ЁЯМП

Economy and Connectivity of Northeast India

Apr 6, 2025

North-East Indian Economy and Connectivity Plans

Internal and International Trade

  • Assam: Produces 50-55% of India's tea, approximately 650-700 million kilograms.
    • Tea export: $400-$500 million USD per year.
  • Tripura: Queen Pineapples export potential $15-$20 million USD, currently $4-$5 million USD.
  • Manipur: Exports of handicrafts and organic food $30-$40 million USD.
  • Meghalaya: Export from coal and spices $25-$30 million USD.

Overall Economic Value of the North East Region

  • Total export value: $1.2-$1.5 billion USD per year.
  • Due to connectivity and high logistic costs, achievement is below potential.
  • According to reports, there's an opportunity loss of $200-$300 million USD.

Role of the Siliguri Corridor

  • This corridor, 20-22 km wide, connects India to the North-East.
  • Strategic importance: Borders with Nepal, Bhutan, Bangladesh, China, and Myanmar.

Connectivity Challenges and Opportunities

  • Challenges: Poor infrastructure, logistic costs, security concerns.
  • Opportunities:
    • Economic growth through improvement in internal and international connectivity.
    • Expansion of potential export market.

Proposed Economic Corridors

East-West Corridor

  • Route: From Hili in West Bengal to Mahendraganj in Meghalaya through Bangladesh.
  • Impact:
    • Reduction of 25-60% in travel time and cost from Kolkata to various towns in Meghalaya.
    • Direct connectivity from Kolkata to other states in the North-East.

B3 Corridor (Bhutan-Bodoland-Bay of Bengal)

  • Objective: Connect Bhutan to the Bay of Bengal through Assam and Meghalaya.
  • Impact:
    • Provide Bhutan a new route, facilitating trade.
    • Connectivity through Jogighopa in Assam and Phulbari in Meghalaya.

Social and Economic Impact

  • Trade:
    • 95% of North East trade through the Siliguri Corridor.
    • Saving transport costs and time through new corridors.
  • Movement of People:
    • Reduction in travel time and boost in tourism.
  • Security and Defense:
    • Alternative routes for military movement.
    • Easier access to security equipment.

Challenges

  • Geopolitical Dependency: Coordination required with Bangladesh and Bhutan.
  • Infrastructure Readiness: Highway upgrades within Bangladesh.
  • Terrain and Environment: Consider environmental impact in road construction.
  • Political Will and Coordination: Harmonization among various states and countries.

Overall, these plans will promote the North-East's economy, social structure, and security, but detailed preparation and coordination will be essential.