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Uttar-purva vikas yojana:

REALISING THE GROWTH POTENTIAL

OF THE NORTH-EAST REGION (NER)

NIMISH GUPTA

MEHUL AGARWAL

JIGAR RAJANI

BHAVIK VORA

UDDHAV PODDAR

ST. XAVIER’S COLLEGE, KOLKATA

STRENGTHS:

Huge untapped natural resources.

Gateway of India’s “look east policy”.

Large deposits of rare earth metals, vast bio-diversity hotspots and high literacy

rates.

WEAKNESS:

Land-locked, thus no scope for development through

the maritime sector.

Poor infrastructure and limited connectivity.

OPPORTUNITIES:

Strategic location which is brilliant in connecting with East and South-East Asia.

Around 3800km of waterways which has

tremendous potential for being tapped as a source of

cheap hydroelectricity.

THREATS:

A boiling pot of various insurgencies.

Alienated from the nation’s economic resurgence,

especially far-off areas like Arunachal Pradesh &

Nagaland.

SWOT ANALYSIS OF NE INDIA

MAJOR SECTORS TO BE

CONSIDERED IN THE NER

PHYSICAL INFRASTRUCTURE

POWER GENERATION:

HYDRO ELECTRICITY

BORDER TRADE

AGRICULTURE TOURISM DEMOGRAPHY

Aviation Sector:

The NER has only 1 international airport (the LGBI airport) at Guwahati, Assam.

9 domestic airports along with 6 airports under construction, 1 being a Greenfield

airport, at Itanagar.

Guwahati Airport has the highest traffic followed by Lengpui Airport (Mizoram).

Waterways:

2 major rivers, i.e., Bhramaputra and Teesta.

Around 3839 km of navigable waterways.

7 operational riverine ports for trade with Kolkata & Haldia ports.



• Hilly topography poses a difficulty in development

of suitable transport systems.

• It is a land-locked area which acts a deterrent for development through maritime sectors.

CHALLENGES

• Absence of seas, thus we should concentrate on development of land & air routes.

• Due to hilly areas, we should concentrate on narrow gauge railways and ropeways, as transport means.

• Setting up viable industries under public, private or PPP ownership, which shall lead to development of transport & connectivity as a spillover benefit.

SOLUTIONS

• Construction of ropeways will not pose a threat to the ecosystem.

• Setting up industries will lead to a dual benefit of industrial as well as transport development.

FEASIBILITY

STRENGTHS

Perennial rivers.

Sufficient power can be generated to

support export to other areas.

Setting up hydel plants will lead to

development of infrastructure in the

areas.

Threshold capacity for setting up hydel plants

is 350 MW in these areas, against a

countrywide 500 MW.

DRAWBACKS

It has grave environmental implications.

Leads to displacement of natives.

Leads to loss of biodiversity, which is a

serious issue in the NER as it is home to certain endangered

species.

SOLUTIONS

Involvement of locals at various levels of implementation to

plan out suitable R&R policy.

Proper re-settlement & compensation( as

per market rate ) to be given to affected

parties.

Selection of sites after comprehensive EIA.

Construction of ‘fish passages’ to aid

migration of fishes.

FEASIBILITY

Involvement of locals will ensure sustainable implementation of

projects with minimalistic impacts on their lives and the ecology, due to native

knowledge.

The ‘fish passages’ will prevent any damage to fish populations due to

such projects.

POWER GENERATION: HYDRO ELECTRICITY

BORDER TRADE • NE India is located between three major economies –

East Asia, South Asia and Southeast Asia.

• Out of India’s export of $254.4 billion, the Northeast’s share is only about $0.01 billion.

• 94% of exports of the area are tea & coal, with manufactured goods being negligible.

PRESENT SCENARIO

• Inadequate infrastructure and other facilities.

• Not been able to integrate and benefit from the various regional and sub-regional initiatives that neighbouring countries have created.

CHALLENGES

• ‘BORDER HAATS’ to be allowed to sell local agricultural and horticultural products.

• No local tax on trading.

• Check Posts and border trade points need to be developed.

SOLUTIONS

• ’BORDER HAATS’ are expected to witness bilateral trade worth $20 million every year.

• Exemption of local tax would serve as a huge incentive.

• Border trade points will help to reduce informal trade between NE and neighbouring regions.

FEASIBILITY

STRENGTHS

Varied topography and agro-climactic

conditions.

Rubber & Bamboo, being

the most suitable crops, can attract

a lot of investment.

Comparative advantage in

fruits, vegetables & horticultural

products.

DRAWBACKS

Primitive practices such as jhooming and slash & burn

cultivation.

Lack of adequate infrastructure &

modern technology.

Imports of food grains remains

high.

Only 3.4% is cultivable land.

MAJOR PROBLEMS

Fragmented land holdings.

Low use of fertilisers.

SOLUTIONS

Forming area-wise farmer co-

operatives.

Promoting education among

farmers about need & use of fertilisers and making them

available at subsidized rates.

FEASIBILITY

Formation of co-operatives will

enable farmers to pool resources.

This will allow mechanized farming

and HYV seeds, which generates higher produce &

profits.

It shall further enable them to face natural &

man-made shocks.

Use of fertilisers shall improve the

productivity & output of the

area.

AGRICULTURAL SECTOR

• Tourism is still a nascent industry in the NER.

• The number of tourists, both domestic and international, has gone up dramatically in the past year.

• Manipur, Tripura and Nagaland have notched 20%-29% more foreign tourist arrivals while Arunachal Pradesh and Nagaland have 36%-41% increase in domestic travelers.

PRESENT SCENARIO

• Scenic beauty.

• Rich biodiversity.

• Various natural parks and forest reserves. STRENGTHS

• Geographical isolation.

• Political insurgency.

• Lack of infrastructure & communication facilities.

• Limited transportation facilities.

CHALLENGES

• Huge investment to break the geographical isolation and remove communication-bottlenecks .

• Build up the required infrastructure of the region.

• Proper tourism development policy.

SOLUTIONS

• Removal of geographical isolation shall lead to development of the region as a whole.

• Increase in tourism will prove to be an important source of forex for the country.

FEASIBILITY

TOURISM SECTOR

PRESENT SCENARIO

Occupying 8% of India’s

geographical spread, the states are home to only

4% of the country’s population.

The IMR and MMR rates are very high,

especially Assam having IMR of 48 and MMR of 480.

The Crude Death Rate (CDR) & Crude

Birth Rate (CBR) have declined

across the region.

The literacy rates in all states are either above or equal to

national average of 64.8%.

STRENGTHS

The high literacy rate ensures a

cesspool of educated

professionals.

The region is being given special

attention in the government health

programmes.

WEAKNESS

The healthcare infrastructure of the region, i.e.,

hospitals, in health centres is very

poor.

The density of population is very low varying from

13 per sq. kilometre

in Arunachal Pradesh to 340 per

sq. kilometre in Assam.

SOLUTIONS

Immunization to prevent morbidity and mortality due

to vaccine preventable

diseases.

Health programmes to

prevent high mortality rates and improve density of

population.

Conducting proper surveys to

understand and combat the situation.

FEASIBILITY

Any reduction in mortality rates will

result in an increase in the

human resource base of the region.

Proper surveys shall correctly

depict the conditions which shall enable us to take proper steps.

DEMOGRAPHY

INCENTIVES FOR

GROWTH IN THE

NER

Mutual cooperation of both the state and central governments to comprehensively develop NER, already declared as a SEZ.

Subsidy @ 90% of the transport cost of raw materials brought from outside the region as well as the finished goods sent

from the region to other parts of the country.

Income tax exemption for five years for the new industrial units set up in the region.

Growth centres and IIDCs to be converted into total tax free zones for the next ten years. Similar benefits will also be

extended to new industrial units or their substantial expansion in other growth centres or IIDCs of industrial estates, parks,

export promotion zones set up by the states.

Capital investment subsidy (CIS) at 15% of investment in plant and machinery, subject to a maximum ceiling of 30 lakh INR will

be given. Eligibility conditions will be same as in case of tax benefits.

Interest subsidy of 3% on working capital loans will be provided for a period of 10 years. Eligibility conditions will be same as in

case of tax benefit.

A comprehensive insurance scheme for industrial units to be designed, in consultation with GIC and 100% premium to be

borne by the Indian government for 10 years.

REFERENCES

•http://wcd.nic.in/research/nti1947/2.Demographic%20transition.pdf •http://www.pwc.in/en_IN/in/assets/pdfs/publications/2013/north-east_summit-2013.pdf •http://www.mdoner.gov.in/sites/default/files/silo3_content/railways/Master_Plan.pdf •http://epao.net/epPageExtractor.asp?src=features.Impact_of_road_development_on_rural_economy_of_NE_India.html.. •http://mohfw.nic.in/WriteReadData/l892s/9457038092AnnualReporthealth.pdf •http://en.wikipedia.org/wiki/Northeast_India

THANK YOU!

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