A major contributor to the creation of jobs, industrial expansion, and regional development, the Micro, Small, and Medium Enterprises (MSME) sector is essential to North-East India's economic progress. This study looks at the MSME sector's growth trends by state in the Northeast, as well as its potential and problems. The report emphasizes the sector's potential as a catalyst for sustainable economic growth by examining statistics on the quantity of units, production output, investment trends, and employment creation. In North-East India, MSMEs encounter a number of obstacles despite financial assistance and regulatory changes, such as market limitations, restricted loan availability, and infrastructure impediments. This study examines policy suggestions to increase the sustainability and competitiveness of MSMEs in the area, highlighting the necessity of better infrastructure assistance, talent development, and financial inclusion. The purpose of this study's conclusions is to help stakeholders, entrepreneurs, and government improve the MSME ecosystem in northeastern India.