Northeast’s GDP share doubles in a decade, nears 6%

Northeast region has increased in economic significance

The Northeast’s share of India’s GDP has more than doubled in just over a decade, rising from 2.6 percent in 2011–12 to nearly 6 percent in 2024–25, a Moneycontrol analysis of state data shows.

Assam at the core

Assam anchored the surge. Its economy expanded from Rs 1.43 lakh crore in 2011–12 to about Rs 3.50 lakh crore in 2024–25, lifting its share of national GDP from 1.6 percent to 4 percent. Smaller states have also moved in lockstep: Tripura nearly doubled from Rs 19,000 crore to Rs 50,000 crore, Meghalaya from Rs 20,000 crore to Rs 33,000 crore, and Arunachal Pradesh from Rs 11,000 crore to Rs 22,000 crore.

Tripura’s share in national GDP has increased from 0.2 percent to 0.6 percent. In nominal terms, a tenth of India’s output now comes from Northeastern states, compared with 3.6 percent in 2014–15, highlighting its growing economic heft.

Infrastructure upgrades in power and transmission, together with growth in tourism and agro-processing, are driving growth in the Northeast. Greater multimodal links are compressing logistics times, encouraging private capex in warehousing and light manufacturing. Government spending has provided a boost, while improved security and last-mile infrastructure are unlocking services, including hospitality, healthcare, and education.

Prime Minister Narendra Modi’s visit to the region last week underscored this momentum.

“For a long time, some political parties in our country practiced vote-bank politics. Their focus was always on places that had more votes and seats. The entire Northeast, including states like Mizoram, suffered greatly because of this attitude,” Modi said as he unveiled projects worth Rs 8,000 crore in the state.

Till August, the Centre has sanctioned projects worth Rs 47,170 crore under the Development of North Eastern Region schemes, of which Rs 26,478 crore have been completed.