Startup & Entrepreneurship in Northeast India: Development, and Criticism

The startup ecosystem in Northeast India, especially Assam, has finally caught the trend, as we observe by the end of 2025. However, this delay is clearly justified due to the geography, capital distribution, low industry exposure, weak policy execution, societal structure (avoiding risk mindset) and so on.

The purpose of this blog is to discuss, expand and understand the core of startup culture in Northeast India. We will walk through why there is no infrastructure for aspiring entrepreneurs and also discuss the development that has been done in the last 5 years; by both government and private sectors.

Startup Culture As of 2025-26: Current Progress

Startup or entrepreneurship as a choice of career is not infancy anymore. Assam being the gateway of Northeast India has gained more momentum for the uprising, as compared to other states. There were 1,487 startups registered in Assam by December 2024, as reported by Times of India. 179 in Manipur, and 141 in Tripura.

However, if we compare these numbers with other regions we will observe a massive gap in the market. The following table provides a clear comparison of number of registered startups:

Region / City	DPIIT-Recognised Startups	Share in Indian Startup
Entire Northeast India	≈ 2,054	~1.1%
Assam (alone)	1,487	~0.8%
Bengaluru (Karnataka)	≈ 15,000+	~8–9%
Delhi NCR	≈ 14,000+	~7–8%
Mumbai (Maharashtra)	≈ 18,000+	~10%
Hyderabad (Telangana)	≈ 8,500+	~4–5%
Hyderabad (Telangana)	≈ 8,500+	~4–5%
Pune	≈ 6,000+	~3%
India (Total)	≈ 1.8 lakh+	100%

The absence of an ecosystem or infrastructure to support independent growth is quite visible. When in the 90s and 2000s mainland India was busy experimenting, learning and establishing companies based on IT, Finance, Media, Pharma, Trade & Software; Northeast India was fighting against insurgencies, conflicts, and political instability. 

Therefore, the primary goal was to attain stability and peace, making security a greater priority than investments. Securing a government job became a norm, as it provided financial safety, which was reasonable during that period, hence startup culture could not penetrate the society.

Cut to current times, a huge shift in mindset can be observed in the youth in Northeast India. With the government supporting more startups; via schemes and networking opportunities, the younger generations are getting more access and exposure to choose business as a career. Connectivity has been a boon for every youth, no information, trend or opportunity remains unknown. As reported by Assam Startup, it has incubated around 489 startups and funded around 109 of those. And with each year the number keeps getting higher.

How the Society Thinks, Matter to Entrepreneurship

The collective mindset of the society influences the career you choose to pursue. The way society attaches their beliefs, norms and ethics, how they define failure and success, or the overall risk taking ability, is reflected in the thinking patterns of the younger generation. If the core principle of income is to uphold and pass on predetermined responsibilities, then career becomes a standard not a pursuit. 

The elongated instability; political and economic, in Northeast India had forced the population to seek for safer income options, avoiding any probability for higher risks. Government jobs hence became more credible, becoming a milestone for the majority and those with jobs, public figures. 

Entrepreneurship demands the reverse method of thinking: failures to be treated as learning and scalability with risk, over security with limited growth. With the internet connectivity the mindset has shifted dramatically, innovation and ambition has seeded in the mindset of the young generation, promoting startup culture in the Northeast Indian youth. 

Government as Core Employer; Not Motivator

Until the private sector is mature, and becomes a mainstream job provider, people are unlikely to change the narrative for choosing a less secured income source. The perspective is clear, the population prefers less risk. 

Till date, the government remains the core employer. It has been the only institution capable of providing an income source for a significant amount of time, throughout the period of instability. In regions facing prolonged insurgencies, weak connectivity, and low confidence in investment by private companies, the decision to push employment rather than pushing innovation was a necessary step. 

However, what has changed significantly is the emergence of parallel economic pathways. Unlike previous decades, individuals today can realistically pursue livelihoods outside government employment through startups, MSMEs, digital services, content creation, remote work, and private enterprises. Government policy has also begun shifting from direct employment generation toward ecosystem facilitation; through startup schemes, incubation centres, infrastructure development, and access to national platforms.

Hence, what we observe is transformation has started to take place, but, too slow for development. 

Education Motivated Obedience, not Exploration or Experimentation  

Entrepreneurship requires economic intelligence, and the education system has been producing compliances rather than curiosity. The system prepares an individual for administrative roles and clerical positions, working under the framework of a definite system. Not that it needs to be replaced, but the absence of a practical learning approach keeps the students away from getting exposure to creativity, problems solving abilities, and questioning. 

The education system is an employment generating model, where obedience and procedural accuracy matters the most. Experimentation, risk taking, challenging systems and independence are highly discouraged. These imperfections are results of needs for stability over growth. However, it has been integrated in the system to such deep levels, transformation is highly complex.

While recent reforms, digital exposure, and institutional initiatives have begun to introduce innovation-oriented learning, the long-term effects of an obedience-driven education system continue to influence entrepreneurial confidence in the region. Sustainable startup ecosystems will depend on how effectively education shifts from compliance-based learning to exploration-led thinking. Until the students are taught to act after approval and validation for making decisions, entrepreneurship will take longer time for coming into the mainstream.

Talent Migrated, Development Abandoned

In the absence of local industry for operations, private enterprise, and innovation-driven opportunities, talented individuals made rational decisions to seek education, employment, and professional growth in mainland India. And this trend was widely encouraging among the people with exposure. 

Migration is an individual choice and it cannot be questioned, but on the other hand it has long-term consequences for regional development. The departure of skilled professionals reduced the local availability of entrepreneurs, mentors, and early adopters; which form critical components of any startup ecosystem. As talent flowed outward, the region’s capacity to generate private enterprise weakened further, reinforcing dependence on government employment and public spending

This cycle created a silent developmental vacuum: those most capable of building new economic structures were absent when they were needed most. Only in recent years, with improving infrastructure, digital connectivity, and emerging entrepreneurial opportunities, has this trend begun to slow. 

Reversing the legacy of talent migration will require not only opportunities for return, but a credible environment in which talent can meaningfully contribute to regional innovation and growth.

Political Issues and Negligence by Mainland India

Assam and Northeast India had faced political instability for an extended period of time, Insurgency, border sensitivities, and ethnic conflicts were a consistent part of the society. Dependence on Armed forces for peace became mandatory. Hence, policy engagement with the region was largely driven by security considerations rather than long-term economic integration.

As a result, the Northeast was often treated as a frontier region to be managed rather than a growth region to be invested in. Major economic reforms, industrial clustering policies, and liberalisation-driven opportunities that reshaped mainland India during the 1990s and 2000s did not meaningfully extend to the region. 

Inadequate infrastructure investment, weak institutional support for private enterprise, and limited political representation at national decision-making levels further deepened this gap. This pattern of neglect was not always deliberate but stemmed from systemic oversight and risk aversion. However, its consequences were significant; delaying economic diversification, discouraging private investment, and reinforcing dependence on government employment. 

Only in recent years has there been a visible shift toward greater political attention, infrastructure development, and integration of Northeast India into national growth narratives.

New Era: Government Efforts And Policies

A noticeable shift has emerged in how Northeast India is positioned within national development priorities. Unlike earlier periods that focused predominantly on security and administrative control, recent government efforts have emphasised integration, infrastructure, and ecosystem-building. Policies are increasingly framed around long-term economic participation rather than short-term stability alone, marking a structural change in approach. 

Initiatives such as Startup India, state-level startup policies, incubation centres, and dedicated funding mechanisms have begun providing formal legitimacy and early-stage support to aspiring entrepreneurs in the region. Here are the key policies and support mechanism for supporting startup ecosystem:

Startup India (2016–present)

This is a national policy framework to recognise and support startups across India, including special focus states like those in the Northeast. Northeast India collectively crossed 2,000 recognised startups, a number that was negligible before 2016. As of Dec 2024, Assam alone had 1,487 DPIIT-recognised startups, the highest in the Northeast. Startup India provided formal legitimacy, a prerequisite for funding, policy access, and ecosystem inclusion.

Support provided by Startup India Policy:

• DPIIT startup recognition

• Eligibility for tax exemptions (Section 80-IAC)

• Self-certification under labour & environmental laws

• Fast-track patent and IPR support

• Preferential access to government tenders

Assam Startup / “The Nest”

It is Assam’s dedicated state-level startup policy and incubation framework. It has resulted in an increase in first-time founders and college-linked startups since 2018, proving the rinsing entrepreneurship mindset among the youth. It lowered the psychological and financial barrier to starting up, especially for local founders with no prior exposure. 

Support provided by Assam Startup Policy:

• Seed funding (₹5–50 lakh, mostly non-equity)

• Physical incubation centres

• Mentorship and capacity-building programs

• Startup challenges and hackathons

• Subsidised co-working infrastructure

North East Venture Fund (NEVF)

It is a region-specific venture fund managed through NEDFi with central government backing. It signals a shift from grant-based support to growth capital, even if selectively applied. It has funded startups across Assam, Manipur, and Meghalaya. 

Support provided by Assam Startup Policy:

• Equity / quasi-equity funding

• Ticket size: ₹25 lakh to ₹10 crore

• Focus on scalable businesses (IT, healthcare, education, agri-tech, tourism)

NEDFi

This is a statutory financial institution focused on economic development in Northeast India. NEDFi filled a credit vacuum in a region where private lenders were risk-averse. Its evidence of impact is clearly seen in Long-standing lenders to NE enterprises and increasing engagement with startups and innovation-led MSMEs post-2015. 

Support provided by NEDFi:

• Soft loans and term loans

• Equity participation (select cases)

• Business incubation and advisory support

• Focus on MSMEs, manufacturing, agri-processing, and services

Ministry of DoNER

A central ministry dedicated to Northeast India’s development. DoNER shifted focus from only welfare grants to ecosystem creation. This initiative increased funding for ecosystem infrastructure and support for state-level startup initiatives.

Support provided by MInistry of DoNER:

• Funding for incubation centres

• Entrepreneurship development programs

• Infrastructure and institutional capacity building

• Support for regional innovation hubs

Shift in Mindset; Labour to Leader

Leadership in entrepreneurship requires more than technical skill; choosing a career as an entrepreneur is the outcome, what goes in is the idea of “building” and making decisions. 

Historically, such leadership roles were scarce locally due to limited exposure, lack of role models, and restricted access to capital and markets. As a result, talent from the region often succeeded elsewhere but remained disconnected from regional development. Today, increased digital access, emerging startup ecosystems, and visible local founders are beginning to challenge this pattern.

The shift from labour to leadership is not instantaneous, it is cultural and generational. However, as more individuals choose to build enterprises locally, take ownership of ideas, and assume leadership roles, Northeast India moves closer to an ecosystem where development is driven from within rather than outsourced outward. This mindset shift is essential for sustainable and inclusive entrepreneurial growth

What Can Expect in 2026?

The emphasis will likely shift from mere startup registrations to measurable outcomes such as revenue generation, customer acquisition, and survivability beyond the seed stage. With infrastructure projects initiated over the past decade reaching operational maturity, startups hopefully will gain improved access to logistics, digital connectivity, and regional markets, reducing traditional entry barriers. 

By 2026, the startup ecosystem in Northeast India, particularly Assam, is expected to move from a policy-driven foundation phase to an early market-validation phase. 

From a technical standpoint, growth is expected to concentrate in low-capex, high-leverage sectors such as SaaS, digital platforms, media-tech, tourism-tech, agri-tech enablement, and MSME-focused services. Increased participation of corporates and anchor industries, driven by recent investment summits and industrial policies; should create B2B demand, enabling startups to pilot, iterate, and scale locally. Government support is likely to evolve further toward facilitation, compliance simplification, and co-innovation rather than direct employment creation.

However, 2026 will also act as a filtering year: startups lacking clear market fit, execution capability, or financial discipline will struggle to sustain. The ecosystem will begin distinguishing between symbolic entrepreneurship and outcome-driven enterprise.

NEBUx: Building the Startup Eco-system in Northeast India

NEBUx is a platform that holds the vision to build the largest startup ecosystem across northeast India. Our objective is to provide: Resources, Knowledge and Networking opportunities to entrepreneurs.

If you are willing to build your startup, with the right mindset, then join the community and be a part of the revolution.

Author: Jnyan Deep Pathak, Founder, NEBUx