Paper: GS – III, Subject: Economy, Topic: Trade and External Sector, Issue: Indian states external trade.
Context:
Four states such as Gujarat, Maharashtra, Tamil Nadu, Karnataka account for 70% of all merchandise exports. By contrast, eight northeastern states with 5,400 km of international borders contribute just 0.13% of exports. This reflects structural neglect and lack of integration of the northeast into India’s trade ecosystem.
Key Highlights:
India’s Export Concentration:
- Top Exporting States: Gujarat, Maharashtra, Tamil Nadu, Karnataka constitute 70% of India’s exports.
- Others in Margins: Uttar Pradesh, Bihar, Madhya Pradesh constitute only 5%.
- Northeast: Despite long borders, minimal exports due to lack of corridors, infrastructure, and trade institutions.
Structural Issues in the Northeast:
Implications of Neglect:
- Security risks: Marginalisation fuels instability and unrest.
- Economic exclusion: Missed opportunity for growth in backward regions.
- Strategic disconnect: Weak ties with ASEAN, BIMSTEC, and Act East policy.
Way Forward:
- Border Trade Corridors: Develop modern infrastructure such as roads, dry ports, and cold chains.
- Shift from Surveillance to Trade Facilitation: Balance security with economic engagement through trade corridors.
- Institutional Integration: Include NE states in trade policy forums.
- Regional Cooperation: Strengthen BIMSTEC, ASEAN ties through northeast gateways.
- Inclusive Export Growth: Diversify beyond coastal concentration to hinterlands and borders.
Conclusion:
India’s export growth is skewed and exclusionary, ignoring its border states. Unlocking the potential of the northeast can reduce overdependence on 4 coastal states, enhance connectivity with Southeast Asia and strengthen both economic resilience and strategic security.
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