North East India is a region that comprises of eight Indian states: Arunachal-Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura-holds immense industrial potential due to its rich natural resources, strategic location and demographic advantages. Besides, these advantages the region remains industrially backward, posing various socio-economic problems. This paper seeks to examine the current state of industrialization in the region, analyzing the disparities in industrial growth among the states, investment trends, and employment in MSMEs. Attempt has been made to explore the impact of industrial policies, particularly the Industrial Policy of 1997 and 2007, promoting industrialization in the region. The study has also highlights the main obstacles to the industrial expansions and talk about industrial prospects of the region.