For decades, India’s Northeast was viewed mostly through the lens of distance, insurgency and unrealised potential. Today, that narrative is being rewritten. Over the last 12 years, the region has undergone a remarkable transformation driven by infrastructure development, connectivity expansion, security stabilisation and economic integration.
This transformation is rooted in a strategic shift. The erstwhile ‘Look East’ policy evolved into the more ambitious ‘Act East’ policy, placing the Northeast at the centre of India’s economic and strategic outreach. More than ₹5 lakh crore was invested in the region over a decade on roads, railways, airports, waterways, power infrastructure and digital connectivity. Major initiatives such as the Kaladan Multimodal Transit Transport Project connecting India and Myanmar and the India-Myanmar-Thailand trilateral highway, which will eventually provide connectivity deep into Southeast Asia and the wider Indo-Pacific, are reshaping the region’s economic geography.
Business activity has followed infrastructure development. The ₹27,000-crore semiconductor assembly and test facility being established by Tata Electronics in Assam represents one of the most significant manufacturing investments in the Northeast’s history. Combined with growing investments in logistics, tourism, renewable energy and services, the region is increasingly being integrated into India’s broader growth story. Today, several Northeastern states are among the country’s fastest growing regional economies.
This infrastructure and investment would not have been possible without peace and stability. The Northeast has historically been one of India’s most complex internal security theatres. Insurgencies rooted in ethnic aspirations, underdevelopment and external interference challenged governance for decades.
Over the last decade, a calibrated strategy combining security measures, political engagement and economic development has yielded significant results. Landmark agreements—including the 2015 framework agreement with Nationalist Socialist Council of Nagaland (Issak-Muivah), the 2020 Bodo Peace Accord, the Karbi-Anglong agreement of 2021, the Dimasa National Liberation Army and United Liberation Front of Asom agreements in 2023, and National Liberation Front of Tripura and the All Tripura Tiger Force agreements in 2024—have brought thousands into the democratic mainstream. Nearly 10,000 insurgents have surrendered since 2014, while insurgency-related incidents have declined by more than 70 percent.
It is in this context that the tripartite memorandum of understanding signed last week between the governments of India, Assam and Nagaland assumes historic significance. The framework demonstrates how cooperative federalism and shared development can overcome long-standing administrative and political challenges.
The economic implications are substantial. The Assam-Nagaland hydrocarbon belt is estimated to contain nearly 500 million tonnes of petroleum and natural gas resources, making it one of India’s most strategically-important energy regions. Yet despite this enormous potential, production has remained limited to roughly 1,000-1,500 barrels a day because of administrative and operational constraints. Under the new arrangement, production could increase more than ten-fold over time. Assam already contributes approximately 14 percent of India’s crude oil output and around 10 percent of its natural gas production. The agreement therefore carries implications far beyond the Northeast.
The timing is significant. As the global energy landscape becomes increasingly volatile, expanding domestic production becomes a strategic imperative. Indeed, energy security is increasingly inseparable from national security.
The benefits will extend well beyond oil and gas production. Hydrocarbon development creates powerful multiplier effects. Exploration and drilling activities stimulate demand for transportation networks, warehousing, logistics services, petrochemical industries and downstream manufacturing. Local businesses benefit from increased economic activity, while skilled and semi-skilled employment opportunities expand for the region’s youth. The stable policy framework created through this agreement is also likely to attract substantial public and private investment into the region.
Equally important is the agreement’s strategic dimension. The Act East policy is fundamentally built on the idea that the Northeast should serve as India’s bridge to Asean markets and the wider Indo-Pacific. For that vision to succeed, the region must be prosperous, industrially vibrant and economically integrated. Energy development strengthens this foundation.
The Assam-Nagaland hydrocarbon initiative extends far beyond resource extraction. It reflects the broader resurgence of the Northeast, a region once associated with isolation that is rapidly emerging as a hub of connectivity, investment and strategic opportunity. What was once seen as India’s periphery is increasingly becoming central to its economic and geopolitical future.
While the journey is far from complete, the direction is unmistakable. The Northeast is no longer merely a frontier to be secured, but a gateway to be developed, connected and empowered. Increasingly, it stands at the centre of India’s economic ambitions and strategic outreach, underscoring its growing role in shaping the nation’s future.
Anil K Antony| National Secretary, National Spokesperson and state in-charge of Nagaland and Meghalaya at the BJP
(Views are personal)