GUWAHATI: Describing the Northeast as one of the most promising banking markets in India and globally, Union Minister for Development of North Eastern Region and Communications Jyotiraditya M. Scindia on Tuesday, October 13, urged bankers to tap the region’s growing economic opportunities and ensure that the value generated there remains within the region.
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Scindia was speaking at the inauguration of the North East Bankers’ Conclave 3.0 at Mizoram University in Aizawl. Highlighting the Northeast’s annual economic growth rate of 9–11%, he called on banks to play a greater role in sustaining the region’s economic progress.
Expressing his personal connection with the Northeast, the minister stressed the need to translate financial inclusion into economic inclusion. He pointed out that banks extend only ₹47 in credit for every ₹100 deposited in the region.
Scindia urged banks to expand credit access for entrepreneurs, farmers, women and micro, small and medium enterprises (MSMEs). He said the Credit-Deposit (CD) ratio should reflect “Credit for Development” in the Northeast.
He also called for a credit-risk framework tailored to the region, noting that community-based landownership patterns require flexible collateral rules to improve access to loans.
Highlighting the Northeast’s demographic and economic potential, Scindia said the region has a population of approximately five crore. He emphasised the need to create greater opportunities in education, skill development, entrepreneurship and employment to harness its young population.
He noted that the average literacy rate across the eight northeastern states stands at 93%, while Mizoram has achieved 100% literacy.
“The Northeast has a demographic and educational bulge, an array of natural resources and extraordinary natural beauty. When you land at Lengpui, it feels as though you have landed in a forest. Mother Nature has gifted this region something truly exclusive,” Scindia said.
“You are not entering an unexplored economic area. The world is growing. Guess what the annual growth rate of the Northeast is? It is 9–11% every single year,” he added, urging banks to support the region’s continued growth.
The minister outlined four priorities for the Department of Financial Services (DFS): preparing a plan for 70 bank branches, Business Correspondent outlets and India Post Payments Bank (IPPB) points; strengthening the presence of commercial banks; developing a Northeast-specific credit-risk framework; and preparing an action plan for the region’s financial system.
Scindia said the North Eastern Development Finance Corporation Ltd (NEDFi), DFS, the Ministry of Development of North Eastern Region (MDoNER) and state governments had worked together to identify financial gaps and develop state-specific interventions.
The minister urged bankers to ensure that the region’s growing financial access translates into economic opportunities and that the wealth generated in the Northeast contributes to its continued development.
