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CENTRES
Progammes & Centres
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Strategically placed between Bangladesh and Myanmar, Mizoram can transform from a landlocked state into India’s trade gateway to Southeast Asia
Despite its rich natural resources and strategic location, Northeast India continues to play a marginal role in international trade. During 2024–25, the total value of exports from the region was estimated at US$6.20 billion, accounting for 0.13 percent of India’s total exports. Among the Northeastern states, Assam accounted for 89 percent of the region’s exports, followed by Meghalaya (5.3 percent), Sikkim (3.7 percent), and Tripura (2 percent). However, Mizoram’s exports stood at merely US$ 0.23 million (0.04 percent), indicating a narrow trade base.
A key constraint to trade and development in the region is inadequate transport and connectivity infrastructure. The Siliguri Corridor, a narrow 22-kilometre-wide stretch, serves as the only land link between the North East and the rest of India. Goods from the region reach Kolkata and Haldia ports through this long and circuitous route, resulting in high transportation costs and longer transit times, which weaken trade competitiveness and industrial investment appeal. Hence, it is important to analyse the prospects for strengthening trade and connectivity in Mizoram in light of emerging development initiatives by both the Central and State Governments.
The Siliguri Corridor, a narrow 22-kilometre-wide stretch, serves as the only land link between the North East and the rest of India.
Strategically located, Mizoram shares international borders with Bangladesh (318 km) to the west and Myanmar (404 km) to the east and south. Covering 21,087 sq km, the state is largely mountainous, yet rich in vegetation and natural resources. Mizoram has recently been declared fully literate, reflecting its strong commitment to education and human capital development. In 2023-24, Mizoram’s Gross State Value Added (GSVA) at constant prices was INR 20,271.55 crore with a per capita GSDP of INR 1,74,148. The primary sector contributed 17 percent to GSVA, while the secondary and tertiary sectors accounted for 28 percent and 55 percent, respectively.
To accelerate regional growth and integration, the Ministry of Development of the North Eastern Region (MDoNER) has undertaken several flagship initiatives. The North East Special Infrastructure Development Scheme (NESIDS), now bifurcated into NESIDS (Roads) under the North Eastern Council (NEC) and NESIDS (Other than Roads) under MDoNER, focuses on improving critical infrastructure such as roads, power, and water supply. Complementary programmes, such as the Prime Minister’s Development Initiative for the North East Region (PM-DevINE), the Hill Area Development Programme (HADP), and the Non-Lapsable Central Pool of Resources (NLCPR), have proven instrumental in bridging developmental gaps and enhancing connectivity across the region.
The North East Economic Corridor (NEEC), launched in 2023, represents a major step toward transforming the region into a key growth hub. The corridor aims at boosting connectivity, trade, and investment by upgrading transport, power, and digital infrastructure, while promoting priority sectors such as bamboo, agarwood, sericulture, and high-value horticultural crops. The initiative also envisions positioning the North East as India’s gateway to Southeast Asia, in line with the Act East Policy.
In response to the changing development framework following the 2015 replacement of the Planning Commission by NITI Aayog, Mizoram formulated several state-specific strategies. These include the 2016 New Economic Development Policy (NEDP), the 2019 Socio-Economic Development Programme (SEDP), and the 2024 Mizoram Bana Kaih (Handholding) Scheme, which collectively aim to strengthen livelihoods, entrepreneurship, and inclusive growth.
The North East Economic Corridor (NEEC), launched in 2023, represents a major step toward transforming the region into a key growth hub.
The State Government has also adopted a range of sectoral and thematic policies to promote sustainable and broad-based development. Key among these are the Industrial and Investment Policy of Mizoram, 2025, Mizoram Procurement Preference Policy for Medium, Small, and Micro Enterprises (MSMEs) of 2025, Ease of Doing Business Policy of 2023, State Logistics Policy of 2022, Policy on Skill and Entrepreneurship Development of 2018, and Tourism Policy, 2023. Together, these frameworks provide a comprehensive roadmap for optimal resource utilisation, private sector participation, and sustainable economic transformation.
Mizoram’s climate favours high-value crops such as ginger, turmeric, bird’s eye chilli, passion fruit, and anthurium. To boost exports, the state should develop production clusters through Farmer-Producer Companies (FPCs) and invest in post-harvest infrastructure, including cold chains and dryers. Obtaining organic certification, Geographical Indication (GI) branding, for example, Mizo Chilli, and training in Good Agricultural Practices (GAPs) will enhance competitiveness. Better connectivity via Lengpui Airport–Kolkata Port and the South-East Asian trade route, along with support from the Agricultural and Processed Food Products Export Development Authority (APEDA), the Spices Board, the National Horticulture Board (NHB), and MSME schemes, can strengthen export potential.
Furthermore, bamboo covers about 30 percent (6,446 sq. km) of Mizoram’s area, dominated by Melocanna baccifera. It offers scope for eco-friendly industries, employment, and exports. Establishing bamboo parks and partnering with the National Bamboo Mission (NBM) can promote high-value products, including furniture, handicrafts, and biomass energy. Skill development, branding, and market linkages with Myanmar, Bangladesh, and the Association of Southeast Asian Nations (ASEAN) will enhance sectoral growth.
With a potential of 4,500 megawatts (MW), hydropower could significantly contribute to the growth and development of the State. Surplus energy can be exported to Bangladesh, Myanmar, and neighbouring states, while reliable power will attract industries.
Skill development, branding, and market linkages with Myanmar, Bangladesh, and the Association of Southeast Asian Nations (ASEAN) will enhance sectoral growth.
Rich landscapes, cultural festivals, and biodiversity make tourism a major opportunity. Supported by Swadesh Darshan and Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD) schemes, sites such as Reiek, Hmuifang, and Phawngpui are being developed. Cross-border tourism under the Act East Policy can boost jobs and income. Improved access through the National Health Mission (NHM) and Ayushman Bharat, along with public-private partnership hospitals and telemedicine, is expanding the healthcare sector. Zoram Medical College and Hospital, and traditional medicine, offer potential for wellness exports. However, limited tertiary care and human resources pose crucial challenges.
Mizoram has three recognised border trade points: Zokhawthar (Myanmar), Zorinpui (Myanmar, proposed Integrated Check Post), and Kawrpuichhuah (Bangladesh, proposed Integrated Check Post). Zokhawthar Land Customs Station (LCS), opened in 2015, is officially functional but remains inactive due to a lack of staff and basic facilities such as quarantine, food testing, and a weighbridge. Traders face issues with letters of credit and country of origin labelling. Border points require enhanced regulatory (customs, immigration, quarantine) and support (parking, warehouses, banks, utilities) infrastructure. Non-functional LCSs should be upgraded and connected through improved transport. ICP development under the Land Port Authority of India (LPAI) remains slow, with only nine operational so far in the country.
Northeast India lacks adequate laboratory and quarantine infrastructure—only 18 of India’s 182 FSSAI labs and 3 of 53 plant quarantine offices are located in the region.
The Central Board of Indirect Taxes & Income (CBIC) should promote more Inland Container Depots (ICDs) and align LCS development with transport links and facilities on both sides of the border. Automation and technology-based customs procedures should replace manual systems to cut costs and delays. Northeast India lacks adequate laboratory and quarantine infrastructure—only 18 of India’s 182 FSSAI labs and 3 of 53 plant quarantine offices are located in the region. No Export Inspection Council (EIC) lab exists, making export certification difficult.
Mizoram has over 7,700 km of roads, including 1,423 km of national highways (18.5 percent). However, many remain in poor condition due to difficult terrain and high maintenance needs. The Bairabi–Sairang railway line (51 km) now links Aizawl to the national network, while Lengpui Airport, one of India’s few state-built airports, faces operational and weather-related challenges. External connectivity offers major opportunities under the Act East Policy. With a 722 km border with Myanmar and Bangladesh, projects such as the Kaladan Multi-Modal Transit Transport Project and Zokhawthar–Kalemyo Road aim to enhance cross-border trade. Integrating Mizoram with the Asian Highway and Trans-Asian Railway would further open routes to Southeast Asia. However, high costs, fragile terrain, landslides, and security issues along porous borders remain key challenges. With better coordination and sustained investment, Mizoram can emerge as a strategic trade corridor linking India with Southeast Asia.
For decades, Mizoram remained geographically isolated from India’s mainstream economy. However, with the ongoing central and state initiatives, it stands on the threshold of becoming a trade, business, and development epicentre. By leveraging its natural endowments—horticulture, bamboo, hydropower, and tourism—and strengthening multimodal connectivity, Mizoram can realise its potential as India’s gateway to Southeast Asia.
Prof. Vanlalchhawna is a Professor of Economics at Mizoram University.
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Prof. Vanlalchhawna is a Professor of Economics at Mizoram University, a central university established in 2001. He is presently the Finance Officer at Mizoram University. Expert Member, Mizoram ...
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