Overall development of North Eastern region and Act East Policy
July 19, 2025
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Home Special Report

Overall development of North Eastern region and Act East Policy

The growth of the nation as a whole, whether in the North, South, East, or West, is of particular significance to the BJP-led Modi Government. The North East Region is thought to benefit greatly from the Government's Act East policy being put into action

by Sekhar Dey
Sep 24, 2023, 02:30 pm IST
in Special Report
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The BJP-led Modi Government is particularly interested in the overall development of the country, be it North or South and East or West. The implementation of the Act East policy of the Government is considered to be extremely important for the North East Region.

Under the Act East policy, the Kaladan Multimodal Transit Transport project is one of the most significant projects. Overall development of North East India depends on its seamless connectivity not only with the mainland of India but also with the neighbouring countries of South East Asia.

This large multi-purpose project of the Government like,

(a) Agartala-Akhaura Rail Link up to Agartala- 12 Km
(b) Agartala-Akhaura Rail Link (Bangladesh side 6.8 km) is funded by the Ministry of External Affairs (MEA)
(c) Implementation of a Tri-lateral Highway connecting India, Myanmar and Thailand
(d) India-Myanmar-Thailand Trilateral Highway—Construction of 69 bridges including approach roads on the Tamu-Kyigone-Kalewa section of 150 km
(e) India-Myanmar-Thailand Trilateral Highway- Construction of 120 km of Kalewa-Yagyi section will transform the communication, economy including income and employment of the entire North East Region in particular and India in general. This will really demonstrate the North East into an engine of growth as pronounced by PM Modi time to time. This is what Union Minister of Development of North Eastern Region (MDoNER), G Kishan Reddy thinks. It is important to mention here that the “Look East Policy” was adopted by the then Government in 1991 to strengthen India’s political relations with South East Asian countries. The Government plans to further improve India’s political, social and economic relations with South East Asian countries such as Myanmar, Thailand, Cambodia, Indonesia, Singapore, Vietnam, Laos, Philippines and Brunei. Though the Look East Policy framed in 1991 made some progress, but it did not yield the results to the desired extent. Therefore in 2008, an agreement was signed between India and Myanmar at the initiative of the then UPA Government for the Kaladan Multimodal Transit Transport project.

Accordingly, the Central Cabinet approved the project and Rs 535.91 crore has been allocated. The implementation of this project has faced various difficulties, especially relating to land acquisition, security etc. The amount of expenditure has increased by about Rs 3200 crore.

What is Kaladan Multipurpose Project?

India and Myanmar jointly identified the Kaladan multimodal transit transport project. Through this project, it was decided to build an alternative gateway to the North East of the country. The Government is hopeful that a new chapter will start in the overall development of the NER through this project. Once implemented, this project will also alleviate pressure on Siliguri Corridor. It should be noted that the only means of land communication between the mainland and the North East is the Chicken Neck Corridor of Siliguri. Moreover, the economic, commercial and strategic relations between India and Myanmar will be enhanced by this new Kaladan Multimodal Transit Transport project. Ever since the formation of the BJP-led Modi Government at the Centre in 2014, special steps have been taken to speed up the implementation of this project.

Prime Minister Narendra Modi brought the “Act East Policy” in place of the “Look East Policy” to accelerate the growth of the North East. This project is considered to be very significant especially keeping in mind the construction of an alternative access route between North East and the mainland of India. It is also expected to usher in a new chapter in the overall development of the entire North East. Note that the Siliguri Corridor is the only land link between North East and the rest of India. It has a very difficult terrain. The completion of the Kaladan Multimodal Transit Transport Project will significantly reduce the pressure on the Siliguri Corridor. Sittwe port in Myanmar’s Rakhine province was inaugurated on May 9, 2023, by the Union Minister of Ports, Shipping, Waterways and AYUSH, Sarbananda Sonowal when the first Indian cargo ship from Kolkata was received at Sittwe port. Later, Union Minister Sarbananda Sonowal said that a new era had started in the North East for the transportation of goods. Under the visionary leadership of Prime Minister Narendra Modi, North East India’s development agenda is at the top. Therefore, the implementation of the Act East policy is being implemented with much greater importance. The faster the Act East Policy is implemented, the faster the fortunes of North East India will rise. This is what a top official of the Ministry of Development of North Eastern Region claimed.

On the other hand, on May 4, 2023, a ship carrying 1,000 metric tonnes of cement officially departed from Kolkata’s Shyama Prasad Mukherjee port to Myanmar’s Sittwe port. The primary objective of this Indian-funded deep-sea port project in Myanmar is to create an alternative route to connect the country’s mainland with North East India. In fact, the project is a part of the USD 484 million Kaladan Multimodal Transit Transport Project. The project is expected to reduce the distance from Kolkata to Mizoram by about 1,328 km and reduce freight costs by about 50 per cent. This ambitious India-Myanmar joint project aims to strengthen connectivity and infrastructure. However, even if the ship reaches the port, its one hundred per cent benefit will not be available right away since the waterways and roads connecting Sittwe Port to Kaladan River to Paletwa in Myanmar and from there to Jorinpui in Mizoram by road have not yet been completed because of certain obstacles. The deadline for completing the project has also been repeatedly extended. According to a recent Union Home Ministry report, the implementation of the project has been delayed due to an unfavourable security situation. In December last year, the Home Ministry’s Parliamentary Standing Committee on the Kaladan Multimodal Transit Transport project expressed dissatisfaction with the slow progress of the project. Meanwhile, to speed up the work of the project, the Minister of Border Affairs of Myanmar, Lt. Gen. Tuntun Naung, talked to the Union Minister of Development of North Eastern Region, G Kishan Reddy, through the virtual medium. The progress of the joint projects of India and Myanmar was discussed in detail in this virtual meeting. The issue of law and order, security and illegal infiltration was also discussed. Most of the discussion was with reference to the progress of the Kaladan project. It needs to be noted here that while the work of port construction and rive renovation has been completed; the work of the 109.2 km road is still incomplete. According to the sources of the Ministry of DoNER, the construction of the road has been given to the Indian State-owned company IRCON and Myanmar’s Government has assured to provide the required security for completion of Kaladan Multimodal Transit Transport project.

Topics: Act East PolicyNorth East DevelopmentKaladan Multimodal Transit Transport projectKaladan Multipurpose ProjectPM Modi
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