India and China have always had a complicated relationship part rivalry, part partnership, and often both at once. Along the border, tensions remain unresolved, with the Line of Actual Control still sensitive despite 20 rounds of military talks since 2020. Yet in the economic sphere, the story looks very different. In 2024, bilateral trade touched $127.71 billion, making China India’s second-largest trading partner. The imbalance, however, is stark: India imported nearly $113.46 billion worth of electronics, machinery, and chemicals, while exports stood at just $14.25 billion.
For China, keeping ties steady with India eases pressure elsewhere, especially as it faces Western “de-risking” of supply chains and regional concerns like Myanmar. For India, the approach is more pragmatic—engage where necessary, reduce dependency, strengthen domestic industry, and sustain growth.
Amid this big-picture tug-of-war lies a region often overlooked in national conversations: India’s Northeast. Geography has placed Assam, Tripura, Manipur, Mizoram, Nagaland, and others at the junction of South Asia and Southeast Asia. For decades, the region was dismissed as a remote cul-de-sac, connected to the rest of India mainly through the narrow 22-kilometre Siliguri corridor. But today, it is increasingly viewed as a corridor, not a dead end.
Recent breakthroughs with Bangladesh have been game-changers. In 2023, India secured access to Chattogram and Mongla ports, opening new gateways for goods from the Northeast. The Agartala–Akhaura railway link, inaugurated in November 2023, cut freight travel time between Agartala and Kolkata from 31 hours to just 10 hours. If backed by proper logistics hubs, dry ports in Guwahati or Silchar, and modern customs systems, the dream of turning the Northeast into a thriving trade corridor could soon become reality. Studies suggest that simply improving border procedures in South Asia could reduce trade costs by 15–20%, a huge gain for small producers.
Looking eastward, the potential is even greater. The India–Myanmar–Thailand Highway and the Kaladan Multimodal project, which links Mizoram to Myanmar’s Sittwe port, are slowly taking shape. If Myanmar stabilises, the Northeast would gain direct road and river routes into ASEAN markets—together representing a GDP of more than $3.6 trillion.
This is where Nagaland’s role becomes particularly significant. Border towns such as Avangkhu in Phek district have already been identified as potential international trade outposts. With improved connectivity, Nagaland could serve as a key land bridge between India and Southeast Asia. Its strengths—agro-forestry, organic farming, handicrafts, and niche produce like Medziphema pineapples, Naga coffee, and hand-woven textiles—could find far larger markets once logistics bottlenecks are addressed.
For Nagaland’s youth, highly literate and increasingly entrepreneurial, this transformation could create opportunities in logistics, border trade, and small-scale industries. Cities like Dimapur, already an important trading hub, could evolve into logistics centres serving wider regional markets.
The global shifts in supply chains also open new doors. As companies pursue a “China+1” strategy to diversify manufacturing, the Northeast—with its access to Bangladesh’s $47 billion
garment export industry and emerging links to Southeast Asia—could position itself as a hub for light manufacturing and value addition. For Nagaland, this may translate into industries in food processing, organic products, and eco-tourism tied to regional supply chains.
Yet, much of this depends on maintaining peace along the India–China border. Disengagements and new communication channels are small but significant steps forward. The smart approach for India is to ensure that economic and people-to-people cooperation continues wherever it directly benefits citizens.
Lessons from China: Insights from a Naga Entrepreneur
To understand what this means on the ground, we turn to Imtisunep, co-founder of Illando, who recently travelled to China. His observations reveal both the contrasts and lessons Nagaland can draw from its powerful neighbour.
On first impressions: “China is not to be compared with Nagaland or even India,” he says. “It is ‘big,’ ‘clean,’ ‘fast,’ and ‘hi-tech,’ where people follow rules, start their day early, and adhere to time strictly.”
On practices worth adopting: “One thing we can learn is starting the day early. In China, many begin working at 6 a.m., with a fresh and sharper mind. For Nagaland, this mind-set could make a real difference. Commercially, we also need more educated young farmers adopting organic farming to meet rising consumer demands.”
On interacting with Chinese entrepreneurs: “Communication was a challenge—we needed translators. Apps can help, but connectivity is key. Despite this, one thing stood out: Chinese entrepreneurs and even influencers never miss a chance to promote their products.”
On the most valuable lesson: “Promote your product or service anywhere and everywhere possible. At the expo, hundreds of influencers, young and old, were live-streaming nonstop, earning from the brands they represented. In Nagaland, we are not yet fully tapping into the power of free social media to promote our products.”
On changing perspectives about Nagaland’s business opportunities: “Yes, the trip made me realise we need to take quality and design very seriously. Without that, we cannot compete in larger markets.”
On why young entrepreneurs should explore beyond Nagaland: “It’s better to be a small fish in a mighty ocean than a big fish in a small pond. Exposure broadens the mind—you learn how culture, trends, technology, politics, and consumer behaviours shape demand. Somewhere out there, someone may be desperately looking for the very solution you’ve created. That’s how you build the empire you dream of.”
If India can maintain a fragile but functional balance with China, the Northeast could finally step into its role as India’s bridge to the wider region. Instead of being seen as a remote frontier, it could emerge as a thriving passage linking South Asia to Southeast Asia and beyond. For Nagaland, the stakes are particularly high: the chance to move from the margins of India’s map to the centre of a new regional story.