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Despite
all this, the economic growth has been slow. The fact that nearly
40% of the population is below the poverty line, after more than 5
decades of independence is telling.
Geographical
Handicap
The North East has an international boundary of approx. 4,500 km,
while the boundary with India is through a 'chicken neck' of only
22 km! Add the mountainous terrain & torrential rainfall, and
it is easy to see the reason for physical alienation of this region
from the rest of India. Cost of transporting goods to India is prohibitively
expensive, as is cost of building & maintaining infrastructure
like roads & railways. This makes it difficult to sell the abundant
perishable produce (fruits & vegetables) of the region.
No
Trade with Neighbouring Countries
Traditional trade links with Myanmar, Bangladesh & China has
been severed after India's independence (for security reasons).
Since trade with India is restricted due to harsh terrain, large
distances and inadequate infrastructure, neighbouring countries
are natural trading partners.
Govt.
Policies
The Indian Govt. has consistently implemented a subsidy based policy
for this region. As expected, most of these subsidies are a victim
of corruption, with little contribution to development projects.
This has created a situation where a 'privileged' few enjoy the
benefits of these subsidies, at the cost of the vast majority.
The young urban populace is literate and highly "Westernized"as
far as choice of dress, music & general life-style. Branded
products are popular. English is the popular language. Cosmetics
& social drinking is the norm. And there are limited opportunites
for conventional modes of income, (subsidies doled out by Govt.
is one of the non-conventional modes of income!)
The
Silver Lining
The topography is ideally suited for the tourism industry. Yet,
its development has been dismal.
Recently, the Govt. carrier Air India has started international
flights via Guwahati (Assam) airport. This welcome step (40 years
late?) will hopefully flood this region with international tourists,
especially from South East Asia. The increased business & employment
opportunities should have a positive effect on the social / political
situation.
The
recent collapse (however temporary) of the Gujarat markets has prompted
manufacturers to focus on this region, resulting in enhanced media/marketing
activities & off-take.
Timely
implementation of infrastucture projects by Govt. could convert
this region into a vibrant market.
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Abundant
Natural Resources & High Literacy