Infrastructure Development and Regional Disparities in North-East India: A Comparative Assessment of Physical, Social and Financial Infrastructure

This paper presents a comprehensive assessment of infrastructure development in the North East Region (NER) of India, with particular emphasis on the state of financial infrastructure and its interlinkages with transport, power, education, and health systems. Employing a multi-dimensional analytical framework, the study examines banking penetration, credit availability, ATM and digital infrastructure, and financial inclusion under the Pradhan Mantri Jan Dhan Yojana (PMJDY) across the eight North Eastern states over the period 2016–2025. The analysis reveals a region in transition—characterised by substantial policy attention, significant central investment, and measurable progress across multiple sectors, yet constrained by persistent inter-state disparities, uneven implementation capacity, and the enduring challenges of geography, demographics, and historical marginalisation. Key findings indicate that banking penetration has improved steadily across all states, with Sikkim and Mizoram leading in branch density per lakh population, while Manipur and Assam continue to lag. The regional Credit–Deposit ratio has risen substantially from 39.3% to 58.0%, signalling stronger financial intermediation, though the region remains well below the national average and exhibits marked inter-state variation. ATM density and digital financial infrastructure reveal a similarly heterogeneous landscape, with smaller states enjoying relatively better per-capita access. The PMJDY has expanded access to formal banking, bringing millions of previously unbanked individuals into the financial mainstream; yet high rates of account dormancy and low average balances underscore that access alone does not equate to meaningful inclusion. The central insight emerging from this study is that infrastructure development in the North East cannot be understood solely through the lens of physical expansion or financial access. Rather, it must be evaluated in terms of depth, efficiency, and inclusiveness. The policy implications are clear: targeted investments in underserved areas, incentives to enhance local credit deployment, sustained efforts in financial literacy and digital capability, and strengthened monitoring mechanisms are essential to transform infrastructure from a physical asset into a catalyst for sustainable, equitable development