Budget 2025: Rs 5,915 crore boost for Northeast with 47.6 per cent increase in MDoNER allocation

The Union Budget 2025-26 has provided a significant boost to the North Eastern Region (NER), with a 47.6 per cent increase in the Ministry of Development of North Eastern Region (MDoNER) allocation. 

The budget estimate for FY 2025-26 stands at Rs 5,915 crore, compared to Rs 4,006 crore in the revised estimates for FY 2024-25. 

This increase underscores the Modi government’s commitment to infrastructure, connectivity, industry, and social welfare in the region.

Here are the key budgetary announcements benefiting Northeast

Regional Connectivity & Infrastructure Expansion

Under the UDAN – Regional Connectivity Scheme, the government aims to expand air connectivity to 120 new destinations, including hilly and remote districts in the North East. Focus on smaller airports and helipads to improve accessibility. The scheme aims to carry 4 crore additional passengers in the next 10 years.

Power Sector Reforms

States implementing electricity distribution and transmission upgrades will be allowed 0.5% additional borrowing of their GSDP which is expected to improve energy reliability across NER.

Also Read: FM Sitharaman announces 12.7 lakh metric ton urea plant in Assam

Agriculture & Rural Development

Urea Plant in Assam: A 12.7 lakh metric ton per annum urea plant to be established at Namrup to boost agricultural productivity.

PM Dhan-Dhaanya Krishi Yojana: Covers 100 agri-districts, including the North East, focusing on crop diversification, irrigation, and storage.

Aatmanirbharta in Pulses Mission: A six-year initiative supporting Tur, Urad, and Masoor production, benefiting NER farmers.

India Post’s Role in Financial Inclusion: Expansion of micro-enterprise credit, DBT cash transfers, and institutional banking services in remote NE districts.

Industry, Employment & Clean Energy

Support for MSMEs: Increased credit guarantee cover for exporter MSMEs up to ₹20 crore.

Manufacturing & Clean Tech: Government support for solar PV, EV batteries, wind turbines, and transmission infrastructure will aid industrial growth in NER.

Women & Child Development

Saksham Anganwadi & Poshan 2.0: Nutritional support for 8 crore children, 1 crore pregnant/lactating women, and 20 lakh adolescent girls in NER.

Tourism & Cultural Development

The Budget 2025 places a special focus on developing Buddhist tourism circuits in the North Eastern Region (NER) to attract domestic and international visitors. To enhance tourism infrastructure, states will receive performance-linked incentives for improving tourist amenities and connectivity. Additionally, MUDRA loans will be provided to support homestay ventures, empowering local entrepreneurs and fostering sustainable tourism growth in the region.

Research, Digital Innovation & Trade

PM Research Fellowship: 10,000 fellowships in IITs & IISc, with opportunities for North Eastern students.
BharatTradeNet: A digital trade infrastructure platform to integrate NER MSMEs into global supply chains.
National Geospatial Mission: Modernization of land records and infrastructure planning for rural & urban development in the North East.

Financial & Policy Reforms for NER

The increase in Foreign Direct Investment (FDI) in the insurance sector to 100% is set to boost financial inclusion in the North Eastern Region (NER), attracting investment and expanding coverage. Additionally, the introduction of the ‘Grameen Credit Score’ for rural lending will enhance access to microfinance, empowering Self-Help Groups (SHGs) and small entrepreneurs across the region.

Investment Friendliness Index to encourage ease of doing business in the region. 

Jan Vishwas Bill 2.0: Decriminalization of regulatory provisions, simplifying business operations in NER.

With a substantial increase in MDoNER funding and targeted interventions in connectivity, agriculture, energy, tourism, and industry, the budget signals a major push for the North East's economic growth. 

The focus on self-reliance, digital expansion, and inclusive development aligns with the Modi government's vision to position the North East as a key driver of India’s growth story.