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North East India - The Opportunity Landscape. North East - at a glance. 10.97 lacs. 5.40 lacs. 266.18 lacs. 19.90 lacs. 23.18 lacs. 21.66 lacs. 31.99 lacs. 8.8 lacs. Total Area : 2,62,191 sq. km ( 8 % of the country) Population : 38.9 mn (3.75% of the total population of India)
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North East India - The OpportunityLandscape
North East - at a glance 10.97 lacs 5.40 lacs 266.18 lacs 19.90 lacs 23.18 lacs 21.66 lacs 31.99 lacs 8.8 lacs Total Area : 2,62,191 sq. km ( 8 % of the country) Population: 38.9 mn (3.75% of the total population of India) 96% of the Region shares international borders
Central Government Impetus • Investments during 10th Plan Period : Rs 80,943 crs • Investments during 11th Plan Period (upto 2009-10) : Rs 82,891 crs • Expenditure of Central Ministries in NER for the period 1998-99 to 2007-08 : Rs 55,957 crs • Since 1998-99, 10% of gross budgetary support to all eligible Central Ministries earmarked for North East • Unspent amount of these funds is pooled into Non- Lapsable Central Pool of Resources (NLCPR) for the North East • World Bank is investing in natural resources, water, environment and livelihood projects • Asian Development Bank is investing in Road & Urban Development projects, Trade and Capacity building
Opportunities in North East…Beyond the Traditional INFRASTRUCTURE: few important ones…. Projects underimplementation * Only for two Projects
Opportunities in North East…Beyond the Traditional HYDEL POWER • Perennial rivers -more then 60% of India’s Hydropower Potential in the North East Only 1.6 % developed so far • North East poised to have a boom in hydro power projects • Arunachal Pradesh - more then 19 major hydro power project identified with an estimated cost of Rs 7,300crs • Assam and Arunachal Pradesh have launched special policies for Major & Minor Hydel Projects for private sector participation
Opportunities in North East…Beyond the Traditional • Natural Gas & Oil • North East has more than half of India’s onshore gas (23 million cubic meters) and oil repository • The region has a potential of 3.5 million cubic meters of gas per day • Natural gas available in Tripura is of high quality, with methane content up to 97 per cent • Shale Oil Reserves in Assam are estimated at 137 billion tonnes with a recovery factor of 20-35% and the crude oil potential is 14 billion tonnes. This can sustain production of 140 million tonnes of crude oil for 100 years. This is more than India's entire current oil consumption • Huge potential for Private Sector participation in exploration and setting up gas related industries
Power & Gas Projects on the anvil Assam Gas Craker Project is expected to trigger massive growth in Packaging and Textiles sectors across the region. At least 500 downstream plastic processing industries can come up
TOURISM A 365 days Destination with a wide array of choices, e.g. nature / eco / ethnic tourism to many tourist destinations Home to over 160 schedules tribes & over 400 sub tribes and Ethnic festivals such as the Horn Bill Festival 20 Golf Courses A Buddhist circuit connecting Buddhist sites in Sikkim & Arunachal Pradesh with Thailand being planned Unique product propositions – Tea Tourism, Golf, River cruise, Angling, Polo, Floating Hotels, Wildlife, Nostalgia sites - tea estates, war memorials Opportunities in North East…Beyond the Traditional From 1st January 2011 Govt of India has relaxed the Protected Area Permit for foreign nationals, unleashing enormous prospects
Opportunities in North East…Beyond the Traditional • Education, Health Care & Skill Development • High Literacy rates and rising aspiration levels have unleashed new trends • Rising demand for education and skill development because of large young population • IIT & IIM are already there • Scope for many more institutions of higher learning • Rising income levels have also created demand for healthcare • Specialised hospitals being planned • North East Industrial and Investment Promotion Policy 2007 has classified Vocational Training industrial eligible for all similar benefits
Akhaura Project linking Bangladesh • Rail line between Agartala and Bangladesh on the cards • Bangladesh has allowed access to Chittagong Port for movement of goods to North East No Longer Land locked – New Directions in Connectivity
No Longer Land locked – New Directions in Connectivity Kaladan Multi-Modal Transport Project The 1100cr KMMT Project envisages connectivity using the Sittwe port in Myanmar, then through riverine transport and by road to Mizoram and into North East
Incentives for Investments • NEIIPP Key Features • 100% Excise Duty & Income Tax Exemptions • Many Subsidies including Capital, Interest & Transport • Few Unique State Policy Advantages …. • Tourism - Arunachal Pradesh, Assam, Meghalaya, Sikkim, Tripura • IT - All except Arunachal Pradesh • Hydropower – Assam & Arunachal Pradesh • Power through Non-Conventional Energy Sources - Mizoram • Bamboo - Assam, Mizoram, Nagaland, Tripura
CII in the North East CII working in the North East for the last 10 years with Offices in Assam, Nagaland, Mizoram & Tripura • Thrust Areas • Capacity Building • Market Linkages • Policy Advocacy • Trade Linkages • Technology Dissemination • Investment promotion
Looking into the Future • Large number of 1st generation entrepreneurs scripting success stories • Major initiatives in agro - processing, using biodiversity as a resource / opportunity • Initiated organised bamboo plantation and bamboo based industry • Major initiatives in strengthening border trade and especially trade with Bangladesh • Initiatives in Look East Policy and close ties with BIMSTEC