How 2 economic corridors may transform Northeast India

The landlocked northeastern region of India has long faced infrastructural and economic challenges due to its geographical constraints. The Siliguri Corridor, also known as the Chicken’s Neck, a narrow strip of land in West Bengal, remains the primary route connecting the northeastern states to the rest of India, making the region vulnerable to bottlenecks and disruptions.

However, two newly proposed economic corridors—the Hili-Mahendraganj Transnational Economic Corridor and the Bhutan-Bodoland-Bay of Bengal (B3) Corridor—hold the potential to revolutionize connectivity, trade, and security in the region.

These corridors, if implemented successfully, will significantly reduce travel time, cut costs, and open up economic opportunities while easing the pressure on the traditional Siliguri route.

From Bengal to Meghalaya

The Hili-Mahendraganj corridor is an ambitious initiative aimed at enhancing both road and rail connectivity of Meghalaya and the broader northeastern region with mainland India through Bangladesh.

Hili in West Bengal and Mahendraganj in the Garo Hills region of Meghalaya, both share a border with Bangladesh, making this corridor a strategic transnational route.

Meghalaya Chief Minister Conrad Sangma has emphasized that the 100-km corridor has the potential to cut travel time and costs by 25–60%. Currently, goods and passengers from Kolkata to Meghalaya, Tripura, and Barak Valley in Assam must traverse the Chicken’s Neck, a longer and less efficient route. With this corridor in place, travel distances could be reduced by 600-700 km, leading to considerable economic savings for businesses and consumers alike.

The National Highways and Infrastructure Development Corporation Limited (NHIDCL) has already conducted road alignment analyses and shared them with Bangladesh for feasibility studies. This shows that planning for the corridor is already underway.

Additionally, the Indian Railways has sanctioned a Final Location Survey for a transnational railway project between Hili and Mahendraganj through Ghoraghat, Palashbari, and Gaibandha in Bangladesh. Though implementation may take time, this step signals positive progress toward realizing the corridor’s potential.

However, the implementation of this project is heavily reliant on diplomatic relations between India and Bangladesh. Before the recent regime change in Bangladesh, the corridor was discussed at the prime ministerial level. However, with Sheikh Hasina’s ousting, uncertainties have emerged. India must continue engaging with Dhaka to push this critical project forward.

This corridor will serve as a major economic artery, enabling businesses in Meghalaya, Barak Valley, Tripura, and other northeastern states to engage in more efficient trade with West Bengal and beyond. Faster movement of goods will enhance trade volumes, encourage investment, and create new employment opportunities.

The B3 Corridor

The second proposed corridor—the Bhutan-Bodoland-Bay of Bengal (B3) Corridor—is a strategic initiative to connect Bhutan with the Bay of Bengal through Assam and Meghalaya. This corridor aims to facilitate smoother trade and transportation while enhancing regional cooperation between India and Bhutan.

Key transit points such as Jogighopa in Bodoland, Assam, and Phulbari in Meghalaya will serve as crucial logistical hubs for the B3 Corridor. Phulbari’s location on the banks of the Brahmaputra further enhances the corridor’s potential by allowing access to water cargo, thereby integrating road, rail, and riverine transport for maximum efficiency.

Strengthening trade ties with Bhutan is a significant aspect of this corridor. Bhutan relies on India for imports and exports, and better infrastructure will enhance economic exchanges between the two neighbors. Improved connectivity will benefit Bhutanese exports such as hydropower, agricultural produce, and handicrafts while providing India with greater access to Bhutanese markets.

Additionally, Bodoland, which has historically been affected by socio-political instability, is poised to become a crucial economic link in the northeastern trade network. The corridor will bring increased investments in infrastructure, logistics, and industries, creating job opportunities and improving the overall economic landscape of the region.

The corridor is also expected to complement India’s access to the ports of Bangladesh. Two years ago, India signed a transit agreement with Bangladesh, securing access to the Mongla and Chittagong ports. This agreement significantly shortened the travel distance between Kolkata and the northeastern states, especially Tripura, by nearly 800 km. With the B3 corridor, India can further capitalize on Bangladesh’s waterways, making northeastern trade more efficient and cost-effective.

A Viable Dream?

The Hili-Mahendraganj transnational economic corridor and the Bhutan-Bodoland-Bay of Bengal (B3) Corridor can potentially be a game-changer for India’s east, and most importantly, the Northeast.

Currently, 95% of exports from Assam, Meghalaya, Manipur, Nagaland, and Arunachal Pradesh are transported via road through the Siliguri corridor, with the remaining 5% relying on rail.

The heavy dependence on this narrow corridor creates logistical bottlenecks and poses security risks. The proposed corridors will help ease the burden on the Chicken’s Neck by offering alternative trade and transport routes.

Therefore, beyond the economic benefits, these corridors hold immense strategic significance in terms of regional geopolitics and security. The northeastern states share borders with several countries, including China, Myanmar, Bhutan, and Bangladesh.

China’s increasing influence in South Asia, particularly through its Belt and Road Initiative (BRI), poses strategic challenges for India. Bangladesh and Bhutan, both key partners in the proposed corridors, have witnessed growing Chinese investment in infrastructure projects.

Strengthening India’s economic and trade relations with these nations through better connectivity and infrastructure projects will counterbalance Beijing’s presence and reaffirm New Delhi’s leadership in the region. Improved infrastructure and connectivity will ensure better border management and security preparedness.

These projects will significantly strengthen national security by reducing strategic vulnerabilities. In case of disruptions in the Siliguri corridor—whether due to natural disasters, geopolitical tensions, or security threats—these new corridors will ensure uninterrupted connectivity for the northeastern states. Furthermore, the enhanced accessibility provided by these corridors will allow quicker mobilization of defense forces in case of any security threats in an uncertain neighbourhood.

The corridors will also play a pivotal role in India’s Act East Policy, aimed at fostering closer ties and trade links with Southeast Asian nations like Myanmar, Thailand, and other ASEAN countries. This will open new avenues for trade and investment, making the northeastern states vital players in India’s larger regional diplomacy and economic outreach.

Additionally, increased economic activity and cross-border trade will help mitigate insurgency-related issues in the Northeast, as improved livelihoods and greater economic integration have historically contributed to regional stability.

In terms of feasibility, the two corridors face different sets of challenges. The B3 Corridor appears more viable, given the strong cooperation between Bhutan and India. A top official from the Assam government has also acknowledged Bhutan’s willingness to collaborate on this front. With both nations historically enjoying stable diplomatic relations and economic partnerships, the successful execution of this corridor seems highly probable.

Bhutan’s reliance on India for trade and transit further strengthens the project’s potential, as it aligns with the interests of both countries. However, it will need significant investment from both Assam as well as Centre, considering that Assam takes significant debt for its functioning.

On the other hand, the Hili-Mahendraganj corridor presents significant challenges due to the current political situation in Bangladesh. While the project had previously been discussed at high diplomatic levels, the recent change in Bangladesh’s government has introduced uncertainties. The new leadership’s stance on regional infrastructure projects involving India remains unclear, making the future of this corridor more unpredictable.

Additionally, implementing a transnational corridor requires strong bilateral cooperation, regulatory approvals, and logistical coordination. The current political climate in Bangladesh is likely to delay the corridor’s development. However, should diplomatic relations stabilize and Bangladesh extends its support, the project could prove to be a game-changer for connectivity in Northeast India.

While challenges remain—especially in securing diplomatic approvals and funding—successful implementation of these corridors will mark a significant step toward integrating the Northeast with the rest of India and the broader South Asian economy.

Nabaarun Barooah, https://swarajyamag.com


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