Union Finance Minister Nirmala Sitharaman on Friday said externally aided projects (EAPs) should not be seen merely as financing tools but as instruments to help local products from the Northeast access global markets, strengthen livelihoods and turn the region’s geographical challenges into economic opportunities. The minister was chairing a conference on “Leveraging externally aided projects in the northeastern states”.
Expanded EAP Funding Under Modi Government
Sitharaman said assistance under EAPs in the Northeast has increased seven-fold under the Narendra Modi government. The scale of support rose from around Rs 9,000 crore during 2004-2014 to nearly Rs 76,000 crore between 2014 and 2026. She emphasized that EAPs bring more than funding—they introduce international best practices in project design, procurement, environmental safeguards and community participation.
| Period | EAP Assistance (Rs crore) |
|---|---|
| 2004-2014 | ~9,000 |
| 2014-2026 | ~76,000 |
“When we speak of EAPs, we are not speaking of loans or project costs but of a development model that combines central support, state execution and global expertise, all for local communities,” Sitharaman said.
She noted that institutions such as the World Bank and the International Fund for Agricultural Development (IFAD) contribute innovative technologies and tested development models from their experience in challenging geographies.
Infrastructure Push in Northeast
Highlighting the region’s connectivity push, Sitharaman said more than 10,000 km of roads have been built in the Northeast since 2014 at a cost exceeding Rs 1 lakh crore, while another 5,000 km of highways are under construction. She stressed that farmers, artisans and young people in the Northeast have historically struggled to access markets, making infrastructure and connectivity critical to unlocking the region’s economic potential.
Sitharaman also highlighted the Centre’s political focus: Prime Minister Narendra Modi has visited the Northeast more than 75 times since 2014, and Union ministers have made over 700 visits. “The northeast is no longer seen as peripheral to India's development story but regarded as central to India's growth, connectivity and future prosperity,” she said.
Organic Spice Processing Facility as Export Model
Earlier in the day, Sitharaman inaugurated Northeast India’s largest organic spice processing facility in Meghalaya’s Ri-Bhoi district. The organically certified unit, developed with an investment of around Rs 32 crore, can process more than 10,000 metric tonnes of spices annually, including ginger, turmeric, black pepper and chilli. The facility is expected to directly benefit around 5,500 organic farmers across Meghalaya and the wider Northeast region.
The processing plant is the first organically certified spice processing unit in Northeast India. It is certified under both the National Programme for Organic Production and EU Organic Standards, enabling access to premium domestic and international markets.
Meghalaya chief minister Conrad K Sangma described the facility as a “game-changing initiative” and said targeted interventions over the past eight years have helped create sustainable income opportunities for thousands of farming families.
Referencing her visit to the facility, Sitharaman said: “I saw the kind of intervention that the Northeast needs more of—local produce being processed locally, farmers getting better value and traditional strengths being connected to modern markets.” She added, “Can there be anything better tailored than local products going global with external aid?”
Implementation Challenges and Way Forward
Sitharaman cautioned that implementation challenges remain and called for stronger project management, better last-mile connectivity, increased private sector participation and improved coordination among agencies. The minister’s remarks underscore the government’s intent to use EAPs as a vehicle for integrating the Northeast into global supply chains, leveraging both infrastructure and institutional partnerships.
Sources:
