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North-East Economic Corridors: Enhancing Trade And Connectivity 

The northeastern region of India, which is landlocked, has historically encountered infrastructural and economic difficulties because of its geographical limitations. The Siliguri Corridor, referred to as the Chicken's Neck, is a slim land passage in West Bengal that serves as the main link between the northeastern states and the rest of India, rendering the area prone to congestion and interruptions.

Prashant Bhardwaj by Prashant Bhardwaj
1 April 2025
in Blog
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North-East Economic Corridors: Enhancing Trade And Connectivity 
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The northeastern region of India, which is landlocked, has historically encountered infrastructural and economic difficulties because of its geographical limitations. The Siliguri Corridor, referred to as the Chicken’s Neck, is a slim land passage in West Bengal that serves as the main link between the northeastern states and the rest of India, rendering the area prone to congestion and interruptions.

Nonetheless, two recently suggested economic corridors—the Hili-Mahendraganj Transnational Economic Corridor and the Bhutan-Bodoland-Bay of Bengal (B3) Corridor—have the potential to transform connectivity, trade, and security in the area.

If executed effectively, these corridors will greatly decrease travel time, lower expenses, and create economic prospects while alleviating the strain on the conventional Siliguri route.

Hili-Mahendraganj Transnational Economic Corridor

The Meghalaya government aims to improve the connectivity of the state and the northeastern region with the rest of the country via Bangladesh.

This will be achievable through the Hili-Mahendraganj cross-border economic corridor. Hili is a border town located in West Bengal, whereas Mahendraganj is a border town situated in the Garo Hills area of Meghalaya. Both regions share a border with Bangladesh.

Meghalaya Chief Minister Conrad Sangma stated that the 100-km route could reduce travel time and expenses by 25-60 percent from Kolkata to development hubs like Tura, Baghmara, Dalu, and Dawki. Currently, the NHIDCL’s road alignment analytics are shared with Bangladesh to carry out a feasibility study for the project.

Meghalaya Chief Minister Conrad Sangma has highlighted that the 100-km corridor could reduce travel time and expenses by 25–60%. At present, items and travelers from Kolkata to Meghalaya, Tripura, and Barak Valley in Assam need to pass through the Chicken’s Neck, a longer and less effective path. With this corridor established, travel distances might be shortened by 600-700 km, resulting in significant economic benefits for both businesses and consumers.

The National Highways and Infrastructure Development Corporation Limited (NHIDCL) has performed road alignment assessments and provided them to Bangladesh for feasibility evaluations. This indicates that preparation for the corridor is already in progress.

The B3 Corridor

The alternative suggested corridor—the Bhutan-Bodoland-Bay of Bengal (B3) Corridor—aims to strategically link Bhutan to the Bay of Bengal via Assam and Meghalaya. This corridor seeks to promote more efficient trade and transport while improving regional collaboration between India and Bhutan.

Important transit locations like Jogighopa in Bodoland, Assam, and Phulbari in Meghalaya will act as essential logistical centers for the B3 Corridor. Phulbari’s position along the banks of the Brahmaputra increases the corridor’s potential by facilitating access to water cargo, thus combining road, rail, and river transport for optimal efficiency.

Bolstering trade connections with Bhutan is an important facet of this corridor. Bhutan depends on India for both imports and exports, and improved infrastructure will boost economic interactions between the two neighboring countries. Enhanced connectivity will advantage Bhutanese exports like hydropower, agricultural goods, and handicrafts, while offering India increased access to Bhutanese markets.

Moreover, Bodoland, which has traditionally endured socio-political turmoil, is set to emerge as an essential economic connector in the northeastern trading system. The corridor will generate more investments in infrastructure, logistics, and industrial sectors, leading to job creation and enhancing the economic conditions of the area.

An achievable vision

The Hili-Mahendraganj transnational economic corridor and the Bhutan-Bodoland-Bay of Bengal (B3) Corridor could significantly transform India’s east, especially the Northeast region.

At present, 95% of exports from Assam, Meghalaya, Manipur, Nagaland, and Arunachal Pradesh are moved by road through the Siliguri corridor, while the rest 5% depend on rail transport.

The significant reliance on this limited route leads to logistical constraints and presents security threats. The suggested corridors will alleviate the pressure on the Chicken’s Neck by providing alternative routes for trade and transport.

Enhancing India’s economic and trade ties with these countries via improved connectivity and infrastructure initiatives will offset Beijing’s influence and reinforce New Delhi’s leadership in the area. Enhanced infrastructure and connectivity will guarantee improved border management and security readiness.

These initiatives will greatly enhance national security by minimizing strategic weaknesses. If there are interruptions in the Siliguri corridor—due to natural disasters, geopolitical conflicts, or security risks—these new routes will guarantee continuous connectivity for the northeastern states. Moreover, the improved access offered by these corridors will enable faster deployment of defense forces during any security threats in an unpredictable environment.

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