Abstract

North-East India is a region known for its rich natural resources, biodiversity, and culture. The unique geographical characteristics of the region pose several challenges for its economic prosperity. The paper is an attempt to analyse a few of these challenges and propose a set of recommendations to overcome them. A comparative analysis approach is used in this study to analyse the important roadblocks in the path of development in the north-eastern states of India. The major challenges identified by the study are shortfalls in infrastructure, financial resources, quality education, and insufficient financial inclusion. The study proposes the following measures to tackle these challenges and promote economic growth in the region: These measures include the development of green infrastructure, tapping the potential of North East India in the renewable energy and tourism sectors, specific interventions like community involvement in building school infrastructure, incentivizing teachers to work in remote locations to improve school education and building banking infrastructure, and promoting financial literacy to ensure financial inclusion. The paper also proposes a set of strategies to address certain state-specific challenges and promote goods and services in which a particular North-Eastern state has a comparative advantage. North-East India is an ecologically sensitive region and is vulnerable to climate change risks. Taking note of these environmental challenges, the paper presents a sustainable and inclusive development strategy to promote socio-economic growth in northeast India.

Introduction

North-Eastern India is a region known for its rich and diverse culture, history, and ecology. The region comprises the eight states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura. It constitutes around 8% of the geographical area, 4% of the population, and about 2.5% of the economy of India. Mountains account for 70% of the geographical area, comprising a sparse population of around 30%, whereas plains, which account for only 30% of the geographical area, are densely populated, having around 70% of the population.  This distinct and varied geographical character and land-locked nature of the region pose several economic challenges for the region. The region is also home to a large number of scheduled tribe groups with relatively different cultures. The cultural differences, coupled with the complex history of migration, have often led to inter-tribal conflicts and ethnic tensions.

The Government of India, recognizing these distinct geographical, social, and economic challenges of the region and its strategic location along borders with neighbouring countries, formed the North East Council in 1971 by an act of Parliament. It is the nodal agency for the socio-economic development of the North Eastern Region. The North Eastern states are also classified as special-category states. The special category status is given by the Center to assist in the development of states that face geographical and socio-economic disadvantages. Special category states receive 30% of the Centre’s Gross Budget and various concessions in the excise and customs duties, income tax and corporate tax. The Central Government also covers 90% of the funding for centrally sponsored schemes in special category status states, compared to 60% or 75% for other states.

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