NORTHEAST INDIA EMERGING: ECONOMY

NORTHEAST INDIA EMERGING: ECONOMY

NEWS: Northeastern region is the gateway to Southeast Asia, says Jaishankar

WHAT’S IN THE NEWS?

India’s Northeast region, rich in cultural diversity and international borders, is emerging as a strategic hub for connectivity under the Act East Policy, linking India to Southeast Asia. Projects like the Kaladan Corridor and India-Myanmar-Thailand Highway highlight its role in regional trade, security, and diplomacy.

 

Context: Northeast Region Emerging as India’s Gateway to Southeast Asia

  • External Affairs Minister Dr. S. Jaishankar, while virtually addressing ambassadors during the North East Investors Summit 2025, emphasized the growing strategic and economic relevance of the Northeast region.
  • The event was organized by the Ministry of Development of North Eastern Region (DoNER) to attract domestic and foreign investments in the region.

Overview of the North Eastern Region (NER)

  • The NER comprises eight states: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.
  • It accounts for 7.97% of India’s geographical area but only 3.78% of its population.
  • The region is ethnically and culturally diverse, home to over 200 distinct ethnic communities with unique languages, traditions, and socio-cultural practices.
  • The NER shares a 5,484 km international border, longer than its border with the rest of India. It borders:
  • Bangladesh (1,880 km)
  • Myanmar (1,643 km)
  • China (1,346 km)
  • Bhutan (516 km)
  • Nepal (99 km)

How NER Serves as a Gateway to Southeast Asia

  • The region plays a central role in India’s key foreign policy initiatives such as:
  • Neighbourhood First Policy
  • Act East Policy
  • BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation)
  • NER is positioned strategically to act as a transit corridor for regional connectivity with ASEAN and East Asian nations.

Major Connectivity Projects in the Region

  1. Kaladan Multi-Modal Transit Transport Project
    • Connects Kolkata port to Sittwe port in Myanmar by sea, then to Paletwa via Kaladan river, and further to Mizoram by road.
    • Route:
      • Sea: Kolkata → Sittwe
      • River: Sittwe → Paletwa
      • Road: Paletwa → Zorinpui (India-Myanmar border)
    • Aims to reduce dependency on the Siliguri Corridor and provide alternate trade access to the northeast.
  1. India-Myanmar-Thailand Trilateral Highway
    • 1,400-km highway aimed to connect Moreh (Manipur) to Mae Sot (Thailand) via Myanmar.
    • Nearly 70% complete, but progress is stalled due to political instability in Myanmar after the 2021 coup.
  1. Motor Vehicles Agreements (MVA)
    • Essential for the seamless movement of goods and passengers across borders.
    • Two regional MVAs under progress:
      • BBIN MVA (Bangladesh, Bhutan, India, Nepal) – stalled due to Bhutan’s environmental concerns.
      • India-Myanmar-Thailand MVA – delayed due to local business concerns and lack of infrastructure.
  1. India-Japan Act East Forum (2017)
    • Japan provides Official Development Assistance (ODA) for developing connectivity and infrastructure in the NER.
    • Focus on roads, bridges, cultural linkages, disaster management, and skill development.

Significance of the Siliguri Corridor (Chicken’s Neck)

  • A narrow land stretch (20–22 km wide) in West Bengal connecting the mainland to the Northeast.
  • Lies between Nepal and Bangladesh, and is bounded by the Teesta and Mahananda rivers.

Strategic and Geopolitical Importance

  • Vital for military logistics: Ensures access to India’s northeast during peacetime and conflict.
  • Close proximity to China and Bhutan, making it a sensitive military zone.
  • Any disruption or blockade could sever India’s link with the entire northeast, affecting internal security and sovereignty.
  • Crucial for cross-border trade with Bangladesh and access to potential economic markets.

Challenges to Connectivity in NER

  • Difficult terrain: Mountainous landscapes make road and rail construction expensive and time-consuming.
  • Insurgency and internal conflict: Disrupt infrastructure projects; includes abductions and attacks on Indian workers.
  • Political instability in Myanmar: Delays regional cooperation and completion of key cross-border projects.
  • Environmental concerns: Bhutan opted out of BBIN MVA due to ecological impact fears.
  • Local economic resistance: Thailand has hesitated on MVA due to concerns over small business competitiveness.

Strategic and Developmental Significance of Northeast in India’s Foreign Policy

  • The NER is being transformed from a "peripheral region" to a central pillar of India’s connectivity diplomacy.
  • It serves as India’s springboard to ASEAN, promoting trade, tourism, and cultural exchange.
  • NER acts as a counterweight to China’s growing presence in South and Southeast Asia, particularly via the Indo-Pacific.
  • Investments in infrastructure are viewed as essential to counter insurgency, enhance border security, and integrate the region into national economic frameworks.

Way Forward and Recommendations

  • Accelerate road, rail, and digital infrastructure development, especially through cross-border corridors.
  • Promote capacity building in local governance and trade handling in border states.
  • Increase international partnerships, including Quad and Japan-India collaboration in the Indo-Pacific.
  • Ensure security cooperation and diplomatic engagement with Myanmar, Bangladesh, and Thailand to fast-track regional projects.
  • Preserve environmental and cultural diversity through inclusive and ecologically sensitive development models.
  • Enhance the role of NER in India’s foreign policy architecture by integrating it into key diplomatic and trade dialogues.

 

Source: https://www.thehindu.com/news/national/northeastern-region-is-the-gateway-to-southeast-asia-says-jaishankar/article69457353.ece