Question

what is the business relationship between India and North East esia

Answer 1

North East India due to its critical geographic location is considered to be the bridge between two sub-regions of Asia-South Asia and Southeast Asia. The North East consists of eight states, shares an international border of more than 4,500 km with countries like Bangladesh, Bhutan, China, Myanmar and Nepal while it is connected to the rest of India through a 22 km narrow link – Siliguri corridor.

This shows that the region has great advantage and potential to transform. India and the countries that share borders with the North East constitute a market of about 2.81 billion people which is roughly 40% of the world population. With 98% of North East India’s periphery lying in between the Asia-South Asia and Southeast Asia, the region has the potential to transform into the principal gateway to international trade, increasing the scope of trade between ASEAN countries.

Of these five bordering countries Myanmar is the only ASEAN nation to share a land boundary with India showing both the regions’ critical importance in India’s foreign policy.

The Association of Southeast Asian Nations or ASEAN consists of ten member countries viz. Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Lao PDR, Myanmar and Cambodia. The association was set-up to accelerate economic, social, cultural growth and facilitate education, agriculture and industries among the member countries.

The North-Eastern region of India lies in such a strategic location that it can act as a key player in ‘Act East Policy’ of India by partnering with ASEAN which will be vital for the economic development of the Northeastern region. Act East Policy holds a prime place in India’s new proactive policy, as it is meant to boost commerce, connectivity and cultural ties with ASEAN. The trade between India and ASEAN is mostly manufacturing products and is restrictive towards the agricultural products. Therefore there is a need to focus on other aspects such as education, culture exchange program and tourism. In order to take the advantages of the growing trade alliances, effort should be on improving inter-state connectivity and market integration.

For developing better business ties among ASEAN and North East, priority should be given to upgrade the economic corridors. Road is an important mode of travel in this region due to its hilly terrain. In the last few years, constructing the Stilwell Route/Ledo Road has been seen as a medium to extend trade linkages with Myanmar and China.

The trade groups in India, especially in the Northeastern region have shown keen interest in reopening this strategic roadway because of its enormous economic potential. Besides airways and railways can be good ways to connect to the neighbouring countries of the region.