The document proposes solutions to realize the growth potential of India's North-East region. It identifies key challenges facing the region such as lack of infrastructure, illegal border trade, and underdeveloped agriculture. Solutions proposed include establishing border trade with Bangladesh, providing transit routes, developing hydropower through cooperation on water sharing, improving agriculture through collective farming and access to loans, and setting up skills institutes. The solutions aim to boost connectivity, trade, energy and skills development to help the North-East region achieve its economic potential. Challenges to implementation like insurgency and local opposition are also discussed along with mitigation strategies.

1. Realizing The Growth Potential Of North-East
Ankit Kumar Raghav Dave
Inderpreet Singh Oberoi
Prakhar Gupta Prakhar Agarwal
Submitted By- :

2. FROM OVER-STRETCHED DUSK TO “POTENTIAL DAWN”
1. 8% of India’s geographical1 area
2. Sharing land border with five countries
1. Average literacy rate 79.64% vs. the national
average of 74.04%
2. Scenic splendor, robust and varied cultural
attractions-- ideal for tourism.
1. Estimated 43 percent of total identified hydel
power is concentrated in the north east.
2. From oil to forests and agriculture- variety of
natural resources.
Despite the above facts the North East Region is still what it was a few
decades ago – “A Stagnant Pool”

3. 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 as its contribution to national exports is less than 0.004%. Let
us focus mainly on Bangladesh & Myanmar.
1. Illegal trade between
the two countries
amounts to 3/4 of
regular trade.
2. Lack of transit
routes between North
East and Bangladesh.
3. Refusal of
Bangladesh to provide
transit route via their
land to India
4. Water sharing and
hydel power
development
5. Lack of political will
and consensus in both
countries to take firm
decisions
7. Insurgency
INDIA-
BANGLADESH
1. Ethnic conflicts
2. Influx of illegal
immigrants
3. Frequent blockades
imposed by different
social/political/ethnic
groups
4. Lack of
infrastructure on both
sides of the border
INDIA-MYANMAR

4. “PROPOSED SOLUTIONS”
• “Border Haats”. allowed to sell all types local
products. No local tax would be imposed on the
trading,
For Illegal Trade
• Transit route to ‘seven sisters’ via bangladesh
in lieu of transit route between bangladesh and
bhutan.
• 100% investment by india in constructing new
road network for the transit route.
• Involvement of local workforce in the
construction under the supervision of NHAI.
For Transit Routes
• India must allow bangladesh for development
of hydro-power projects in NER under
supervision of Indian officials in lieu of
TEESTA water sharing in a proportion of 60-
40 for india and bangladesh respectively.
• Use of bangladesh ports for the exports of
commodities of NER. Taxes can be levied for
the same by bangladesh..
Water Sharing and
Hydel projects

5. MERITS OF THE PROPOSED SOLUTION
 The border haats would be allowed to sell local agricultural and horticultural products and
household goods .No local tax would be imposed on the trading, and both Indian as well as
Bangladeshi currencies will be accepted. This will increase the legal trade between the two
countries and will reduce the illegal trade drastically.
 This will connect the NER of India with the rest of indian states with a very short route
thereby reducing the huge distance of over 100 kms via siliguri corridor to a distance of 400
kms via bangladesh.
 Getting shorter route to the NER will reduce the cost of transportation due to which all the
raw materials , food ,basic amenities will be available at cheaper rates to the locals. This will
bring a lot of investment opportunities to them.
 100% investment by india in constructing the road network would strengthen the ties
between the two nations and will open gates for further cooperation in other areas.
 Due to shorter routes India could make a quick and easy movement of artillery, military and
para-military forces to the NER to counter insurgency and China in Arunachal Pradesh.
 The proposed water sharing agreement by us will benefit the NER as the hydel projects will
provide the employment to that region, will bring light to lives of people as the electricity
produced could help in setting up small scale industries in the NER.
 Use of ports will open up the gates to the South east asian countries and the NER could
easily do business with them bringing prosperity to the region.

6. Implementation
Of The Solution
Challenges And
Mitigation
Factors
• Governments of the two countries,bureaucrats , local
authorities and security personnels would be the
stakeholders.
• Regular aid provided by the Indian government to
Bangladesh must be reduced to 70% of its regular
basis and the rest must be invested in the upbringing of
these projects.
• Local workforce must be involved under the
supervision of expatriats.
• Illegal trade and immigration of people may increase
due to the introduction of transit routes. To mitigate this,
more checkposts can be developed and high end
vigilance must be ensured.
• These projects may create issues of resettlement of the
locals living in proximity of the project.The government
must provide compensation to the locals and employ
them in the project.
• It may be possible that some political leaders of west
bengal may not agree to TEESTA pact . To overcome
this problem, some extra aid must be provided to
certain areas of the region which may get affected by
this pact.

7. Indo-Myanmar Trade
Solutions:
• Enhancing trade of traditional goods .
• Spreading awareness among the people the development taking place.
Implementation:
• Trade can be enhanced by simplification of documentation process. Proper security
forces should be used for preventing insurgency because of simplification of
documentation process.
• Local NGO’s can conduct awareness programs for spreading the words of knowledge
about the benefits that the locals will acquire by the development taking place.
• Proper interaction between indigenous communities and government officials native to
their own tribes.

8. ProblemsAnd
Constraints
• Endowed with varied topography and agro-climactic conditions
but still contributes 2.8% in agriculture production.
• Huge potential for Rubber & Bamboo plantations but still lags
behind
• Fragmented land holdings by small and marginal farmers
dominate the landholding pattern.
• Use of fertilizers is lowest in our country.
• share of agriculture in total electricity used : 1% (National
Average: 20.43%)
• Less production of electricity limits the development of
industries.
• Lack of transportation facilities limit the movement of raw
materials as well as processed goods.
AGRICULTURE & FOOD
PROCESSING

9. PROPOSED SOLUTION
• Small farmers should be motivated to combine and
form large stake hold.
• Providing crop insurance to those farmers who are
doing community farming will motivate them.
• Organic fertilizer should be subsidized in north east
India.
Land Reform
• Bank branches should be extended and should provide
low interest loans & relaxation in collateral.
• Private entrepreneurs need to be encouraged to set
up storage, distribution and marketing infrastructure
such as a cold storage chain along major arterial
highways through attractive Public Private
Relationship.
• Establishment of the Agro & Forestry Institutes.
Financial And
Skill
Development
• Clearing pending road project by mutually
cooperating with NGO and tribal community of
NE region.
• Creating a well enabled inland water transportation.
Infrastructure

10. ImpactOfThe
ProposedSolutions
• Will provide a boost to agriculture thus controlling import
dependence of the NE.
• Will provide a sustainable and acceptable option of organic
fertilizer to local community and to environmentalist NGO.
• Once production is established to grow low interest loan will
provide an opportunity to establish small entrepreneur of
packaging and processing .
• Relaxation of tax will further welcome large entrepreneurs from
other parts of India to establish food processing industries in NE. It
will increase the employment opportunities manifolds.
• Creation of institutions will give youth of NE an opportunity to
develop their skills without leaving their region & to be a part of
industry and hence participate in the growth of NER.

11. Implementation
• Money for establishing
new banks can by
reducing tax on money
transaction in NE.
• Private companies can be
funded in the form of
easing out Land
Acquisition in NER.
• Funds for setting up
institutes can come from
North Eastern
Development Ministry.
• Central & State Govt.,
localites, private
Companies, NGOs will be
the major stakeholders.
• Human resources will
comprise majority of
local citizens and skilled
persons can be brought
from West India, if
required.
ChallengesAndMitigation
Factor
• Banking would not be profitable in such
sparsely populated areas
• Awareness pregame need to be done so
that more and more people open bank
account .RBI too can assist Bank branch
in this area by providing them assistance .
• Spreading awareness about self help
groups is itself a challenge
• Youth can be immerge as game changer in
this .Motivating volunteers of NGO can
be proved very beneficial.
• Once institute has been established
problem of lack of skilled person.
• Experts all over the India can be
attracted to work in NE by giving better
salary and allowance.

12. Growth
of North-
Eastern
States
Border
Trade
Improved
Infrastruct
ure
Skill
Developm
ent
Demograph
ics & Social
Infrastructu
re
Power
Improved
Agriculture
& Food
Processing
“In Today’s World, We Recognize The Trade &
Investment Integrated With Infrastructure & Skill
,&Not Aid, Are The Pillars Of Development”

13. • http://www.project-syndicate.org/commentary/reforms-to-realize-india-s-
economic-potential-by-haruhiko-kuroda
• http://www.brainyquote.com/quotes/keywords/development_4.html#mrxSQe
pUwu2I3kIr.99
• http://www.academia.edu/1052989/DEVELOPMENT_DISPARITY_AND_
NORTH_EAST_REGION
• http://www.aspenindia.org/pdf/India_Bangladesh_Report.pdf
• ://www.mdoner.gov.in/sites/default/files/silo2_content/ner_vision/Vision_202
0.pdf