Northeast must turn potential into prosperity: Sitharaman

Finance Minister lays foundation stones for four Meghalaya projects worth over ₹1,250 crore, says EAPs can transform natural advantages into economic opportunities

Shillong, June 19: Union Finance Minister Nirmala Sitharaman on Friday laid the foundation stones for four major projects worth over ₹1,250 crore in Meghalaya, asserting that the Northeast’s challenge is no longer a lack of potential but converting its vast natural and cultural wealth into economic opportunities and sustainable livelihoods.

Speaking at a programme marking Externally Aided Projects (EAPs) in Meghalaya at the U Soso Tham Auditorium in Shillong, Sitharaman said investments in connectivity, logistics, tourism, education and livelihoods were aimed at unlocking the region’s economic potential while ensuring that local communities benefit from growth. The Finance Minister laid the foundation stones for the ₹957.46-crore Meghalaya Logistics and Connectivity Improvement Project, the ₹59.29-crore Supporting Human Capital Development in Meghalaya Phase-II project, the ₹138.39-crore Integrated Ecotourism and Sustainable Agri-based Livelihood Development Project, and the ₹91.60-crore Meghalaya Ecotourism Infrastructure Development Project.

Together, the projects are expected to improve transport connectivity, strengthen educational infrastructure, promote eco-tourism, support climate-resilient livelihoods and create new economic opportunities across the state. “The Northeast is blessed with breathtaking landscapes, rich cultural resources, diverse agricultural produce and hardworking people. The challenge before us is not a lack of potential, but ensuring that this potential translates into prosperity for local communities,” Sitharaman said.

Highlighting the region’s agricultural strengths, the Finance Minister cited a range of high-value products from across the Northeast — from Arunachal Pradesh’s oranges and kiwis to Meghalaya’s Lakadong turmeric and ginger, Nagaland’s tree tomatoes, Sikkim’s large cardamom and Tripura’s queen pineapple. Many of these products enjoy strong market demand, she said, but require better logistics, value addition and market access to realise their full economic potential.

Sitharaman said Externally Aided Projects have emerged as a critical tool in bridging that gap, bringing not only financing but also global expertise, innovative technologies and international best practices through partnerships with institutions such as the World Bank, Asian Development Bank, International Fund for Agricultural Development and JICA.

Referring to the Northeast’s largest organic spice processing facility inaugurated earlier in the day in Ri-Bhoi district, she said the project demonstrated how local agricultural produce could be processed locally, allowing farmers to capture greater value and access national and international markets. “Externally Aided Projects are not merely financing arrangements; they are instruments for transforming natural potential into economic opportunity,” she said.

The Finance Minister also highlighted the Centre’s growing focus on the Northeast, noting that support through externally aided projects has increased from around ₹9,000 crore during 2004-14 to nearly ₹76,000 crore since 2014 — a more than seven-fold jump. She said the increase reflected a fundamental shift in the government’s approach towards the region, which is now viewed as a key pillar of India’s future growth and connectivity.

Citing infrastructure gains over the past decade, Sitharaman said more than 10,000 km of National Highways have been built across the Northeast since 2014 at an investment exceeding ₹1 lakh crore, while another 5,000 km are under construction. The number of operational airports in the region has also risen from nine to sixteen, with domestic passenger traffic increasing more than threefold.

Invoking the legacy of Khasi poet U Soso Tham, after whom the auditorium is named, the Finance Minister said the Northeast’s future lies in successfully combining tradition with innovation, conservation with development, and cultural heritage with entrepreneurship. “A developed India by 2047 cannot be achieved without a developed, connected and prosperous Northeast,” she said.

Meghalaya Chief Minister Conrad K. Sangma said the state is currently implementing externally aided projects worth more than ₹12,466 crore across multiple sectors. He credited the support of the Ministry of Finance and development partners for helping Meghalaya undertake transformative investments in infrastructure, livelihoods and human development. The programme was attended by state ministers, senior officials from the Centre and Meghalaya government, development partners and beneficiaries associated with externally aided projects.

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