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It is argued that the way to bring about development in the Northeast is by economically integrating the region with the vibrant markets of Southeast Asia and East Asia through the Act East Policy. Accordingly, a number of projects have been initiated to improve connectivity between the Northeast and the neighbouring countries. It is believed that connectivity projects will act as growth corridors resulting in economic development of the region. However, to effectively implement the policy and to reap its benefits, it is imperative to overcome challenges such as adverse security situations, bad governance, lack of entrepreneurial skills, absence of markets, and reluctant neighbours.

Challenges to the Development of the Northeast through the Act East Policy