The North-East Region (NER) of India accounts for 7.98 percent of the total geographical area of the country and it houses almost 3.78 percent of the Indian population. What is unique about the northeast region is its topography that comprises both the hills and plains but it is majorly dominated by the hilly terrain. In addition to that 54 percent of the total population of the northeast region comprises tribal groups. The population composition along with the topography of the northeast region shape the economy of this region. The major contributors to the economy of the northeast region are agriculture, industries and the service sector.
The Agricultural Sector Of NER
The northeast region is rich in natural resources and therefore, the region is a potential hub of oil and natural gas, mineral deposits, hydroelectric resource, forest resource and agro-horticultural. 70 percent of the population of NER is engaged in agriculture for their survival. Two types of agricultural practices that are followed here include settled agriculture which is practiced in the gentle slope and slash and burn agriculture.
The important crops of NER include rice, pulses, cereals and oilseeds. However, the preference of crops differs from one state to another in the NER. For instance, in Nagaland, food crops are preferred and in Assam and Sikkim, more preference is given to oilseeds, plantation crops and fiber.
The potential in the agri-business sector of NER is huge and it can be done by focusing on Medium, Small and Micro Enterprises (MSMEs). Currently, the number of MSMEs present in NER is small and there is a need to increase it to improve the agricultural potential of the region.
The Manufacturing Sector Of NER
The industries that are based on NER are agro, mineral and forest-based. The manufacturing sector particularly plays an important role in the economy of Assam. For instance, the tea industry of Assam contributes to 50 percent of total tea production in India. In addition to that, Assam also houses bamboo-based industries, food processing industries, plastic, oil and natural gas, jute and silk. The center and the state government have often lent their support to improve the manufacturing sector in NER and in addition to that, the financial requirement is also met through Dhankesari and Lottery Sambad that are organized in the region. The major manufacturing units of Manipur and Mizoram are handlooms and handicrafts. Nagaland is known for its wood and food-based industry while Tripura is popular for its bamboo manufacturing units.
The manufacturing hub of NER is now changing to meet the growing interest of the people in organic products. The entire NER has a huge potential to become an organic hub of the country. The different government schemes that are working towards improving the manufacturing sector of NER are the Prime Minister Employment Generation Programme and Cluster Development Program. The Prime Minister Employment Generation Programme has proved to be extremely helpful particularly for Assam and Arunachal Pradesh.
The Service Sector Of NER
The service sector of NER comprises public administration, trade, transport, financial services and communication and it contributes approximately half of the income of the entire NER region. Interestingly, there is no uniform pattern in the growth of the service sector in the NER region and the Gross State Domestic Product differs from one state to another. It is highest for Manipur and lowest for Sikkim according to a survey that was carried out in 2018-2019.
The recently announced budget also focused on improving the economy of the NER. While improving the economic growth of the NER, the focus is also on sustainable growth. The Prime Minister's Development Initiative for the Northeast will help in improving the infrastructure of the region and will also be supporting social development projects. This will also contribute to increasing the livelihood options of the NER people. In addition to that, the government is also providing support to farmers, especially the ones that belong to Scheduled Tribes and Scheduled Caste to improve the agro-forestry sector of the region. Also, the manufacturing sector of the NER has been a focus for the government. This will also ensure that the industry stakeholders invest more in the NER. In short, the agricultural, manufacturing and service sector plays a huge role in the economy of NER and the government has focused on all three sectors to further improve the financial situation of the region.
