The Indian Government is in the process of developing the Northeast Region of India as a gateway to Southeast Asia. But due to the problems of insurgency, the process of development is being slowed down. There have been many initiatives taken by the Government of India for the development of the North-eastern states, as the region is considered the heart and soul of the Act East Policy. The objective of this paper is to highlight the role of the different groups of insurgents in the obstruction of India’s important developmental projects for the Act East Policy and the actions being taken by the Indian Government in countering these insurgents. The paper examines different obstacles which the Indian Government is facing in the developmental process throughought the North-eastern region.