Locating development trajectories in North-Eastern States of India (original) (raw)

At the eve of independence, it was a daunting task before Nehru to frame a suitable policy of governance for the NorthEastern states hitherto separated from the colonial administrative mainstream. With the continuous pursuance of protective and proactive role by the government of India, the growth scenario of the NorthEastern states has turned out to be near satisfactory. The per-capita income has been on the rise at a moderate rate, income inequality and inter-states disparities are also declining. However, the worrying factor is that growth is discernible where government intervenes as principal economic actor. Size of labour market has failed to respond positively due to absence of credible manufacturing sector, limited volume of trade and commerce, transport and communication and banking and insurance. To add further, most of the NorthEastern states have demonstrated very poor fiscal condition despite having enhancing central assistances over time. It is found that the 'Look East' policy will become the engine of growth and transform the economy North East is illusive in nature and devoid of economic rationale. Alternatively, forging a durable relationship with Bangladesh and bringing time bound solution to immigration problem and water disputes, the road, railways and water transport system through Bangladesh can become much more cost effective and beneficial for the development of economy and to create employment opportunities for NorthEastern states.

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