The Economic Marginalization of the Northeast and the Limits of Trade Resilience
UPSC Relevance
Prelims: Indian Economy (Foreign Trade, Regional Imbalances, PLI, RoDTEP); Geography of India (Northeast India, International Borders); International Relations (Act East Policy, Free Movement Regime - FMR).
Mains:
General Studies Paper 1 (Geography/Society): Distribution of key natural resources; Regionalism; Economic Geography.
General Studies Paper 2 (International Relations & Governance): India and its neighborhood- relations; Government policies and interventions.
General Studies Paper 3 (Economy & Security): Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment; Infrastructure; Security challenges and their management in border areas.
Key Highlights from the News
External shocks like US tariffs expose India's economic vulnerabilities.
The main issue is the "spatial imbalance" in India's export economy.
Over 70% of India's exports are concentrated in four states: Gujarat, Maharashtra, Tamil Nadu, and Karnataka.
The contribution of Northeast India, which is strategically very important and has over 5,400 km of international borders, is just 0.13%.
Key reasons for this economic isolation:
Lack of necessary infrastructure to economically connect the region with neighboring countries.
Lack of representation for this region in government policy-making bodies.
A "counterinsurgency logic" approach based solely on security, instead of a market-based perspective.
The cancellation of the Free Movement Regime (FMR) with Myanmar adversely affected border trade.
This situation is harming traditional sectors like the Assam tea industry and weakening India's Act East Policy.
The article argues that true resilience is not about concentrating power in a few centers, but rather comprehensive development that includes all parts of the country.
COMMENTS