North-east India has often been perceived as a remote and isolated region, ethnically so diverse and distant from the dominant Aryan – influenced Indian society. Plagued with dreadful inter-ethnic clashes, ever-growing separatist demands and criminalized insurgencies, the North-east got tagged with the crisis region image in the mainstream economic literature. Geographically connected to India with 37km Siliguri corridor, the region shares 4500km border with the newly emerging nations of Asia, comprising China, Nepal, Bhutan, Myanmar and Bangladesh. North-east has vast potential to become the gateway to South East Asia. Yet, the trade and industrial policies of Government of India failed to use these links and vast natural resource base for the development of the region. Today, North-east has very high level of absolute poverty, ranging between 42-58%; the per capita income is only Rs.10000 (2000-01) and very low on Human Development Index. The Government of India, through the support of respective state governments in the North-east region is making continuous efforts towards development through legal, institutional, policy, social and economic interventions. However, they have not been instrumental. With the inauguration of trade liberalization, Policy makers began to realize the potential of North-east, especially because of its strategic location. The ‘Look East Policy’ of 90’s envisages the region not as a periphery, but as the centre of a thriving and integrated economic space, linking two dynamic regions –India and Southeast Asia with a network of highways, railways and pipelines. Against this background, this book splits into three sections, focuses on three dimensions-the reasons for economic backwardness and investment stagnation in North-east; impact of insurgency and ethnic violence on the economic development and finally, identification of the development and growth potential of North-east in the era of globalization and transnational trade agreements.
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