Guwahati: Despite sharing over 98 per cent of its borders with international neighbours like Bangladesh, Bhutan, Myanmar, and China, Northeast India remains one of the least tapped regions for cross-border trade, battling with critical issues of inadequate infrastructure, limited export-oriented industries and skill gaps.
With its strategic geographic location under the Act East Policy and rich resources ranging from agri-horti products to indigenous textiles and unique handicrafts, Northeast India is poised to emerge as a vital trade corridor connecting India with Southeast Asia. However, inefficient land customs stations, poor last-mile connectivity, lack of value addition, and fragmented supply chains continue to hinder its growth as an international trading hub.
Addressing these pressing challenges and opportunities, a dedicated panel discussion on “Cross-Border Trade Opportunities” was held during the Northeast Business Conclave 2.0 on March 8, 2025.
During the session, Kaushik Dutta of FIEO pointed out the region's unparalleled geographical advantage. "With ASEAN Free Trade Agreements and India's strategic look to Southeast Asia, Northeast can transform into a critical transit hub, particularly for agri-based products, medicinal herbs, and tourism," said Dutta.
While speaking of key trade infrastructure, Dutta said of 39 land custom stations in the Northeast, only 23 are functional, of which six have been upgraded to Integrated Check Posts (ICPs). He referred to long-pending but crucial connectivity projects, such as the India-Myanmar-Thailand Trilateral Highway and Kaladan Multimodal Transit, calling for quicker implementation to overcome regional bottlenecks.
Bridging the ground-level business, Kohli & Sons' Davinder Singh Kohli pointed to the absence of agri-processing facilities and value-addition units, which barred the region from taking exports to scale. "We cannot just depend on incentives — Northeast has to develop export-ready products. Regional cooperation among the Seven Sisters to pool products for export is the key to reaching global markets, not merely regional trade," said Kohli.
Speaking on International Women's Day, Rajeev Gupta of the Indo-Japan Business Council (IJBC) highlighted Northeast India's human capital as an often-overlooked export asset.
Citing the successful placement of 36 women from the Northeast in Japan, he highlighted the vast potential for international workforce development. "Kerala earns over Rs. 21.6 lakh crore annually from its global diaspora — more than the GDP of many Indian states. Northeast too must recognise and invest in skilling its people to tap into global markets," said Gupta, who further stressed focusing beyond hard infrastructure to soft infrastructure, including structured skill development, international placements, and gender-inclusive policies, especially for women.
Another prominent face from the handloom and handicraft sector- Sriparna Bhuyan Baruah, Advisor to North Eastern Handicrafts & Handlooms Development Corporation Limited (NEHHDC) voiced concerns over the fragmented nature of Northeast’s traditional industries during the session. While products like muga and eri silk are celebrated, she noted the sector is often unprepared for large export orders due to the lack of aggregation, standardisation and export readiness.
"Clusters are being built, but are they connected to real market opportunities? We require grassroots-level entrepreneur empowerment, not merely big factories," said the NEHHDC advisor, mirroring appeals for regional cooperation and capacity-building investments.
Enumerating the Small Industries Development Bank of India's (SIDBI) blueprint, Pradeep Kumar Nath, DGM, SIDBI, proposed a two-pronged strategy: the creation of hard infrastructure (industrial estates, roads, riverways) and soft infrastructure (skill development, tourism cluster assistance).
Key initiatives include:
* Equity Support up to Rs 10 crore under the Ubharte Sitaare Scheme for export-ready industries.
* 100% guaranteed loans for processing units under the Assam Credit Guarantee Scheme, backed by Rs 100 crore corpus from the Assam Government.
* Rs 200 crore Assam Startup Venture Fund, offering equity and quasi-equity support to startups aiming for global markets.
* Tourism cluster intervention program in collaboration with IIE, KPMG, and Assam Tourism, focusing on frontline workforce skilling.
Nath also unveiled customised financing products for hospitality sectors, removing barriers for hotel and restaurant funding without asset-backed security — a much-needed step for service-driven industries.
Addressing the session, Loken Das, CGM, National Bank for Agriculture and Rural Development (NABARD), highlighted Assam’s historic role as a trade hub through its ancient 'Dwars' routes and the region’s under-utilised agri-export potential. "Assam's indigenous produce — like organic fruits, spices, and traditional herbs — has immense global demand," said Das while sharing an instance of a Vietnamese buyer keen on Assam's lemon and apple bear sourced through NABARD-supported FPOs.
He also urged diaspora marketing, pointing out that authentic regional products could cater to the global Assamese and Northeast diaspora. "Items like 'lai Haak' (mustard greens), if properly packaged, could find eager buyers worldwide," added Das.
NABARD is currently focused on building Export Facilitation Centres, like its successful Pune model, and enabling traceability and certification to meet international standards.
Despite the region's potential, data presented during the discussion showed that only about 22 out of 39 land ports are functional, and trade volumes remain low. Critical products like clinker, fish, and limestone face export bottlenecks, especially to neighbouring Bangladesh, highlighting the need for policy reforms and institutional support.
As Northeast India positions itself as India's gateway to Southeast Asia and a critical frontier under India's Act East Policy, the conclave concluded with a unanimous call for integrated efforts among government, industry, and financial institutions, enhancing trade facilitation mechanisms, skilling local entrepreneurs, and improving ease of doing business to accelerate cross-border trade, capacity-building, and infrastructure development and a vibrant gateway for international trade with ASEAN and BIMSTEC nations.
Moderated by Sandeep Khaitan, Director, FINER, the session brought together prominent voices, including Kaushik Dutta (Deputy Director, FIEO), Sriparna Bhuyan Baruah, Advisor, NEHHDC, Davinder Singh Kohli (Partner, Kohli & Sons), Rajeev Gupta (Vice President, Indo-Japan Business Council, Loken Das, CGM, NABARD and, Pradeep Kumar Nath, DGM, SIDBI stressing the urgent need to transform Northeast India from a geo-strategic advantage to a geo-economic powerhouse.
The experts stressed that collaboration, not competition, among Northeast states and investment in human capital and grassroots entrepreneurship could transform the region into an export powerhouse — a message that resonated strongly on the occasion of International Women's Day, with calls for inclusive, women-led economic growth.
FIRST Business Portal addressing the potential of business capability of North East Region.
