In 1991, India announced its ‘Look East’ Policy with a view to seeking greater engagement with East Asian countries building upon its historical links with these countries to tap what is today believed to be potentially the world’s biggest trade and commerce involvement.
Look East policy envisages first touching Myanmar with which the Northeast states- Arunachal Pradesh, Nagaland, Manipur and Mizoram- share a common border of 1643 kms.
Northeast states of India are now being seen been as the gateway to ASEAN countries. On August 13, 2009, India and the ASEAN (Association of South East Asian Nations) comprising Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam signed the Trade in Goods Agreement under the broader framework of Comprehensive Economic Cooperation Agreement (CECA) between India and the ASEAN.
West Bengal is expected to benefit the most from the agreement given its proximity to Thailand and Myanmar.
Kolkata, the capital of West Bengal and the only metropolitan city in the region, will gain significant access to the ASEAN export market and become the main trading hub for the entire eastern region of India.
In the Northeast, Guwahati city would have to develop into the next most important trade and commerce centre for trade with ASEAN and neigbouring states like Myanmar, Bangladesh and Bhutan.
Northeast is believed to be very rich in medicinal plants.
Arunachal, NE’s largest state in area, is reported to have more than 500 species of medicinal plants. In Manipur the investment requirement on medicinal plants has been estimated at Rs.100 to Rs. 132 crores.
In Nagaland ginseng is available among medicinal plants. Here the investment requirement is estimated at Rs. 80 to 104 crores.
The plants include agar, tejpatta, dalchini, mint etc.
Agricultural products will need proper processing and packaging before the same can be exported. Once cold storage and cold chain are provided these can be exported in plenty Cold chain involves pre-cooling at farm yard, deep freezing in heavy vehicles during transportation and retail sale from refrigerators.
The Asian market has already shown its liking for some of the industrial products of NE. Products manufactured from plantation crops such as jute, mesta, and ramie have proved their popularity in the Asian market.
Even as the Asian neighbours get ready to join economic cooperation to the widest ever level that would turn the region into the world’s biggest economic region, much remains to be done with regard to the policies and implementations by state governments of the region.
The Trans-Asian highway is already under construction. The ultimate idea is to link up the Indian Ocean with the South China Sea.
Northeast has yet to reach the desired level of industrialization which is crucial for export of many yet to be mass grown or produced goods.
The service sector is not doing badly. However the most attractive area, which is tourism, remains untapped and not taken off probably due to the media focus on security environment.
An extremely concentrated endeavour will be required in various fields to achieve economic development of NE and its principal state of Assam before NE can be ready for participation in the Look East policy.
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