In a policy brief titled Ideas to Reshape Northeast India’s Economic Engagements with Southeast Asia, published by Research and Information System for Developing Countries (RIS), Dr Prabir De examines how Northeast India’s economic marginalisation persists despite its strategic location as a bridge between South and Southeast Asia. The brief situates the region within a changing global economic environment marked by supply chain disruptions, shifting trade patterns, and rising geopolitical uncertainty. Against this backdrop, it argues that Northeast India holds significant untapped potential to anchor India’s engagement with ASEAN, provided structural constraints are addressed.
For Northeast India, the core challenge lies in the contradiction between geographic centrality and economic peripherality. The region shares borders with Myanmar, Bangladesh, Bhutan, and Nepal and is integral to connectivity initiatives such as the India–Myanmar–Thailand Trilateral Highway. Yet, decades of economic isolation, weak infrastructure, and persistent insurgency have limited its integration with both the Indian mainland and neighbouring Southeast Asian economies. The brief highlights that Northeast India’s export contribution remains negligible, with its share in India’s total exports declining over time, underscoring its marginal role in external trade.
In the analysis, De argues that emerging global shifts, including supply chain reconfiguration and rising protectionism, create new opportunities for the region. Developments such as higher US tariffs on ASEAN economies and broader geopolitical disruptions are likely to encourage regional production networks and shorter supply chains. Given its proximity to Southeast Asia, Northeast India could position itself as a supplier of agro-horticultural products, processed foods, garments, and services such as tourism, healthcare, and education. However, these opportunities remain contingent on addressing domestic bottlenecks and improving market connectivity.
A central structural constraint is the weakness of trade and connectivity infrastructure. Key border points such as Moreh–Tamu remain underutilised, and informal trade often exceeds formal channels, reflecting institutional inefficiencies. In parallel, incomplete connectivity projects and limited logistics capacity continue to restrict cross-border economic flows. The brief also points to the absence of a coherent export strategy for the region and insufficient institutional mechanisms to support integration with Southeast Asian markets.
To address these gaps, the brief proposes a multi-layered strategy centred on building resilient supply chains, strengthening trade and investment linkages, and developing Border Economic Zones to facilitate cross-border production networks. It emphasises the need to operationalise major connectivity projects such as the Trilateral Highway, expand services trade, and promote cross-border energy cooperation by leveraging the region’s renewable energy potential. Equally important is a shift in policy orientation, treating borders as economic assets rather than barriers and enhancing institutional capacity to manage regional integration.
The analysis concludes that Northeast India’s transformation from a peripheral region into a core economic gateway depends on sustained domestic reforms and external engagement. Aligning regional development with India’s Act East Policy, strengthening partnerships with countries such as Japan and South Korea, and building dedicated institutional frameworks are identified as critical steps. In this framing, the integration of Northeast India is not only a regional development imperative but a strategic necessity for India’s broader economic and geopolitical engagement with Southeast Asia.