Revitalizing the East: The Engine behind the Viksit Bharat Vision

While the overarching goal of Viksit Bharat is to achieve a $35 trillion economy by 2047, a unique aspect of the initiative is the identification and support of new growth drivers, both across sectors and countries.

In this context, the budget’s special focus on the eastern states marks a key policy shift. Historically neglected and isolated from the country’s development paradigm, the eastern region has suffered from deficiencies in infrastructure, economic development and skills.

The recent budget’s focus on eastern India is a crucial and justified move, rooted in the principles of equity and justice. Through redirecting financial resources, the government aims to ensure that the eastern states get their fair share, addressing historical inequalities and supporting a forward-looking strategy to promote inclusive development across India. By prioritizing the east, the ‘Viksit Bharat’ model aims to unleash the latent potential of this region, transforming it into a significant growth engine for the country.

The focus on the East in the recent Budget is in line with India’s proactive approach towards infrastructure connectivity under ‘Mission Purvodaya’, an affiliate of ‘Aatmanirbhar Bharat’. Focusing on states like Odisha, Jharkhand and West Bengal, the programme aims to transform India from a passive market into an active manufacturing hub, helping the nation become a self-reliant ‘force multiplier’ in the global economy.

Eastern India has been identified as the prime domain for this development due to its immense potential to drive national progress. Remarkably, a significant portion (58 out of 112) of the aspirational districts in India are concentrated in the states of Odisha, Jharkhand, Assam, Arunachal Pradesh, Sikkim, Manipur, Mizoram Meghalaya, West Bengal and Bihar.

These districts have shown significant progress, underlining the region’s ability to grow rapidly when provided with the right resources. As India prepares to become a developed economy in the next 23 years, East India is poised to play a key role in this transformation.

Pro-agricultural policy

A key aspect of this transformation is the agriculture sector, which remains the backbone of the region’s GDP. The Union government has implemented several pro-farmer policies like the ‘PM KISAN’ scheme, which has provided financial assistance to over 1.97 crore farmers in the eastern states, totalling over ₹11,844 crore. After agriculture, infrastructure development is a cornerstone of the Viksit Bharat vision, essential to bridge the gaps and integrate eastern India with the national and global economy. The government has undertaken extensive projects to increase connectivity in the region.

For example, in West Bengal and Bihar, over 1,500 km of railway sections were commissioned and 36,441 and 56,580 km of rural roads were constructed, respectively. The National Highways Authority of India (NHAI) also constructed over 1,200 km of highways in West Bengal, and an additional 2,171 km were upgraded.

Regional concentration

As part of the East-centric approach, there has also been a strong focus on improving the connectivity of North-East India through programmes such as the Prime Minister’s Development Initiative for North Eastern Region (PM-DevINE). The North-East region shares extensive international borders of 5,812 km with countries including China, Bhutan, Myanmar, Bangladesh and Nepal.

This geographical location makes the region a gateway with immense trade opportunities and international connectivity to East and Southeast Asia. Despite this strategic advantage, the Northeast has historically struggled with challenges related to connectivity and logistical infrastructure. Recognizing the importance of addressing these issues, the Government of India has implemented several initiatives, including the Act East Policy and the North East Special Infrastructure Development Scheme (NESIDS), aimed at boosting the economic prospects of the region.

Work is currently underway to increase connectivity between the Northeast and Bangladesh, using the Chattogram and Mongla ports for cargo transit. Bangladesh’s recent approval of India’s use of these ports is a significant step forward that is expected to reduce the transit time and cost to the Northeast by almost a third compared to the existing Siliguri route.

The Special Accelerated Road Development Programme (SARDP) is a major step in the planning of about 10,141 km of roads in the region, thereby strengthening connectivity both within the country and with the rest of the country. Currently, a stretch of 3,699 km has been completed at an expense of Rs 38,160 crore. Efforts are also being made to expand the railway network and improve connectivity with neighbouring countries like Bangladesh, Myanmar, Bhutan and Nepal. Between 2014 and 2023, 893.82 km of railway tracks were converted to broad gauge, 1,578 km of new lines were added and 429.08 km of double lines were commissioned in the Northeast. These developments are expected to significantly improve transport efficiency, facilitating the movement of goods within the region and beyond.

Moreover, the region’s numerous inland waterways provide a unique opportunity for economical cargo transportation. The government is actively working on utilizing the country’s waterways like the Brahmaputra and Barak rivers. These waterways are being developed to increase domestic and cross-border trade. With the recent budget allocating ₹11,500 crore for flood mitigation in Assam and increasing the budget outlay for the Northeast from ₹24,000 crore to almost ₹82,000 crore, it is clear that the government is showing a firm commitment to utilizing the strategic importance of the region.

Rouhin Deb is the Chief Economist in the Prime Minister’s Secretariat, Government of Assam and

Harsh Kumar Jha is a student of Political Science and International Relations from Ashoka University.