REALIZING THE GROWTH POTENTIAL OF NORTH EASTERN STATES

SUNRISE STATES

MADE BY :RASHIKA GAUTAMSHIVEK KAPOORVIGITESH TEWARYSIDHANT GUPTADEEPANSHU PINCHA

INACCESIBLITY

INSURGENCY

LACK OF INFRASTRUCTURE

SLOW INDUSTRIAL GROWTH

LACK OF TOURISM

Health infrastructure is underwhelming. Higher education opportunities are limited in NER

Infrastructure for telecommunication needs expansion Civil aviation needs attention

North eastern region is an industrial desert having insufficient industries Incentives for industrial growth don’t exist because the conditions are not apt Few industries beget fewer jobs, leading to massive unemployment causing mass

migration

Broad ethnic differences exist among north eastern people and infiltration from neighboring countries

Rehabilitation and correction facilities are scarce; the little existing infrastructurethreatened by insurgents

Joined to the Indian Mainland only by 21 km long Siliguri corridor Hilly terrain and lack of connectivity further escalates this issue

Growth potential in the tourism sector suffers massively because of terrorism; has maximum untapped potential

The required exposure through various media such as television and printhas to be focused upon

HINDRANCES TO GROWTH POTENTIAL IN NORTH EASTERN STATES

INSURGENCY

Formation of a special unit from the existing paramilitary forces, the Army and BSF to deal with the security crisis in NER

To be formed such that it has a minimum of 50% localities which would not only have more knowledge about their region but would also help in building the much needed trust of local people in the security forces

The people selected would already be trained in defense forces, making this plan economically feasible and practically useful ending the constant oppression faced by the NE people

LACK OF INDUSTRIAL DEVELOPMENT

Revival of small scale and medium scale industries such as handlooms, handicrafts, sericulture and other ethnic practices by providing proper

incentives

Promotion of liquor industries in NER. This step will not only attract private players but the high taxes obtained will reduce the subsidy burden on the

government

This not only creates employment but creates profit which would be used in the welfare of people of those areas

0

200

400

600

800

AVERAGE GSDP GROWTH % GSDP(AS A % OF ALL STATES)

PER CAPITA GSDP (EURO)

Law of demand and supply (nearly 40.17 million euros has flown in as FDI into NER )

Since there is so much demand of finished products that can be made from raw materials import from other countries would lessen and export will boom the economy

Abundance of raw materials

Ensures a continuous and quality supply of feedstock so that it doesn't become a hindrance in manufacturing process

Abundance of land (2,62,000 sq km area available; 60% of NER under forest cover)

Availability of cheap & large plots of land needed for industrial set up

Abundance of cheap labor

Skilled & unskilled makes it easier to set up industries and certain incentives by govt would also increase the participation of people there

Setting up medium(MSME) and small scale industries(SSI)

For making finished products that can be exported as well as used in the country

LACK OF INFRASTRUCTUREOpening up of branches of reputed colleges such as colleges of DU in NER to discourage brain drain from NER, and also to make NER self sufficient in the

education sector

To declare all NE railway projects as national projects and taking up these at the earliest to not only increase livelihood of NER people, but also to encourage

tourism and help in quick movement of troops

Road construction contracts to be done on a PPP basis not only helping the govton reducing its spending but also making high standard of roads. Up gradation of

existing airports and creation of helipads in different areas to gain easy access

LACK OF TOURISMImprovement of security, infrastructure and accessibility will automatically fuel the growth of tourism industry leading to creation of thousands of job opportunities in

NER itself

Promotion of different types of tourism such as medical tourism and eco tourism where people who come in NER for treatment would be given special packages to

experience the beauty of NER

1.26

2505.82

1.35 0 0 12.85 64.42

2587.2Railway line (km)

0

50

100

150

200

A.P

.

Ass

am

Man

ipu

r

Meghal…

Miz

ora

m

Nag

alan

d

Trip

ura

NER

avg

AI a

vgRoad length per 100 sq km

IMPLEMENTATION –TACKLING INSURGENCY

Rehabilitation camps

Encouraging surrender of insurgents

Providing them safe and secure place for correction

Vocational training for IT, handloom, sericulture &

handicrafts

Special forceTrust in security

forcesBetter local knowledge

Higher sense of security

Special Force

500 member squad

Recruited from army, BSF and paramilitary

50% NE people in each squad

Selection to be done by chiefs of BSF, army and

paramilitary forces

Increase in pay for all

Govt job for 1 family member of each troop

Co

st

Special Force Increase in pay

2.4L x 12k = 288 Cr p.a.

Rehab camp

Set up : 50 L each

Running cost : 1 Cr each

• Airports in capitals of Arunachal & Nagaland through joint funding by NEC and Ministry

•Upgrade Guwahati as an international airport to boost exports and tourism

Construct new airports &

revive existing

•Air traffic management services such as night landing facilities

•Training facilities for local available manpower in the region

•Upgradation of Met-infra in the region up by Indian Meteorological Department

Maintenance & Facilities

• Immediate operationalization of existing airstrips in the region for intra- regional mobility

•Expansion of Helicopter services and use of smaller (STOL - short take-off and landing) aircrafts to promote intra-regional mobility

Regular airlines operation

21

8

7

9

4

AirstripsDefence

AAI(nonoperational)

AAI(operational)

Private

State govt.

Civil Aviation

Telecommunication

• Level playing field to all telecom operators

• to increase efficiency of government funding

•Give utmost priority in completing projectsTelecom Plan

• Use of technology to ensure adequate broadband bandwidth to all parts of the region

• Installation of towers including VSAT in remote border areas

• Deployment of microwave technology on a large scale

Use of appropriate technology

S…

T…

0

200

400

600

Aru

nac

hal

Ass

am

Man

ipu

r

Me

ghal

aya

Miz

ora

m

Nag

alan

d

Trip

ura

4.37109.28

0.1180.01

0.6 1.03 2.35

114.21

442.94

4.53

322.73

7.79 0 2.04

Subsidy under NEIIP(Rs.cr) Transport subsidy(Rs.cr)

Promoting Liquor industry in NER is an innovative idea to promote industrial growth

Liquor industry

Raw material Molasses made from sugar & rice

Easily available in the NERProblem of High

taxes

NER provides

1.Industrial subsidy

2. Transport subsidy

3. Interest subsidy

High Profits attracting both Indian & foreign

playersMarket

Large Domestic market & scope for export to neighbouring countries

The most innovative solution yet : Online Marketing!

Tenders to be passed to private e-commerce companies inviting them to include local handicrafts, handlooms and items of philanthropist interest in their business

Marketing via e-commerce established web portals like flipkart , jabong , myntra etc will improve the demand and sustain their heritage

Serves dual purpose: solves the problem of people actually visiting the place and also the problem of insecurity and fear of dying culture and tradition

Through a government partnership and profit sharing model, we could also recommend the formation of government web portal that could retail these items at a competitive price nationally

Generates the necessary interest required to give the much-needed boost to tourism nationally and internationally;creates a great amount of jobs

This plan hopes to raise atleast 100 cr pa increasing

annually for an initial investment of 10 cr

This plan also hopes to increase FDI inflow in this

sector by 100 cr

Promotion through ads aired on different media such as radio, television and print

Roping in of celebrities for advertising and endorsement for NE tourism worth around 5-10

lac

Promoting tourism through medical and eco tourism in which people get to observe the

natural beauty & cultural practices of NER while they recover; generating profits over 50-100 lac

We propose that 2014 be

named as North East tourism

year promoting its culture, historical

tourism and national parks

Reduction of airfare for flights to or from NER

Provision of home guards and tighter

security for railways and road

travel

BOOM TO TOURISM SECTOR

Doubt regarding trust of local people on the selected forces Despite the rehab facilities, the surrendered insurgents may

continue with their previous activities Not a very good response from market especially online

marketing Liquor industries are socially unacceptable; they might face

protests Hampering of security of industries Investors may think the plan to be unfeasible due to rough

and unpredictable weather Implementation is a difficult process and takes a long time;

generates profit over time

Employment preference to be given to locals

Sufficient incentives to investors to attract them here

Indian firms like flipkart, myntra, jabong may be roped in for online market to gather higher profits

Provision of semi-skilled jobs after correction

Tighter security around borders

RISKS MITIGATIONS

REFERENCES

• Report of North East summit 2013• Report on North East Insurgency – The North East & Insurgency by L.

Jeyaseelan• Planning Commission Yugandhar NER Infrastructure Task Force Report

2006• Italia Trade Commission Report 2011- India : Profile of North East• The Vision of a New Vibrant India ASSOCHAM 92nd Annual Session, July

19, 2013 – New Delhi• Ministry of Development of North East