Northeast India Poised As Trade Hub With Kaladan Project Operational By 2027
Northeast India is set to become a pivotal center for regional trade and growth with the Kaladan Multi-Modal Transit Transport Project (KMTTP) expected to be fully operational by 2027. This transformative initiative was spotlighted at the ongoing BIMSTEC Ports Conclave, where its strategic importance for deepening connectivity and trade integration across the Bay of Bengal region was reaffirmed by the Union Minister for Ports, Shipping & Waterways. The project links Kolkata Port to Myanmar’s Sittwe Port by sea, further connecting to Mizoram through inland waterways and road networks, promising significant reductions in transit time and trade costs.
Under India’s Act East Policy, the Kaladan Project stands as a transformative gateway, directly connecting India’s Northeast to the Bay of Bengal. It is envisioned as a model for seamless regional connectivity across BIMSTEC, reducing transit time and trade costs while unlocking new economic opportunities. This project aligns closely with the BIMSTEC Master Plan for Transport Connectivity (2018–2028), aiming to catalyze inclusive growth, deepen integration with neighboring economies like Bhutan and Bangladesh, and diversify trade flows across South and Southeast Asia, positioning the Northeast as a key player in cross-border commerce.
The conclave’s discussions yielded key recommendations, including replicating similar cross-border connectivity corridors to link landlocked BIMSTEC members to maritime trade, fostering deeper regional integration, and developing models for international cooperation. Participants emphasized the necessity of interoperable infrastructure, harmonized customs and border procedures, and resilient maritime and land transport networks. The recently signed BIMSTEC Agreement on Maritime Transport Cooperation (AMTC) is expected to further facilitate cross-border shipping by harmonizing policies and reducing procedural bottlenecks, strengthening overall connectivity and economic resilience in the Bay of Bengal.
This project represents a critical step in transforming India’s Northeast from landlocked to “landlinked,” offering new access to global markets and lowering logistical costs. It promises to boost tourism, generate employment, and unlock sustainable growth, aligning with the nation’s vision for integrated development and a stronger presence in the Bay of Bengal region.
