MSME: An Accelerator for Growth and Development in North-East India

North-East India is like a patch of paradise on earth. This area is one of the most sought-after destinations in India and has been a root of calling for all nature lovers, trekkers, and wildlife enthusiasts. The eight contagious states of Assam, Arunachal Pradesh, Meghalaya, Mizoram, Manipur, Nagaland, and Tripura consist of one of the most treasured and Eco-friendly corners in India. They are rich with their vast natural resources and host a cauldron of diverse people and cultures.

MSME: An Accelerator for Growth and Development in North-East India

The eight North East States cover 8% of India’s total area. This region faces a number of crucial developmental challenges. Some of them are:

  • Low capital formation
  • Inadequate infrastructural facilities
  • Low per capita income
  • Communication bottleneck
  • Geographical isolation from the mainstream

But the MSME sector has dawned upon them a new ray of hope. From the past few years, the North East Region of India is receiving massive growth in the MSME sector; and one of the reasons behind it is the encouragement, planning, strategy, and some initiatives that help them to bring more interest in this field and taking actions to execute their dream projects. Below are some of those incredible initiatives:

Skill Development:

The Government has been facilitating Skill Development programs in North- East Region of India through its various institutions. Some of them include:

  • Entrepreneurship Development Institute of India, Guwahati
  • MSME-Development Institutes at different cities like Guwahati, Agartala, Imphal, and Gangtok
  • MSME-Tool Room at Guwahati

The MSME Development Institute, Guwahati plays a key role to promote the development of MSMEs in the states of Arunachal Pradesh, Assam, Meghalaya, through six branch institutes that are located in different cities like Tezpur, Silchar, Itanagar, Shillong, Diphu, and Tura. Most of the initiatives are a part of some national schemes like DDU-GKY and PMKVY; although there are also some regional schemes from the states that help and support the MSMEs in North-East India.

Cluster Development:

The central industrialization of this region has been evolved around a few number of resource-based industries like petroleum and natural gas, jute, tea, coal, forest products, some micro industries based on household resources such as handloom and handicrafts. With rich mineral bases, this region’s exports have also basically focused on the raw materials that include coal, bamboo, limestone, fruits, and vegetable.
In expanding the operation of the units and bringing out a viable solution to these problems, Cluster Development plays a significant role in this purpose. It also provides help in the implementation of some other household-based ventures such as food processing, incense sticks, and some more.

NEED – North East Entrepreneurs Development:

This scheme has been formulated with a purpose to help the first generation entrepreneurs and they are short of equity. They will be provided valuable information about various new projects in Micro and Small Enterprises, expansion, and modernization of existing units.

A pre-requisite of this scheme is the promoter needs to have Technical Qualification in the relevant field. The Term loan would be up to a maximum of 75% of the project cost that includes one cycle of working capital (in deserving cases) and also the Promoter’s contribution should be a minimum of 25% of the project cost.

Northeast Launchpad:

Northeast Launchpad is an incredible initiative of InstaMojo. It provides a platform for all the aspiring entrepreneurs from this region to work towards achieving their goals by making their dreams a reality. Northeast Launchpad is the biggest online B-plan event in the entire Northeast region.

Ecommerce Innovation: MSMEs Are Playing A Key Role in North-East India’s Growth and Development

The emerging MSME sector provides a new horizon not only to the unemployed population of this region but also will help in bringing overall balanced growth, calling for a new era in the economic development of this North-East region of India. The happy news that is buzzing all around here is that North-East India is fast emerging with the entrepreneurship boom and promising to become a startup ecosystem that is one-of-a-kind among all.

Some of the emerging start-ups from North-East India:

Brahmaputra Fables:

Brahmaputra Fables aimed at showcasing the stories of their artisans and weavers through Handloom and Handicraft products of North-East India. Thus they work on the vision of rendering culture by showcasing tradition. They promise to deliver the best quality products from their artisans, encompassing affordable prices as they are directly sourced from their weavers and artisans. Thus they are successfully providing the new generation an integrated platform for showcasing their talents and spreading the culture and heritage of North-East India.


Based in the small village of Kharkutta, Bumbum is a socially-conscious studio in the lap of the Garo Hills of Meghalaya. This creative skill development initiative is especially aimed at the employment of rural women, providing them an opportunity to be engaged in the making of the designs. They are also involved in the process of cutting and the designs are stitched by the women from these rural areas.

What makes Bumbum more purposeful is that these women are encouraged to participate in other spheres than only design. They are actively included in creative discussions like pattern-making, design aesthetics, and construction technique. Bumbum is a dedicated place where these extremely talented ladies, who are primarily homemakers, find scope for making time for themselves.

Encamp Adventures:

Encamp Adventures offers a variety of outdoor recreational activities that range from adventure sports to leisurely activities, all to meet the varying needs of their travelers. They started their venture in August 2018. They work closely with their camp partners, ensuring the standard of quality that is experienced by their travelers never seems compromised. In the long run, they intend on bringing uniformity in the service quality of the outdoor recreational space in India, by enabling the standardization of services, amenities, and also in-tent experiences in this fast-paced emerging market.


Zizira is a company that realizes the potential of this region and its natural bounties. A company that has been working towards providing a stable market for the local farmers to sell their produce. Paying the farmers at a fairly cost and educating them about the importance of sustainable farming practices, this company does more than only provide quality products to the customers.

Runaway Nagaland:

Runaway Nagaland is situated at the Dimapur city of Nagaland. It was founded in the year 2013 with a vision to promote the ‘Made in Nagaland’ brand that will focus on using locally available materials and utilizing their skills. They are all women artisans team preserving and promoting the bunch of aged old indigenous art and technique of handmade products. They are dedicated to their traditional unique procedures of making handmade accessories. They employ women from a varied range of backgrounds and also engage the youths with an aim to pass on the knowledge to the younger generation. They also help to strengthen their economy by bringing in more business from the states to address the mass migration of the rural population to the city.


Indiluv is another fast emerging social organization from the North-East region that has been working towards the sustainable coexistence of humans & wildlife in the fringe areas of the wild. Working with communities that are living in the fringe areas of the wild, they have embarked on a journey of delivering research infused with handmade products to address global problems. This path will lead to the generation of sustainable livelihood for the communities they are aimed at and it will provide a healthy environment for generations to come. Thus they offer you a helping hand to get into shopping for organic and handcrafted products from them.

North-East: The Fast Emerging Startup Ecosystem

The geographical location has so far been considered as the bane of the northeast. But, as we see the emerging startups in this region, we can see that it has become a boon. Because, with the changing government policies, emphasis could be given to the upskilling of the local people, this startup ecosystem will witness growth in leaps and bounds. It is also imperative to train them with proper information and recognize their skillsets. Thus, integrating this North-East region with the national economic mainstream could turn it into India’s gateway to the fast emerged startup ecosystem.

Written as part of Blogchatter’s campaign #ECommerceInnovation. Read more posts in the campaign here.


Annual Report 2020-2021 – MSME

Northeast Launchpad: Top participants at the event

AIC-SMUTBI’s ‘Northeast India as an Emerging Startup Ecosystem’ event

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: