Ashtalakshmi Growth Model: Development of North-East India

The Ashtalakshmi Growth Model aims to transform India’s North-East into a growth engine. Read here to learn more.

The Ashtalakshmi Growth Model represents the Government of India’s integrated vision for accelerating the socio-economic transformation of the North-Eastern Region (NER).

Drawing inspiration from the eight manifestations (Ashtalakshmi) of Goddess Lakshmi, which symbolise prosperity, knowledge, courage, fertility, wealth, victory, food, and abundance, the model seeks to harness the immense potential of the eight North-Eastern states-Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim.

The strategy focuses on connectivity, infrastructure, human development, natural resources, border trade, and sustainable growth, positioning the Northeast as India’s gateway to Southeast Asia under the Act East Policy.

Why is the Ashtalakshmi Growth Model Important?

The North-East occupies nearly 8% of India’s geographical area and shares over 5,300 km of international borders with Bangladesh, Bhutan, Myanmar, China, and Nepal.

Despite abundant natural resources, biodiversity, hydropower potential, and strategic importance, the region has historically faced:

• Difficult terrain
• Connectivity gaps
• Infrastructure deficits
• Limited industrialization
• High logistics costs
• Security challenges

The Ashtalakshmi Growth Model seeks to transform these challenges into opportunities by creating a modern, connected, sustainable, and prosperous North-East.

Pillars of the Ashtalakshmi Growth Model

1. Infrastructure-led Development

Infrastructure has emerged as the foundation of the region’s transformation.

Road and Rail Connectivity

• More than 3,700 central projects have been sanctioned across the Northeast.
• Railway budgets have been significantly enhanced to improve regional integration.
• Several states have achieved 100% railway electrification.
• Broad-gauge railway expansion has connected previously isolated regions.

Major engineering achievements include:

• Bogibeel Bridge (road-cum-rail bridge)
• Dhola-Sadiya Bridge (Bhupen Hazarika Setu)
• Sela Tunnel in Arunachal Pradesh

Future Priority

• The Noney Bridge in Manipur, which will become the world’s tallest railway pier bridge, is expected to revolutionise connectivity once completed.

2. Air and Water Connectivity

The Northeast is increasingly integrated through multimodal transport.

UDAN Expansion

• Operational airports increased from 9 (2014) to 17 (2026), bringing remote districts into India’s aviation network.

Inland Waterways

National Waterways expanded from 1 (2014) to 20 (2024), leveraging the Brahmaputra River for cargo movement and regional trade.

• Brahmaputra (NW-2)
• Barak River (NW-16)

3. Rural Development and Human Development

• Universal Drinking Water: States such as Arunachal Pradesh and Mizoram have achieved 100% rural tap water coverage under the Jal Jeevan Mission.
• Housing: The Pradhan Mantri Awas Yojana (PMAY) has provided millions of permanent houses, improving rural living standards.
• Sanitation: Large-scale toilet construction has enabled the region to achieve Open Defecation Free (ODF)
• Healthcare: Expansion of Ayushman Bharat has reduced catastrophic health expenditure and improved healthcare accessibility.
• Digital Inclusion: The rollout of BharatNet, Mobile towers, and Internet connectivity has significantly reduced digital isolation.

Agricultural Transformation

Agriculture remains the backbone of the regional economy.

Organic Farming

Through Mission Organic Value Chain Development for North Eastern Region (MOVCD-NER), the region has become India’s organic farming hub.

The programme promotes:

• Farmer Producer Organisations (FPOs)
• Organic certification
• Value addition
• Export-oriented agriculture

Fisheries: Fish production has expanded rapidly, with Assam emerging as the fisheries hub of the Northeast.

PM-KISAN: Income support has strengthened the financial resilience of farmers, including women beneficiaries.

Agarwood Economy: Tripura and neighbouring states possess significant agarwood resources that offer substantial export potential.

Renewable Energy and Green Growth

The Ashtalakshmi model integrates economic growth with sustainability.

Major initiatives include:

• Renewable energy skill development
• Solar energy deployment
• Green workforce training

Large hydropower projects include:

• Dibang Multipurpose Project (2,880 MW)
• Subansiri Lower Hydroelectric Project (2,000 MW)

These projects are expected to strengthen India’s clean energy transition.

Strategic Importance

The Northeast is central to India’s geopolitical strategy.

Major connectivity initiatives include:

• India-Myanmar-Thailand Trilateral Highway
• Kaladan Multi-Modal Transit Transport Project

These projects aim to transform the Northeast into India’s gateway for trade with ASEAN.

Development of North-East

The region is witnessing structural transformation through:

• Mega transport infrastructure
• Railway electrification
• Airport expansion
• Inland water transport
• Renewable energy investments
• Digital connectivity
• Organic agriculture
• Rural welfare programmes

Read: PM-Development Initiative for North-East Region (PM-DevINE)

Challenges for the Ashtalakshmi Growth Model

Despite significant progress, several structural challenges remain.

• Difficult Geography: Mountainous terrain and landslide-prone regions make infrastructure development expensive and technically demanding.
• High Logistics Costs: Frequent weather disruptions increase transportation costs and reduce market competitiveness.
• Administrative Capacity: Differences in institutional capacity across states sometimes delay project implementation.
• Limited Value Addition: Although the region produces high-value crops such as bamboo, spices, tea, and organic fruits, the related processing industries remain inadequate, limiting income generation.
• Ecological Sensitivity: Infrastructure expansion must balance developmental needs with biodiversity conservation.

Way Forward

Strengthen Connectivity

• Complete the Noney Bridge
• Accelerate railway expansion
• Improve last-mile rural roads, Fast-track Act East Projects

To unlock international trade opportunities, complete:

• India-Myanmar-Thailand Highway
• Kaladan Project

Promote Climate-Resilient Development

For remote villages expand:

• Solar power
• Micro-hydropower
• PM-KUSUM
• Decentralised renewable energy

Develop Agri-Value Chains

To maximise returns from the region’s rich biodiversity, establish:

• Food processing clusters
• Cold storage infrastructure
• Export logistics

Promote GI-based Exports

• The Northeast possesses 89 Geographical Indication (GI)-tagged products. Strengthening branding, processing, and export infrastructure can significantly boost farmers’ incomes.

Improve Skill Development

Expand vocational education to create sustainable employment opportunities.

• tourism
• renewable energy
• logistics
• agro-processing
• digital services

Conclusion

The Ashtalakshmi Growth Model represents a paradigm shift in the development of India’s North-East by integrating infrastructure expansion, human development, renewable energy, organic agriculture, digital connectivity, and cross-border trade into a unified growth strategy.

By transforming the region from a geographically isolated frontier into a dynamic economic corridor linked to Southeast Asia, the model advances the vision of “Act East through North-East.”

Sustained investment, ecological stewardship, institutional strengthening, and inclusive governance will be essential to realising a prosperous, resilient, and globally connected North-East, making it a key driver of India’s journey towards Viksit Bharat 2047.