Dialogue  January - March, 2009 , Volume 10  No. 3

The North East of India

The North East of India constitutes the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.

    Flanked by hills and with the mighty Brahmaputra river slashing a central path between its north and south, the NorthEast is bounded by the States of Manipur, Meghalaya, Mizoram, Nagaland, Tripura with Assam comprising the heart. Arunachal Pradesh lies to its north and Sikkima little away in the North West bordering China and Bhutan. Bangladesh and Myanmar lie to its southwest and east. The torrential Brahmaputra deposits its rich alluvial silt along the banks of the plains of Assam. Tropical rain forest, rich in flora and fauna, spread their arms across Arunachal Pradesh into Assam. It is a land where tea is an industry, handicrafts a major occupation andmartial arts a favoured sport.

     The western side of the North East isconnected to the eastern part of the Indian subcontinent by a narrow landcorridor, sometimes referred to as the Siliguri Neck or “Chicken’sNeck”. The eight states that comprise the region reflect ecological andcultural contrasts between the hills and the plains; there are also significantelements of continuity. Available medieval and modern records indicateinterdependence and interaction between the hills and plains. The North East isone of the most biodiverse regions in the world. The forest cover varies butaverage 65 per cent is government owned. Village communities, individuals andchiefs own the rest. The area can be divided into three geographicaldivisions-the Shillong Plateau, the North Eastern hill Basin and the Brahmaputra Valley.

     The economy of Northeast India has gotits definite identity due to its peculiar physical, economic and socio-culturalcharacteristics. This region consists of eight states viz., Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim. The NER of India covers an area of 2.62 lakh sq. km. It accounts for 7.9% of total geographical area of the country. With a total population of 39 million (2001), it accounts for 3.8% of total population of India.

Population:

Some of the salient features of North Eastern Region including Sikkim

State                       Area                       Population           Decadal       Population

                           (Sq. Km)                      Growth              Density            (2001

                                                  1991               2001            1991-         Person/

Arunachal

Pradesh               83743           864558          1097968      27.00                  13

Assam                 78438       22414322        26655528      18.92                340

Manipur*            22327         1837149          2166788      24.86                  97

Meghalaya          22429         1774778          2318822      30.65                103

Mizoram             22081           689756            888573      28.82                  40

Nagaland           16579         1209546          1990036       64.53                 120

Sikkim                 7096           406457            540851       33.06                  76

Tripura               10486         2757205          3199203      16.03                 305

NER                  263179       31953771        38857769      21.61               148

All India          3287263           846421    1028610328      21.54                313

*Excludes Mao Maram, Paomata & Purulsub-division of Senapati Dist.

Source : Basic Statistics of NER 2006.

State Income:

    The Net Domestic Product of NER has increased from Rs 46521 crores in 2000-01 to Rs 56082 crores in 2002-03.

            State-wise Net State Domestic Product (At Current Prices)

Arunachal         1595           1729       1896          2160         2246            NA  

Pradesh                                                                                  

Assam             28262         30674       33516       35700       38624        41842

Manipur            2517           2947         3054         3323         3680            NA

Meghalaya         3338           3699         3976         4349         4754            NA

Mizoram           1635           1777         2027           NA           NA            NA

Nagaland            3427           3864         4458           NA           NA            NA

Sikkim                 878             974         1111         1242         1375          1541

Tripura              4869           5559         6044         6728           NA            NA

Source: Directorate of Economics & Statistics of respective State Governments. 

                Net Domestic Product of NER (at current prices) in Rs crores. 

NER                                  46521             51223 (10.11)             56082 (9.49)

All India                        1686995           1848229 (9.56)         2008770 (8.69)

NER as %age of                   2.76                             2.77                          2.79

All India

Note: Figures in bracket shows the growth rate over the last year

Source: Directorate of Economics & Statistics of respective State Governments. 

Per Capita Income:

   The natural resource endowments andeducation levels of the population not with standing, the NER represents one ofthe least developed – economically and industrially – regions of the country.

   This fact is clearly brought out by thefollowing economic and demographic features of NER, as compared with that of the country.

Per                             NER as a whole is placed amongst the poorest   

Capita Income            regions in thecountry. The per capita income at Rs. 12407/- is less than the national average of 

                                  Rs.17978/- (2001-02).

Agriculture:

    The pattern of agricultural growth has however remained uneven across regions and crops. The NER continues to be a net importer of food grains even for its own consumption.In spite of covering 7.7% of the country’s total geographical area, NERproduces only 1.5 % of the country’s total food grain production. Agriculture provides livelihood support to 70 % of the population of NER.

                        Foodgrain Area (in Hect.) /Production (in ‘000 tonnes) in NER

                              Food                     1996-        1997-        2000-         2002-

Rice                       Area                    3342.0      3396.5       3497.0        3395.0

                              Production          4775.0      4847.6       5480.0        5350.0

Maize                    Area                      116.2        114.7         116.0          173.0

                              Production            158.9        151.0         156.0          260.0

Wheat                    Area                      100.5          96.6           82.0            97.0

                              Production            136.5        129.6         108.0          127.0

Small Millets         Area                        45.8          43.8           41.0            44.0

                              Production              35.1          32.3           29.0            47.0

Gram                     Area                          5.0            4.5          N.A.           N.A.

                              Production                3.2            2.5          N.A.           N.A.

Tur                        Area                        15.5          10.6          N.A.            17.0

                              Production                8.5            8.3          N.A.           N.A.

Other Pulses          Area                      139.7        141.0         120.0          151.0

                              Production              86.2          92.0           70.0            99.0

Total Pulses          Area                      157.4        157.4         152.0          177.0

                              Production            103.6          98.5           95.0          117.0

TotalFoodgrains    Area                    3761.9      3756.3       3893.0      3898.00

                              Production          5209.1      5259.0       5875.0      5927.00

Source: Basic Statistics of NER 2006

Horticulture:                                                                                                           

The following table shows the production and area under  horticultural crops of NER during 2001-02.

NER     ('000 ha)   ('000 MT)   ('000 ha)     ('000 MT)    ('000ha)    ('000 MT)

              287.1          2608.7         383.1          4094.4         670.2         6703.1

            (7.16%)       (6.06%)      (6.22%)       (4.62%)      (6.59%)      (5.09%)

Note: Figures in parentheses indicate all India percentage.

Source: Indian Horticulture Database, 2003, National Horticulture Board, GOI.

     The following table shows the production and area under horticultural crops of NER during 2002-03.

NER    ('000 ha)     ('000 MT)   ('000 ha)     ('000 MT)    ('000ha)    ('000 MT)

              238.7          2088.6         358.9          3486.5         597.6         5575.1

            (6.30%)       (4.62%)      (5.89%)       (4.11%)      (6.05%)      (4.29%)

Note: Figures in parentheses indicate all India percentage.

Source: Indian Horticulture Database, 2003, National Horticulture Board, GOI.

     The following table shows the production and area under horticultural crops of NER during 2005-06.

                         Fruits                        Vegetables                     Total

                     Production                    Production                Production

                 2423.9 (4.66%)            3006.8 (2.73%)        5430.7 (3.35%)                           

Note: Figures in parentheses indicate all India percentage.

Source: National Horticulture Board, GOI.

Irrigation:

      The NER hasconsiderable unexploited irrigation potential, especially in states like, theImphal valley in Manipur and in Tripura. Till recently, about 19% of the totalpotential of 5.7 lakh ha. Could be exploited in Assam, against the nationalachievement of 40% So far, Manipur could attain the level of about 10% of thetotal potential to cover 65000 ha. The potential in Tripura for irrigation hasbeen assessed at 2.81 lakh ha. The topographical conditions in Mizoram, Meghalaya, Nagaland, and Sikkim are not favourable for groundwater irrigation schemes and therefore the development of surface irrigation has better prospects.

      Following table shows theirrigation potential and net irrigated area of NER (in ‘000 Ha).

                        Ultimate                                                Net irrigated area

             irrigation Potential

                         4316                                                                 874

Source: Draft Report of the Task force on Development Initiatives for the NER, Sept. 2005.

Production of Fish:

    There is a great potential in the NER inthe fishery sector. Due to various reasons currently there is low fish production in the NER. At present the NER imports around 90,000 tonnes of fish from outside the region.

                                                Fish production in NER (in MT) 

NER                                   228502                     231847                 241014

All India                           6199680                   6399390               6304750

NER                                       3.69                          3.62                      3.82

as % age of All India                     

Source: agricoop.nic.in/statistics2003/chap19.htm,Ministry of Agriculture, DAHD & Basic Statistics of NER 2006.                                      

                                Fishery resources in Northeastern Region

    State         Rivers/           Beels/           Tanks/         Paddy/      Other/suitable

Arunachal         2000       2500+110          1000             2800                      700  

Pradesh                        [Cold water]

Assam              4820            100000        20000           20000                    1517

Manipur           2000              40000          5000           40000                  10000

Megalaya          5600                  394          1944             5000                    3000

Mizoram          1748                    32          1800             1560                           -

Nagaland           1600                  215          2000           10000                           -

Sikkim                900                      -                -                    -                           -

Tripura             1200                  240        11038                    -                           -

NER               19868   143381+110        42782           79360                  15217

Source:  NEC –Ten Year Perspective Plan 

Industry:

     Industrially, the NER continues to bethe most backward region in the country, and the states in the region hardlyhave any industrial base, except perhaps Assam, because of its traditional tea, oil and wood based industries .To some extent Meghalaya has made some headway insetting up of small and medium industries. There are a number of factors contributing to the lack of industrial growth in the region like poor infra-structure, inadequate supply of electricity, violence and extortion etc.

    The growth of all industries; large, medium and small has been uneven. The no. of functioning large and medium industries in the NER has been negligible . The status of industries in the NER is as follows:

                Large and Medium Industries in NER (as on March 2003). 

State                                    No. of units       Percen-      No. of units      Percen- 

Arunachal Pradesh                        17               9.55                15              7.04

Assam                                         129             72.48              120            56.34

Manipur                                       12               6.74                12              5.63

Meghalaya                                    10               5.62                49            23.00

Mizoram                                         1               0.56                  1              0.47

Nagaland                                         7               3.93                  5              2.35

Sikkim                                       N.A.              N.A.                  3              1.41

Tripura                                           2               1.12                  8              3.76

NER                                            178                100              213               100

Source: Draft Report of the Task force on Development Initiatives for the NER, Sept. 2005 & IIE, Guwahati. 

Small Scale Industries:

      Results of the third census of SSI unit reveal that while 3.11% of the total no. of percents employed in the SSI sector on the country, where employed in the NER, percentage of output in NER is not in tune with the no. of units and the no. of persons employed. It is also observed in the table below that of 3% of the total SSI units which exist in NER and which, provided around 3% of the total employment produced goods and services equivalent to 1.78% only.

SSI units in NER.

                             Total             % Employ-           Estimated             % Gross

                           Employ-                ment              Gross output            output

NER                        775016                  3.11            502440.56                 1.78

All India              24932763              100.00             28226998             100.00

Source: Draft Report of the Task force on Development Initiatives for the NER, Sept. 2005.                                     

                                    Trend of SSI Growth in North Eastern Region

Arunachal         4,456            4,546           4,694      4,750       4,797       5,022  

Pradesh   (7.00)      (2.01)      (3.26)      (1.19)      (1.00)      (4.7)

Assam             34,258          36,482         38,303    40,419     42,947     45,193          

                         (6.84)            (6.49)          (4.99)     (5.52)      (6.52)      (5.23)

Manipur           5,322            5,447           5,587      5,778       5,868       5,974

                         (3.08)            (2.35)          (2.57)     (3.42)      (1.54)      (1.81)

Meghalaya       2,982            3,247           3,505      3,778       4,044       4,213

                         (8.87)            (8.87)          (7.94)    (7.79)      (7.04)      (4.18)

Mizoram          3907             4,313           4,490      4,610       4,970       5,293

                         (6.40)           (10.39)         (4.10)     (2.67)      (7.94)      (6.49)

Nagaland            712               982             1,276      1,600       1,969       2,513

                        (15.78)          (37.92)        (29.93)   (25.39)    (23.06)    (27.63) 

Sikkim                294                306              322       333          341          351

                         (4.60)            (4.06)          (5.53)     (3.08)      (2.39)      (2.92)  

Tripura               1,798            1,867           1,931    1,967       2,000       2,020                           

                          (3.90)           (3.83)          (3.31)    (1.86)       (1.67)      (1.00)

Note: Figures in brackets are the percentage increase over the previous year figure.

Source: Basic Statistics of NER 2006 

Food Processing Industries:

    NER, by virtue of its diverse agro-climatic conditions, varied soil type and abundant rainfall hasthe promises of becoming an excellent sourcing point for high value horticultural produce and value added products unique to the region, for onward marketing both within the country and abroad.

Food processing Industry in NER.

    Units with FPO                     No. of functioning                    Share of

              85                                            32                                 37.64%

Source: A study on the status of SSI of the NER, IIE. Khadi and Village Industry (KVI):

     For providing employment opportunities in rural areas and thereby strengthening the rural economy, KVI plays an important role .In order to have better implementation and monitoring of KVI programmes in NER, a zonal office of KVIC has also been set up in Guwahati.

Production and Employment in KVI sector of NER.

23977.07       26452.78        30594.72          2.85             2.97              3.09

Source: Draft Report of the Task force on Development Initiatives for the NER, Sept. 2005 &KVIC, Guwahati. 

Tea Industry:

    The tea industry of NER is the world’slargest tea growing region having 16 % shares, and is the largest producer andexporter of tea in India (share 55 %).

Tea Industry of the NER (in million kg)

Production                 846               854            826             857              830

Imports                       14                 17              22                7                 25

Exports                      207               183            201             173              190

Consumption             653               673            685             697              710

Source: Report of the Meeting of the Committeeo n Financial Sector Plan for NER, March 2006. 

Education:

     Access to educational institutions promoting skill development is a prerequisite for providing trained manpower. As per 1991 census literacy rate of NER was 58.09%[all India 52.2%], while in 2001 it was 68.5% [all India 64.8%]. Mizoram has thesecond highest literacy rate in India. The following table gives the number of educational institutions in the NER:

Prim+UP            Sec+HS        Arts/Sc. Colleges      Engg.             Medical

Universities       Polytechnics               ITIs                  IIT                    

       13                       18                        49                     1

Source: Draft Report of the Task force on Development Initiatives for the NER, Sept. 2005.

Banking:

   The no. of branches of scheduled commercial banks (SCBs) in NER totaled at 1952 as on March 31, 2005. The figure was 1920 as on March 31, 2004. The credit-deposit ratio (CDR) of banks in NER have fallen from 47% as on end of March 1991 to 26% as on end March 2003. But after that it has increased to 35 (as against the national average of 66) as on the end of March 2005.

Banking in NER.

Year     No.of Bank     Bank Credit       %        Bank Deposit        %       CDR

1996          1935                2417                 -            7087                   -      34.06

2000          1938                3738         54.65          13747           93.97      27.19

2001          1941                4414         18.08          15983           16.27      27.62

2002          1932                5068         14.82          19132           19.70      26.49

2003          1915                5692         12.31          21606           12.93      26.34

2004          1920                7315         28.51          24768           14.63      29.35

2005          1952              10010         36.84          28958           16.92      34.57

Note: Figures are as on end of March of respective year.

Source: RBI Presentposition of banking in the North East (Scheduled Commercial Banks)

States          Bran-    Deposit  Credit   CDR   Branches Deposit  Credit  CDR

Arunachal         67          980        169   17.24        68        1082          264  24.40

Pradesh

Assam          1221      14971      4607   30.77    1235      18081        6219  34.40

Manipur           77          819        238   29.06        78          972          398  40.95

Meghalaya     180        2676        988   36.92      183        2906        1316  45.29

Mizoram          78          674        258   38.28        79          722          368  50.97

Nagaland          69        1223        207   16.93        72        1283          294  22.92

Sikkim              49        1103        257   23.30        55        1261          365  28.95

Tripura           179        2323        589   25.36      182        2651          786  29.65

NE Region    1920      24769      7313  29.52    1952      28958      10010  34.57

All India    66970  1517200  890867   58.72  68116  1753174  1157804       66

Note: Deposits and credit figures are in Rs. Crore.  Figures are as on end of March of respective year.                      Source: RBI As shown in the table above, the CD ratio in the NER is low compared to the all India average.

Credit Deposit Ratio of SCBs in the NER

Arunachal     13         14         17         17          16         17        17          24    Pradesh                                                                                                                                    

Assam          33         31         31         32          31         29        31          34           

Manipur       59         42         36          39          26        28         29          41 

Meghalaya   15         17         16          17          18        29         37          45           

Mizoram      23         21         24          26          26        26         38          51   

Nagaland    18          16         15          14          13        13         17          23           

Tripura        34          29         26          23          22        26         25          29      

Sikkim        21          20         14          16          16         17        23          30      

NER           30          28         27          28          26         26        30          35           

All India      56          55         57          59          62         59        59          66

Note: Figures are as on end of March of respective year.

Source: RBI

Health:  

    North Eastern States with their serene atmosphere, bracing eco-friendly climate, long stretches of tea gardens, mighty rivers, large bio-reserves & wild sanctuaries and unique forms of art & culture can take advantage of riding piggy back on Health Tourism – a boom for Potential Private Investor in the Gross Fiscal region.

Population served per Doctor in North-eastern states

Arunachal Pradesh                  464                        2352                    2002-03       

Assam                                    2160                      11980                  1.1.1999 

Manipur                                  945                       2427                    2002-03              

Meghalaya                              389                       5411                       1998       

Mizoram                                 89                        10360                  1.1.1999 

Nagaland                                367                       5422                       2002                   

Sikkim                                    174                      3108                    2001-02  

Tripura                                    860                      3720                    2003-04

Source: Basic Statistics of NER 2006.

Natural Resources:

NER is endowed with rich natural resources:

Agro-Forestry                              Accounts for 26 % of the Forest cover of India. Largest producer of            

                                                    bamboo. World’s Single largest Tea growing region (16% share).

                                                    Largest producer (share of 55%) and Exporter of Tea in India Producer

                                                    of premium quality Jute and silk. Horticulture and herbal resources.

Minerals                                       India’s oldest & major Petroleum and Natural Gas Source, with shares

                                                    of 16% and 8%  respectively of total production. Other major Mineral            

                                                    Resources include: Coal,  Limestone, Dolomite.                                                    

Hydel Power                                The region is assessed to have the largest hydel powergeneration potential in

                                                    the country (60,000 MW) 

River/ Waterways                         The river network provides cost effective transport for movement of goods,

                                                    notably to neighbouring countries and to Indian ports like Kolkata, & Haldia.

Summary of some Economic Indicators                                                          

Sectoral Share of GDP                 The share of the Secondary sector in the GDP at 15% is much

                                                    lower than the        

                                                    national average of 23.7% [1999-2000].            

Population below                         All the states in NER has much Poverty Line higher levels of population                  

Poverty Line                                 below poverty line [35.13%] as compared to the national average 

                                                    (26.1%) [2000-01].                                                 

Percentage of Urban                    The share of urban population to total in the NER is 14.6%.

Population                                   The national average in this regard is 27.8% [2001 Census].                       

Unemployment                             The region represents one of the highest rates of

Rate (as a % of workers)             unemployment in the country,

                                                    withan unemployment rate close to 12%, against the national average

                                                    of 7.7% [1999-00].                                            

Gross Per Capita                          The region has one of the lowest     

industrial output                             gross per capita industrial output at around Rs. 3313, (in Assam)

                                                    which is much below the national average of Rs. 9111 [2000-                   

                                                    01].                          

Per Capita Domestic                    The average percapita domestic

Electricity Consumption                electricity consumption in the NER works out to 20.4 kwh, against

                                                    the national average of 75.2kwh. [1999-

                                                    00]                                                                                                                       Per Capita                                    This works out to35% in the NER,   

Credit-Deposit ratio                      against the national average of 66% [2004-05].

Power Sector :

     The total installed capacity for power generation in the NER, as on 31st August 2006, is placed at2404.2 MW. The power generation capacity includes the three sectors viz.the state sector, central sector and private generation. The break-up is given below:

                        Installed Capacity as on 31-08-2006 (Figures in MW)

Northern    11611.8    17592.5   3213.2    15.0    20820.7   1180.0  694.6  34307.1

Western      6921.3    21441.5    5820.8    17.5    27279.8    1840.0 1098.8 37139.9

Southern   10982.8    15962.5    3586.3   939.3   20488.1     880.0  4233.5 36584.4

Eastern       2496.5    13662.3      190.0    17.2   13869.5       0.0     111.7  16477.7

N.Eastern   1113.1        330.0      771.5    142.7    1244.2        0.0      46.9    2404.2

Islands             5.2            0.0          0.0     70.0        70.0         0.0       5.4       80.7

            Capacity Addition During 10th Plan (As Per Planning Commission)
                                                            In MW

Northern    7274        4605     441.1       0       5046.1       0             0   12320.1

Western     3752       4553     1550.6   500    6603.6     1080           0   11435.6

Southern   1158.2      3820      2070     108      5998       220           0     7376.2

Eastern      1860       7075          0           0       7075        220          0     7376.2

N.Eastern   349          0          580       88.9     668.9          0            0     1017.9

Islands            0          0              0          25        25            0            0            25

     During past six years or so, the capacity additions made in the power sector in the NER aggregated to 909 MW of which the contribution of the State sector is 148.5 MW (16.30 per cent) and the Central sector was 760.5 MW (83.60 per cent). 

Rural Electrification:

    Cumulatively, 29605 villages have been electrified out of a total of 40377 inhabited villages (as per 2001 census) inthe NER up to 31.3.05. The table shows rural electrification in NER.

Total  inhabited              Villages                  No. of rural              House hold

villages (as per             electrified                  household                   having       

1991census)            (as on 31-03-05)     (%)(census 2001)            Electricity 

                                                                                                     (2001Census)

     40377            29605 (73.32%)              5986805            1452655 (24.26)

Source: Rajya Sabha Unstarred Question No. 1863, dated 09.03.2006.

Created on 2007-12-09 12:00:00 by converted

Updated on 2008-10-20 15:17:36 by admin