Bangalore: The union government should consider declaring certain areas in the North East region as Free Trade Areas ‘officially’ to promote exports from the region which has lagged behind despite economic stimulus provided, FIEO President M Rafeeque Ahmed said on Tuesday.
He said the Federation of Indian Exporting Organisations wants the government to formulate an aggressive strategy for creating a growth quadrangle involving India’s North eastern states with Myanmar, Southwest China, northern Thailand and Bangladesh.
Speaking at a two-day Conclave on North East States here, he regretted that the ‘seven sisters’ account for just one per cent of the country’s USD 254 billion exports and said to promote exports from these back ward States the government should remove the Restrict Area Permit and Inner Line Regulations to help integrate the region with the Indian and global economy.
‘With Myanmar becoming a member of the ASEAN, a common market of 500 million consumers is at the doorstep of the Northeast,’ he pointed out.
Mr Ahmed said Assam was the key to the development of the region and within Assam, priority should be given to modernise its agriculture. Given the rich natural resource base there is considerable scope for increasing agricultural growth, he added.
He said the seven states should facilitate private capital as it was a crucial component for progress in the Northeast.
To accelerate growth in the region, chances in the structure of economies of the various States in the region. Growth acceleration in most of the NE states requires structural chances and calls for a significant change in the development strategy.
Creation of enabling environment for private investment in the productive sectors can makes things change economically, he added.
Saying that infrastructure deficit was major in the region, he said lack of connectivity had virtually segregated and isolated the region not only from the country, but from the world. (UNI)