Neighbours’ Turmoil Hits Northeast

Prevailing unrest in the neighbouring countries has virtually stalled India’s effort to use the Northeastern region as the gateway for trade and commerce with the South-East Asian countries under the ‘Act East’ policy. Several international projects have had to be stalled midway as India’s next-door neighbours Bangladesh and Myanmar are both going through a torrid time due to internal conflicts. While Bangladesh has been in turmoil since the ouster of the Hasina government, the fight between the military rulers and the rebels has intensified in Myanmar. As a result, various important connectivity and infrastructural projects have come to a standstill. For instance, ambitious projects like the Kaladan Multimodal Project and the India-Myanmar-Thailand Highway, key for enhanced trade and commerce, have been stalled for the time being, affecting developments in India’s Northeast as well as the South-East Asian region badly.

As a landlocked region, the Northeast needs proper connectivity to reduce geographical distance from the major trading hubs to participate in international trade and commerce. But the border hubs, which were made at various points along the international borders with Bangladesh and Myanmar to export the products made in the Northeast and other parts of the country, are now closed indefinitely, leaving thousands of people jobless. This is a huge blow to the Northeastern economy, which is still in a nascent stage, as all its traditional trade routes have become non-functional since the mid-forties, creating the huge gap of development and prosperity between the region and the mainland. The ‘Act East’ policy has been conceived to bridge this gap, but it seems that the policy may not be able to achieve the desired goals.

India has a long and significant association with the South-East Asian countries, which has gone through various ups and downs over the years. But since the nineties, the Indian government, taking advantage of the post-Cold War situation, has decided to increase its volume of trade with these countries. In 1992, for the first time, India participated as a sectoral dialogue partner of ASEAN and became a full dialogue partner after four years. Since then, India’s trade has grown by more than 10 per cent with the ASEAN nations, and presently Singapore is one of the biggest sources of foreign direct investments.

Thus, it is time now for India to play a proactive role in restoring normalcy in the neighbouring countries to bring the ‘Act East’ policy back on the rails. Otherwise, the dream of reviving traditional ties with the ASEAN countries will not be fulfilled. In its diplomatic endeavour to usher in peace in these countries, India may also invite other countries to join. This is very important, as the fragile peace both in Europe and West Asia may not last long, and the world may see another round of military escalation sooner rather than later. All these countries should increase trade with each other to ensure economic progress, even at the time of crisis. The situation strongly demands a coordinated effort from all the extended neighbourhood countries to ensure growth and prosperity in the region, including the Northeastern part of India.