[This is the revised and updated version of author’s presentation made at #PolicyDialoguemeeting jointly organized by #UNESCAP’s Delhi office, #AsianDevelopmentBank and #GovernmentofMeghalaya, at Shillong on 4-5 December 2013.]
Undoubtedly, India’s #NorthEast region has the potential for a high trajectory growth path, by virtue not only of its strategic location, #naturalresource base but also on account of its high literacy rate and a large English speaking population.
This region could play a pivotal role in India’s #LookEastpolicyinitiative. Growth and development of the North-East region can help India carve for itself a place in the larger #AsiaPacific and to showcase its economic potential for investments and trade.
Government of India’s North Eastern Region Vision 2020, document identifies various challenges and strategies to bring about peace and prosperity in the North Eastern Region by 2020. Several measures have been undertaken to uplift the region. First amongst these measures has been a proposal to build the “#AsianHighway” and “#AsianRailwayLink” and “#NaturalGas” pipeline.
Region’s Potentials
The proposed Asian Highway is the #Imphal (#India)-#Tamu (#Myanmar) road going on to Kalemyo railway onto Mandalay in Myanmar. There is also a plan to construct a 1,360km Trilateral Highway from Moreh (India) to Mae Sot (Thailand) through Bagan (Myanmar). Moreh in Manipur is seen as the most strategic international trading point in the region.
The #MekongGangaCooperation initiative, launched on 10 November 2000, is another ambitious project policy wherein the signatory countries have agreed to undertake joint transportation projects including the trans-Asian highway. It holds vast potential for the #developmentofEasternSouthAsia. The development of infrastructure and connectivity are a sine qua non for making North-East region as a key component of promoting development in Eastern South Asia. The North-East Region holds immense potential of development and opportunities in an array of sectors including #travel and #tourism, #hospitality, IT and ITeS, financial services, #handloom and #handicrafts, #power and #energy and #oil and #naturalgas. Besides, the #Statelevelindustrialpolicies will boost up the process of #industrialization in the region.
In order to boost the industrial growth in the North-East region, there is need to develop the #infrastructure, especially the roads and flight connectivity, alongside, the untapped potential of the #power and #energy sector need to be exploited, which is a prime requirement for setting up of industrial houses in #NER. There is a need for inter-state coordination among the north-eastern states for speedy completion of the infrastructure projects.
Increasing connectivity in the region and linking it with #Myanmar will help India access markets in South-East Asian countries. Mandalay region of Myanmar can be helpful in having intensive trade linkages with the NER, especially through #Manipur. The vast potential of this region in handloom and handicraft can enhance commercial interaction with Mandalay region of Myanmar. #Developmentoftransportfacility between #India and #Thailand would undoubtedly increase the volume of trade between the countries.
There is also a huge potential of trade between Sagaing region of Myanmar and North-East region in sectors of prime importance like #woodbasedindustry, where several states of the region produces commodities based on #bamboo and #woodeproducts. Keeping in mind the untapped potential of the #power and #energy sector, #coal, #petro products and limestone are some of the sectors where #India and #Myanmar can work in a collaborated way, thereby leading to mutual benefits of the regions.
#StumblingBlocks
Key stumbling blocks to closer cooperation between India and other Eastern South Asian countries inter alia include lack of infrastructure, geographic location characterized by topsy-turvy terrains, lack of will on the part of political leadership; absence of confidence-building measures in cross-border areas to improve #livelihoods of the affected people; negation of the role of the #civilsociety, absence of regional media’s role; lack of mutual cooperation and coordination in tackling #environment related issues; absence of #capacitybuildingofthestakeholders etc.
India’s Strategies
The North-East region has a prime role to play in making the #macroeconomicscenario as robust in Eastern South Asia. The strategies being undertaken by the Government of India to develop the region and its sectors inter alia include providing resources focusing on #social and #physicalinfrastructures; integration of NER with its regions and development of their #naturalresources. The sectors of importance and of having high potential include #tourism, #handloom, #bamboobasedindustries and #oil.
Appropriate harnessing of these strategies requires an urgent need for undertaking #infrastructuredevelopment. Large and big ticket investments are required for increasing the growth rate of the economies. Alongside, the #educational and #skilldevelopment sectors need bolstering, which can help in reducing the problem of #unemployment and #povertyalleviation.
In terms of #infrastructure, #connectivity and #economy, the North-East has not been able to perform well. This is due to the security challenges plaguing the region as well as its neglect by the #nationalleadership. Being an important part of the country, North- East region deserves more importance.
The states of this region should focus on three initiatives for improvement – #Infrastructure, #InformationSystem and #Innovation. The states of the region have #humancapacity and potential so these states should take more responsibility and #initiative, demand more and do more.
Challenging Opportunities
The North East region offers huge opportunities in sectors of strategic importance like #energy and #infrastructure; oil, #naturalgas and #hydrocarbons; #agro, #foodprocessing and #horticulture; #floriculture; IT and ITeS and #Tourism. Necessary #infrastructuredevelopment, #greaterpromulgationofegovernance, #reinstatementofaffordablerail, #road, #air and #inlandwaterway connectivity between the North-Eastern states and the rest of India, and the Eastern South Asian Southeast, South and East Asian countries can unlock the true economic potential of the region.
Better #tourismdevelopmentinitiatives and greater stakeholder participation in the growth process are key imperative for the region. Time-bound #implementationofprojects, conducive centre-state relations, political stability, monitoring of fund–flows and necessary marketing and branding can truly transform this goldmine of a region into a vibrant hub for business, #tourism and #trade.
This region’s locational advantage should be tapped as a backdrop to its #development. One can hope that as India and the #ASEAN look forward to a speedy implementation of the #MasterPlanonASEANConnectivity, the North-Eastern states will successfully capture the growing synergies of improved trade and investment linkages and will emerge as an international trade hub for the Eastern South Asia as well as #ASEANnations.
#InlandWaterTransportation&OtherOpportunities
The trade agreements between #India and #EasternSouthAsian and #ASEANcountries have deeper implications for the North-East and there are several proposals under consideration with regard to #land and #seaconnectivity. These include the #India #Myanmar#Thailand Highway, its extension to #Laos and #Cambodia and the development of a new highway also linking Vietnam.
Apart from land and air transport connectivity, #InlandWaterTransportation (#IWT) is also a potential source for enhancing North-East region’s interaction with neighbouring countries. #BrahmaputraislifelineofNorthEastRegion and it was declared as #NationalWaterway-2 in 1988. In the past, IWT was extensively used for transportation of goods. It can be now again used as a Dedicated-freight-corridor for NER. However, lack of connectivity is an impediment for NER. Since #Road and #Rail have limitations due to ‘Chicken neck’, hence IWT is an all-weather and reliable mode. IWT has great potential to contribute to rapid economic growth of Northeast region.
An IWT & T Protocol exists between #India and #Bangladesh providing connectivity of NER with #Haldia/#Kolkata through #Brahmaputra and #Barak. Kaladan in #Mizoram & Tizu in #Nagaland offer possibility of connectivity through #Myanmar. #IWT mode can boost trade and commerce with #Bangladesh and #Myanmar. Hence NER’s connectivity through IWT is of strategic importance. #Barak connects southern #Assam with #Kolkata through IWT. It also provides connectivity to #Manipur (NH-53), #Mizoram (NH-54) and #Tripura (NH-44).
#Meghalaya’s Potentials
Owing to its strategic location and other geo-economic factors, #Meghalaya assumes added significance in the wake of Government of India’s ambitious projects of developing infrastructure corridors between #India-#Myanmar-#Thailand and #India-#Bhutan-#Bangladesh, which will pass through #Meghalaya, thereby enhancing strategic and financial significance of Meghalaya and augmenting its likelihood of emerging as ‘#developmenthub’ of North-East region. Such a scenario would afford ample opportunities for investment from the neigh boring countries.
Construction of the first railway station in Meghalaya at #Mendipathar in the #NorthGaroHills, which is likely to be inaugurated soon, would provide a cheaper mode of transport in the land-locked state and it would make essential commodities affordable to the people. Completion of similar railways projects, which have been pending for a long time, would make transportation of goods and passengers easier and add fresh impetus to state’s #economicgrowth.
Meghalaya has precise historic, #geographic and strategic significance for playing a vital role in realizing objectives of #IndiasLookEastpolicy. Meghalaya’s geographic proximity to a part of #RangpurdistrictofBangladesh in the west and the Mymensingh and Sylhet districts of Bangladesh in the south enhances its strategic and financial significance in the wake of Government of India’s ambitious projects of infrastructure corridors between #India-#Myanmar #Thailand and #India-#Bhutan-#Bangladesh, which will pass through #Meghalaya.
Catalyst for South-South Cooperation
Inadequate capacities usually identified as one of the major constraints for the sustainable management of natural resources. The capacity for addressing the environmental aspects of natural resource management is even more limited due to the fact that training initiatives for most senior managers tends to focus on the social and economic aspects with minimum consideration of the environmental aspects. However, some developing countries have acquired expertise in one or more #IntegratedNaturalResourceandEnvironmentManagement (#INREM) disciplines while other countries need assistance in the same disciplines. Therefore, the challenge is to bring the countries together in a #SouthSouthCooperation (#SSC) arrangement in order to address #capacitygaps and to find an operational model for exchanging knowledge, expertise and other forms of #capacitybuilding approaches.
#RoleforSMEs
Comprising over 90 per cent of total enterprises in most of the economies around the globe, the #SMEs are credited with generating the highest rates of employment growth and account for a major share of #industrialproduction and exports. The SMEs play a pivotal role in India too in the overall #industrialeconomy of the country. This makes the SMEs significant for realizing the objectives of growth with equity and inclusion.
#Guwahati in Assam is well placed in terms of #entrepreneurshipdevelopment when compared to the other states in the Northeast owing to its upscale market and good road/ rail connectivity and as such it is naturally placed to lead the entrepreneurial activities and attracting large scale investments. Other North Eastern states also present congenial atmospheres for SMEs and the local populace prefers light industries, as opposed to heavy and polluting industries that create big tussles among the different #stakeholders of the industries concerned and harm the ecosystem.
A recent study named State Level Reforms – Increasing Investments in North East jointly undertaken by FICCI and the Konrad Adenauer Foundation (KAF) underlines the condition for constructive dialogue and engagement with policymakers and the administrative machinery in Northeast and the steps that need to be taken to harness the true potential of the region.
The availability of the promising opportunities in the Northeast has spurred industry chambers like CII, FICCI to focus increasingly on this region to score well by infusing energy in SMEs, supported by local entrepreneurial skills. The expansion of #SMEs in the Northeast will proportionally generate quality employment and will also check outbound migration.
Broadly speaking, all the states of the Northeast region, despite having many commonalities, are distinct in their own ways. Thus, keeping this diversity in mind is also essential for policy makers and prospective entrepreneurs. Under the existing circumstances, a greater adjustment is called for from industries for the local conditions prevailing in the entire Northeast. With the expansion of infrastructure and completion of corridors, the growth of SMEs will be the one among many desirable outcomes, which is going to shape the future of the very promising Northeastern region of India.
Way Forward
A paradigm shift is required for mainstreaming the North-East region into national mainstream of development by managing natural resources and the environment along with fostering all stakeholders’ inclusive and collaborative partnership along with due emphasis on growth of SMEs..
This region serves as a gateway for trans-border trade with ASEAN nations via Thailand and Myanmar. Proximity between Thailand’s ‘#LookWestPolicy’ and India’s ‘#LookEastPolicy’ holds abundant potential for promoting the small and medium scale industries as they will provide ample scope for further India-Thailand #economicactivities, said a top Thailand government official.
Thailand’s strengths mainly in two areas of tourism and food processing industry can prove instrumental in further deepening bilateral cooperation between India and Thailand. These are possible areas of cooperation between the two countries, especially with the East and North East part of India which not only provides a large flow of tourists to Thailand every year but also holds prominence as a major agricultural producer.
Similarly, India’s strengths can help it garner a stronger foothold in the ASEAN market. India’s core strength in educational and skill-set development can be of particular importance to Thailand. Thailand’s “#OneDistrictOneProduct” initiative, which is aimed at stimulating local economy by promoting local products from every district to domestic and international consumers, can be replicated in #NorthEastregion to help the #SMEsector.
By #DrArvindKumarPresidentIndiaWaterFoundationNewDelhi.
