Seven-fold rise in externally aided project funding for Northeast under Modi govt: Sitharaman

Union Finance Minister Nirmala Sitharaman on Friday, June 19, said funding for externally aided projects (EAPs) in the Northeast has increased seven-fold under the Narendra Modi government, while stressing that such projects should be viewed not merely as sources of financing but as instruments for boosting livelihoods, improving market access and driving economic transformation in the region.

Addressing a conference on "Leveraging Externally Aided Projects in the Northeastern States" in Shillong, Sitharaman said central support under EAPs had risen from around Rs 9,000 crore during 2004-14 to nearly Rs 76,000 crore between 2014 and 2026.

The conference was attended by Assam Chief Minister Himanta Biswa Sarma, Meghalaya Chief Minister Conrad K Sangma, Sikkim Chief Minister Prem Singh Tamang, Nagaland Chief Minister Neiphiu Rio, Mizoram Chief Minister Lalduhoma and Tripura Chief Minister Manik Saha.

Sitharaman said the Northeast's farmers, artisans and youth have historically faced difficulties in accessing markets, and that improving connectivity and infrastructure has been a key priority of the Centre's development agenda for the region.

She said more than 10,000 km of roads have been constructed in the Northeast since 2014 at a cost exceeding Rs 1 lakh crore, while another 5,000 km of highways are currently under construction.

Describing the Northeast as a region endowed with immense natural and cultural wealth, the Union minister said the challenge lies in converting its potential into sustainable prosperity. She cited products such as Lakadong turmeric, Khasi mandarin, Arunachal Pradesh kiwis, Tezpur litchis, Karbi Anglong ginger, Manipur black rice, Mizoram chillies, Nagaland tree tomatoes and Tripura pineapples as examples of local produce with strong market potential.

Sitharaman said externally aided projects bring not only financial resources but also international expertise in project design, procurement, contract management, environmental safeguards and community participation.

"When we speak of EAPs, we are not speaking merely of loans or project costs but of a development model that combines central support, state execution and global expertise for the benefit of local communities," she said.

The minister also highlighted the Centre's focus on the Northeast, noting that Prime Minister Narendra Modi has visited the region more than 75 times since 2014, while Union ministers have collectively made over 700 visits.

"The Northeast is no longer seen as peripheral to India's development story but as central to India's growth, connectivity and future prosperity," she said.

At the same time, Sitharaman cautioned that challenges remain in project implementation and called for stronger project management, improved last-mile connectivity, greater private sector participation and better inter-agency coordination to maximise the benefits of investments.

Earlier in the day, the Union minister visited an organic spice processing plant in Meghalaya's Ri-Bhoi district and said such initiatives demonstrate how local produce can be processed locally, generating better returns for farmers while connecting traditional strengths with modern markets.

Sitharaman also laid the foundation stone for externally aided projects worth ₹1,246 crore in Meghalaya. These include the ₹957-crore Meghalaya Logistics and Connectivity Improvement Project, the ₹52-crore Supporting Human Capital Development Project for school infrastructure, the Rs 138-crore Integrated Eco-Tourism and Sustainable Agri-based Livelihood Development Project, and the ₹91-crore Meghalaya Eco-Tourism Infrastructure Development Project.

Speaking on the occasion, Meghalaya Chief Minister Conrad K Sangma said the state's organic spice processing facility would significantly boost farmer-led value addition. He said targeted interventions over the past eight years have helped create sustainable livelihood opportunities for thousands of farming families.

Sangma said Meghalaya currently has externally aided projects worth more than Rs 12,000 crore under implementation, helping accelerate development and create opportunities across multiple sectors.

"Our state may be small, but our aspirations are limitless," he said.