It is widely agreed that, over the past decade, accelerating
infrastructure investments in India's North Eastern Region (NER)
and neighboring countries, along with connectivity agreements with
Bangladesh, hold immense promise for unlocking NER's economic
potential. Other global trends, such as the growing incomes and
consumer awareness in India and neighboring countries; a rising
preference for fresh, healthy, safe, environmentally friendly, and
socially responsible products; the growing role of services in
manufacturing; and increasing demand for skilled resources are also
very favorable for NER. Together, these developments can help NER
showcase its strengths in agriculture and services, thereby
developing value chains in these sectors, which will lead to
sustainable, better-paying job opportunities for the people of NER.
In this context, the World Bank, in consultation with
stakeholders--government, private sector, and academia--analyzed
two cross-cutting constraints that are encountered across all value
chains and sectors in NER: connectivity and logistics, and product
standards and quality infrastructure. To ground the policy in
specific contexts, the team studied four sectors in depth: fruits
and vegetables, spices, bamboo and related products, and medical
tourism. Playing to Strengths lays out an initial policy framework
for NER that integrates demand and supply and shows that, even with
a low base in manufacturing, NER can leverage its strengths in
agriculture and services to step up its growth. However,
implementing this framework will require a different approach to
doing business compared with the existing ecosystem and its
associated value chains, which are mostly geared to local and/or
price-conscious consumers. In capitalizing on its advantages, NER
will not only accelerate its own development, but also will play an
increasingly critical role in the government of India's "Act East"
policy.
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