Guwahati, Feb 1: The Union Budget 2025-26 has ushered in a host of initiatives poised to transform Assam and the broader Northeast region, with a focus on regional connectivity, agricultural productivity, socio-economic development, and infrastructure upgrades.
Though there are not many Budget provisions which directly benefit the region, but there are initiatives which will indirectly benefit the region.
Agriculture & Industry Boost with Namrup Urea Plant
One of the most significant announcements is the establishment of a urea plant at Namrup, Assam, with an annual capacity of 12.7 lakh metric tons. This move addresses a long-standing demand for better fertilizer availability in the region and capitalizes on Assam’s natural gas resources. The plant’s development aligns with India’s goal of becoming self-reliant in urea production under the Atmanirbhar Bharat initiative.
Assam Chief Minister hailed the announcement as a “game-changer” for the state’s agricultural sector, which is expected to see enhanced productivity. The Namrup facility follows the reopening of three dormant urea plants in Eastern India.
Enhanced Regional Connectivity Under UDAN
The Budget also prioritized regional connectivity with an expanded UDAN scheme. The updated plan aims to connect 120 new destinations and carry 4 crore passengers over the next decade. For the hilly, aspirational, and remote districts of the Northeast, the scheme includes helipads and smaller airports, promising improved accessibility.
Meghalaya Chief Minister Conrad K. Sangma expressed gratitude for the initiative, emphasizing its potential to boost tourism and economic growth. “Enhanced air connectivity will make Meghalaya and the Northeast more accessible to both domestic and international tourists,” he noted.
“The Union Government will launch a modified Ude Desh ka Aam Naagrik (UDAN) scheme to connect 120 destinations. Presenting the Union Budget 2025-26, the Union Finance Minister said the modified scheme will help about four crore additional
passengers in the next 10 years. “The scheme will also support helipads and smaller airports in hilly and aspirational Districts across the country. This will improve connectivity in hilly States like Meghalaya” Sangma said.
“About 50 tourist destination sites will be developed in the country in partnership with
the States. The States will provide land for key infrastructure needed. This will complement Meghalaya’s investments and efforts in developing world-class tourist infrastructure and position our State as a global tourism destination” Sangma said.
Mr. Bajrang Lohia, President of The Federation of Industry and Commerce of North Eastern Region (FINER) said the Budget prioritizes agricultural reforms, which are expected to greatly benefit the agrarian economy of the North East, with specific programs aimed at bolstering growth in rural areas. Additionally, the budget introduces initiatives like the UDAAN and N Scheme, which will expand regional connectivity and tourism opportunities in the North East. These measures reflect the government’s vision of long-term, sustainable growth for the region.
Power, Infrastructure & Digital Development
Power sector reforms are set to benefit states in the region, with an additional 0.5% of GSDP borrowing allowed for electricity distribution and intra-state transmission augmentation. The extension of the Jal Jeevan Mission until 2028 with increased outlay aims for 100% tap water coverage, focusing on sustainable infrastructure in rural areas.
Further, the BharatTradeNet initiative promises to integrate MSMEs in the region with global supply chains by streamlining trade documentation and financing.
Support for Agriculture & Rural Development
The Prime Minister Dhan-Dhaanya Krishi Yojana will cover 100 agricultural districts, including those in the Northeast. This initiative will promote crop diversification, irrigation, storage, and credit access, benefiting 1.7 crore farmers nationwide. Additionally, the Mission for Aatmanirbharta in Pulses emphasizes Tur, Urad, and Masoor cultivation, which could enhance the Northeast’s role in national pulse production.
India Post’s expansion into financial inclusion services will also bring micro-enterprise credit, DBT cash transfers, and institutional banking services to remote districts in the region.
Tourism & Cultural Development
The government’s focus on tourism includes special incentives for Buddhist tourism circuits in the Northeast, alongside performance-linked incentives for destination management, tourist amenities, and connectivity. MUDRA loans for homestays will empower local entrepreneurs and promote grassroots tourism.
Empowering Women & Youth
The Saksham Anganwadi and Poshan 2.0 programme will provide nutritional support to more than 8 crore children, 1 crore pregnant women, and lactating mothers across India, including about 20 lakh adolescent girls in the Northeast. Additionally, the PM Research Fellowship offers 10,000 fellowships in IITs and IISc, creating advanced technological research opportunities for students and researchers from the region.
Challenges for the Tea Industry
Although direct benefits to the tea industry may not have been provided but policy decisions like Prime Minister Dhan-Dhaanya Krishi Yojana can benefir the tea sector.
A Promising Path Forward
The increased allocation of Rs. 5915 crore to the Ministry of Development of North Eastern Region (MDoNER) — a 47.6% rise over the previous year’s revised estimate — shows the government’s commitment to the region’s development. Sarat Kumar Jain, Chairman of the ICC Assam and Meghalaya Committee, praised the initiatives, emphasizing their transformative potential.
“From the Namrup urea plant to expanded air connectivity, these measures are crucial for socio-economic growth,” he said while calling for sustained support for Assam’s iconic tea industry.
With its focus on connectivity, agriculture, and social welfare, the Union Budget 2025-26 holds the promise of a brighter, more prosperous future for Assam and the entire Northeast region.
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