Saturday, March 12, 2011

West grows East.



The North East Region of India including the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim & Tripura are relatively untapped in their business potential. Development of this region is underway and the Central and State Governments under the stewardship of the Department of the North East Region (Doner) now headed by Minister Shri Paban Singh Ghatowar, and  Shri B.K. Handique and Shri Mani Shankar Iyer, both earlier, are encouraging private efforts.(* see end note)

Through the Indian Chamber of Commerce Kolkatta and the Confederation of Indian Industry, we have been meeting North East representatives from the Govt., Public and Private Sectors since Jan 2004.

At Vibrant Gujarat in January 2011, at the North East business Session we discussed the idea of a study to understand and determine the potential of expanding Gujarat and Maharshtra based enterprises into NE India. What I suggested was a study to be conducted which may be done between IIM Ahmedabad and IIM Shillong.  To this I have added the consideration of involving IIT Guwahati and IIT Mumbai to determine the potential for expansion of Indian enterprise into and through the NE States adopting  Eco-Friendly approaches for the creation of Economic Prosperity in the region. This market positioning for the NE States came out of the CII Partnership Summit  2011 in Mumbai in the session co-paneled by Mr. Arun Nanda of Mahindras, Mr. Shyam Saran, Senior Fellow  of the Centre for Policy Research and Ms. Sunita Narain of the Center for Science & Environment. Exim Bank Mumbai Chief Manager Mr.Vanlalruata Fanai  originally of Mizoram has also indicated an interest in participating in such a study. I hope for the co-operation of Mr. Lemli Loyi of NEDFI as well. I met with the participants from the North East States at the 6th NE Business Summit of ICC held in Jan 2011 in Mumbai. This included Nagaland Delegates with the Hon'ble Chief Minister Mr. Neiphiu Rio.

With a view to connect with more North East citizens and enterprises and survey the NE Opportunities specifically, we are identifying current students and freshers from the region, from the streams of Commerce, Economics, Management and Engineering. Similarly from Maharashtra and Gujarat institutes as well. Some of the sectors we wish to study  may include, inter-alia, -
    1.  IT/ITeS/BPO/ICT/Media
    2. Tourism
      1. services for business
      2. services for pleasure
    3. SEZs
      1. Agro - bamboo, agriculture, horticulture, sericulture
      2. Animal husbandry - pigs & cattle
      3. Poultry
      4. Fish farming 
      5. Apiaries
      6. manufacturing
      7. handicrafts
      8. minerals
    4. Infrastructure
      1. hydo-power
      2. road development
      3. Logistics
      4. water & river basin management
      5. sports facilities & recreation - including golf
      6. resorts & SPAs
      7. 3/4 star hotels
      8. hospitals
      9. education
      10. business incubators
      11. Solid Waste Management 
      12. Water Management
We therefore encourage Government, enterprises, property owners, research interns,  financiers, NGOs from the North East to connect with us and write to us at info@astrategies.com with their interest in participating in our study program, above described, `West grows East’. We are open to their suggestions.

We also encourage those involved in sectors/ activities in 1 to 4 above in Gujarat & Maharashtra and would like to make an `eco-friendly' expansion to the North East region and from there on to South East Asia, to similarly connect with us info@astrategies.com with their interest in participating in our study program, above described, `West grows East’. We are open to their suggestions.

Our internships and study projects are explained at Abhyas.org

*End Note
Encouragements/ Facilitators

1. DONER - Development of the North East Region - ministry set up the the Central Govt. to facilitate the development of the North East States. The vision statement can be found on their site (click here)

2. North Eastern Region is given given an allocation of Rs 1,762 crore in the Union Budget 2011 as against Rs 1759 crore in 2010.

3. Nedfi - North East Development Finance Institution - a financial institution focusing on funding development in the North East States. Provides a variety of products and services across sectors. To support infrastructure projects in the region it has been given an assistance of Rs 60 crore in the 2011 budget.

4. NORTH EASTERN COUNCIL - total releases for the 10th Plan were Rs. 2511.50 for Manpower Development, Social and Community Development, Tourism, Information Centres for States, Transport, General and Scientific Services.

5. The East-West corridor project, which will connect Silchar in Assam to Porbandar in Gujarat, is scheduled to be completed by 2009 – and this will go a long way in improving connectivity and transforming the region into a vibrant economic zone. Also, India is exploring a transport corridor through Myanmar, a potential gateway to East Asian countries, to form a free-trade region. The proposed ‘Trilateral Highway' connecting India, Myanmar and Thailand is being discussed. This project, I believe, has the potential of strengthening economic exchanges and international co-operation significantly. With necessary infrastructure development within the region, and the building of connecting links between North-East and the rest of India, and North-East and South-East Asia, the economic potential of the region can be suitably exploited. Time-bound implementation of projects, conducive centre-state relations and political stability, monitoring of fund–flows and necessary marketing and branding of the region can truly transform this goldmine of a region into a vibrant hub of business, tourism and trade.

6. The literacy rate in North East India is close to 90% with most young people fluent in English which would help foreign investors to get their plans going.

7. High quality development in transport facilities in North-East India:
    • Assam has 6 operational airports with Guwahati airport designated as an international airport.
    • In the last 10 years, double line connectivity of railway from Howrah to Guwahati has been provided by commissioning New Jalpaiguri-Siliguri to New Bongaigaon gauge conversion.
 8. With 269 telephone exchanges with approximately 1, 20,000 working connections, Assam boasts of an excellent mobile phone, WLL and broadband internet connectivity provided by a number of national telecom giants.

Some results
  • Foreign investors have started investing in North-East mainly from leading firms from Cyprus, Netherlands, United Arab Emirates etc.
  • Thailand SMEs are showing huge interest in North East. And they have invested in to exports and imports of automobiles and other various commodities. 
  • Many top Indian IT industries such as Tata Consultancy Services are planning to enter North-East India (Assam) to train and develop potential human resources. Zensar too is growing into the region.
  • The percentage of credit mobilization and disbursement has increased from 32.96% to 79.33% and expecting to raise more in the rural areas of North East India.
Problem areas

a. Sharing over 2,000 km of boundary with Nepal, China, Bhutan, Myanmar and Bangladesh, many states in the region have been battling insurgents for decades. More than 30 rebel groups operate in the region with their demands ranging from secession to greater autonomy and the right to self-determination.

b. Whereas at the Central Govt. level they consider the North East States as one and united, there is no significant cohesive working between the states at the ground level.

c. Talented workforce from the region is not retained by the region itself due to a paucity of job/entrepreneurial opportunities. They venture out seeking greener pastures.

An interesting advertisement by a progressive IT company lead by a far thinking and visionary leader, Dr. Ganesh Natrajan.