Union finance minister Nirmala Sitharaman on Friday urged northeastern states to view multilateral and bilateral development finance not merely as a source of funding but as a tool for strengthening governance systems, improving service delivery and accessing global expertise, as she called for greater use of externally aided projects (EAPs) to accelerate the region’s development.
Addressing a conference on ‘Leveraging Externally Aided Projects in the North-Eastern States’ in Shillong, Sitharaman said development finance should be deployed strategically to improve the lives of citizens and create sustainable opportunities for future generations.
She said externally aided projects have become an important source of development financing for the Northeast, supporting investments in infrastructure, connectivity, livelihoods and social-sector development. The conference, she added, provides an opportunity for the Centre and the states to strengthen the planning and implementation of such projects through better coordination, faster execution, and the sharing of best practices.
The said EAP support to Northeastern states has increased to around ₹76,000 crore since 2014 from about ₹9,000 crore during 2004-14, reflecting what she described as a shift in approach under the Narendra Modi government, with the region being viewed as a central pillar of India’s future growth, connectivity and prosperity.
The finance minister outlined key enablers for the next phase of development in the region, stressing the importance of leadership, alignment between the Centre and states, and stronger institutional capacity for planning, implementation, monitoring and service delivery.
Highlighting the Northeast’s demographic strengths, she described the region’s youth, entrepreneurial energy and women leaders as key drivers of growth and called for greater investments in human capital. She reiterated the government’s commitment to women-led development as a cornerstone of inclusive progress.
₹1,250-cr worth of projects launched in Meghalaya
On development finance, Sitharaman urged states to leverage multilateral and bilateral financing not only as a source of funding but also as a means of accessing global expertise, innovation and best practices. She encouraged states to make strategic use of externally aided projects to strengthen governance systems and improve service delivery.
Earlier in the day, the finance minister participated in a programme in to mark externally aided projects in Meghalaya and laid foundation stones for projects worth over ₹1,250 crore.
Sitharaman also pointed to vast opportunities for private investment in sectors such as tourism, logistics, agribusiness, food processing, renewable energy, digital services, manufacturing and the orange economy. Such investments, she said, can generate employment, enhance value addition and create sustainable livelihoods across the region.
She said externally aided projects are not merely financing arrangements but instruments for converting natural potential into economic opportunity by integrating local produce into national and global value chains, strengthening livelihoods and improving service delivery.
The minister highlighted the transformative impact of ongoing investments in connectivity, noting that improvements in transport infrastructure, digital networks and power systems are linking people, markets and opportunities while reinforcing India’s Act East Policy.
Describing the Northeast’s rich ecological and cultural heritage as a strategic advantage, she said the region can emerge as a leader in eco-tourism, climate resilience, sustainable agriculture and green development.
Highlighting the region’s agricultural diversity, Sitharaman cited products such as ‘s Lakadong turmeric and Khasi mandarin, Assam’s litchi and ginger, Manipur’s Chak-Hao (black rice), Sikkim’s large cardamom and Tripura’s queen pineapple, saying improved logistics, market access and value addition can help unlock their economic potential.
Infrastructure push: highways, airports
Sitharaman also highlighted infrastructure improvements in the Northeast over the last decade, stating that more than 10,000 km of national highways have been constructed in the region since 2014 at an investment exceeding ₹1 trillion, while another 5,000 km are under implementation. She said the number of operational airports in the region has increased from nine in 2014 to 16 currently.
She emphasised that no district and no community should be left behind in the development journey and urged stakeholders to focus on building enduring institutions and systems that continue to deliver benefits long after projects are completed.
The two-day conference, organised by the department of economic affairs, was attended by chief ministers Conrad K. Sangma (Meghalaya), Himanta Biswa Sarma (Assam), Lalduhoma (Mizoram), Neiphiu Rio (Nagaland), Prem Singh Tamang (Sikkim) and Manik Saha (Tripura), along with officials from the World Bank, Asian Development Bank, Asian Investment Bank, New Development Bank and JICA.
Meghalaya chief minister Conrad K. Sangma said the state is currently implementing externally aided projects worth over ₹12,466 crore across sectors and acknowledged the Centre’s support in enabling transformative investments.