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  1. 1. SUNRISE STATES:REALISING THE GROWTH POTENTIAL OF NORTH EAST Submitted By: Sanjana Kacholia Shruti Jain Shradha Jain Shubham Lahoti Ujjawal Shrivastav
  2. 2. Introduction • India’s northeast region (NER) is endowed with huge untapped natural resources .The region comprises of Arunachal Pradesh,Manipur, Meghalaya, Mizoram, Nagaland, Sikkim,Tripura and Assam • India’s north east region (NER) is endowed with huge untapped natural resources. • A key constraint to the growth has been poor infrastructure and limited connectivity, both within the region as well as with the rest of the country. • For instance, the Naga insurgence, which started in the 1950s, is one of the oldest unresolved armed conflicts in the world. Opening up and augmenting trade with the neighbouring countries such as Bangladesh,Myanmar and through Myanmar to South East Asia will also help in realising the full potential of the region. • Exploitation of the large hydro potential in the NER could be used for exporting to the power deficit northern and western regions of the country. • Infrastructure development is a fundamental prerequisite for realizing the vision of progress towards peace and prosperity and for creating an investment climate and market development in the North • East. • However, in spite of being endowed with vast natural resources in terms of forests, biological diversity, hydroelectricity, the region has remained largely underdeveloped.
  3. 3. Agriculture • With more than 98 percent international border,the region has several unique features:fertile land, abundant waterresources, evergreen dense forests, high and dependable rainfall,mega biodiversity and agriculture- friendly climate. • The pattern of agricultural growth has remained uneven across regions. The states continue to be net importers of food grains even for their own consumption. • Even though, it accounts for about 8% of the total geographical area of the country, it has only 3.4% of land for agricultural purposes • Reasons include a lack of appropriate strategies for the development of natural resources, inadequate infrastructure facilities and low adoption of improved technology. • Rice is the major staple crop commonly grown in the NER states. But the rice-based agriculture system has failed to provide required household income-security. • Tea is a commercial crop grown entirely by corporate sector. Specific Problems of Agriculture in NER • Adherence to traditional agricultural practices • Low adoption of modern rice varieties (HYVs) of rice. • Problems of property right • High vulnerability to natural calamities, and degradation of prime agricultural land • Over-dependence on monsoonal rains with poor irrigation infrastructure. • Low use of fertilizers . • Weak institutional credit delivery system (per hectare credit disbursement is one-fifth of the national average) • Negligible agro-processing and post-harvest management • Poor transport and market infrastructure (road density • Poor monitoring and accountability of public service delivery system
  4. 4. SOLUTIONS • Shifting cultivation: This slash-and-burn system of cultivation is a unique feature of the region, which coversnearly 2 million hectares area . Being a socially-preferred practice, instead of banning,it needs a focussed system based R&D to improve the overall productivity and food security. • Rain-water harvesting: The NER is endowed with high rainfall, but rain-water is neither conserved nor harvested to increase crop yields and intensify agriculture. Appropriate watershed programmes with people’s participation need to be encouraged to harness the untapped benefits. • Crop diversification • The region, which is heavily dependent on the agriculture sector, needs a green revolution to eradicate poverty and boost its economy. Such a green revolution must be adequately backed by financial institutions, marketing functionaries and R&D.
  5. 5. POWER AND RESOURCES • The region is endowed with perennial rivers and water bodies, therefore, it has a huge hydroelectricity potential.This potential, if tapped well, can be used to export power to other regions of the country. • The spill-over benefits will be the development of infrastructure such as roads, communications, and electricity supply to remote hilly areas, resulting in better quality of life. • CIL should take up development of new coal mines particularly in Assam and Meghalaya to meet the coal requirement for new thermal power projects being proposed in the NE region. • A clear, coherent and sustainable power policy may be made especially for the NER which will take into account the special characteristics and needs of the Region. • The issue of gas availability and pricing may be appropriately addressed for exploiting the substantial gas reserves in the Region for power generation. IMPLEMENTATIONS
  6. 6. TRANSPORT INFRASTRUCTURE • Transport infrastructure is of great importance in the region to strengthen its integration within itself, with the rest of the country and its neighbours effectively within and out of the region. • It is a vital input for the proposed shift from subsistence agriculture to cash crop based farming, as well as the planned development of industry and the service sector. • Most of the area in the region is hilly and undulating with low population densities, accompanied by low per area production of goods. • In the hilly terrain like NER development of inland waterways is expensive. • Rail connectivity in such a terrain is not only time consuming but would need prohibitive investments, probably beyond the means of the nation. It is road connectivity which would play a dominant role in fulfilling the transportation needs of the public. Air connectivity would also play a role for a limited segment of people and goods.
  7. 7. SOLUTIONS • In planning road networks under SARDP particular attention should be given to roads, bridges and underpasses with adequate design capacity considering transportation of heavy ODCs to power projects. • Much more attention should be given to inland water routes as a method of connectivity within the region, the existing potential of which is largely untapped. • The major road programmes that are being undertaken in the region are as follows: 1. National Highway Development Programme (NHDP)- II proposes to link the east-west corridor beginning at Porbandar, Gujarat to the NE through a 678 km four-lane highway connecting Silchar to Srirampur via LumdingDaboka-Nagaon-Guwahati in Assam. This has been entrusted to the NHAI under the NHDP phase-II. 2. NHDP-III proposes to widen 1,051 km stretches of various NHs to improve connectivity of state capital towns. 3. The Arunachal package envisages improving the connectivity to the Arunachal dramatically. 4. Special Accelerated Road Development Programme for North East (SARDP-NE).
  8. 8. BORDER TRADE . • With the emergence of globalisation, economic integration among nations has become a necessity. • Cross-border trade is the most important medium of the current wave of globalisation. In this process, knowingly or unknowingly the north east economy has emerged in to a new dimension of cross-border trade (informal trade) with neighbouring nations and that increases social welfare of the poor masses of the region. Under the “Look East” policy, India seeks economic cooperation with ASEAN and other neighbouring countries through the gateway of the region. • The North East is located at a crossroads between three major economies – East Asia, South Asia and Southeast Asia. • This geopolitical advantage, has however, not really translated into the region’s economic development. Out of India’s export volume of about $254.4 billion, the Northeast’s share is only about $0.01 billion.
  9. 9. The broad racial differences between India and its Northeast and the tenuous geographical link contributed to a sense of alienation, a feeling of ‘otherness’ that subsequently gave rise to a political culture of violent separatism. Further, Northeast India is home to more than 50 ethnic rebel groups – a few demanding complete secession from India, others fighting for ethnic identities and homelands and some running the insurgency as an industry to spin easy money without any political ideology. Despite their resilience the narratives of rebel organizations are often vague and confused. The unsaid but universal truth about an insurgency situation is that there is always much more than meets the eye behind its dynamics. The contributory causes are many including inconsistencies in history, economic structures, development and identity alienation. It is also closely related to administrative weaknesses and incompetence, but above all official corruption that continually trample upon all sense of fair play and justice. The impact of Insurgency activities
  10. 10. Problems and Untapped Resources Solutions Dominance of rice and tea. Wrong agricultural practices(Slash and burn) Shifting Cultivation Crop diversification Improvement in rice production Rainwater Harvesting Untapped Energy resource Development of new coal mines Tapping the hydroelectric potential of the region Issue of gas availiblity to be considered Connectivity and transport Improve facilities for night navigation and mechanical handling Cargo vessels and terminals should be increased to meet the rising demands Construction of public roads to link the hydel power project Four-lane connectivity to Itanagar Two-lane connectivity of district headquarters Trans-Arunachal highway Border trade The border haats would be allowed to sell local agricultural and horticultural products, small agriculture and household goods. No local tax would be imposed on the trading, and both Indian as well as Bangladeshi currencies will be accepted. Insurgency A peaceful solution to insurgency in the Northeast could be possible through negotiations and a spirit of sacrifice
  11. 11. APPENDIX • Introduction • Problems and solutions with their impacts – Agricultural – Power and resources – Transport Infrastructure – Border trade – Insurgency