The North East region of India refers to the easternmost part of the country, comprising eight states: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura. Due to its geographical location and historical factors, the region has faced various challenges in terms of infrastructure development, connectivity, economic growth, and social development. In order to promote growth and entrepreneurial talent, the Government of India has launched several programs to promote regional economic development in the North East.
In this post, Compliance Calendar compiles a list of top schemes every entrepreneur and MSME operating or planning to set base in the North East of India should watch out for.
Entrepreneurship in the Northeast - key statistics
The DPIIT report shows, MSMEs have received financial assistance worth over INR 645 crores between 2014-21.
North eastern states connectivity : Over INR10,000 crores have been spent for developing power infrastructure, especially hydroelectric dams.
With over 17 airports in the Northeast, all capital and major cities of North Eastern states are being connected by air.
There are 18 national waterways in the Northeast region. These provide not just internal connectivity between states, but also serve as water routes to neighbouring countries like Bangladesh and Myanmar.
The PM Devine scheme, involving an outlay worth INR 6600 crores was approved last year (2022) for projects with impact on infrastructure, social development and livelihood sectors.
It aims to fund projects until the year 2025-26 for pillars of the Atmanirbhar Bharat program.
A minimum amount of INR 20 crores and a maximum of INR 500 crores would be sanctioned for one scheme, intervention or project.
NEDFi Venture Capital Limited (NVCL), a wholly owned subsidiary of NEDFi is the managing agency that invests by way of equity, debt and convertible shares.
Ministry of Development of North Eastern Region (M-DoNER) and North Eastern Development Finance Corporation Limited (NEDFi) act as the anchor investors
Mission Organic Value Chain Development for Northeastern Region
Agri-Clinics & Agri-Business Centres Scheme
In order to promote technology upgrade in MSMEs, the state governments in North East provide financial assistance equal to 90% of the cost of machinery, equipment and buildings, up to a maximum of INR10 crores.
North East Special Infrastructure Development Scheme
Under the North East Special Infrastructure Development Scheme (NESIDS), financial assistance is given to businesses engaged in projects that help create physical infrastructure. More than 1600 projects for water supply, power, connectivity to promote tourism; and for projects of social sector for creation of infrastructure for primary and secondary education and health have been granted funds in the past, with over INR 13,000 crores of funds issued.
North East Region Vision 2035
Some of the key focus areas under the North Eastern Region Vision 2035 include:
Power and Energy: Promoting the development of power generation projects, both conventional and renewable, to ensure a reliable and adequate supply of electricity.
Tourism Development: Tapping into the rich cultural and natural heritage of the region to promote tourism and generate employment opportunities.
Education and Skill Development: Enhancing educational facilities and promoting skill development programs to empower the youth and improve human resource capabilities.
Horticulture and Agriculture: Encouraging the development of horticulture and agriculture sectors to increase productivity, income generation, and rural employment.
Industrial Development: Promoting industrial growth and investment in the region to create job opportunities and boost the economy.
minerals, forest resources, tea, pharmaceuticals, textiles etc., under the India-ASEAN Free Trade, SAARC Free Trade and BIMSTEC agreements (with our neighbouring countries), north eastern trade ports, processing centres services are slated to play a big role.
The North East Entrepreneurship Fellowship
It brings together talented and high-potential entrepreneurs from all eight states of the North East with the one year-long fellowship program providing a space for knowledge sharing and exposure.
Entrepreneurs can learn from experienced mentors, industry experts, and fellow entrepreneurs, gaining insights and skills that can contribute to their personal and professional development.