Why in the News?
The Prime Minister said on Friday that the eight states of India’s Northeast are now leading in development and growth, and he encouraged investors to explore opportunities there.
What did the Prime Minister describe the Northeast region as, and why?
- Frontrunner of Growth: PM described the Northeast as no longer a “frontier region”, but a “frontrunner of growth”. Eg: Hosting of the Rising Northeast Summit to attract investment and highlight regional potential.
- Gateway to Southeast Asia: This aligns with the idea of Northeast as a growth leader because its strategic location makes it a natural gateway for trade with Southeast Asia. Eg: Projects connecting Northeast with Myanmar, Thailand, Laos, and Vietnam under the Act East Policy.
- Powerhouse of Energy: It is a frontrunner because it is rich in natural resources, making it a “powerhouse of energy”. Eg: Assam’s tea industry and Arunachal Pradesh’s hydroelectric potential.
- Cultural and Economic Diversity: The region leads in development because its cultural and economic diversity fosters innovation in tourism, crafts, and trade. Eg: Nagaland’s Hornbill Festival promotes both culture and economic activity.
- Ashta Lakshmis (Eight Goddesses of Wealth): PM called the eight states “Ashta Lakshmis” because each contributes uniquely to India’s prosperity, reinforcing its status as a growth frontrunner. Eg: Government initiatives like NESIDS aim to unlock each state’s economic strengths.
Why did the Directorate General of Foreign Trade order the closure of land ports with Bangladesh?.
- To Provide a Level Playing Field for the Northeast: Goods entering via Bangladesh were bypassing local supply chains, hurting Northeast producers and manufacturers. Eg: Cheaper Bangladeshi products undercutting Assam’s handicrafts and processed food sectors.
- To Boost Internal Supply Chains and Manufacturing: Closure of land ports encourages the development of local industries and competitive manufacturing within the Northeast. Eg: Promoting local textile and bamboo industries in Tripura and Mizoram to supply regional demands.
- Strategic Economic Repositioning: Part of a broader effort to reorient the Northeast as a commercial and trade hub within India and toward Southeast Asia. Eg: Integrating Northeast into projects like India-Myanmar-Thailand trilateral highway for long-term trade advantage.
Which sectors are identified as key economic strengths of the Northeast region?
- Bio-economy and Natural Resources: The region is rich in bamboo, tea, and petroleum resources. Eg: Assam is a major hub for tea production; Arunachal Pradesh is emerging in bamboo-based industries.
- Tourism and Eco-tourism: Scenic landscapes, cultural diversity, and biodiversity promote sustainable tourism. Eg: Meghalaya’s living root bridges and Sikkim’s eco-tourism model attract both domestic and international tourists.
- Sports and Youth Potential: High sports participation and talent make it a center for sports development and allied industries. Eg: Manipur and Mizoram produce national-level athletes in football, boxing, and weightlifting.
How is India planning to connect the Northeast with Southeast Asia?
- Infrastructure Development Projects: India is building roads and highways to enhance cross-border connectivity. Eg: The India-Myanmar-Thailand Trilateral Highway aims to link the Northeast to Southeast Asia by road.
- Multilateral and Bilateral Linkages: Strategic projects are underway to connect Northeast India with ASEAN countries. Eg: Projects to directly connect Myanmar, Thailand, Vietnam, and Laos to India are in progress.
- Transforming the Region into a Trade Gateway: The Northeast is being positioned as the “gateway for trade” with Southeast Asia. Eg: Investment in border trade hubs and logistics parks in states like Manipur and Mizoram supports trade facilitation.
Way forward:
- Accelerate Infrastructure & Connectivity Projects: Ensure timely completion of highways, rail links, and trade corridors to integrate the Northeast with ASEAN markets and boost regional trade.
- Promote Local Industries & Skill Development: Strengthen regional supply chains by supporting local entrepreneurship, MSMEs, and skill training aligned with emerging sectors like eco-tourism, agri-business, and clean energy.
Mains PYQ:
[UPSC 2016] Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario.
Linkage: The “Look East Policy” was the predecessor to the current “Act East” policy. The Act East Policy, which emphasizes the Northeast as a gateway for trade and connectivity with Southeast Asia, is essentially a more action-oriented evolution of the Look East Policy.
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