Eight States with international borders, 0.13% of exports, Pg10

Key Highlights:

• The concentration of India's export economy in four states (Gujarat, Maharashtra, Tamil Nadu, and Karnataka) accounts for over 70% of all merchandise exports.
• The northeastern states, comprising eight states with over 5,400 kilometers of international borders, contribute only 0.13% to national exports.
• India's trade with Myanmar has declined since the 2021 coup in Naypyidaw, impacting regional integration.
• The northeast lacks representation in key economic decision-making bodies, such as the Prime Minister’s Economic Advisory Council and the Board of Trade.

Detailed Insights:

• India's export economy is heavily centralized due to historical alignment of infrastructure, incentives, and political continuity in specific zones.
• The northeast is structurally unrepresented in institutions shaping India’s economic future, leading to neglect in strategic export plans.
• Schemes like Remission of Duties and Taxes on Exported Products (RoDTEP) and the Production-Linked Incentive (PLI) are primarily rolled out in industrial belts, excluding the northeast.
• The tea economy in Assam is facing challenges such as stagnating prices, labor shortages, and potential threats from tariff hikes in western markets.
• Trade across the India-Myanmar frontier has diminished due to checkpoints, bureaucratic obstacles, and the scrapping of the Free Movement Regime in 2024.
• India's strategic focus on shifting product categories overlooks the importance of geographical integration, particularly the northeast's connection to ASEAN.
• Infrastructure gaps in the northeast, including missing roads and warehouses, hinder trade and economic integration, requiring basic state function improvements.

Key Concepts Involved:

• Trade Deficit: The amount by which the cost of a country's imports exceeds the value of its exports.
• Counterinsurgency: Military or political action taken against the activities of guerrillas or revolutionaries.
• Act East Policy: An initiative to promote economic, strategic and cultural relations with the Asia-Pacific region.