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MSME Investments Surge in Northeast India

RR Team, February 12, 2026February 13, 2026
New Delhi: The Central government has intensified efforts to promote investments in MSMEs in Northeast India, with the Rising Northeast Investors Summit 2025 attracting investment interest worth ₹4.48 lakh crore. The update was shared in the Rajya Sabha by Minister of State for Development of North Eastern Region (MDoNER), Dr. Sukanta Majumdar, highlighting a comprehensive strategy to boost entrepreneurship, credit access and financial inclusion across the region.

₹4.48 Lakh Crore Investment Interest at Summit

The Rising Northeast Investors Summit 2025 was organised to catalyse trade and private investment across the eight northeastern states. According to the government, the summit and its associated roadshows generated Memoranda of Understanding (MoUs), letters of intent and qualified leads amounting to ₹4.48 lakh crore.

The focus sectors included tourism and hospitality, agro-food processing, textiles and handicrafts, healthcare, education and skill development, IT and ITeS, entertainment and sports, infrastructure and logistics, and energy. Officials described the response from private investors, PSUs and industrial groups as a strong endorsement of the region’s economic potential.

NEDFi’s Expanding Role in MSME Growth

The North Eastern Development Finance Corporation Ltd (NEDFi) continues to play a central role in strengthening the MSME ecosystem in the Northeast. The institution provides financial assistance for industrial, infrastructure and agri-allied projects while supporting first-generation entrepreneurs.

Through Business Facilitation Centres, NEDFi assists entrepreneurs in project preparation, financial planning, credit linkages and market access. It also conducts business outreach programmes across northeastern states to spread awareness about government schemes and institutional support mechanisms.

Under sustainable livelihood programmes, artisans engaged in bamboo, banana fibre and handloom crafts have received skill training and marketing support. Dedicated exhibitions and showrooms have helped promote traditional products to wider markets.

NEDFi is also nurturing the startup ecosystem through the North East Venture Fund (NEVF), providing handholding, mentoring and early-stage funding support to innovative enterprises.

Credit Guarantee Schemes to Boost Lending

To improve access to finance, the government has introduced the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME). The initiative offers government-backed guarantees, enabling small businesses to secure loans more easily, particularly for the purchase of machinery and equipment.

Additionally, the Credit Guarantee Scheme for Exporters (CGSE), approved on November 12, 2025, provides eligible borrowers especially MSMEs additional credit support of up to 20 percent of their existing working capital limits.

Financial Inclusion Through Postal Network

The Department of Posts (DoP) is contributing to financial inclusion and digital empowerment through Post Office Savings Bank services and India Post Payments Bank (IPPB). With its extensive network in remote areas, the postal system is enabling last-mile banking access in the Northeast.

Officials said digital payment services and affordable financial products are being expanded to ensure inclusive growth. The integration of financial services with local entrepreneurship is expected to further strengthen MSME participation in the formal economy.

Integrated Strategy for Northeast Development

The government’s multi-pronged strategy combining investment promotion, credit guarantees, startup funding and financial inclusion—signals a renewed push to transform the Northeast into a vibrant economic hub. With policy backing and institutional support, MSMEs are being positioned as key drivers of regional growth and employment generation.

As Dr. Sukanta Majumdar informed Parliament, the Centre remains committed to unlocking the economic potential of Northeast India through sustained investment and enterprise-led development.

News #CreditGuaranteeScheme#FinancialInclusion#MakeInIndia#MDoNER#MSME#NEDFi#NortheastIndia#RisingNortheast#StartupIndia#SukantaMajumdar

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