On North-East

The North-Eastern states became economically disintegrated as a result of political division of the sub-continent in 1947. Eventually, the region was cut-off from its traditional trading partners such as Bhutan, Myanmar, the then East Bengal now Bangladesh, Thailand and Indo-China. In fact, the region became land-locked and also exacerbated the isolation. Unfortunately, the issues are ignored and less understood.
People here are in no position to drive the economy forward. Many wrong policies may have contributed as explanatory factors. Available data reveals that incomes in seven of eight north-eastern states are now below the national average ( Rs. 33,283 in 2007-08). Just five years ago, four of these states such as Tripura, Sikkim, Nagaland and Mizoram had income levels marginally higher than the country’s average ( Rs. 20,871 in 2003-2004) . Sikkim is the only state where per capita income has remained above the national average during the period 2003/2004-2007/2008. The states such as Assam, Mizoram, Tripura, Manipur, Arunachal Pradesh, and Nagaland and Sikkim are now growing slowly. The region is home to more than five crore people (3.8 per cent of India's total population). It contributes to over 80 ethnic groups. More interestingly the eight north-eastern states are rich in mineral and natural resources.
Historically the region generally has been a food-deficit region. Myanmar was the supplier of cereals, pulses and fishery related products. Manufacturing products on the other hand were supplied by Kolkata. People in the hilly villages used to plant oranges, coffee beans, paan, bay leaves, betal nut, sweet potatoes, yum and other tubers. They traded for rice, vegetables and dried fish at the weekly haat some 25 kms away, in what’s now Bangladesh and Myanmar. That trade stopped long back with the drawing of borders. People still dream those days.

Furthermore, agriculture suffered. People, for example, in hilly areas have had no choice but to look for alternatives such as mining for coal, limestone and stone quarrying. Most work as daily labourers in the mines or in the lime kilns, or run the mines themselves. In addition people from other states are busy in financing deforestation. After all people from prosperous states need nice wood furniture! Moreover, cheap, old and polluted vehicles from the main land cause environment degradation. In fact the experience of traveling by car from Guwahati to Shillong generates part fear and part anger,

Tea planters too exploited the whole situation. The poor, defenseless people are exploited by large, well-funded, well-organized tea planters. They never invested in land but inherited gardens left by the English planters with a lower price. The mottos were clear. Promise them entertainment, exploit them to the utmost with inflated prices for food and let them consume masses of booze, and then disappoint them. The region needs better environment and infrastructure to grow.
In the plain Assam and Tripura cereals (mostly paddy) and jute are cultivated. Before partition the labourers from the then East Bengal (now Bangladesh) were instrumental to neutralize the excess demand for labour during sowing and harvesting season. They use to come with their tools and then returned with a load of paddy. Because the available cash money was not just enough to meet the demand side.
Horticultural products are plenty here. They are cheap in the primary form. Their value additions are possible at a competitive price. But they are slimmed in main land once transport costs are factored- in according to the policy makers. This logic is vague. Even then are other alternate ways to resolve the issue such as concentrate and non-liquid form. The policymakers needs to be little innovative here.
The model of development in the region should be different from traditional ideas. For centuries, Christian missionaries have generated quality services in the form of education in the region. Thus the creation of effective service sectors, infrastructure development, providing training to the youths for the demand of service sectors are all powerful ingredients in order to facilitate the overall development of the region. The development model of Switzerland may bear useful lesson in this context.
The new political development in Bangladesh has created new opportunities in this region. The people of India see Hasina's government as a “significant opportunity" to forge a "new relationship" with Bangladesh. From Indian perspective, the cost of alternate to Awami League government in Bangladesh had been high. Thus she deserves special attention from us. With each acknowledgement the issue on “ Tessta Water” has been a major irritant of Indo-Bangladesh relationship because the scarcity of water on the Teesta causes sufferings to people on either side of the border during the lean season.
Bangladesh feels that India can afford to shorten the list of sensitive goods so that Bangladesh can export more products to the country and reduce the trade imbalance in bilateral trade. Interestingly India has 460 products on its sensitive list. From Indian part the fear may be due to trade distortion as we have already seen the case of ‘Vanaspati’ in explaining major irritant between India-Sri Lanka free trade. The same fear may cause other issues because the garment components may be imported from third countries. The solutions such as buy back, Indian investment in this sector in Bangladesh may be thought of. Historically, the economic clusters played an important role in this region. In fact, this has implication even now. Bangladesh is the only densely populated country in the region. This country is bordered with scarcely populated countries such as Myanmar and India’s north-east. This suggests the re-establishment of integration in a coherent way.
Admittedly, the policymakers deserve credit for the speed and scale of their responses to the above issues in recent time. However, it is too soon to conclude that they have broken with the past.