The Government of India has introduced several schemes to accelerate industrialization and investments in the North Eastern Region (NER), Union Minister of State for Development of North Eastern Region, Dr Sukanta Majumdar, informed the Lok Sabha in a written reply on 5th December 2024.
The North East Industrial and Investment Promotion Policy (NEIIPP) 2007, which was in effect from 1st April 2007 to 31st March 2017, was aimed at boosting industrial growth in the region. To address the region’s unique challenges, such as its hilly terrain and remote areas, the Government introduced the Freight Subsidy Scheme (FSS) in 2013, replacing the Transport Subsidy Scheme (1971). This scheme aimed to subsidize transportation costs for raw materials and finished products from industrial units in these areas, mitigating locational disadvantages.
In 2017, the North East Industrial Development Scheme (NEIDS) was introduced, covering both the manufacturing and service sectors. Most recently, in March 2024, the Uttar Poorva Transformative Industrialization Scheme (UNNATI) was launched as a Central Sector Scheme to support industrial growth and generate employment opportunities in the North Eastern Region.
Additionally, the Government has implemented various flagship programs to further the development of the region. Dr. Majumdar noted that, as per the current policy, fifty-five non-exempted Central Ministries and Departments are mandated to allocate at least 10% of their Gross Budgetary Support (GBS) for Central Sector and Centrally Sponsored Schemes dedicated to the North Eastern Region.
Furthermore, the Ministry of Development of North Eastern Region is overseeing a range of schemes, including the North East Special Infrastructure Development Scheme (NESIDS), Prime Minister’s Development Initiative for North East Region (PM-DevINE), and other programs by the North Eastern Council. These initiatives focus on improving connectivity and infrastructure in the region, contributing to its overall development.