The Northeast of India, long overshadowed in mainstream discourse, has emerged as a key focal point in India-Japan relations.
Encompassing the “Seven Sisters” states, the region’s rugged terrain, high rainfall, and deep-rooted cultural diversity make it both a logistical challenge and a strategic asset. Sharing borders with China, Nepal, Bangladesh, Bhutan, and Myanmar, the Northeast plays a crucial role in India’s connectivity and security framework. In recent years, it has also become central to Japan’s engagement with India, aligning with Tokyo’s Free and Open Indo-Pacific (FOIP) vision.
While India and Japan have shared a historically strong relationship, the Northeast has only recently gained prominence in their strategic partnership. According to official data, Japan’s foreign direct investment (FDI) in India amounted to $43.11 billion between April 2000 and September 2024, making it India’s fifth-largest source of FDI with a 6.08% share in total equity inflows. A significant portion of this investment is now being directed toward the Northeast, reflecting Japan’s growing interest in the region.
Japan has invested over Rs 22,000 crore in various development projects across the Northeast, encompassing infrastructure, water supply, sanitation, power, healthcare, and biodiversity. Among these, the Rs 880 crore “North East Road Network Connectivity Improvement Project” is a flagship initiative aimed at enhancing regional connectivity and fostering economic growth. These investments align seamlessly with India’s “Act East Policy,” which seeks to deepen economic and strategic ties with Southeast Asia.
India-Japan collaboration in the Northeast extends beyond economic investments to historical and humanitarian connections. During World War II, Japanese forces fought alongside the Indian National Army (INA), and many Japanese soldiers perished in the Battles of Kohima and Imphal. This shared history has fostered trust and goodwill, strengthening bilateral ties beyond mere economic cooperation.
Ambassador Deepa Wadhwa, former Ambassador of India to Japan, underscores Japan’s broader engagement in the region, emphasizing its contributions to skilling, livelihood programs, disaster prevention, and educational exchanges. “It is strategically important but also an area in need of development. Besides investment in building connectivity, there is also a need to build industries suitable to the region, which can create jobs. In that, we find the Japanese to be the ideal partner,” she explains. Japan’s low-interest loans, along with its expertise, bolster long-term economic collaboration to connect the landlocked states with neighbouring geographies such as Bangladesh, the ASEAN countries, and the Indian mainland.
With an aging population, Japan is increasingly looking to India—and specifically the Northeast—for skilled labour. Programs aimed at training Indian caregivers, particularly nurses from the region, are already in motion in Manipur and Meghalaya. Additionally, partnerships between institutions like IIT Guwahati and Japanese universities seek to enhance capacity-building initiatives, further strengthening economic and educational ties.
Despite these positive developments, experts caution against an over-reliance on extractive industries. Career diplomat and former ambassador to Myanmar, Ambassador Gautam Mukhopadhaya highlights the Northeast’s wealth in natural biological resources, challenging the perception of the region as a developmental “basket case.” He stresses the need to transition from an extractive economy to a productive one, focusing on sustainable industries such as agriculture. “Too much of the thinking around the Northeast, from colonial times until now, has been based on an extractive economy. It needs to transition to a productive economy—one that invests in local agricultural and allied industries on which the bulk of the economy and livelihoods are based, rather than merely extracting resources,” Mukhopadhaya asserts.
Oil, coal, limestone, stone and sand mining, hydroelectric projects, and monoculture plantations such as tea, rubber and palm oil threaten the region’s ecological balance. Mukhopadhaya argues for adequate emphasis on small-scale agriculture, which can provide sustainable employment and preserve crop and biodiversity. “Infrastructure development only without corresponding investments in productivity of livelihoods sustainably can lead to imbalanced growth. Rebalancing investment into small-scale agriculture will generate employment and ensure long-term economic stability,” he notes.
Japan’s deepening engagement in the Northeast is not solely economic; it carries strategic weight as well. Given the region’s proximity to China, investments in connectivity and infrastructure serve as a counterbalance to Beijing’s influence in South Asia. By strengthening economic and infrastructural ties with India, Japan reinforces its Indo-Pacific strategy while supporting India’s broader regional ambitions.
The evolving India-Japan partnership in the Northeast stands at the intersection of economic development and geopolitical strategy. With sustained investment, skill development, and a focus on sustainable industries, the collaboration has the potential to reshape the region’s economic landscape. More than just a recipient of foreign investment, the Northeast is poised to become a crucial link in the Indo-Pacific framework, underscoring the strategic depth of India-Japan relations.
As both nations navigate their shared interests, the region’s transformation could well redefine its place on the global stage.
