India’s Northeast as a Gateway to Southeast Asia: Realising the Trade and Connectivity Potential of the Eastern Frontier

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In February 2025, the Rising Northeast Investors Summit held in Guwahati reaffirmed India’s vision to position the region as a commercial and logistical gateway to Southeast Asia. No longer viewed as India’s geopolitical periphery, the Northeast is becoming central to India's Act East Policy and Indo-Pacific outreach. Investments in infrastructure, digital connectivity, and regional diplomacy are reshaping the region’s role-from frontier to fulcrum.

 
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Table of Contents:

 

  1. Introduction

  2. Strategic Significance of India’s Northeast

  3. Government Initiatives Transforming the Region

  4. Connectivity Projects Driving Trade Integration

  5. Challenges Hindering Northeast’s Commercial Ascent

  6. Way Forward: Towards a Seamless Growth Corridor

  7. Conclusion

 


 
1. Introduction:

 

Once overlooked, India’s Northeast is now being reimagined as the country’s eastern economic corridor-an interface between the subcontinent and Southeast Asia. Surrounded by international borders and blessed with natural and cultural wealth, the region’s transformation is crucial for India’s aspirations in the Indo-Pacific. The Act East Policy envisions this region not just as a landmass to be developed but as a launchpad for international trade, cross-border collaboration, and cultural soft power.


 
2. Strategic Significance of India’s Northeast:

 

  • Geopolitical Advantage:
    Sharing 5,300+ km of international borders with Bhutan, Bangladesh, China, and Myanmar, the Northeast serves as India’s only land-linked gateway to ASEAN.

  • Act East Policy Anchor:
    Since 2014, the policy has moved beyond “Look East” to “Act East,” positioning the Northeast as a connectivity and commerce hub within the broader Indo-Pacific framework.

  • Resource and Culture-Rich Region:
    PM Modi's “Ashta Lakshmis” vision acknowledges the Northeast as a powerhouse of biodiversity, cultural heritage, and green energy.


 
3. Government Initiatives Transforming the Region:

 

  • NESIDS (North East Special Infrastructure Development Scheme):
    Supports non-urban sectors like healthcare, water, education, and road connectivity in underserved areas.

  • PM-DevINE:
    Fast-tracks impactful projects like the Aizawl bypass, bamboo technology parks, and flood control systems in Tripura.

  • Vision 2035 (NITI Aayog):
    Emphasises sustainability, digital access, climate resilience, and inclusive local growth.

  • Startup & Digital Northeast Missions:
    Fuel rural innovation, digital employment, and BPO units in states like Mizoram, Nagaland, and Meghalaya.

  • Border Area Development Programme (BADP):
    Strengthens border villages through healthcare, roads, skill-building, and connectivity.

 
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4. Connectivity Projects Driving Trade Integration:

 

  • India–Myanmar–Thailand Trilateral Highway:
    1,360 km corridor linking Moreh (Manipur) to Mae Sot (Thailand) via Myanmar. India has completed work on 69 bridges and 73 km in Myanmar.

  • Kaladan Multimodal Transit Transport Project (KMTTP):
    Integrates sea (Kolkata to Sittwe), river (Kaladan River), and road (Paletwa to Mizoram)-creating an alternative to the Siliguri corridor.

  • Border Haats and Land Ports with Bangladesh:
    9+ haats and modern ICPs like Dawki, Sutarkandi, Agartala are boosting cross-border trade. Sabroom port will connect India to Chittagong Port.

  • Trans-Asian Railway & East-West Economic Corridor:
    Connects Northeast India via Myanmar to Vietnam, Laos, and other ASEAN economies under UNESCAP’s vision.

  • Bharatmala + Sagarmala Synergy:
    Highways like Silchar-Guwahati and Dhubri-Phulbari expressways connect inland Northeast to coastal trade corridors.


 

5. Challenges Hindering Northeast’s Commercial Ascent:

 

  • Difficult Terrain:
    Hilly, seismically sensitive, and flood-prone-engineering and maintenance costs are high.

  • Security and Ethnic Tensions:
    Though insurgency has declined, localised violence and tensions (especially in Manipur and Nagaland) persist.

  • Institutional Silos:
    Lack of coordination between MEA, DoNER, MoRTH, State Govts, and security agencies delays projects.

  • Limited Industrial Base:
    Most states export raw materials, lacking processing capacity or manufacturing strength.

  • Regional Diplomacy Gaps:
    Perceptions like “landlocked” from Bangladesh underscore the need for confidence-building measures.


 

6. Way Forward: Towards a Seamless Growth Corridor:

 

  • Complete Priority Corridors:
    Fast-track unfinished stretches of Trilateral Highway and Kaladan using bilateral and multilateral platforms.

  • Border SEZs and Export Hubs:
    Set up value-addition clusters for bamboo, organic food, tea, handlooms near Moreh, Champhai, and Dawki.

  • Skill Northeast for ASEAN Jobs:
    Train youth in language skills, logistics, e-commerce, and border trade compliance.

  • Establish Northeast Trade & Connectivity Council:
    Integrate policies across ministries and states under one empowered coordination body.

  • Boost Public Diplomacy:
    Promote Northeast’s textiles, cuisine, tourism and cultural exchanges with ASEAN to deepen ties.


 

7. Conclusion:

 

Northeast India is no longer India’s strategic periphery-it’s the bridge to the future. With infrastructure, investment, and innovation converging, this region stands at the threshold of a historic economic transformation.
“The Northeast is not the frontier, but the frontrunner of India’s growth.”
India must now walk the talk-with vision, speed, and sensitivity.