In a recent interview with Business North East, Ranjana Bhajanka, Director of the Federation of Industries and Commerce of North East Region (FINER), highlighted the critical role of Micro, Small, and Medium Enterprises (MSMEs) in the economic development of Northeast India. Bhajanka said that MSMEs contribute significantly to employment across sectors such as handloom, handicrafts, food processing, tourism, agriculture, and IT, while also preserving and promoting the region’s rich cultural heritage.
Despite challenges like inadequate infrastructure, poor connectivity, and limited market access, Bhajanka noted that government initiatives such as the UNNATI scheme are supporting MSME growth. She pointed out that agro-based industries, leveraging the region’s natural resources, and an emerging start-up ecosystem in sectors like IT, healthcare, tourism, and renewable energy are important trends. MSMEs are increasingly embracing innovation, technology adoption, and digital transformation to enhance competitiveness, she added.
Bhajanka also discussed the investment scenario in the Northeast, noting that states like Assam, Meghalaya, Nagaland, Arunachal Pradesh, and Sikkim are actively attracting investments. Key developments include Assam Petrochemicals Limited expanding its production capacity, and Meghalaya introducing a new Industrial and Investment Policy.
According to her, Nagaland’s Startup Policy is fostering entrepreneurship, while Arunachal Pradesh focuses on hydroelectric power, attracting investment through projects like the Etalin Hydroelectric Project. Sikkim is promoting renewable energy projects to aim for a carbon-neutral state, and Mizoram’s bamboo industry is drawing investment in bamboo-based industries. Manipur is enhancing infrastructure to facilitate economic development with new roads, bridges, and industrial parks.
Bhajanka identified several sectors needing support to unlock the Northeast’s economic potential. She observed that infrastructure development is vital for trade, tourism, and industrial growth, citing projects like the East-West Industrial Corridor in Assam that enhance connectivity. According to her, the tourism sector requires infrastructure, marketing, and skill enhancement support, with initiatives like the Swadesh Darshan Scheme and the North East Circuit promoting sustainable tourism. Agribusiness support is crucial for productivity and income growth, focusing on market access, technology, and value addition. Renewable energy projects, such as the Khelgaon Solar Park in Tripura and the Dibang Multipurpose Project in Arunachal Pradesh, need continued backing to overcome regulatory hurdles, she said.
The FINER Director also observed that skill development initiatives are essential for attracting investments and fostering entrepreneurship, and advocated for vocational training programs and industry-academia collaborations to bridge the skill gap. Financial support and mentorship for MSMEs can further bolster the region’s economic landscape, she added.
Bhajanka also said that targeted policies, investments, and capacity-building initiatives are essential to unlock the economic potential of Northeast India and create sustainable growth opportunities.