The document outlines a vision and development strategy for the Northeastern region of India to achieve peace, progress and prosperity by 2020. It proposes a five-pronged strategy of participatory development through grassroots planning, capacity building, augmenting infrastructure, ensuring adequate funding, and transforming governance. The goal is for the region to catch up with the national average standard of living by growing its economy at around 11-12% annually through inclusive development that harnesses its natural resources and empowers local communities.

1. Peace, Progress and Prosperity in the North Eastern Region:
Vision 2020
National Institute of Public Finance and Policy, New Delhi
A SUMMARY
I. Introduction
• India’s Northeastern region is home to several ethnic groups and has over 200 of the
635 tribal groups in the country with a strong tradition of social and cultural
identity.
• The developmental vision, if it has to be realized, should be based on the needs and
aspirations of the people. People of the region are tired of insurgency, lack of
governance and stagnation. They have an ambitious vision: by 2020, they aspire to
see their region emerge peaceful, strong and confident, and ready to engage with the
global economy.
• The socio-economic gaps between the region and the country on the one hand and
within the region can be bridged if the hand on the other development strategy for the
various people in the region are evolved in their own setting.
.
• A Five Pronged Strategy: (i) participatory development articulated through grass-
roots planning ; (ii) augmenting the capacity of the people to participate productively
in economic activities, and developing the capacity of the institutions to design and
implement developmental programmes; (iii) augmenting infrastructure; (iv) ensuring
adequate flow of resources for public investments in infrastructure and creating an
enabling environment for the economic development; and (v) transforming
governance by providing a secure, responsive and market-friendly environment
.
II. Northeastern Region: Economic, Social and Demographic Profile:
• Richly endowed with natural resources, the region is identified as one of the world's
biodiversity hotspots. The forest cover in the region constitutes 52 per cent of its
geographical area. This limits the availability of arable land and enhances the cost of
delivering public services.
• The region has reserves of petroleum and natural gas constituting a fifth of the
country's total potential.
• The region is covered by the mighty Brahmaputra- Meghna river system and small
rivulets. The floods and erosion of river banks have been an annual feature with

2. enormous loss of life and livelihood. Two-thirds area of the region consists of hilly
terrain.
• The standard of living of the people in the region as measured by per capita gross
state domestic product (GSDP). At Rs. 18,027 in 2004-05, it is less than the all-state
average of Rs. 25,968 by 31 per cent. At the time of independence the per capita
income in the undivided state of Assam was higher than the national average by 4 per
cent. In 1990-91. The region’s per capita income in current prices was lower than the
country average by 20 per cent. This difference has increased to 31 per cent by
2004-05.
• The region lags behind the rest of the country in several other development indicators
as well. The incidence of poverty in the region is high and the official income-poverty
measure may not accurately reflect the extent of deprivation. Planning process has
failed to strengthen the backward/forward linkages.
III. Progress to Peace and Prosperity
• The people of the Region aspire to achieve peace and prosperity, eradicate poverty,
have a sense of belonging and harmony while maintaining their distinct identities.
• By 2020, they would like to catch up with the rest of the country and contribute to its
affluence by becoming a prosperous part of India.
• They would like to see every family in the region receives sufficient food, clothing
and shelter, and the abundant natural resources are harnessed in a sustainable manner
for the welfare of the people.
• They would like to see opportunities for the youth to participate in gainful economic
activities.
(a) Catching up with the rest of the country
To reach all-India level of per capita income in 2020 (estimated at about Rs. 78,000 at
2006-07 prices or about USD 2,000 of the prevailing exchange rate), between 2006-07
and 2019-20, GSDP in the Northeastern region will have to grow at 11.8 per cent per year
on an average, or at 10.5 per cent in per capita.
• The realistic growth process is to phase in the acceleration in the three Plan periods to
steadily increase the growth rate to achieve the target. The vision document presents a
picture of how to phase it out.
• The objective is to ensure that people receive adequate food, clothing, and shelter,
and that every family is free from hunger, leads a healthy life and participates
productively in the growth process.
• An important component of the people’s Vision 2020 is to achieve a high level of
human development, particularly education and health.

3. • Human development contributes to welfare by enhancing ‘capabilities’, increasing
productivity of the population and enhancing their incomes and wellbeing.
• The vision of prosperity requires participatory development by harnessing the
resources of the region.
IV. Realising the Vision: The New Development Strategy
(a) Components of the development strategy
• The participatory development strategy calls for a complete shift in the planning
process towards designing and implementing people-centric programmes based on
harnessing the natural resources of the region. The five components of the strategy
are:
(i) First, participatory development through grass-roots planning to harness the natural
resource advantages of the region.
(ii) Second capacity development is critical to participatory development.
(iii) The augmentation of physical infrastructure is an important precondition for
development and to attract private investment into the region.
(iv) The resources deficit and a considerable portion of requisite investment must come
from Central and State governments.
(v) Transforming governance by providing a secure, responsive and market-friendly
environment including protecting investors’ property rights and ensuring a corruption-
free administration. Protecting the rights of tribal people to use the land and forest
resources is particularly important to instil in them a sense of belonging and security.
(b) Participatory development
A paradigm shift in the planning process – from the allocation of investment from above
to allocation determined by the needs of the people is called for. The centrality of local
governments – panchayats in villages and municipalities in urban areas - is critical to
planning at the grass-roots level.
• The people-based approach to development in agriculture should adopt separate
strategy of development in the plains and in hill areas. In the plains, the goal should
be to increase crop intensity, by better utilization of irrigation potential and
cultivation of short duration crops.
• In the plains, increasing the land area (about 1.5 million ha) under double cropping to
25 per cent in a phased manner, would considerably enhance productivity.

4. • Adoption of improved technology, expanding the area under high-yielding varieties
(HYV) of seeds, a more balanced use of organic manure, chemical fertilizers and
pesticides, and steps to balance soil conditions to reduce acidity in land.
• Controlling the fury of floods in the Brahmaputra and strengthening embankments to
control soil erosion for the development of agriculture in Assam and parts of
Arunachal Pradesh.
• In the hills, the strategy should be to wean cultivators away from jhum cultivation, by
enhancing their capacities to engage in productive and sustainable livelihoods. There
is tremendous potential for growing horticultural crops in the hills, but success
depends on the development of an enabling rural infrastructure base.
• The high fertility of virgin land in the hill areas of the region is conducive for the
introduction of organic farming of horticultural crops under the National Programme
for Organic Production (NPOP).
• The people of the region are predominantly non-vegetarians and the production of
meat and eggs is inadequate to meet the demand. There is potential for giving a big
thrust to animal husbandry in the region.
The region is significantly deficient in fish production by 55 per cent. Marketing
and storage infrastructure will provide a boost to pisciculture.
• The participatory development approach requires the development of the
manufacturing sector based on the resources of the region. Agro-horti processing
industries will have to play an important role in the emerging scenario.
• Similarly, there is considerable scope for expanding handlooms and handicrafts,
particularly sericulture.
• The significant deposits of limestone in Meghalaya and Arunachal Pradesh can be
used for setting up medium-sized cement industries by using the deposits of natural
gas in the region.
• The most important sector to be developed in the region is tourism.
(c) Building capacity for participatory development
• The literacy rate is high in the region, but this has not translated into employability in
productive occupations. There also appears to be a reluctance to enter into self-
employment ventures.
• Capacity building in the primary sector will have to focus on providing skills and
training for improved agricultural practices.

5. • Skill development is extremely important for providing productive employment
opportunities in the manufacturing and tertiary sectors and creating a pool of
employable skilled personnel which would be an attraction for private investments.
• Focus on other aspects of human development such as basic health needs isequally
important for capacity development.
• An important part of capacity building is the need for an emotional integration with
the rest of the country.
(d) Strengthening infrastructure and connectivity
• The biggest constraint in the NER has been the poor state of infrastructure, in
particular, roads, railways and power.
• Significant initiatives must be taken to improve connectivity. Given the difficult
terrain and strategic situation of the region, road density should be higher than the
national average of 75 km/100 sq. km.
• The Central Master Plan for road connectivity in the region should be completed by
2015, and sub-divisional headquarters should be connected through all-weather roads.
National highways must be upgraded to four lanes.
• Rail projects under construction must be completed by 2010 and more trains must be
introduced to the region. A detailed plan is required for connecting all State capitals
in the region with a broad-gauge rail line by 2020.
• Air connectivity must be improved by shifting the hub of air services to Guwahati;
the nine old airstrips in different parts of the region should be developed for
commercial use and subsidy may be offered to airlines to begin operating regional air
services between the different state capitals, with a hub at Guwahati; until it becomes
economically viable.
• Activating inland waterways and providing access to the sea port requires significant
diplomatic initiatives with Bangladesh. The aim should be to have a common market
with Bangladesh.
• Infrastructure and connectivity could support the ‘Look East’ (LE) policy.
• With the Prime Minister of India announcing during the SAARC Summit in May
2007 that India would follow a duty-free policy with least-developed SAARC
countries from 2008 significant upgradation of infrastructure in the borders to
facilitate trade and ensure faster movement of goods to and from neighbouring
countries is required.

6. (e) Raising resources for development
Much of the requisite investment will have to come from the private sector and the
government will have to create the enabling environment for private initiative in
economic activities.
• State Governments will have to significantly enhance the level of spending on
development and improve efficiency of delivery systems. Potential sources of
revenue will have to be tapped for raising more resource.
• The Central Government has to augment infrastructure spending directly.
(f) Creating a responsive administration
A responsive administration is fundamental to creating an enabling environment.
Responsive administration has both proactive and reactive aspects; the protection of
property rights is the most important precondition for the development of markets.
• Creating a legal framework, the implementation machinery to maintain law and order
and an effective and expeditious judicial system are essential components of this
incentive system.
• Ensure corruption – free administration.
• The media and non-governmental organizations will have to play an important role of
diligence and vigilance in ensuring this. The Right to Information (RTI) Act is an
important instrument that can be used to demand accountability.
• Local/self governance has to be strengthened.
V. Converting Dreams into Reality
The five components of the strategy are interdependent and, therefore, need to be
designed and implemented concurrently. Peace will bring in development dividends and
vice versa. Development requires infrastructure and capacity development. Similarly
connectivity can dampen insurgency. All these can be done only when there is an
accommodating and enabling environment for which a responsive administration is
necessary.
The formulation of the five-year plans should and would take into account the over all
vision outlined in this document.