“An important point to note is that although trade performance has improved with India’s eastern neighbours, many of these exchanges had been done through seaports, leaving the northeast states in the lurch. If the northeast is to benefit from any improved trade relations or any present or future FTAs, the numerous plans and proposals that has been put forth and are in paper only must be implemented and brought to fruition first. The very few roles that the northeast states are playing right now should also be promoted to a more central role so that the north east states could reap the fruits of its own fields.

In a nutshell, Northeast India, a storehouse of great natural resources but very backward economically, needs to be built up and readied if it is really going to be the ‘gateway’ or ‘centre’ of trade between India and East Asia. Unless the region is developed to catch up with the rest of the country in its growth rate and development, it will be hard to achieve what the people aspired for – peace, security, prosperity and all round development. To make this possible, substantial investment in infrastructure, construction of roads, bridges, communication networks, harnessing of the region’s vast natural resources and other physical infrastructures that will facilitate trade and economic progress needs to be developed.

With the impending AIFTA, India’s Northeast region has suddenly become the centre of focus once again. But this region has been lacking behind other Indian states in most respects in spite of its vast natural resources and strategic position as a link between India and Southeast and East Asian countries. The main reasons why this region remains backward are the lack of any infrastructure that could facilitate any development in the region, poor market access and, to some degree, security issues.

The Indian government also concedes that the Northeast has a long way to go to achieve the national growth rate of nearly 9 per cent. The growth rate of Northeast is only 4 per cent. To increase the growth rate and economy of this region will be an important step because herein lies many solutions to some pressing political and security problems.

Therefore, in the context of the present FTA, the author is of the opinion that unless the Northeast region is developed wholeheartedly, neither India nor ASEAN will really benefit from it.”

Security concerns…although very important…should not hold the country from opening up trade. Innovation is the key. Innovate the policies so that the trade can be increased without compromising the security. Saying No to trade (becuase of security) does not make any sense. I am happy that the govt is moving forward (albeit slowly).

Chris: I discovered your blog yesterday..and I am loving it. Keep up the good work.