The document discusses strategies for developing industries and improving connectivity in Northeast India to realize its growth potential. It identifies key issues like unemployment, lack of educational institutions, and underutilization of resources. It proposes developing industries like handicrafts, agriculture, and tourism through initiatives like e-commerce platforms, financing, and marketing. It also suggests improving connectivity through developing land ports, regional hubs, air services, and border markets to boost trade. Developing hydroelectric power and commercializing non-timber forest products are identified as ways to utilize natural resources. Public-private partnerships are recommended to implement these measures and generate employment in the region.

1. Sunrise States: Realizing the
growth potential of North-East
TheWiseQuackers2013

2. 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 ?

3. 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

4. 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

5. 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)

6. 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)

7. 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

8. 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

9. 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

10. 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

11. 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)

12. 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)