Why in the News?

Most western border districts, except in Gujarat, had little or no growth in exports and saw slow poverty reduction. Now, recent tensions and shelling between India and Pakistan are hurting the economy in these 22 districts.

What causes slower poverty reduction in border districts?

• Geopolitical Tensions and Hostile Neighbours: Constant threats such as cross-border shelling along the LoC disrupt livelihoods, infrastructure, and public services. Eg: In Jammu & Kashmir, border districts face frequent disruptions due to tensions with Pakistan, limiting economic stability and job opportunities.
• Limited Economic and Industrial Activity: Border districts often lack a strong industrial base or service sector, leading to low income-generation and underemployment. Eg: In Rajasthan and Punjab, several border districts showed slower poverty reduction than State averages due to stagnant economic growth.
• Inadequate Infrastructure: Poor roads, communication networks, and market access hinder economic integration and development. Eg: Eastern States like Arunachal Pradesh and Nagaland face challenges due to remote terrain and limited connectivity, contributing to persistent poverty.
• Declining Development Fund: Post-pandemic, central funding under schemes like the Border Area Development Programme (BADP) has declined sharply. Eg: After FY20, both western and eastern border areas experienced reduced support, slowing poverty reduction efforts.
• Landlocked and Isolated Geography: Many border districts, especially in the Northeast, are landlocked and rely on external transport hubs, limiting local trade and economic activity. Eg: In Assam, 75% of border districts had a slower decline in poverty than the State average between 2015–16 and 2019–21.

Why are exports stagnant in most border districts except Gujarat?

• Lack of Industrial and Export Ecosystem: Most border districts lack industrial clusters, export-processing zones, and supply chain infrastructure, which hampers export activity. Eg: Border districts in Punjab, Rajasthan, and Jammu & Kashmir contribute only 0.3% to India’s total exports, showing minimal export potential.
• Geopolitical and Security Constraints: Tensions with neighboring countries and border insecurities restrict cross-border trade and deter investment in export-oriented industries. Eg: Frequent cross-border shelling along the LoC in J&K and Rajasthan affects trade operations and discourages private sector involvement.
• Gujarat’s Strategic Advantage and Policy Support: Gujarat benefits from a coastal location, developed infrastructure, and proactive industrial policies, enabling strong export growth. Eg: Border districts in Gujarat increased their export share from 1.9% in FY22 to 3% in FY24, in contrast to stagnation elsewhere.

Why did the government’s support to border areas decline?

• Reallocation of Resources Post-Pandemic: The COVID-19 pandemic shifted national priorities toward healthcare, urban welfare, and fiscal recovery, resulting in reduced focus on border-specific programmes. Eg: Post FY20, schemes like the Border Area Development Programme (BADP) faced budget cuts as funds were redirected to pandemic-related needs.
• Security-Centric Approach Over Development: In sensitive regions, the government adopted a more security-focused strategy, often at the cost of developmental spending in border districts. Eg: In J&K and Punjab, heightened defence and surveillance measures took precedence, sidelining economic initiatives and local development schemes.
• Administrative and Logistical Challenges: Border areas, especially in the Northeast, face issues like difficult terrain, poor connectivity, and limited administrative reach, deterring consistent support. Eg: In Nagaland and Arunachal Pradesh, implementation hurdles led to underutilization of allocated funds, reducing the impact of central schemes.

Way forward: 

• Targeted Development & Infrastructure Boost: Prioritise region-specific infrastructure (roads, logistics hubs, digital connectivity) and promote border-based industrial clusters to generate employment and improve trade potential.
• Revive and Expand BADP with Integrated Planning: Strengthen the Border Area Development Programme (BADP) with post-pandemic funding revival, and ensure convergence with state schemes for holistic socio-economic upliftment of border districts.

Mains PYQ:

 [UPSC 2024] Examine the conflicting issues and security challenges along the border. Also give out the development being undertaken in these areas under the Border Area Development Programme (BADP) and Border Infrastructure and Management (BIM) Scheme.

Linkage: The security problems along the border, such as India-Pakistan tensions and cross-border shelling, as seen in the “India’s Border Districts”. It also explores how development programmes address these issues, directly linking security challenges with economic and development concerns in border regions. It clearly connects border tensions with the economic struggles in these areas.

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