[Answered] India’s border states contribute negligibly to exports. Critically analyze how integrating key geographies like the Northeast into India’s global trade strategy can foster a cohesive economy and regional stability.

Introduction

Despite sharing over 15,000 km of international borders, India’s border states account for barely 2% of exports; the Northeast alone contributes just 0.13%, reflecting structural exclusion from national trade strategy (DGFT, 2024).

Current Export Imbalances

1. Export centralisation: Gujarat, Maharashtra, Tamil Nadu, and Karnataka together account for 70%+ of India’s exports (EXIM Bank, 2023).
2. Border state marginalisation: UP, Bihar, and MP contribute under 5%; the Northeast remains outside policy design, with no operational global trade corridor.
3. Institutional exclusion: No representation of Northeast voices in the Board of Trade or PM’s Economic Advisory Council, limiting policy responsiveness.

Why the Northeast Matters

1. Strategic Geography: Shares 5,400 km border with five countries (China, Bhutan, Bangladesh, Nepal, Myanmar). Key to Act East Policy and Indo-Pacific vision.
2. Resource & Sectoral Potential: Assam contributes 50%+ of India’s tea output but lacks value addition/branding. Rich in oil, natural gas, hydropower, horticulture, and handicrafts. Bamboo, organic spices, and medicinal plants could boost exports under APEDA’s Agri-Export Policy.
3. Regional Security Linkage: Neglect fuels economic alienation, insurgencies, and cross-border smuggling. Integrating trade builds “economic interdependence,” a proven stabiliser in border regions (ASEAN experience).

Challenges Blocking Integration

1. Infrastructure Deficits: Poor roads, missing cold-chain facilities, underdeveloped logistics. India-Myanmar-Thailand Trilateral Highway remains incomplete; borders like Moreh and Zokhawthar reduced to “securitised bottlenecks.”
2. Policy Myopia: Export incentives like RoDTEP and PLI largely cater to western and southern clusters.
3. Geopolitical Disruptions: Myanmar coup (2021) disrupted border trade; scrapping of the Free Movement Regime (2024) hurt cross-border kinship and micro-trade.
4. Comparative Gap: China invests heavily in northern Myanmar infrastructure, creating supply chain routes India has failed to match.

Why Integration is Crucial

1. Economic Cohesion: Diversifies export geography, reducing dependence on a few coastal hubs. Enhances resilience against shocks like natural disasters or geopolitical sanctions.
2. Regional Stability: Border trade corridors encourage people-to-people ties, reducing insurgency incentives. Trade-led development can transform borderlands from “securitised zones” to “growth corridors.”
3. Geostrategic Leverage: Builds India’s credibility as a connectivity provider in the Indo-Pacific.  Counters China’s Belt and Road Initiative influence in Myanmar and Bangladesh.

Way Forward

1. Infrastructure Push: Complete IMT Highway, Kaladan Multi-Modal Project, and integrate Northeast with Bharatmala/Sagarmala corridors.
2. Policy Representation: Ensure Northeast presence in DGFT, BoT, and EAC.
3. Export Hubs: Develop Guwahati, Agartala, and Silchar as “border logistics parks” under PM Gati Shakti.
4. Sectoral Strategies: Tea branding, bamboo processing, organic agri-clusters, and handicrafts export promotion.
5. Cross-border Frameworks: Revive Free Movement Regime with safeguards, enhance BBIN (Bangladesh-Bhutan-India-Nepal) trade, and leverage ASEAN FTAs.

Conclusion

As Amartya Sen argues in Development as Freedom, true progress needs inclusive participation. Integrating the Northeast into trade policy ensures resilience, fosters regional stability, and anchors India’s equitable economic rise.