Why North-East India Will Be The Next New Business Destination of India?
For a long time, North-East India has been away from the mainstream business of the country because of the poor connectivity. However, this is changing because the Government of India has started paying more attention to the entire North-East India with the aim to increase the confidence of the stakeholder which can result in domestic profitability. Discussions have been taking for a long time about how to make the northeast a business destination and the same is manifesting in the current time.
Improved Connectivity In North-East Region
Back in 2020, Dr APJ Abdul Kalam Centre for Policy Research and Analysis and IIM Shillong conducted an e-Symposia to discuss how northeast India can develop into the next business destination. The government is focuses on creating a suitable environment in North-East India for entrepreneurship and the same is being carried out by gradually improving all kinds of connectivity in the region and the same is visible through the improved efficiency of popular logistic companies like Delhivery and GATI, which has proven to be extremely beneficial for e-commerce companies.
During the peak of the COVID-19 pandemic, the northeast region focused on local entrepreneurship to support trade and scientific research. The local economy was strengthened by various state governments and self-help groups working for it received significant support from the respective government.
Previously, an investment package of US $30 billion was made to ensure improved efficiency in the railway, roadway and aviation sectors. In addition to that, an aim to provide 100 percent on teledensity is underway.
Union Budget 2022 Focuses On Development of North-East
The Union Budget 2022 was recently announced by Nirmala Sitharaman, Union Finance Minister. While detailing the budget, a new scheme named Prime Minister's Development Initiative for North-East was announced which is planned to be executed through the North-Eastern Council. The fund will be mostly used for improving the infrastructure of the North-East region and will also focus on different social development projects. It is believed that with the help of this scheme, the livelihood of both the youth and women will improve and this will further help in filling the gaps of different sectors. The gratitude for the same was expressed by Bipal Deb, Chief Minister of Tripura, Ashok Singhal, Assam Minister and Kiren Rijiju, Union Minister.
Where Will The Allocated Budget Be Utilized?
Till now, the government has identified eight projects that require a budget of INR 9663 crore and the remaining projects will be identified soon. The identified project includes services for the Management of Paediatric and Adult Hematolymphoid Cancers in North East India that is situated in Guwahati, Assam, construction of Aizawl bypass, passenger ropeway system for Pelling to Sanga-Choeling in West Sikkim and cable car from Dappar to Bhaleydhunga in South Sikkim. In addition to that, a pilot project will be carried out for Bamboo Link Road constructed in different districts of Mizoram.
E-Commerce Players Are Focusing In The North-Eastern States
Leading e-commerce companies of India are also focusing to expand their business in North-Eastern India. With improvement in the challenges of last-mile delivery in the northeast because of the rugged terrain, the e-commerce companies have observed a double-digit growth in the region and therefore, they have increased their focus in the region. The limited connectivity to the region presented plenty of hurdles for different businesses to operate smoothly in the region but that being taken care of, the potential of business in the North-East region is at par with Mumbai and Delhi.
Also, the improved connectivity has ensured that the market in this region is growing at a much faster pace. The same has been observed by e-commerce companies like Snapdeal and Flipkart. Recently, Flipkart has also worked towards improving its support facilities and supply capabilities for the region. The northeast region comprises mostly young customers who are potential customers for the companies for categories like books, games, music and apparel. Working on a similar line, Myntra has also recently created its distribution centres in Guwahati and Aizwal, which resulted in a 500% jump in sales for the company.
Not only the popular e-commerce companies are seeing the potential in growth in the northeast region but also niche and local players have also started actively marking their presence here. With the help of government support and the interest of the private players, the northeast region of India has become a popular business destination for the stakeholders.