“The Northeast is not India’s last frontier. It is India’s gateway to Southeast Asia, the Indo-Pacific and the opportunities of the twenty-first century. The Ashtalakshmi story is no longer an aspiration—it is unfolding before our eyes,” Sonowal said.

The Union Minister said the Northeast’s vast renewable energy resources, growing tourism sector and strategic location provide significant opportunities for future growth.

Sonowal noted that the region possesses renewable energy potential of nearly 129 gigawatts and is increasingly attracting investments in clean energy, logistics, manufacturing and tourism.

The Union Minister Sarbananda Sonowal also chaired the CEO Roundtable where he interacted with leading business leaders from the region.

The roundtable was attended by Pradeep Purohit, COO, Star Cement, Pankaj Kejriwal, Executive Director, Star Cement, LN Mishra from Dalmia Bharat Cement, Sanjay Poddar from Albarian, Sumit Verma from Adani Greens, Bajrang Lohia from Topcem Cement; Debanshu Ghosh from Tata Steel; Jitin Mukheja of Geobrugg India; Namita Das of Dentos; Aman Mittal of Pawan Castings; Deval Tibrewal of Polo Hotels & Resort; Rajan Pant of Resecurity among others.

 

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