India's Finance Minister, Nirmala Sitharaman, is preparing to deliver her ninth consecutive Union Budget on Sunday, February 1, 2026, at 11 a.m. in Parliament
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India's Finance Minister, Nirmala Sitharaman, is preparing to deliver her ninth consecutive Union Budget on Sunday, February 1, 2026, at 11 a.m. in Parliament. Citizens and industry organizations in Northeast India anticipate that the Union Budget 2026-27 will emphasise substantial financial assistance and unique policy initiatives aimed at enhancing regional development, with important focus areas including:
Infrastructure and Connectivity: This represents a fundamental expectation, with demands for sustained and increased capital investment in roads, railways, and bridges to enhance access to remote regions and improve market connectivity. Specific initiatives highlighted in pre-budget discussions include the Chewa Bhanjyang Multimodal Corridor aimed at promoting trade under the "Act East Policy" and the prospective introduction of modern train services such as the Vande Bharat Sleeper Express on significant routes like Guwahati–Howrah. States such as Arunachal Pradesh and Mizoram have clearly articulated their need for augmented financial support for infrastructure during pre-budget consultations, underscoring the necessity for strong fiscal backing to sustain development progress. Anticipation surrounds the approval and funding for a Greenfield Airport in Nagaland to enhance both regional and national accessibility. There is also an expectation for the acceleration of the construction of the 250 km Dimapur-Tizit railway line to facilitate trade and logistics.
Power and Energy: Considering the extensive hydro potential of the region, there are anticipations for the reestablishment of initiatives such as the small hydropower programme to boost renewable energy production in mountainous and border regions. Additionally, there is continuous support from the Central budget for particular projects, including the necessary infrastructure for a collaborative hydropower project in Arunachal Pradesh. The growth of the Nagaland Solar Power Mission is anticipated to mitigate energy shortages, with hopes for increased state and central subsidies for rooftop solar installations. Industrial and Economic Development: The area is regarded as ready to promote industrial expansion and bolster energy security. Industry organisations anticipate the implementation of policies that favor MSMEs, possibly through improved access to credit and assistance for local suppliers and businesses associated with major infrastructure initiatives. Certain states, such as Sikkim, also look forward to increased taxation flexibility for their developing pharmaceutical centers.
Industrial and Economic Development: The area is regarded as ready to promote industrial expansion and bolster energy security. Industry organisations anticipate the implementation of policies that favor MSMEs, possibly through improved access to credit and assistance for local suppliers and businesses associated with major infrastructure initiatives. Certain states, such as Sikkim, also look forward to increased taxation flexibility for their developing pharmaceutical hubs.
Tourism and Agriculture: With tourism projected to emerge as a significant driver of job creation on a national scale, the Northeast region looks forward to receiving support and policies aimed at utilizing its natural beauty and cultural heritage to foster economic development. There is an expectation for increased funding for agri-processing, horticulture, and floriculture—industries with substantial potential in the Northeast—to enhance rural productivity. The residents of Nagaland anticipate greater investment in digital and climate-resilient farming practices to enable the sector to contribute more effectively to the state's Gross Value Added (GSVA).
Social Welfare and Healthcare: There is an expectation for initiatives aimed at bridging the gaps in healthcare infrastructure within remote regions, as well as support for educational requirements, possibly through the establishment of new institutions such as a dedicated State University or a Climate Change University in Sikkim. Citizens anticipate actions to enhance rural healthcare services, which includes financial support for telemedicine and diagnostic facilities extending beyond urban centers. It is essential to upgrade state medical institutes to a status comparable to that of AIIMS in order to enhance access to specialised healthcare in Nagaland.
Skill Development: There is a demand for a minimum of 20 AI Centres of Excellence to be established in Tier 2 and Tier 3 cities. This initiative aims to decentralize the adoption of technology and mitigate the outflow of talent to larger metropolitan areas.
Education: Individuals anticipate a reassessment of the site for the long-awaited IISER (Indian Institute of Science Education and Research) in Nagaland to promote institutional development.
The general sentiment advocates for a flexible, state-specific strategy to guarantee that central policies correspond with grassroots realities and cater to the distinct geographical and developmental requirements of the Northeast.
Prof. Mithilesh Kumar Sinha,
Department of Economics,
Nagaland University, Lumami.