Guwahati: At the epicentre of the 'Act East' policy, the Northeast is emerging as a key area for development in the nation. Business North East spoke to the Director of the Federation of Industries and Commerce of North East Region (FINER) Ranjana Bhajanka to learn about the industrial scenario of the Northeast and its prospects for the future.
Business NorthEast: What are the centre's expectations from the Northeast?
Ranjana Bhajanka: The Northeast region should focus on several key areas for development, including infrastructure, industrial growth, socio-economic development, peace and security, environmental conservation, and cultural preservation. Improved infrastructure, such as roads, railways, airports, and connectivity networks, can facilitate economic growth, tourism, and trade within the region and neighboring countries. Policies and incentives are being sought to attract investment and promote industrial growth, such as tourism, agriculture, handloom, handicrafts, and food processing. The central government is prioritizing initiatives for education, healthcare, skill development, and poverty alleviation, with special attention given to marginalized communities. Peace and security are also crucial, with efforts to address security concerns, insurgency, and ethnic conflicts while promoting dialogue and reconciliation. Environmental conservation is also a priority, with policies balancing economic development with sustainable resource management and disaster preparedness. Cultural preservation is also a priority, with support for cultural institutions, festivals, traditional art forms, and indigenous languages.
BNE: What are the new directions and trends in businesses and start-ups in the Northeast?
Bhajanka: The Northeast's businesses are experiencing new trends due to its abundant agricultural resources, renewable energy generation, and IT and start-up ecosystem. The region is experiencing significant growth in the IT sector, driven by government initiatives, investment incentives, and skilled talent. The demand for quality healthcare services and wellness products is rising due to increased health awareness and lifestyle changes. The traditional handloom and handicraft sector is experiencing a revival, with increased demand for authentic, handmade products. The Northeast's natural beauty, diverse cultures, and unique heritage attract tourists seeking authentic and offbeat experiences.
BNE: How are the MSMEs performing in the region?
Bhajanka: Micro, Small, and Medium Enterprises (MSMEs) are vital to the economic landscape of the Northeast region of India. They contribute to employment generation through various sectors such as handloom, handicrafts, food processing, tourism, agriculture, and IT. MSMEs also promote indigenous crafts, preserving and promoting the region's rich cultural heritage. However, they face challenges with inadequate infrastructure, such as poor connectivity, inadequate transportation facilities, and limited market access. The government has implemented various policies and initiatives to support MSME growth, including financial assistance schemes, technology upgradation programs, skill development initiatives, and market promotion schemes. The central government has initiated a scheme called UNNATI to promote small and medium-sized industry growth in the region. Agro-based industries are a key focus for MSMEs in the Northeast, given the region's abundant natural resources and agricultural potential. They leverage locally available resources to add value to agricultural produce, create employment opportunities, and boost rural incomes. On the other hand, emerging start-up ecosystem in the Northeast is a growing trend of entrepreneurship and start-up culture, particularly in sectors like IT, healthcare, tourism, and renewable energy. MSMEs are increasingly embracing innovation, technology adoption, and digital transformation to enhance their competitiveness and adapt to changing market dynamics. Despite facing challenges related to infrastructure, access to finance, and market linkages, MSMEs present significant opportunities for economic growth, employment generation, and inclusive development in the region. Continued support from the government, private sector, and other stakeholders is essential to unlock the full potential of MSMEs in the Northeast.
BNE: What do you think about the potential for women to be entrepreneurs in the Northeast? What are their opportunities and challenges?
Bhajanka: Northeast India is a region rich in culture, diversity, and entrepreneurial potential, with women entrepreneurs making significant strides despite facing unique challenges. Some prominent women entrepreneurs including Tanya Dhar, Anshu Jamsenpa, Arunima Sinha, Lalthlamuani, and Meribeni Kikon are doing well. Opportunities for women entrepreneurs in Northeast India include rich cultural heritage, abundant natural resources, government initiatives, and emerging markets. However, challenges faced by women entrepreneurs include limited infrastructure, poor connectivity, access to finance, cultural constraints, geographical isolation, and skill gaps.
BNE: What is the investment scenario in northeast?
Bhajanka: Northeast India's investment landscape is evolving, with several sectors attracting interest and opportunities. Assam, Meghalaya, Nagaland, Arunachal Pradesh, and Sikkim are focusing on attracting investment and creating employment opportunities. Assam Petrochemicals Limited plans to expand its production capacity, while Meghalaya has introduced a new Industrial and Investment Policy to attract investments across tourism, agriculture, and manufacturing. Nagaland's Startup Policy aims to promote entrepreneurship and innovation, providing support, funding, and mentorship to startups. Arunachal Pradesh is focusing on hydroelectric power to meet regional and national energy demands, with initiatives like the Etalin Hydroelectric Project attracting investment from domestic and international sources. Sikkim is promoting renewable energy projects to become a fully organic and carbon-neutral state, incentivizing investments in solar, wind, and hydroelectric power projects. Mizoram's bamboo industry is attracting investment in bamboo-based industries like furniture manufacturing, handicrafts, and construction materials. Manipur is focusing on improving its infrastructure to attract investment and facilitate economic development, with recent projects including roads, bridges, and industrial parks.
BNE: Which sectors do you think are in need of support?
Bhajanka: Northeast India's economic potential is being unlocked through various sectors, including infrastructure development, tourism, agribusiness, renewable energy, skill development, and MSME development. Infrastructure development is crucial for trade, tourism, and industrial growth, with investments in roads, railways, airports, and digital connectivity. The East-West Industrial Corridor in Assam aims to improve connectivity and attract investments in manufacturing and logistics. Tourism, with its rich cultural heritage and natural landscapes, requires support in infrastructure development, marketing, and skill enhancement. Initiatives like the Swadesh Darshan Scheme and the North East Circuit under the Ministry of Tourism aim to develop tourist circuits and promote sustainable tourism practices. Agribusiness is a primary source of livelihood for a significant portion of the population in Northeast India, and supporting farmers with access to markets, technology, and value-addition opportunities can boost productivity and income levels. Renewable energy projects like the Khelgaon Solar Park in Tripura and the Dibang Multipurpose Project in Arunachal Pradesh require continued support to overcome regulatory hurdles and achieve operational efficiency.
Skill development is essential for attracting investments and fostering entrepreneurship in Northeast India. Support for vocational training programs, entrepreneurship development initiatives, and industry-academia collaborations can bridge the skill gap and create employment opportunities. MSME development, which plays a significant role in the region's economic landscape, can be spurred by financial support and mentorship. By supporting these sectors with targeted policies, investments, and capacity-building initiatives, Northeast India can unlock its economic potential and create sustainable growth opportunities.
FIRST Business Portal addressing the potential of business capability of North East Region.
