Investing Hurdles in Northeast India

In an attempt to foster investment in the Northeast, which is vital for the growth of any economy, the Government of India organised the Rising North East Investors Summit 2025 in May. Led by Prime Minister Shri Narendra Modi, several central leaders and delegations from dozens of countries attended the Summit. The Centre's efforts to convince investors from both the country and abroad to explore investment opportunities in the north-eastern states, after decades of neglect, is encouraging. Union Minister of Communications and Minister for Development of North Eastern Region, Jyotiraditya M. Scindia, claimed that the summit in 2025 drew an unprecedented INR 4.3 lakh crore in investment interest. It was also reported that business stalwarts from the country, such as Mukesh Ambani of Reliance Industries, Gautam Adani of Adani Group, and Anil Agarwal of Vedanta Group, had pledged substantial investment in the region. This is undoubtedly a heartening development after being left high and dry for decades amid a history marked by violence stemming from separatist movements, as well as geographical challenges. It was a much-needed initiative that can act as a catalyst for development and bridge the existing economic gap. However, what remains to be seen is the final outcome—whether the investment interest shown during the Summit will translate into action and bring about change on the ground, or remain on paper like many failed past assurances.

To translate business interest and pledges into action, it is imperative for the central and state governments to create a conducive environment, including ease of doing business for both domestic and foreign investors. Besides a stable government, favourable policies, and a strong legal framework, investors—both domestic and foreign—look for other factors such as infrastructure, availability of a skilled workforce, security, and a start-up ecosystem. Do the north-eastern states measure up to these basic requirements? The answer is a resounding NO. Most states will struggle with infrastructure, even if other parameters are ignored. For instance, Nagaland lacks infrastructure, particularly in air and road connectivity. The Centre is unable to maintain even the crucial National Highway-29, which serves as a lifeline for the people of the state as well as Manipur; it is difficult to expect improvements in roads connecting various districts and villages. The state’s lone airport in Dimapur is still not upgraded to an international airport. Above all, the unresolved Naga political issue has been a thorn in the flesh. If the Centre is serious about bolstering investment in the region, it should address long-standing issues such as poor infrastructure and insurgency.