Since the BJP introduced its North East policy in 2014-replacing the UPA’s ‘Look East’ approach with the more assertive ‘Act East’ vision-substantial developments have unfolded in the region. Unlike its predecessor, the ‘Act East’ policy is action-oriented, emphasizing tangible projects and measurable outcomes. In characteristic fashion, the BJP has sought to distinguish its governance through policy execution, particularly in areas that contrast with the Congress-era initiatives. One of the most notable outcomes has been the steady flow of corporate investments into the North East, with announcements amounting to lakhs of crore rupees. Unexpectedly, Assam has emerged as the standout recipient of these investments. Since the early 2000s, a series of business summits held in various metropolitan cities have helped draw national attention to the region. The two-day Assam Advantage Business Summit in February 2025 saw investment proposals for the state surpassing Rs 5.18 lakh crore. More recently, the North East Investors Summit held in New Delhi from May 23 to 24 has drawn additional interest from major corporate houses, further cementing Assam’s place as the investment hub of the North East.A major reason behind this trend is Assam’s favorable governance environment. The state has managed to curtail the influence of unlawful elements, such as extortion networks and unregulated pressure groups, which previously imposed arbitrary demands on businesses. Unlike some of its neighbors, Assam is relatively free from disruptive unions or politicized cultural and student bodies. This has fostered a sense of stability and security among investors, further reinforced by central government incentives. Assam’s infrastructural readiness also plays a pivotal role. The state offers a stable power supply essential for industrial operations and a well-developed road , rail and air network that connect even remote areas. Guwahati, the state capital and commercial epicenter, is undergoing a significant transformation with the construction of multiple flyovers, besides construction of dozens of big corporate health institutes near Guwahati, positioning it as a key urban center in the region. Other North Eastern states also possess certain strengths-such as human capital and natural resources-but many, particularly those governed by non-BJP alliances like Nagaland, Mizoram, and Meghalaya, struggle to attract similar levels of investment. These states continue to secure only a fraction of the investments flowing into Assam. Conversely, BJP-ruled states like Tripura, Arunachal Pradesh, and Manipur have seen better investment outcomes, reflecting improved infrastructure and governance. Nagaland, despite having superior connectivity and enterprising youth, remains unable to capitalize on its assets. The state’s road and rail infrastructure, though better than many of its peers, has not been effectively harnessed. Business challenges have led many entrepreneurs from Dimapur to relocate, citing operational problems and other difficulties. Though Nagaland has drawn approximately Rs 4,500 crore in investment proposals, during the B20 conference in 2023 linked to the G20 Summit, yet it is still not enough. Sectors such as agro-processing, MSMEs, tourism, and IT were earmarked, yet much of this potential remains untapped. Unless governance and execution improve, Nagaland risks continued exclusion from the region’s growing investment momentum. The broader investment disparity across the North East underscores how governance, infrastructure, and political alignment critically influence economic prospects.
