Assam: In a significant move, the Union Budget for 2025-26 has provided a massive 47.6% increase in the allocation for the Ministry of Development of North Eastern Region (MDoNER), reinforcing the government’s commitment to accelerating infrastructure development, regional connectivity, and social welfare in the North Eastern Region (NER).
The budget estimate for FY 2025-26 stands at a robust Rs 5,915 crore, up from Rs 4,006 crore in FY 2024-25, signaling a new era of growth for the region.
Here are the key budgetary announcements aimed at benefiting the NER:
Regional Connectivity & Infrastructure Expansion
- The government is prioritizing regional connectivity under the UDAN scheme, with plans to expand air connectivity to 120 new destinations, particularly focusing on hilly and remote districts in the NER. This expansion is expected to bring in an additional 4 crore passengers over the next 10 years.
- Special attention will be given to the development of smaller airports and helipads to improve accessibility and stimulate growth in these underserved areas.
Power Sector Reforms
- To improve energy reliability in the NER, states implementing electricity distribution and transmission upgrades will be allowed 0.5% additional borrowing of their Gross State Domestic Product (GSDP).
Agriculture & Rural Development
- A major boost to agriculture with the establishment of a 12.7 lakh metric ton per annum urea plant in Assam to enhance productivity.
- The PM Dhan-Dhaanya Krishi Yojana will cover 100 agri-districts, with a focus on crop diversification, irrigation, and storage, directly benefiting farmers in the NER.
- The Aatmanirbharta in Pulses Mission, aimed at promoting the cultivation of Tur, Urad, and Masoor, will support NER farmers over the next six years.
- Expansion of India Post’s role in financial inclusion through micro-enterprise credit, DBT cash transfers, and institutional banking services in remote NER districts.
Industry, Employment & Clean Energy
- The budget includes increased credit guarantee cover of up to ₹20 crore for MSMEs, boosting exports and creating job opportunities.
- The government will support clean energy technologies such as solar PV, EV batteries, and wind turbines, fostering industrial growth in the region.
Women & Child Development
- The Saksham Anganwadi & Poshan 2.0 initiative will provide nutritional support for 8 crore children, 1 crore pregnant/lactating women, and 20 lakh adolescent girls in the NER, improving the health and development of the region’s future generations.
Tourism & Cultural Development
- A special focus will be placed on developing Buddhist tourism circuits in the NER to attract both domestic and international visitors. States will receive performance-linked incentives to enhance tourist amenities and connectivity.
- MUDRA loans will be made available to support homestay ventures, empowering local entrepreneurs and promoting sustainable tourism growth.
Research, Digital Innovation & Trade
- The PM Research Fellowship program will offer 10,000 fellowships in IITs and IISc, providing opportunities for NER students to excel in research and innovation.
- BharatTradeNet, a digital trade infrastructure platform, will integrate NER MSMEs into global supply chains, enhancing trade and export potential.
- The National Geospatial Mission will modernize land records and facilitate infrastructure planning, benefiting both rural and urban development in the region.
Financial & Policy Reforms for NER
- The increase in Foreign Direct Investment (FDI) in the insurance sector to 100% will boost financial inclusion in the NER, attracting investment and expanding coverage.
- Introduction of the ‘Grameen Credit Score’ for rural lending will enhance access to microfinance, empowering Self-Help Groups (SHGs) and small entrepreneurs.
- The Investment Friendliness Index will promote ease of doing business, encouraging investment in the region.
- The Jan Vishwas Bill 2.0 will decriminalize regulatory provisions, simplifying business operations in the NER.
With these transformative measures and substantial funding for MDoNER, the Union Budget 2025-26 provides a major boost to the economic growth of the North East. By prioritizing regional development, self-reliance, digital innovation, and inclusive growth, the Modi government aims to position the NER as a key driver of India’s growth story in the coming years.