Export Preparedness in Northeast India: A Mixed Picture

The recently released Export Preparedness Index (EPI) 2024 offers insights into the readiness of states and Union Territories across India for international trade. In the context of Northeast India, the picture is a mixed bag, with some states leading the way, while others face significant challenges.

Regional Leaders and Challenges

Three Northeast states - Nagaland, Tripura, and Assam - have been classified as Leaders in the Small States, NE & UTs category. Nagaland, ranked 18th nationally, stands out for its policy-driven export approach and niche product focus. Tripura, ranked 22nd, benefits from improved connectivity, particularly through the Agartala Akhaura corridor and access to Bangladesh. Assam, with its diversified export base, continues to anchor regional leadership.

North East Connection

The success of these states underscores the potential for Northeast India to play a significant role in India's broader export strategy. However, the over-reliance on a single commodity, such as tea in Assam, exposes the region to global price fluctuations and climate-related disruptions.

Challengers and Aspirers

Meghalaya, Sikkim, Arunachal Pradesh, Mizoram, and Manipur have been categorized as Challengers or Aspirers, reflecting low export readiness. These states face challenges such as difficult terrain, weak transport infrastructure, limited industrial base, and low awareness of export procedures among MSMEs.

North East Opportunities

Cross-border trade with Bangladesh, Bhutan, and Myanmar presents a key opportunity for the Northeast. States with functional land customs stations and border haats are better positioned to leverage this advantage, particularly for agri-products, minerals, and forest-based goods.

Unlocking Untapped Potential

To improve the region's export competitiveness, the EPI suggests strengthening district-level export planning, improving cold chains, and expanding access to export finance for MSMEs. Infrastructure investment in logistics, warehousing, processing facilities, and export-oriented clusters is also crucial.

Implications for Northeast India and India

As India pushes toward its Viksit Bharat 2047 goals, targeted policy support and infrastructure investment in the Northeast could unlock significant untapped export potential. By turning the region from a peripheral player into a strategic gateway for cross-border trade, Northeast India can contribute to India's overall economic growth.