Initiatives to Boost Investment in Northeast India

27 Mar 2025 CW Team

i. Capital Investment Incentive (CII) ii. Capital Interest Subvention (CIS) iii. Manufacturing & Services linked incentive (MSLI)

Under the UNNATI scheme the total budget outlay of the Scheme is Rs 100.37 billion. The total budget outlay is divided into two parts – Part A and Part B. Part A of the scheme, with an outlay of Rs 97.37 billion, if for providing incentives to eligible new industrial units and those undergoing substantial expansion. Part B of the scheme, with an outlay of Rs 3 billion is for implementation & institutional arrangements for the scheme. 60 per cent of the scheme outlay of part A is earmarked to all States of North Eastern Region (NER). The districts are categorized in two zones: Zone A (industrially advanced districts) and Zone B (industrially backwards districts) based on NER district SDG index (2021-22).A total of 56 units registration has been granted in the scheme till date

In addition to the above, Government of India, with an intent to build a strong ecosystem for nurturing innovation, startups and encouraging investments in the country also launched the Startup India initiative on 16th January 2016. For the North Eastern States, 2,109 entities have been recognized as startups by Department for Promotion of Industry and Internal Trade (DPIIT) as on 31st January 2025.

Further,to facilitate credit access for the Micro, Small & Medium Enterprises (MSME) & Micro Finance sectors in the North Eastern Region, the Ministry of Development of North Eastern Region (MDoNER) has been providing annual budgetary allocation to North Eastern Development Finance Corporation (NEDFi), a Non-Banking Financial Company (NBFC) under administrative control of MDoNER, in the form of an interest free loan under the North East Enterprise Development Scheme (NEEDS) for the period 2021-22 to 2025-26, with a total allocation of Rs 3 billion.

News source: PIB

The Government of India had introduced a new scheme UNNATI (Uttar Poorva Transformative Industrialization Scheme) on March 9, 2024 for extending support to the industries for enhancing regional infrastructure, create employment opportunities, and promote resilience and prosperity in the region. Under the UNNATI Scheme, the following incentives are provided to the industrial Units: i. Capital Investment Incentive (CII) ii. Capital Interest Subvention (CIS) iii. Manufacturing & Services linked incentive (MSLI) Under the UNNATI scheme the total budget outlay of the Scheme is Rs 100.37 billion. The total budget outlay is divided into two parts – Part A and Part B. Part A of the scheme, with an outlay of Rs 97.37 billion, if for providing incentives to eligible new industrial units and those undergoing substantial expansion. Part B of the scheme, with an outlay of Rs 3 billion is for implementation & institutional arrangements for the scheme. 60 per cent of the scheme outlay of part A is earmarked to all States of North Eastern Region (NER). The districts are categorized in two zones: Zone A (industrially advanced districts) and Zone B (industrially backwards districts) based on NER district SDG index (2021-22).A total of 56 units registration has been granted in the scheme till date In addition to the above, Government of India, with an intent to build a strong ecosystem for nurturing innovation, startups and encouraging investments in the country also launched the Startup India initiative on 16th January 2016. For the North Eastern States, 2,109 entities have been recognized as startups by Department for Promotion of Industry and Internal Trade (DPIIT) as on 31st January 2025. Further,to facilitate credit access for the Micro, Small & Medium Enterprises (MSME) & Micro Finance sectors in the North Eastern Region, the Ministry of Development of North Eastern Region (MDoNER) has been providing annual budgetary allocation to North Eastern Development Finance Corporation (NEDFi), a Non-Banking Financial Company (NBFC) under administrative control of MDoNER, in the form of an interest free loan under the North East Enterprise Development Scheme (NEEDS) for the period 2021-22 to 2025-26, with a total allocation of Rs 3 billion. News source: PIB

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