The Centre has drawn up a ₹5,000 crore development plan for India's northeast region for FY27, with a sharp focus on improving connectivity and social infrastructure across border areas, two people familiar with the matter said.

The plan envisages constructing about 270 km of roads, providing all-weather connectivity to 225 villages, and building or upgrading around 70 school infrastructure projects across the eight northeastern states.

The government expects the education projects to benefit about 292,000 students through facilities created with central support, these people said.

The proposal also prioritizes healthcare infrastructure. The Centre plans to develop five hospitals equipped with modern healthcare facilities across the region. The hospitals are expected to serve more than 1.36 million people while helping five district hospitals reach the benchmark of at least 22 beds per 100,000 population.

However, according to the first of the two people cited above, the locations of the proposed hospitals have yet to be finalized because consultations with the state governments are still underway.

Queries sent to the ministries of finance and development of northeastern region, the Department of Expenditure, and the chief secretaries of all eight northeastern states remained unanswered until press time.

Border push

The spending plan comes as China continues to expand roads, villages, airports and other dual-use infrastructure along the frontier facing India's northeastern states, intensifying New Delhi's efforts to strengthen its own border regions following heightened tensions along the Line of Actual Control (LAC).

Over the past several years, Beijing has expanded highways, bridges, airports, rail links and so-called “border defence villages” across the Tibetan Plateau. India has responded by accelerating investments in roads, tunnels, telecommunications and public services on its side of the border.

India's northeast comprises Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura, and is home to about 45.8 million people, according to the 2011 Census.

The proposed projects will be implemented through the Centre's two flagship programmes for the region—the Prime Minister's Development Initiative for North East Region (PM-DevINE) and the North East Special Infrastructure Development Scheme (NESIDS). The Department of Expenditure has allocated ₹2,306 crore for PM-DevINE and ₹2,500 crore for NESIDS for FY27.

Under PM-DevINE, the Centre proposes to sanction 10 new projects during FY27, including four social development projects, two livelihood projects and four infrastructure projects. It also plans to complete four social projects, one livelihood project and three infrastructure projects during the year.

The government expects these projects to become operational during the year, benefiting around 6,000 people, including 3,000 beneficiaries under social development initiatives, 500 under livelihood projects and 2,500 through infrastructure projects.

The plan also includes construction of two power substations aimed at improving electricity availability for nearly 898,000 households.

In addition, the Centre plans to complete eight drinking water supply projects that would provide 50,957 household water connections.

Experts said the strategy reflects a broader shift towards treating border infrastructure as both a security imperative and a long-term economic investment.

“The region's development must be viewed not merely as a border management priority, but as a long-term economic and strategic investment in India's future,” said Nava Baro, founder, Northeast India Public Policy Forum, a Guwahati-based think tank.

“Investments in all-weather roads, schools, and healthcare facilities will not only improve the quality of life for people living in remote border areas but also strengthen national security by ensuring greater integration and accessibility,” Baro said.

“However, infrastructure development should be complemented by sustained investments in livelihoods, entrepreneurship, digital connectivity, and local capacity building so that these regions can fully participate in the economic growth story,” he said.

Given the northeast’s strategic location along India’s borders, this initiative strengthens not only regional development but also the country’s long-term strategic and economic interests, said Divakar Vijayasarathy, founder and CEO, DVS Advisory Group.

“Infra development in the northeast has several benefits. It will create more local opportunities for the youth and population of these states leading to economic prosperity that leads to social cohesion. It will create connectivity in the region making these states logistical hubs for exports to south East Asian countries,” said Ranen Banerjee, partner and leader, Economic Advisory, PwC India.

“Further, it also helps from a security perspective given the wide land borders of these states. Thus, rapid infrastructure development in these states is an imperative to bridge the gap in economic growth of these states with the other regions,” Banerjee said.

The Centre has drawn up a ₹5,000 crore development plan for India's northeast region for FY27, with a sharp focus on improving connectivity and social infrastructure across border areas, two people familiar with the matter said.

The plan envisages constructing about 270 km of roads, providing all-weather connectivity to 225 villages, and building or upgrading around 70 school infrastructure projects across the eight northeastern states.

The government expects the education projects to benefit about 292,000 students through facilities created with central support, these people said.

The proposal also prioritizes healthcare infrastructure. The Centre plans to develop five hospitals equipped with modern healthcare facilities across the region. The hospitals are expected to serve more than 1.36 million people while helping five district hospitals reach the benchmark of at least 22 beds per 100,000 population.

However, according to the first of the two people cited above, the locations of the proposed hospitals have yet to be finalized because consultations with the state governments are still underway.

Queries sent to the ministries of finance and development of northeastern region, the Department of Expenditure, and the chief secretaries of all eight northeastern states remained unanswered until press time.

Border push

The spending plan comes as China continues to expand roads, villages, airports and other dual-use infrastructure along the frontier facing India's northeastern states, intensifying New Delhi's efforts to strengthen its own border regions following heightened tensions along the Line of Actual Control (LAC).

Over the past several years, Beijing has expanded highways, bridges, airports, rail links and so-called “border defence villages” across the Tibetan Plateau. India has responded by accelerating investments in roads, tunnels, telecommunications and public services on its side of the border.

India's northeast comprises Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura, and is home to about 45.8 million people, according to the 2011 Census.

The proposed projects will be implemented through the Centre's two flagship programmes for the region—the Prime Minister's Development Initiative for North East Region (PM-DevINE) and the North East Special Infrastructure Development Scheme (NESIDS). The Department of Expenditure has allocated ₹2,306 crore for PM-DevINE and ₹2,500 crore for NESIDS for FY27.

Under PM-DevINE, the Centre proposes to sanction 10 new projects during FY27, including four social development projects, two livelihood projects and four infrastructure projects. It also plans to complete four social projects, one livelihood project and three infrastructure projects during the year.

The government expects these projects to become operational during the year, benefiting around 6,000 people, including 3,000 beneficiaries under social development initiatives, 500 under livelihood projects and 2,500 through infrastructure projects.

The plan also includes construction of two power substations aimed at improving electricity availability for nearly 898,000 households.

In addition, the Centre plans to complete eight drinking water supply projects that would provide 50,957 household water connections.

Experts said the strategy reflects a broader shift towards treating border infrastructure as both a security imperative and a long-term economic investment.

“The region's development must be viewed not merely as a border management priority, but as a long-term economic and strategic investment in India's future,” said Nava Baro, founder, Northeast India Public Policy Forum, a Guwahati-based think tank.

“Investments in all-weather roads, schools, and healthcare facilities will not only improve the quality of life for people living in remote border areas but also strengthen national security by ensuring greater integration and accessibility,” Baro said.

“However, infrastructure development should be complemented by sustained investments in livelihoods, entrepreneurship, digital connectivity, and local capacity building so that these regions can fully participate in the economic growth story,” he said.

Given the northeast’s strategic location along India’s borders, this initiative strengthens not only regional development but also the country’s long-term strategic and economic interests, said Divakar Vijayasarathy, founder and CEO, DVS Advisory Group.

“Infra development in the northeast has several benefits. It will create more local opportunities for the youth and population of these states leading to economic prosperity that leads to social cohesion. It will create connectivity in the region making these states logistical hubs for exports to south East Asian countries,” said Ranen Banerjee, partner and leader, Economic Advisory, PwC India.

“Further, it also helps from a security perspective given the wide land borders of these states. Thus, rapid infrastructure development in these states is an imperative to bridge the gap in economic growth of these states with the other regions,” Banerjee said.