A new troika for India’s northeast region

Introduction:

• The northeastern region of India is undergoing dramatic changes towards economic development and overcoming security challenges.
• The region comprises of eight northeastern states, namely Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.
• Political changes and linkages with neighboring Bangladesh and Japan’s emergence as a development partner are helpful.

Vision and Opportunities:

• The development of Matarbari Deep Sea Port (DSP) on the southeastern coast of Bangladesh is an important project that can be a game-changer for the region.
• It is being constructed with Japanese assistance and is scheduled to be operational in 2027.
• The port will cater to the needs of Bangladesh and India’s northeast, and the long-term vision is for Bangladesh and the northeast to become a hub and key industrial corridor of this region.
• Rapid industrialization in sectors where the northeast enjoys a competitive advantage is crucial, and it can create new job opportunities.
• Creating value chains and manufacturing products can encompass diverse sectors such as agro-processing, man-made fibers, handicrafts, assembly of two-wheelers and mobile phones, and pharmaceuticals.
• The population, with its good education, excels in the services sector drawing potential investor attention.

Challenges:

• Japan as a single investor in the northeast is unworkable, and Indian companies must also invest.
• India must ease restrictions on the flow of investments from Bangladesh, and the three governments should forge closer linkages of economic cooperation.
• Bangladesh has facilitated connectivity and now needs reciprocity from other countries, especially India, to be better connected with other neighbors such as Nepal, Bhutan, and Myanmar.
• Attention should be paid to the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) to progress towards its vision of establishing the Bay of Bengal Community (BOBC).
• The goal of connecting a large part of South Asia with Southeast Asia requires astute pilot leadership that can come from the triad of Bangladesh, India, and Japan (BIJ).
• A BIJ Forum should be launched at the level of Foreign Ministers to assist the northeast and progress towards economic development.