The catalyst for India’s economic growth

Recently, when on a Sunday morning Union minister for petroleum and natural gas Hardeep Singh Puri put up a post on his Twitter (X) handle highlighting how “the story of oil exploration in India began in the jungles of Assam”, he was proudly glorifying the rich legacy of the state and its role in shaping India’s oil industry. This is just one example of the critical role that Assam and the Northeast region has played in India’s economic growth, and it is no wonder that since 2014 a determined prime minister has ensured that it became the bulwark of the Indian economy.

From Look East, the Act East, the transformation of Northeast in the last 10 years has been nothing less than phenomenal.

Achieving the vision of an Aatmanirbhar Bharat hinges on unlocking the full potential of the Northeast region. Under the leadership of our prime minister, the past decade has been transformative for the region, with targeted initiatives driving significant infrastructure and regional development. According to the Government of India, a staggering Rs 5 lakh crore has been invested in the region since 2014, while another Rs 11 lakh crore is in the pipeline to support various infrastructure projects.

Prime Minister Narendra Modi’s vision and decisive intervention by the Government of India have given a new impetus to the identity of the region. In fact, no other region reflects the intensity and truism of India’s diversity, ethnicity and inherent potential with complexity as the most ‘enchanting frontier of India’ – the Northeastern region of India. It represents 8% of the total national geographical area with 4% population (70 % of which is in Assam). The region is land-locked with more than 95% of its boundary with other countries and internally as varied topography.

The PM understands that strengthening Northeast India’s manufacturing and industrial ecosystem is a vital component of the country’s economic growth and diversification strategy and a driver for the region’s progress. Known for its natural resources, biodiversity and agroclimatic variations, the region has large deposits of oil, natural gas, coal, limestones and land-based potential for agro-horticulture products, bamboo, and rubber. This provides great possibilities for the value-added products agriculture, horticulture etc.

While lots has been done, much remains to be done. Northeast India holds immense untapped potential and vast reserves of resources that, once activated, can become a powerful engine of growth, driving economic prosperity and development for the entire country. Over the years, the region has witnessed incremental benefits of investing in domestic industries that have created newer jobs for the local youth and communities, supported the evolution of ancillary industries and contributed to the exchequer.

A compelling example is the cement industry in the region, which draws on the abundant limestone reserves and aligns the Northeast’s strategic location. With significant investments by the private sector and through high-profile collaborations with the government, Assam and other states (Meghalaya) in the region have evolved as key contributors to the nation’s cement industry, in addition to contributing to international exports.

The Northeast region, rich in oil and gas reserves, has seen strategic investments and a supportive environment enabled by the government, as outlined in the Hydrocarbon Vision Document 2030. This vision is anchored on five pillars – people, policy, partnerships, projects, and production. Oil and gas projects worth Rs 1 lakh crore are approved and are expected to be completed by 2025.

In July, Union minister Puri informed that Dirok Field at Margarita in Assam’s Tinsukia district has achieved a significant milestone in India’s journey towards energy independence. Operated by the Hindustan Oil Exploration Company (HOEC) in partnership with Oil India Limited (OIL) and the Indian Oil Corporation Limited (IOCL), the field has successfully tested a new reservoir, Sand-9, in well Dirok-1. Starting with the first discovery of oil anywhere in India, as found on elephant’s foot, Assam has emerged as a hub for the industry’s potential.

By tapping into the region’s hydrocarbon and renewable energy potential, coupled with accelerated supportive actions, we can catalyse manufacturing and allied industries, paving the way for a robust and sustainable industrial ecosystem. It is also beyond doubt that by drawing on the untapped potential of the region, covering high-growth industries, the region can make exceptional strides of growth, further delivering on the government’s commitment to the ‘Purvodaya’ plan for the all-round development of the Northeast.

To accelerate the Northeast region’s development in alignment with the future goals, the strategies must emphasise on building close engagements with local communities, create robust infrastructure around industrial hubs, and work towards enhanced skill-development initiatives. A stronger focus on skill development will enable local job and community empowerment, further leveraging this talent for global opportunities.

As India strives to achieve its goal of becoming a $7 trillion economy by 2030, fast-tracking the development and economic potential of the Northeast is crucial. The region requires strong policy support, sustained investments, and a focus on infrastructure and comprehensive logistics development. These efforts will help establish a sustainable manufacturing and industrial ecosystem in the Northeast, creating a ripple effect that will benefit the eastern region and the rest of India.

Having extensively worked in Northeast and globally, the writer is an expert development issues, sanitation, waste management. The views expressed by the writer are his own.

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