AsCon Briefs

By Soumya Bhowmick

Abstract

The transformation of India’s Northeastern Region (NER) is no longer a peripheral concern but a strategic imperative woven into national development and regional diplomacy. This paper interrogates the emerging contours of this shift through the lens of the EAST Vision—Empower, Act, Strengthen, Transform—a guiding framework that departs from past narratives of remoteness to reimagine the NER as a fulcrum of India’s growth, innovation, and connectivity. Drawing on recent policy interventions, this analysis captures how infrastructure investments exceeding INR 5 trillion, digital expansion, and high-tech industrial forays—including India’s first semiconductor assembly unit in Assam—are reshaping the region’s economic profile. Rather than treating the NER as a passive recipient of development aid, this study foregrounds its active repositioning: as a testing ground for green industrial policy, a hub for human-capital-led services, and a geopolitical bridge to Southeast Asia. At the same time, shifting geopolitics—especially political flux in Bangladesh and instability in Myanmar—pose new challenges for cross-border access. This paper critically examines how policy, diplomacy, and decentralised capacities must align to translate EAST into a resilient and regionally integrated future for the Northeast.

 

Reclaiming the Periphery: Policy, Investment, and Political Attention in the NER

Prime Minister Narendra Modi’s EAST vision – Empower, Act, Strengthen, Transform – envisions the Northeast as central to India’s growth story. Over the past decade, the region has witnessed tangible progress aligning with this vision. The government shifted from its long-held “Look East” policy to an assertive “Act East” policy, bringing unprecedented focus to infrastructure and connectivity.[i] Notably, over 11,000 kilometres of highways have been built in the Northeast since 2014, vastly improving intra-region road connectivity.[ii] Major projects like the all-weather Sela Tunnel in Arunachal Pradesh (improving access to Tawang) and the Bhupen Hazarika Bridge in Assam (spanning the Brahmaputra) exemplify the new infrastructure push. Road building has been complemented by extensive new railway lines and the doubling of airports in the region,[iii] opening remote areas to the rest of India.

Crucially, connectivity is no longer limited to physical means – the digital divide is also being addressed. Over 13,000 km of optical fibre have been laid and hundreds of new mobile towers installed, expanding 4G/5G coverage across far-flung villages. High-speed internet and improved telecom networks are empowering the Northeastern youth, turning them from passive internet users into digital innovators and entrepreneurs.[iv] This multi-pronged approach – building roads, rails, air links, and digital highways – reflects the “Act” and “Strengthen” elements of the EAST framework by creating the backbone for economic activity. The Prime Minister calls it an “infrastructure revolution in the Northeast”, emphasising that robust roads, power, and logistics are the foundations for growth.[v]

Importantly, this development drive is not just on paper; it is evident on the ground. Union ministers have collectively made over 700 visits to the Northeastern states in the last 11 years, underscoring New Delhi’s hands-on engagement. Such outreach has built trust and ensured local needs are heard, embodying the “Empower” spirit of EAST. The result is visible confidence: the North-East, once considered a remote “frontier region,” is now emerging as a “front-runner of growth” in India. This turnaround is widely acknowledged, from new investors drawn to the region’s opportunities to tourists drawn to its natural beauty and improved accessibility. Better connectivity has directly spurred tourism: visitor numbers have doubled in recent years, leading to a boom in homestays, tour services and local employment.[vi] By focusing on empowerment and transformation, the EAST vision has begun to unlock the Northeast’s vast potential in trade, tourism, and technology.

For decades after Independence, the Northeast’s development was sidelined, attributed to geographical remoteness and a lack of political priority. This historical neglect manifested in poor infrastructure, limited market linkages, and feelings of alienation among local communities. PM Modi has candidly noted that earlier governments were often “vote-focused” in the region, rather than development-focused. Over the last ten years, there has been a conscious effort to reverse this trend through hefty investments, targeted policies, and peace-building initiatives. The Prime Minister reported that INR 5 trillion has been invested in the Northeast in the past decade, a figure unmatched by any prior period.[vii] This includes massive spending on highways, railways, power and social infrastructure, signalling New Delhi’s commitment to bridge the development gap.

Policy frameworks have been overhauled to bring the Northeast into the mainstream. The creation of dedicated programs like the North East Special Infrastructure Development Scheme (NESIDS), increased budget allocations to the Ministry of DoNER, and the extension of flagship schemes (e.g. Smart Cities, UDAN regional flights) to Northeastern states have all helped channel funds to where they were long overdue. Gross Budgetary Support for the region has risen from around 10 percent to much higher in recent years, enabling projects that previously languished.[viii] The results are visible: nearly 5,000 km of national highways were completed in the region in the last 10 years, rail connectivity has “increased manifold,” and the first high-speed Vande Bharat Express train now runs in the Northeast,[ix] symbolic of its integration with India’s growth engine. Crucially, addressing neglect isn’t just about money – it’s also about peace and stability.

The Northeast was once synonymous with insurgencies and blockades; today, the security situation has improved markedly. The government’s zero-tolerance approach to insurgency[x] and a series of historic peace agreements with rebel groups have brought thousands of former militants into the mainstream. In the last decade, over 10,000 youth have laid down their arms to rejoin civil society.[xi] Incidents of violence have dropped significantly, and many districts have been removed from the list of “disturbed areas” where special security laws once applied. For example, the Armed Forces Special Powers Act (AFSPA) has been withdrawn from large parts of Assam, Meghalaya, Nagaland and Tripura as peace has returned. This restoration of normalcy is enabling development to take root. Border disputes between Northeastern states – another legacy of neglect – are also being resolved one by one,[xii] removing long-standing hurdles to cooperation and growth.

Social development has been a parallel priority to infrastructure. In the past 10 years, INR 210,000 million has been invested in education in the Northeast, leading to 800+ new schools, the region’s first AIIMS (medical college and hospital in Guwahati), nine new medical colleges, two new IIITs, an IIMC campus in Mizoram, and nearly 200 skill development centres. This flurry of institution-building aims to empower local youth with quality education and skills (“Empower” in EAST). Likewise, schemes like MUDRA micro-credit have disbursed “thousands of crores” to Northeastern youth for entrepreneurship, and special missions (for example, the Khelo India sports initiative) have led to India’s first Sports University being set up in Manipur and over 250 sports coaching centres across the states. These investments are directly tackling the outcomes of historic neglect – whether it was a lack of schools or a lack of jobs – and are starting to pay off in a more confident, self-reliant Northeast. While challenges remain, the past decade’s measures indicate that the days of policy apathy are essentially over. The Northeast’s concerns are now firmly on the national radar, supported by both budgetary commitment and sustained high-level attention.[xiii]

 

India’s Gateway to ASEAN: The Northeast’s Centrality in Eastward Engagement

India's strategic pivot towards Southeast Asia, encapsulated in the Act East Policy, underscores the Northeast's pivotal role as a bridge to ASEAN nations. This orientation is not merely geographical but also a response to shifting global dynamics. With the West grappling with economic volatility and geopolitical tensions, particularly the ongoing Russia-Ukraine conflict and uncertainties in the US market, India's focus on the East offers a more stable and promising avenue for economic and strategic partnerships. The Northeast, sharing borders with      Southeast Asia     , becomes the linchpin in this eastward engagement, facilitating trade, cultural exchange, and regional integration.[xiv]

Moreover, the region's development strategy emphasises long-term capital formation over short-term gains. Investments are being channelled into enhancing human capital through education and skill development, bolstering physical infrastructure like roads and digital connectivity, and sustainably harnessing natural resources. This holistic approach aims to elevate the Northeast to be on par not only with the rest of India but also with neighbouring Southeast Asian economies, fostering inclusive growth and regional parity. However, the journey is fraught with challenges. One significant concern is the efficiency of capital utilisation. Despite substantial investments, the marginal productivity in the region remains inconsistent, often due to bureaucratic hurdles, inadequate local capacity, and infrastructural bottlenecks.

Connectivity, both internal and external, poses another formidable challenge. Internally, the region's rugged terrain and historical neglect have resulted in inadequate infrastructure. Externally, geopolitical tensions, such as the political instability in Myanmar and border issues with China, disrupt cross-border projects and trade routes. Additionally, internal unrest, exemplified by the recent protests in Manipur, further hampers developmental initiatives and deters potential investors.

Addressing these challenges necessitates a multifaceted approach. Strengthening institutional capacities, fostering community participation, and ensuring political stability are crucial. Furthermore, diplomatic engagements with neighbouring countries to resolve border disputes and enhance cooperation can pave the way for the smoother implementation of cross-border projects. By navigating these complexities with strategic foresight and inclusive policies, the Northeast can truly transform into a gateway to Southeast Asia, fulfilling its potential as envisioned in India's Act East Policy.[xv]

 

Inclusive by Design: Leveraging Social Indicators for Sustainable Growth

Ironically, even during the years of economic neglect, the Northeast has often outperformed mainland India on key human development indicators. Many of its states rank high in literacy, health outcomes, and gender equality – the only primary lagging indicator is per capita income. This presents a unique opportunity: the region’s strong social foundation can be a springboard for a distinct development trajectory. For instance, Nagaland now rivals or outranks India’s wealthiest states on numerous socio-economic metrics despite its lower income levels, ranking among the top five performers in 14 out of 20 indicators (across health, education, and gender) when compared to high-income states like Kerala.[xvi]  Similarly, states like Mizoram and Tripura boast literacy rates above 85-90 percent, far higher than the national average, and Meghalaya and Sikkim have achieved near-universal enrolment in primary education. High literacy and awareness translate to better health and social outcomes – for example, Nagaland’s infant mortality rate (29 per 1,000) is well below the all-India average and nearly on par with far richer states, and it has one of the lowest anaemia rates among women (24 percent) in the country. Moreover, Northeastern women enjoy relatively greater empowerment – in Nagaland, 97 percent of women report participating in household decisions, and early marriage and domestic violence rates are among the lowest in India[xvii]. This social capital can be leveraged to shape an inclusive and progressive growth model.

Given these strengths, the Northeast can carve a development path that differs from the conventional one pursued elsewhere. Rather than heavy industry alone, the region can focus on knowledge industries, services, and sustainable agriculture/tourism, building on its educated workforce and rich natural endowments. For instance, with English widely spoken and a high proportion of youth, states like Mizoram, Nagaland, and Meghalaya could become hubs for the IT and BPO sector or creative industries (such as media, design, and music production) – fields where human talent matters more than physical proximity to markets. A budding startup ecosystem is already visible: young entrepreneurs in the Northeast are launching tech startups and e-commerce ventures that cater to local needs and global audiences.[xviii] Government initiatives, such as digital incubators and the extension of Startup India programs to the region, support this trend.

Another avenue is to harness the Northeast’s ecological and cultural assets sustainably. The region is a biodiversity hotspot and has traditionally excelled in organic farming. By scaling this up, the Northeast can brand itself as India’s organic food bowl, exporting high-quality tea, spices, fruits and herbs. Notably, the area of organic farming in the Northeast has doubled in the past decade. Products like Mizo ginger, Assamese tea, Meghalaya’s turmeric and Naga chilli peppers are already gaining international repute for their quality. With the central government facilitating new mega food parks, cold chains and testing labs in the region, farmers can get better value and access global markets.[xix] This focus on organic, sustainable agriculture not only leverages the region’s clean image but also aligns with global demand for healthy foods – a niche where the Northeast can lead.

Likewise, eco-tourism and wellness tourism present a unique growth path. The Northeast’s lush landscapes, from the living root bridges of Meghalaya to the Ziro Valley of Arunachal, are ideal for eco-conscious travellers. With improving roads and airports, the states are marketing themselves as holistic wellness retreats – capitalising on their clean air, traditional herbal knowledge, and serene environs. The Prime Minister has even called the Northeast a perfect destination for the “Heal in India” initiative, given its potential for yoga, meditation, and traditional healing tourism.[xx]  By promoting homestays and community-based tourism, the region can ensure tourism growth is inclusive and preserves local culture. The high social indicators (education, gender equality) mean local communities can actively shape and benefit from such industries, avoiding pitfalls seen elsewhere. In summary, the Northeast’s advantage in human development can be the bedrock of a new model of growth – one that emphasises quality of life, sustainability, and innovation, ultimately boosting incomes without sacrificing the region’s social and environmental strengths.

 

Chips and Currents: Seeding a New Industrial Future in the Northeast

At the recent Rising North East Summit,[xxi] PM Modi outlined ambitious plans to make the region a key destination for semiconductors and clean energy. These goals represent a bold reimagining of the Northeast’s economic profile – from agrarian and tourism-heavy to high-tech and green industrial. Sceptics might question the realism of such targets, but discernible steps are being taken to turn these into reality, even as challenges remain.

One headline announcement was that India’s first “Made in India” semiconductor chip will soon roll out from a Northeast-based plant. In August 2024, the Tata Group commenced construction of an INR 270,000 million semiconductor unit in Jagiroad, Assam. [xxii] This facility, focusing on semiconductor assembly and testing, has opened the doors of opportunity for the high-tech sector in the region. While not a full-fledged silicon fabrication fab (which requires massive investment and ecosystem), this plant is a significant milestone – it signals that big industrial houses see promise in the Northeast for advanced manufacturing.

The region offers some advantages for electronics manufacturing: Assam has relative political stability, abundant land, and an improving power supply, and the government is likely to provide hefty incentives. If the first chips from Assam indeed debut soon, it will be a proof of concept that can attract further semiconductor and electronics investments. However, scaling this into a semiconductor “ecosystem” will require sustained efforts. Critical inputs – skilled talent, supply chains for raw wafers/chemicals, proximity to markets – will need to be developed. Here, the Northeast’s educated youth could be trained in semiconductor tech. Still, initially, expertise may need to be imported or developed via partnerships with institutes (e.g. IIT Guwahati could anchor research). In short, the semiconductor goal is realistic as a niche endeavour (such as chip testing, packaging, or design centres) riding on national policy support. Still, it will take time before the Northeast becomes a semiconductor hub rivalling, say, South India. The optimism stems from the fact that even a single large project (like Tata’s) can have spillover effects – attracting suppliers, creating ancillary jobs, and inspiring STEM education locally. The push is strategic: as the PM noted, strengthening India’s semiconductor self-reliance now will reduce dependence on imports in future.[xxiii]

On the clean energy front, the Northeast’s potential is undeniably huge. The region is endowed with gigantic hydropower reserves – rivers like the Brahmaputra and Barak and their tributaries in the eastern Himalayas could generate tens of thousands of megawatts. Successive governments have eyed Arunachal Pradesh’s hydropower potential as a game-changer. Under the EAST vision, this has been reinvigorated: projects worth “several thousand crores” in hydropower and solar have been approved across all Northeastern states. Construction is ongoing on major dams (for example, the 2,000 MW Lower Subansiri project on the Assam-Arunachal border is nearing completion after long delays). If ecological and safety concerns are managed, hydropower can not only make the Northeast power-surplus but also supply clean electricity to the rest of India.

Solar power is also being pursued, with new solar parks in Assam, Tripura and floating solar plants in reservoirs. While the region’s terrain and climate (hilly and high rainfall) are not ideal for large solar farms compared to western India, smaller-scale solar and hybrid projects can still contribute. The Prime Minister has highlighted opportunities in manufacturing solar modules, batteries and other clean-tech equipment in the Northeast.[xxiv] This aligns with the idea of leveraging local resources (e.g. available land from dismantled insurgent camps or unused government tracts) for green industry. One promising area is biofuels and bio-energy: given the region’s agricultural base, setting up bio-ethanol plants (as being done in Assam using bamboo, a local crop) can create green jobs.

Are these clean energy ambitions realistic? To an extent, yes, but with caveats. Hydropower projects face social and environmental hurdles – concerns of displacement, ecological impact in sensitive Himalayan zones, and even geopolitical issues (downstream effects in Bangladesh, or China’s claims on upstream territories). These need consensus and careful handling. Solar and wind potential in the Northeast is moderate, so they won’t be the primary focus, but can supplement. The government’s strategy of focusing on storage solutions and research could be apt – for example, manufacturing lithium-ion batteries or emerging technologies in a clean, green environment. The Northeast could carve a niche by becoming a production hub for green energy components. Overall, the PM’s goals in semiconductors and clean energy are ambitious but forward-looking – they aim to future-proof the region’s economy. Achieving them will require policy consistency, investment in skill development, and mitigating on-ground challenges. Still, the initial momentum (a big-ticket chip plant, major hydel projects restarted, etc.) provides a hopeful start.

 

Multimodal Milestones: Building Seamless Connectivity in the Frontier Region

Concrete data and recent project announcements back the transformation of the Northeast’s infrastructure landscape. In addition to the earlier-mentioned roads and digital networks, the region has benefited from multi-modal connectivity projects that tie together road, rail, river, and air transport. For example, a 1,600-km Northeast Gas Grid pipeline now connects all eight states, supplying industries and households with reliable piped natural gas,[xxv] a first for the region, which for long depended on expensive, transported fuels. Railway connectivity has made remarkable strides: not long ago, many state capitals were off the rail map, but today Guwahati (Assam), Agartala (Tripura), Dimapur (Nagaland) and Naharlagun (Itanagar, Arunachal) are all connected by broad-gauge rail.[xxvi] By 2026, Imphal (Manipur) is set to become the fourth state capital with a railway link, once the ambitious 110-km Jiribam–Imphal line (featuring the world’s tallest railway bridge pillar at 141m) is completed.      Similar projects are in advanced stages to extend railways to Aizawl (Mizoram) and Kohima (Nagaland) in the coming years. The upshot is faster, cheaper movement of goods and people – the trip from Manipur’s foothills to Imphal that took 10 hours by road will shrink to 2.5 hours by train,[xxvii] illustrating the drastic improvement in accessibility.

A flurry of airport upgrades and new airports has further boosted connectivity. The number of operational airports in the Northeast doubled from 2014 to 2023 – new facilities like Pakyong Airport in Sikkim and Tezu Airport in Arunachal now connect these hilly states by air. Existing airports such as Guwahati and Agartala have been expanded with new terminals, while heliports and airstrips are being built for last-mile access to remote areas. Guwahati, Imphal, and Agartala are being developed as major Multi-Modal Logistics Hubs, integrating road, rail, and air freight so that the Northeast can send and receive goods efficiently. Complementing this, Land Customs Stations on borders – at Meghalaya’s Dawki (border with Bangladesh) and Mizoram’s Zorinpui (border with Myanmar) – have been upgraded.[xxviii] This facilitates international trade, allowing Northeastern producers to export and import through closer points. The central government is also pushing inland waterways: the Brahmaputra (National Waterway-2) now has regular freight service, and dredging is making the Barak River in Assam navigable. In 2022, the longest river cruise from Varanasi to Dibrugarh via Bangladesh was launched, underscoring the integration of river transport in the region’s network.

Recent announcements underscore that the infrastructure build-out is continuing apace. In May 2025, the government approved a new 166.8 km four-lane highway from Shillong (Meghalaya) to Silchar (Assam).[xxix] This highway will eventually extend to southern Mizoram (Zorinpui) to plug into the Kaladan corridor (discussed later), creating a high-speed road artery through the spine of the Northeast. The opening of the strategic Sela Tunnel in Arunachal, mentioned earlier, ensures year-round connectivity to Tawang near the China border. Additionally, the Dhubri–Phulbari bridge over the Brahmaputra in Assam/Meghalaya (India’s longest road bridge, under construction) will, when completed, connect the North Bank and South Bank, slashing travel times and improving access to border areas. All these projects are part of what PM Modi calls,[xxx] turning the Northeast from “Frontier to Gateway” – making it a gateway to Southeast Asia. Indeed, he highlighted that India’s trade with ASEAN, currently USD 125 billion, is poised to exceed USD 200 billion in the coming years, with the Northeast positioned as the bridge to those markets. Improved connectivity at home is thus coupled with cross-border infrastructure to fulfil that vision.

To support these hard assets, significant soft infrastructure initiatives have also been implemented. The region’s first National Institute of Technology (NIT) was set up in Nagaland, an AIIMS in Assam, and multiple Central Universities and professional colleges across states – ensuring local talent can be nurtured for the new opportunities. Skill development programs specifically tailored to Northeastern youth (in areas like hospitality, IT, logistics) are creating a workforce ready to utilise the roads, rails and digital links now coming online. While there is still much to build – some remote districts need better rural roads, and power supply reliability needs enhancement – the trajectory of the last decade is unmistakably upward.

 

Geopolitics and Gateways: Resilience through Precarious Connectivity

One of the most persistent strategic challenges for the Northeast is its landlocked geography. Connected to the rest of India by only the slender 20-km Siliguri Corridor (the “Chicken’s Neck”), the region has long faced logistical bottlenecks. The natural, shorter routes to the sea lie through Bangladesh – a reality recognised since Partition. In recent years, India has pursued connectivity agreements with Bangladesh to mitigate the Northeast’s isolation. There have been successes: under a 2018 treaty, India gained access to use Chattogram (Chittagong) and Mongla ports in Bangladesh for transit of goods to Northeastern states.[xxxi] In July 2020, for the first time in 55 years, a container cargo from Kolkata sailed to Chittagong port and then travelled by road into Tripura, opening a new supply line for the state.[xxxii] Such developments have been mutually beneficial – easing shortages in landlocked Tripura and earning fees for Bangladesh. Multiple new bus, rail, and inland waterway routes between India and Bangladesh have been established, underscoring Dhaka’s importance in unlocking the Northeast. For example, a new railway line from Agartala (Tripura) to Akhaura in Bangladesh is nearing completion, which will allow faster rail access from the rest of India via Dhaka. Inland waterway protocol routes now permit Indian vessels to transport cargo via Bangladesh’s rivers to Assam and Tripura, as highlighted by the Tripura CM’s remark that seven new connectivity lifelines were created through Bangladesh in just a couple of years.[xxxiii]

However, relying on Bangladesh as a transit corridor brings its strategic dependence. Relations between New Delhi and Dhaka have generally been cordial, especially under Prime Minister Sheikh Hasina (who was keen on aiding the Northeast’s development). But geopolitical winds can shift. In a recent twist, Bangladesh’s domestic politics affected transit cooperation: after the ousting of the Hasina government in August 2024, ties have reportedly cooled. A new Bangladeshi leadership even pointedly referred to Northeast India as “landlocked” and Bangladesh as the “only guardian of the ocean” – implying leverage over India’s access.[xxxiv] This has raised concern in New Delhi about over-dependence on Bangladesh’s goodwill. Indeed, almost immediately, India accelerated efforts to bypass Bangladesh by expediting other alternative connectivity projects that India has been undertaking through Myanmar. The sanctioned Shillong–Silchar–Zorinpui highway linking into Myanmar’s Kaladan corridor is a direct result of this recalibration. As one Indian highways official noted, the aim is to ensure cargo can move from Kolkata/Vishakhapatnam to the Northeast “without being dependent on Bangladesh”.[xxxv]

So, can India effectively bypass Bangladesh? In theory, yes, but in practice, it isn’t very easy. The Myanmar route (via the Kaladan project and the India–Myanmar–Thailand trilateral highway) is the linchpin of the Bangladesh-bypass strategy (discussed in detail in the next section). If completed, it provides the Northeast an outlet to the Bay of Bengal at Myanmar’s Sittwe port and a road link onward to Southeast Asia – all without touching Bangladeshi territory. This would diversify India’s connectivity options and reduce vulnerability to any single neighbour’s stance. Strategically, it gives India more room to manoeuvre. However, the Myanmar route is more prolonged and currently far more fraught than the Bangladesh routes. Myanmar’s internal conflict and instability (post-2021 coup) have severely delayed these projects. By contrast, Bangladesh – despite occasional political differences – remains a comparatively stable and economically viable partner for transit.

In the short to midterm, India is likely to pursue a dual strategy: continue engaging Bangladesh for connectivity (since it’s the most direct and cost-effective route) while simultaneously investing in the Myanmar corridor as a future-proof alternative. The “Neighbourhood First” policy means India will keep diplomatic channels open with whichever government is in Dhaka, to preserve transit rights. At the same time, India’s Act East policy means we cannot “put all eggs in one basket.” Enhancing air connectivity (direct flights from Guwahati to Bangkok or Hanoi, for example) is another way to bypass ground transit constraints, and this is being looked at. Ultimately, completely bypassing Bangladesh may not be economically prudent if relations remain friendly – using the synergy of both Bangladesh and Myanmar routes might yield the best outcome. But given recent uncertainties, India’s push to operationalise the Myanmar bypass reflects an understanding that the Northeast’s integration cannot be held hostage to geopolitics. The hope is that, with multiple corridors, the region will have resilience – if one route closes, another can keep supplies and growth flowing.

The Kaladan Multi-Modal Transit Transport Project (KMMTTP) and the India–Myanmar–Thailand (IMT) Trilateral Highway are cornerstone projects to connect the Northeast to Myanmar (and onwards to Southeast Asia), thereby reducing dependency on the Bangladesh route. Both projects, however, have been beleaguered by delays – recently exacerbated by Myanmar’s political turmoil. Viability is a pressing question, as ground realities pose serious challenges to these grand designs.

Kaladan is a multi-modal corridor involving sea, river, and road. It envisions ships from India’s eastern ports (Kolkata or Vizag) reaching Myanmar’s Sittwe Port on the Bay of Bengal, then moving upstream via the Kaladan River to Paletwa, and finally by road from Paletwa to Zorinpui on the Mizoram-Myanmar border – from where India has built a highway into Mizoram. On paper, this provides the Northeast a straight shot to the ocean. In practice, the final leg – a 110 km highway through Myanmar’s Rakhine and Chin states – has become the Achilles’ heel. This stretch remains incomplete and passes through conflict-ridden areas. Since the military coup in Myanmar in 2021, the country has descended into civil conflict. A BBC study in late 2024 estimated that the Myanmar junta controls only 21 percent of the country’s territory, with the rest under various ethnic militias or resistance groups.[xxxvi] The Kaladan road’s path lies in areas controlled by the Arakan Army (AA) – an insurgent group fighting the Myanmar state, mainly active in Rakhine State. Fighting in this region has been intense, leading Indian officials to privately admit the project may have hit a “dead-end” under current conditions. Work on the road has missed multiple deadlines over 13 years.[xxxvii]

In early 2023, India inked a fresh contract with a state-run firm (IRCON) to complete the road, allowing deadline extensions for force majeure like war. But despite hiring local contractors, progress is negligible. The Arakan Army, interestingly, has signalled support – its spokesperson told The Diplomat that they have provided security for the project since 2021 and that “there is no security threat for the project” from their side.[xxxviii] However, from Myanmar’s perspective, the AA is deemed a terrorist outfit, so India finds itself in a delicate spot: to get Kaladan done, India might have to tacitly coordinate with an insurgent group, potentially upsetting the Myanmar government. This tightrope, plus the reality of an active warzone, makes the Kaladan project’s near-term viability doubtful. Some analysts even question if it has effectively hit a dead end.[xxxix]

The IMT Trilateral Highway, on the other hand, is a road link running from India’s Manipur through Myanmar to Thailand (connecting Moreh at the Indian border to Mae Sot at the Thailand border via Mandalay and Yangon in Myanmar). This 1,400-km highway was envisioned to foster trade and people-to-people ties between India and ASEAN. Here, too, Myanmar’s instability has thrown a wrench. As of mid-2023, about 70 percent is of the highway’s construction was complete.[xl] But after the coup, work on critical sections in Myanmar has stalled. In February 2025, India’s External Affairs Minister S. Jaishankar acknowledged that “the situation in Myanmar has paused the IMT Highway project”. No new completion timeline can be given at present.[xli] The highway pass through areas in Myanmar’s Sagaing region and Kayin states, which are currently engulfed in conflict between the junta and local resistance. Construction crews cannot operate safely, and international contractors have pulled out. Despite this, Jaishankar struck an optimistic tone that India “cannot allow Myanmar’s unrest to block something so momentous” and that “practical solutions will have to be found” to advance the project. What might those solutions be? Potentially, collaborating with Myanmar’s neighbours like Thailand and Japan (which has helped fund portions of the road) to mediate ground-level ceasefires for construction, or even negotiating with local ethnic authorities informally for safe passage. In the interim, India has completed its stretches up to the Myanmar border – for example, improving the highway from Imphal to Moreh – so that once Myanmar stabilises, the project can pick up speed.

In assessing viability, one must consider the shifting geopolitical sands. Myanmar’s turmoil is not permanent; a future political settlement could allow these projects to restart. India is keeping the faith – e.g., by building infrastructure on the Indian side right up to the border and by storing material to resume work in Myanmar when possible. Alternate alignments are also a possibility: India could explore an alternate route through Mizoram and Chin state and on to Mandalay for the IMT highway project, if an agreement with local authorities emerges. Additionally, India has been building goodwill with communities in Myanmar’s border areas (such as by sheltering refugees from Chin state in Mizoram during the conflict),[xlii] possibly to ensure cooperation on projects like these in the long run. The political will in New Delhi remains strong – these corridors are seen as crucial for Act East.

In conclusion, the Kaladan and IMT highway projects are facing serious headwinds due to Myanmar’s instability, making their short-term completion unlikely. The Kaladan project in particular is in limbo until fighting in Rakhine subsides or India finds a workaround to finish the last 50 km.[xliii] The trilateral highway is somewhat more hopeful, given 70 percent is done and it has broader international backing, but it too awaits peace in Myanmar for the final push. Until then, India will likely maintain the assets already built and prevent degradation, ready to capitalise when the window opens. It may also intensify diplomatic efforts – both with Myanmar’s junta and with ethnic groups – to carve out bubbles of stability for these projects. As things stand, the realism of these connectivity dreams is challenged by geopolitical reality. Yet, their strategic rationale is so strong that India is unwilling to abandon them. The Northeast’s long-term development and India’s vision of an ASEAN land bridge depend on these links, so they remain “alive” projects, albeit in slow motion. In the meantime, improving internal infrastructure and leveraging Bangladesh transit (where possible) will ensure the Northeast continues to progress, until the day these grand corridors can finally transform the region’s economic geography – fulfilling the promise of Empower, Act, Strengthen, Transform (EAST) in its most literal sense.

 

 

Soumya Bhowmick is a Fellow and Lead, World Economies and Sustainability at the Centre for New Economic Diplomacy (CNED) at Observer Research Foundation (ORF).

 

 

Disclaimer: The views expressed above and the information available including graphics and images are those of the author/s and can therefore in no way be taken to reflect the position of Asian Confluence.

Citations

 

[i] “Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025,” Press Information Bureau (Government of India, May 23, 2025), https://www.pib.gov.in/PressReleasePage.aspx?PRID=2130702.

[ii] Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[iii] Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[iv] Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[v] Hitesh Vyas, “First ‘Made in India’ Chip to Soon Come from Semiconductor Plant in Northeast: PM Modi,” The Indian Express (Indian Express Limited, May 23, 2025), https://indianexpress.com/article/business/first-made-in-india-chip-semiconductor-plant-northeast-pm-modi-10024312/.

[vi] Vyas, “First ‘Made in India’ Chip.”

[vii] Manash Pratim Gohain. 2024. “Northeast Ignored for Years, Our Government Reversed Trend: PM Modi.” The Times of India. Times Of India. December 6, 2024. https://timesofindia.indiatimes.com/india/northeast-ignored-for-years-our-government-reversed-trend-pm-modi/articleshow/116056877.cms.

[viii] Kumar, Dhirendra. 2025. “PM Modi Pitches Northeast as India’s New Growth Engine at Investor Summit.” Mint. HT Media. May 23, 2025. https://www.livemint.com/news/india/pm-modi-pitches-northeast-as-india-s-new-growth-engine-at-investor-summit-11747983938705.html.

[ix] Gohain, "Northeast Ignored for Years."

[x] Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[xi] Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[xii] Gohain, "Northeast Ignored for Years."

[xiii] Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[xiv] “Act East Policy| India’s Act East Policy UPSC CSE,” Chahalacademy.com (Chahal Academy), accessed September 13, 2025, https://chahalacademy.com/public/act-east-policy?utm_source=chatgpt.com.

[xv] Mishra, Anubha. “India’s Act East Policy: Strengthening Ties with Southeast Asia and Boosting Northeast Development.” Organiser. Bharat Prakashan (Delhi) Limited, September 6, 2024. https://organiser.org/2024/09/06/255110/bharat/indias-act-east-policy-strengthening-ties-with-southeast-asia-and-boosting-northeast-development/?utm_source=chatgpt.com.

[xvi] Alison Saldanha, “Despite Fragile Peace, Nagaland Outranks Rich States in Health, Gender Parity,” IndiaSpend (Indiaspend, February 27, 2018), https://www.indiaspend.com/despite-fragile-peace-nagaland-outranks-rich-states-in-health-gender-parity-59271.

[xvii] Saldanha, “Despite Fragile Peace.”

[xviii] Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[xix] Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[xx]  Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[xxi] Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[xxii] Vyas, “First ‘Made in India’ Chip.”

[xxiii] Vyas, “First ‘Made in India’ Chip.”

[xxiv] Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[xxv] Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[xxvi] “Imphal to Become 4th Capital City in NE Get Rail Link by Dec 2023,” Daijiworld.com, 2022, https://www.daijiworld.com/news/newsDisplay?newsID=1032681.

[xxvii] “Imphal to Become 4th Capital City.”

[xxviii] Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[xxix] Arjun Sengupta, “Why Northeast-Kolkata Link via Myanmar — Not Bangladesh — Is Significant,” The Indian Express (Indian Express Limited, May 19, 2025), https://indianexpress.com/article/explained/why-northeast-kolkata-link-via-myanmar-not-bangladesh-is-significant-10012402/.

[xxx] Press Information Bureau, "Prime Minister Shri Narendra Modi Inaugurates Rising North East Investors Summit 2025."

[xxxi] Ankit Saxena, “India Receives Permanent Access to Major Ports in Bangladesh, to Strengthen Connectivity and Cargo Transit for Northeastern States,” Swarajyamag (Kovai Media Private Limited, April 27, 2023), https://swarajyamag.com/infrastructure/strengthening-marine-connectivity-permits-cleared-for-cargo-transit-between-bangladesh-ports-and-indias-northeastern-states.

[xxxii] Debraj Deb, “Tripura Receives First-Ever Container Cargo from Kolkata via Bangladesh Port,” The Indian Express (Indian Express Limited, July 23, 2020), https://indianexpress.com/article/north-east-india/tripura/tripura-55-years-after-demanding-access-to-bangladeshs-chittagong-port-state-receives-first-cargo-6520484/.

[xxxiii] Deb, “Tripura Receives First-Ever Container Cargo.”

[xxxiv] Sengupta, “Why Northeast-Kolkata Link.”

[xxxv] Sengupta, “Why Northeast-Kolkata Link.”

[xxxvi] Sengupta, “Why Northeast-Kolkata Link.”

[xxxvii] Rajeev Bhattacharyya, “Has the Indian Flagship Kaladan Project in Myanmar Hit a Dead End?,” Thediplomat.com (The Diplomat, February 27, 2024), https://thediplomat.com/2024/02/has-the-indian-flagship-kaladan-project-in-myanmar-hit-a-dead-end/.

[xxxviii] Sengupta, “Why Northeast-Kolkata Link.”

[xxxix] Bhattacharyya, “Has the Indian Flagship Kaladan Project.”

[xl] “Work Paused on Asian Highway due to Myanmar Situation’: S Jaishankar,” NDTV ( NDTV Convergence Limited, February 25, 2025), https://www.ndtv.com/world-news/work-paused-on-game-changer-india-myanmar-thailand-highway-due-to-myanmar-situation-says-s-jaishankar-7794510.

[xli] “Work Paused on Asian Highway.”

[xlii] Bhattacharyya, “Has the Indian Flagship Kaladan Project.”

[xliii] Sengupta, “Why Northeast-Kolkata Link.”

 

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