India's Look East Policy: Opportunities and the Challenges

Dr. B.B.Kumar

India was late in realising the importance of its relationship with its eastern neighbours, in opening of the border trade and the formulation of its 'Look Last' Policy. Now we are trying to strengthen our ties including the trade ties with the countries of the Last and South-East Asia. None can deny that strategically and economically strong eastern neighbourhood of India shall provide strategic safety and economic strength to our country. We need to develop all-round bilateral and multi-lateral relationships with our eastern neighbours

The 'Look Last' policy provides enormous opportunities and the challenges for this country, especially for the North-east region. The region shall have locational benefit in trade due to its proximity to the countries of the Last and South East Asia. The North-East being land-locked region shall be benefited by the border trade: the region shall also derive benefit by being the corridor for the trade b\ land route for other parts of the country as well. Thus it will derive benefit both ways: the sea trade shall comparatively benefit more to the other parts of the country, whereas the land route trade shall benefit this region more.

It may be mentioned here that the opening of the trade under this policy has already started paying dividends to India. The share of our trade with Last and South-Last Asian countries — our eastern neighbours — has started increasing. Our trade share with China has increased from 2.5 per cent in 2000-01 to 7.0 per cent in 2005-06 and 7.7 percent during April-October 2006. The trade shares with Singapore and Malaysia, during April-October 2006 have increased to 4.0 and 2,2 per cents respectively. The quantum Jump in the trade with these three countries has been to $21.8 billion from $7.0 billion. The trade share with other countries of the region has also increased considerably. Obviously, the 'Look Last" policy provides enormous possibility for the development of the whole country and more so for the North-East region.

It is heartening to note that the countries of the South-Last Asia especially Thailand, its political establishment and the captains of industry, are interested in investment in the North-East region of our country. The region may attract investment in the diverse sectors of road construction, tourism and hospitality, power, mining, air connectivity in the private sector, rubber plantation, orchids, etc. So far Thailand is concerned, there have been firm investment proposals from that country and in many cases preliminary discussions are moving in positive direction. As reported, contacts have been established between the firms of Thailand and India operating in the NL region in as many as 35 sectors. Thailand has come out with 'Look West' policy.

Japan and other countries may also be persuaded to invest in the region, Japanese investors, due to Chinese hegemonoistic ambitions, growing anti-Japanese riots and escalating labour costs, want to gradually shift many of their operations from China to India. A share of the investment may flow to this region also. Japanese, however, find our infra-structure highly inadequate. The country and more so the North-East region, needs better road, railway, and ports connectivity, as well as improved power situation.

Some positive steps have already been taken to promote trade after declaration of the policy. Nathu La Pass was opened last year after 44 years for trade with Tibet/China. There is proposal to re-construct Slilwel Road to connect Brahmaputra valley with Myanmar and China. The Moreh in Manipur and Tamil in Myanmar have been opened up for trade between the two countries. The Chan-iphai (Mizoram)-Hri (Myanmar) road and a third opening in Nagaland aims at promotion of Indo-Myanmar border trade. The road-network and Asian Railway network will connect India with the countries of South East India and China. With the aim of creating big trading block India is moving towards Comprehensive Economic Co-operation Agreements (CECA) covering free 'trade agreement (FTA) in goods, services, investments and identification of the areas of economic co-operation.

For promoting road connectivity, N1IAI had about 50.000 crore for the development of the roads over the 10 years. For the NE region, 827 projects with an investment of 5.824 crore have been listed, which includes laying of 1,160 km roads, 85 bridges, augmentation of airports, and connecting 487 community information centres in the region with the rest of the country through VSAT.

Apart from developing infrastructure to promote inner connectivity, India is trying to do the same in South-East Asia also. This country has constructed 160-km Tamu-Kalewa- Kalemyo road in Myanmar connecting that country with India at Moreh in Manipur. India is assisting in the construction of the proposed trilateral highway project to connect Moreh in India to Mac Sot in Thailand via Bagan in Myanmar. India's Kaladan Multi-modal transit transport facility, aimed at improving linkages between eastern Indian ports and the Sittwe port of Myanmar would enable us to have an alternative route for transport of goods to the North-East region by enabling transportation by river transport and roads through Mizoram. Thus a beginning has been made but much is yet to be done.

The future is certainly rosy, hut the difficulties to he faced and the obstacles to be removed arc equally insurmountable. Apart from inadequate of infrastructure - both physical and institutional — and inadequate local produce to be exported, there are problems of insurgency, extortion taking the shape of industry, frequent bandhs prolonged even for weeks.

To lake maximum benefit from the policy, the North-East region should develop industrially. We shall have to produce what the 'East' needs. The new NE industrial Policy has practically made the whole region a special economic zone. This, however, is not going to bring benefits if the lethargy and corruption are not controlled. After all, the industry departments of various states of the region have only benefited the 'subsidy eaters' until now. For the flow of fund from South East Asia, the roads, power and security is a must. We must bid farewell to the culture of 'Bandhs'. This is needed also for developing tourism. For this the North-Eastern states must administer and administer properly. Insurgency and extortion enterprises must give way to production oriented activities. This is possible only when the civil society intervenes to bring a positive change for the better. Undue complacence towards the illegal migration from Bangladesh and huge illegal trade with that country must not continue. A state declaring thousands of suspected aliens deported from neighbouring hill states as Indian citizens within couple of days…its inability to protect Indian citizens and thereby the change of the texture of the work-force by replacement of the Hindi speaking labourers by Bangladesh is inter -state land encroachment drives, sheltering terrorists in Ml.A's house and all such news send wrong signals. It is already reported that insurgency has adversely affected the trade at Moreh. We wish the situation to change for better to enable us to share the optimism of Pranab Mukherjee, External Affairs Minister and Mani Shankar Aiyar that 'Look East' policy shall bring prosperity to the NE region. It is time that we take steps to frustrate the evil design of ISI and their Indian collaborators towards India and the region. Otherwise, no policy initiative, no opportunity is going, to benefit this region.

A point, which is even more valuable for India, is to discover East and South East Asia without which it is not possible for the Indians to discover themselves. India should gratefully acknowledge the debt of these countries for preserving much of our literature, art and wisdom, which we lost during the last millennium. It is possible to bring peace and prosperity by positive and healthy intervention of the civil society. The funds flowing for providing infrastructure should be properly utilized; the leakage should be plugged. The vigilant civil society should ensure that the state delivers and controls Fiscal mismanagement. The judicious utilisation of our own funds shall enhance our absorption capacity. It will ensure the flow of funds from the neighbourhood and bring prosperity in the region.

|  Headlines  |  Editorial   | Cover story  |
|  Travel Column   |   News Briefs  |
| OT Main Page | Nena  Home Page  |