Sunrise States: Realizing the growth potential of North-East

TheWiseQuackers2013

Current Scenario

- NE economies Simple, heavily deficit & dependent on the rest of the country for many basic needs

- All seven units are entirely centrally financed on the basis of 90 per cent grant and 10 per cent loan

- No agricultural surplus & limited capital formation and entrepreneurial skills in the region

- Absence of higher educational institutes that foster research in the field of agriculture, hydel energy

- Handlooms and handicrafts are on the decline but have a considerable potential demand market

- The NE region will generate 2.6 million jobs by 2021 but the manpower supply will be 16.8 million persons

- Under the “Look East” Policy , India seeks economic cooperation with ASEAN and other neighboring nations via NE

Northeast(NE) spreads over a vast expanse of 255,000 sq. Km with a relatively small population of under 40 million today

• This resource-rich region is truly a national asset

• The development of its hydroelectric, oil and gas, coal and bio-diversity potential holds out promise of national solutions through regional development

• Recent softening of geo-political rigidities NE dynamic role as a bridge to the booming economies of Southeast Asia and Southwest China to mutual benefit

Why Develop NE ?

Problem Statement

o Scope of the broad problem

• Unemployment leading to migration

• Connectivity

• Resource utilization

o Reasons for selecting a specific cause(s)

• The identified problems’ solutions will lead to the fastest growth and employment generation or the region

• Will help in bringing the region at par with the rest of the country in terms of development

Developing Industries The handicraft and handloom industry in the North Eastern states has a huge room for growth

• Local produce has very high value in national and international markets • Presently growth restricted by limited local demand • Poor channel development connecting producers with potential customers

Step 1

•Identification and categorization of high value goods

•Creation of central database enlisting region specific goods

Step 2

•Creation of E Commerce platform for common marketplace

•Connecting producers with the central platform

•Extensive Marketing campaign leveraging the e - resources

Step 3

•Establishment of micro financing structure to provide credit lines to small producers

•Organization of annual workshops and sessions for handicraft

Integrated Sourcing and Marketing (ISM) model

Developing Industries Agricultural produce and packaging industries is another focus area for growth and development

• Identify local agricultural produce which have market potential – • Example: Tripura- Rubber, Oranges, Pineapple; Assam-Tea, Sal, Teak

Step 1

•Collaboration with Central institutes such as CSIR to identify local industries and needs

• To bridge the yield gap scenario through adoption of advance technologies (HYV seeds, etc)

Develop Village resource centers (VRC)

Step 2

• Tie-up with FICCI and CII to identify key industry players interested in NE produce

• Incentivize creation of manufacturing units in small pockets of NE to save transport cost of perishables (by SEZs)

Public Private Partnership (PPP)

Developing Industries Tourism industry is a key sector to achieve potential growth

• Currently all states have a tourism promotional website which are a fair descriptor about the state’s tourist places

Step 1 • Publicizing to tour operators at both the national and international levels

Step 2 • Dedicated Govt. initiatives to establish and upgrade tourist routes in collaboration between external tour operators & local operators

Step 3 • Rebranding ‘Paradise Unexplored’ and integrating tourism circuits with rural, community-based tourism

Integrated Northeast Tourism Policy (INTP)

Accessibility & Connectivity • Presently NE India connected to rest of India only through the

“Chicken’s Neck” in north West Bengal • Results in high costs for most inputs / raw materials • Limited export of goods from the region

Solutions Stakeholders: Governments of partner nations & states, local population and businesses 1. Development of Land Ports : • Connect cities in the north east with nearby international ports • Facilitate trade through set up of dedicated customs stations in

these cities in tandem with international partners • Focus sectors : • Agartala – Chittagong (Bangladesh) sector • Imphal – Aizawl – Sittwe (Myanmar) sector • Dimapur- Kohima – Mandalay – Yangon (Myanmar) sector

• Benefits: Increased trade remittances for both nations, reduced transportation costs leading to efficiency in industry

Accessibility & Connectivity 2. Development of regional HUBs • Guwahati – gateway to North East, building improved

connections to SE Asia and Bhutan through air route • Agartala – connectivity with Bangladesh and Myanmar • Annual bilateral trade fairs can be organized at the HUBs to

promote growth of indigenous industries

3. Short Haul Air Charter Service • Permit exchange of both cargo and passengers from cities in the

North East to those in nearby countries • Example: Guwahati – Thimpu, Aizawl – Mandalay etc.

• Will boost tourism from SE Asia as well as promote exchange of goods and services

4. Establishment of periodical “Border Marketplaces” • Fortnightly / monthly open markets can be instituted in towns

along the border with Myanmar and Bangladesh • On-the-spot exchange of goods for cash – will help livelihood

generation for marginalized communities along border regions

Developing Natural Resources – Hydroelectric Power

CURRENT STATUS

• Region has potential capacity to generate 50,000MW of clean hydro electricity

• China has started building dams on Brahmaputra to utilize resource

• Benefits of dams are three-fold:

• Power generation for industries/household use

• Employment generation in dam management, fisheries etc.

• Regular & controlled supply of water for irrigation/cultivation

STAKEHOLDERS

International/National private players to invest in dam development projects (Example: Japan financing hydro projects in Myanmar)

Call for Public Private Partnership through Build-Operate-Transfer mechanism

BENEFITS

For Stakeholders

- Supply to neighboring countries to earn foreign exchange (Bangladesh, Myanmar, Nepal)

- Enjoy rebates from Govt. of India for supplying to NE Region

- Clean source of long lasting energy

Developing Natural Resources – Commercialization of Non Timber Forest Products

Govt. of India

NGOs in region in collaboration with local

civil administration

Village Panchayats, Tribe Leaders

Identify useful regional NTFPs that have high

economic value

Identifies interested Private players who can package and

distribute product at national/global level

Train larger community towards optimizing collection and

identification

Collaboration between private players and village communities to

foster distribution

Identifies Key NGOs operating in a particular region

NGOs train Village Panchayats or tribe leaders on identifying high economic NTFPs

Village Panchayats or tribe leaders will sensitize the community at large

Appendix Sector Total NER Arunachal

Pradesh

Assam Manipur Megha-

laya

Mizoram Naga-

land

Sikkim Tripura

Ag. 23.60 (67.6)

0.68 10.8 1.7 1.41 8.63 -- 0.33 0.67

Mining &

Quarrying

0.044 (0.13)

0.013 0.16 0.015 -- -- -- -- --

Manufac. 0.57 (1.63)

- 0.48 0.029 -- -- -- 0.001 0.06

Elec., Water &

Gas

0.007 (0.02)

0.001 -- -- -- -- -- 0.006 --

Const. 1.227 (3.52)

0.028 0.78 0.055 -- 0.04 -- 0.014 0.31

Trade, Hotel &

Restaurants

1.525 (4.37)

0.012 1.37 0.046 -- -- -- 0.017 0.08

Transport 0.833 (2.38)

-- 0.76 0.002 -- -- -- 0.011 0.06

Other Services 7.084 (20.3)

0.052 1.67 4.04 0.094 0.01 0.53 0.008 0.68

Total 34.89 0.786 (2.25)

15.4 (44.14)

5.89 (16.87)

1.504 (4.3)

8.68 (24.88)

0.53 (1.52)

0.387 (1.11)

1.86 (5.33)

Distribution of (poor) employed across sectors – Rural (In lakhs)

Appendix

Sector Arunachal

Pradesh

Assam Megha-

laya

Mizoram Nagaland Sikkim Tripura

Ag. -- 0.014 0.013 0.014 -- -- Neg.

Mining & Quarrying -- -- -- -- -- -- 0.001

Manufac. -- 0.068 -- 0.068 -- 0.003 --

Elec., Water & Gas Neg. -- -- -- -- -- 0.005

Const. 0.008 0.014 -- 0.014 -- -- 0.010

Trade, Hotel & Restar. 0.002 0.065 -- 0.065 0.017 0.009 0.011

Transport -- 0.024 -- 0.024 -- -- 0.006

Other Services 0.009 0.11 -- 0.11 -- 0.003 0.017

Total 0.019 0.59 0.013 0.295 0.017 0.015 0.05

Distribution of (poor) employed across sectors – Urban (In lakhs)