Boosting Development in Northeast India

The Prime Ministerโ€™s Development Initiative for North East Region (PM-DevINE) is a significant step towards enhancing the socio-economic landscape of Northeast India. Announced in the Union Budget for 2022-23, this initiative aims to address the unique challenges faced by the region. With an initial outlay of โ‚น1,500 crore, the scheme received approval from the Union Cabinet on October 12, 2022, with a total budget of โ‚น6,600 crore allocated for the period from FY 2022-23 to FY 2025-26. This article explores the objectives, projects, and additional support schemes aimed at fostering development in Northeast India.

Objectives of PM-DevINE

The PM-DevINE scheme is designed to promote rapid and holistic development in the Northeast Region (NER). Its primary objectives include funding infrastructure projects, supporting social development initiatives, enabling livelihood opportunities, and addressing development gaps across various sectors. The scheme emphasizes a convergent approach to infrastructure development, aligning with the principles of PM Gati Shakti, which aims to enhance connectivity and efficiency in project execution.

By focusing on the felt needs of the states, the PM-DevINE scheme seeks to empower local communities. It aims to create sustainable livelihoods, particularly for youth and women, who often face barriers to economic participation. The initiative recognizes the importance of local input in shaping development projects, ensuring that investments are relevant and impactful. As of November 30, 2024, a total of 35 projects worth โ‚น4,857.11 crore have been sanctioned under this scheme, reflecting a commitment to addressing the region’s pressing needs.

Supporting Industrialization in the Northeast

In addition to PM-DevINE, the Government of India has launched various initiatives to promote industrialization in the Northeast. One such initiative is the North East Industrial Development Scheme (NEIDS), which was operational from April 1, 2017, until March 31, 2022. This scheme aimed to stimulate industrial growth in the region by providing financial incentives and support to businesses.

Following the conclusion of NEIDS, the Government introduced the Uttar Poorva Transformative Industrialization Scheme (UNNATI) on March 9, 2024. This new scheme focuses on enhancing regional infrastructure, creating employment opportunities, and promoting resilience and prosperity in the Northeast. UNNATI offers specific incentives to industrial units, including capital investment incentives, capital interest subvention, and manufacturing and services-linked incentives. These measures are designed to attract investment and foster a conducive environment for industrial growth in the region.

Financial Commitment to Northeast Development

The Government of India has made a substantial financial commitment to the development of the Northeast. It mandates that all non-exempt Union Ministries and Departments allocate at least 10% of their annual Gross Budgetary Allocation towards the development of the region. Over the past five years, from 2019-20 to 2023-24, these ministries have incurred a provisional expenditure of โ‚น3,53,412 crore for various development initiatives in the Northeast.

This financial backing underscores the government’s dedication to addressing the unique challenges faced by the Northeast. By ensuring that a significant portion of the budget is directed towards the region, the government aims to bridge the development gap and enhance the quality of life for its residents. The Union Minister of State for Development of North Eastern Region, Dr. Sukanta Majumdar, highlighted this commitment in a recent statement, emphasizing the importance of sustained investment in the region’s growth.

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