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Realizing The Growth Potential Of North-East

Ankit Kumar Raghav Dave

Inderpreet Singh Oberoi

Prakhar Gupta Prakhar Agarwal

Submitted By- :

FROM OVER-STRETCHED DUSK TO “POTENTIAL DAWN”

1. 8% of India’s geographical1 area

2. Sharing land border with five countries

1. Average literacy rate 79.64% vs. the national average of 74.04%

2. Scenic splendor, robust and varied cultural attractions-- ideal for tourism.

1. Estimated 43 percent of total identified hydel power is concentrated in the north east.

2. From oil to forests and agriculture- variety of natural resources.

Despite the above facts the North East Region is still what it was a few

decades ago – “A Stagnant Pool”

The North East is located at a crossroads between three major economies – East Asia, South Asia

and Southeast Asia. This geopolitical advantage, has however, not really translated into the

region’s economic development as its contribution to national exports is less than 0.004%. Let

us focus mainly on Bangladesh & Myanmar.

1. Illegal trade between the two countries amounts to 3/4 of regular trade.

2. Lack of transit routes between North East and Bangladesh.

3. Refusal of Bangladesh to provide transit route via their land to India

4. Water sharing and hydel power development

5. Lack of political will and consensus in both countries to take firm decisions

7. Insurgency

INDIA-BANGLADESH

1. Ethnic conflicts

2. Influx of illegal immigrants

3. Frequent blockades imposed by different social/political/ethnic groups

4. Lack of infrastructure on both sides of the border

INDIA-MYANMAR

“PROPOSED SOLUTIONS” • “Border Haats”. allowed to sell all types local products. No local tax would be imposed on the trading,

For Illegal Trade

• Transit route to ‘seven sisters’ via bangladesh in lieu of transit route between bangladesh and bhutan.

• 100% investment by india in constructing new road network for the transit route.

• Involvement of local workforce in the construction under the supervision of NHAI.

For Transit Routes

• India must allow bangladesh for development of hydro-power projects in NER under supervision of Indian officials in lieu of TEESTA water sharing in a proportion of 60-40 for india and bangladesh respectively.

• Use of bangladesh ports for the exports of commodities of NER. Taxes can be levied for the same by bangladesh..

Water Sharing and Hydel projects

MERITS OF THE PROPOSED SOLUTION

The border haats would be allowed to sell local agricultural and horticultural products and

household goods .No local tax would be imposed on the trading, and both Indian as well as

Bangladeshi currencies will be accepted. This will increase the legal trade between the two

countries and will reduce the illegal trade drastically.

This will connect the NER of India with the rest of indian states with a very short route

thereby reducing the huge distance of over 100 kms via siliguri corridor to a distance of 400

kms via bangladesh.

Getting shorter route to the NER will reduce the cost of transportation due to which all the

raw materials , food ,basic amenities will be available at cheaper rates to the locals. This will

bring a lot of investment opportunities to them.

100% investment by india in constructing the road network would strengthen the ties

between the two nations and will open gates for further cooperation in other areas.

Due to shorter routes India could make a quick and easy movement of artillery, military and

para-military forces to the NER to counter insurgency and China in Arunachal Pradesh.

The proposed water sharing agreement by us will benefit the NER as the hydel projects will

provide the employment to that region, will bring light to lives of people as the electricity

produced could help in setting up small scale industries in the NER.

Use of ports will open up the gates to the South east asian countries and the NER could

easily do business with them bringing prosperity to the region.

Implementation Of The Solution

Challenges And Mitigation

Factors

• Governments of the two countries,bureaucrats , local

authorities and security personnels would be the

stakeholders.

• Regular aid provided by the Indian government to

Bangladesh must be reduced to 70% of its regular

basis and the rest must be invested in the upbringing of

these projects.

• Local workforce must be involved under the

supervision of expatriats.

• Illegal trade and immigration of people may increase

due to the introduction of transit routes. To mitigate this,

more checkposts can be developed and high end

vigilance must be ensured.

• These projects may create issues of resettlement of the

locals living in proximity of the project.The government

must provide compensation to the locals and employ

them in the project.

• It may be possible that some political leaders of west

bengal may not agree to TEESTA pact . To overcome

this problem, some extra aid must be provided to

certain areas of the region which may get affected by

this pact.

Indo-Myanmar Trade

Solutions:

• Enhancing trade of traditional goods .

• Spreading awareness among the people the development taking place.

Implementation:

• Trade can be enhanced by simplification of documentation process. Proper security forces should be used for preventing insurgency because of simplification of documentation process.

• Local NGO’s can conduct awareness programs for spreading the words of knowledge about the benefits that the locals will acquire by the development taking place.

• Proper interaction between indigenous communities and government officials native to their own tribes.

Pro

ble

ms

An

d

Co

nst

rain

ts

• Endowed with varied topography and agro-climactic conditions but still contributes 2.8% in agriculture production.

• Huge potential for Rubber & Bamboo plantations but still lags behind

• Fragmented land holdings by small and marginal farmers dominate the landholding pattern.

• Use of fertilizers is lowest in our country.

• share of agriculture in total electricity used : 1% (National Average: 20.43%)

• Less production of electricity limits the development of industries.

• Lack of transportation facilities limit the movement of raw materials as well as processed goods.

AGRICULTURE & FOOD

PROCESSING

PROPOSED SOLUTION

• Small farmers should be motivated to combine and form large stake hold.

• Providing crop insurance to those farmers who are doing community farming will motivate them.

• Organic fertilizer should be subsidized in north east India.

Land Reform

• Bank branches should be extended and should provide low interest loans & relaxation in collateral.

• Private entrepreneurs need to be encouraged to set up storage, distribution and marketing infrastructure such as a cold storage chain along major arterial highways through attractive Public Private Relationship.

• Establishment of the Agro & Forestry Institutes.

Financial And Skill

Development

• Clearing pending road project by mutually cooperating with NGO and tribal community of NE region.

• Creating a well enabled inland water transportation.

Infrastructure

Imp

act

Of

Th

e P

rop

ose

d S

olu

tion

s • Will provide a boost to agriculture thus controlling import dependence of the NE.

• Will provide a sustainable and acceptable option of organic fertilizer to local community and to environmentalist NGO.

• Once production is established to grow low interest loan will provide an opportunity to establish small entrepreneur of packaging and processing .

• Relaxation of tax will further welcome large entrepreneurs from other parts of India to establish food processing industries in NE. It will increase the employment opportunities manifolds.

• Creation of institutions will give youth of NE an opportunity to develop their skills without leaving their region & to be a part of industry and hence participate in the growth of NER.

Imp

lem

enta

tion

• Money for establishing new banks can by reducing tax on money transaction in NE.

• Private companies can be funded in the form of easing out Land Acquisition in NER.

• Funds for setting up institutes can come from North Eastern Development Ministry.

• Central & State Govt., localites, private Companies, NGOs will be the major stakeholders.

• Human resources will comprise majority of local citizens and skilled persons can be brought from West India, if required.

Ch

all

eng

es A

nd

Mit

igati

on

F

act

or

• Banking would not be profitable in such sparsely populated areas

• Awareness pregame need to be done so that more and more people open bank account .RBI too can assist Bank branch in this area by providing them assistance .

• Spreading awareness about self help groups is itself a challenge

• Youth can be immerge as game changer in this .Motivating volunteers of NGO can be proved very beneficial.

• Once institute has been established problem of lack of skilled person.

• Experts all over the India can be attracted to work in NE by giving better salary and allowance.

Growth of North-Eastern States

Border Trade

Improved Infrastructure

Skill Developm

ent

Demographics & Social Infrastructu

re

Power

Improved Agriculture

& Food Processing

“In Today’s World, We Recognize The Trade &

Investment Integrated With Infrastructure & Skill

,&Not Aid, Are The Pillars Of Development”

• http://www.project-syndicate.org/commentary/reforms-to-realize-india-s-economic-potential-by-haruhiko-kuroda

• http://www.brainyquote.com/quotes/keywords/development_4.html#mrxSQepUwu2I3kIr.99

• http://www.academia.edu/1052989/DEVELOPMENT_DISPARITY_AND_NORTH_EAST_REGION

• http://www.aspenindia.org/pdf/India_Bangladesh_Report.pdf

• ://www.mdoner.gov.in/sites/default/files/silo2_content/ner_vision/Vision_2020.pdf