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Economic Problems IN North EAST India

This unit introduces you to NE India's economic issues. The North-East...
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Sociology I (BL111)

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ECONOMIC PROBLEMS IN NORTH EAST INDIA

INTRODUCTION

This unit introduces you to NE India's economic issues. The North-East is made up of eight states. Despite the cultural and linguistic differences among the eight states, it can be said that colonial history and people's social interactions have resulted in common problems in this region. As a result, economic, development, and exploitation issues can all be viewed through the same lens.

ECONOMIC PROBLEMS

It has been suggested that the region's economic problems have historical roots. Colonial history and exploitation have left an indelible mark on the country's economic infrastructure. The spectre of colonial history still haunts the country's economic sectors, even after independence from colonial rule. Despite its natural resources, this region's economic development lags behind the country's overall development. This region's economic underdevelopment is due to a variety of factors and causes. The following sections go over each of these points in detail.

Unemployment

Unemployment refers to the state of being actively looking for work but not currently employed. Unemployment can be viewed as a major economic issue. Unemployment is also a major social issue because it can lead to other social catastrophes. In every state, a person should be hired based on his or her qualifications and merit. Any state's primary responsibility is to ensure that citizens have decent jobs that are appropriate for their qualifications. However, it has been observed that unemployment has become a visible content in every country. This does not go unnoticed in North East India. According to the Ministry of Labor and Employment's 2012-13 employment and unemployment survey, the unemployment rate in the north eastern states is higher than

the national average. Assam, Manipur, and Arunachal Pradesh are among the North Eastern states with the highest unemployment rates. Terrorism, crime, and suicide are examples of social evils that will be discussed later. Before we can comprehend the social consequences of unemployment, we must first comprehend its causes. Unemployment is caused by a variety of factors. Northeastern states have a net unemployment rate of 12%, according to a report published by the ministry of development of the north east region (DONER). Tripura, in India's northeast, has the highest unemployment rate, at 25 percent. Unemployment in this region is one of the most serious threats to the economy of the country. We can trace multiple causes of unemployment in north east India, which are discussed below. Colonial exploitation: For nearly 150 years, North East India was under British colonial rule. Despite the fact that the British initiated various development programmes, it has been revealed that their primary goal was to export raw materials. The British administration's exploitation of natural resources has hampered economic development in the post-independence period. Another reason for unemployment in North East India is the region's geographic isolation from the rest of India. Various scholars have argued that the economic development of this region was hampered by policymakers on the Indian mainland due to its geographical isolation. Despite having abundant natural resources and a pleasant climate, this region has yet to develop major industries. The government has not taken proper initiatives to mobilise the youth in the oil and tea sectors, despite their potential. Another reason for unemployment in North East India is corruption, nepotism, and red-tapism. According to various academics, corruption and nepotism among bureaucrats and political leaders have stymied the region's economic development. The central government's funds were not distributed evenly among the states. Corruption in the public sector, on the other hand, has hampered the inclusion of deserving students in government jobs. In the case of Assam, recent APSC (Assam Public Service Commission) scams are a clear example of how corruption prevents capable and qualified students from being included.

Terrorism- Given that unemployment and terrorism have a reciprocal relationship, it is reasonable to conclude that terrorist activities are the result of unemployment. Due to rising unemployment rates in states such as Manipur, Nagaland, Meghalaya, and Assam, we are seeing an increase in terrorist activities. Unemployed educated youths in this region are becoming increasingly interested in terrorist activities as they see fewer opportunities for government employment. They are hopeless because of corruption and nepotism in government jobs. On the other hand, a lack of infrastructure and industrialization has hampered the recovery of private sector jobs. As a result, they have realised that terrorism, followed by kidnapping, extortion, and other forms of extortion, can be a lucrative business that allows them to live a decent life. Terrorism has been observed to become a profitable industry in the north east region after the 1980s. Poverty: Poverty can be considered a side effect of unemployment; when opportunities for private and government jobs become scarce, it leads to dire economic conditions. Unemployment has the potential to lead to criminal activity. People who are unemployed are more likely to engage in criminal behaviour. People may become involved in criminal activities as a result of social insecurity and frustration brought on by unemployment. According to various academics, an increase in the number of crimes such as robbery, drug dealing, child trafficking, and flesh trade has a direct link to unemployment. Unemployment has been shown to cause social insecurity and mental anguish, which can lead to suicide. When people see themselves as capable human beings who are capable of doing decent jobs but are unable to obtain them due to corruption, red tape, or nepotism, a sense of frustration and social insecurity develops in their minds. It can result in antisocial behaviour, criminal activity, or suicide. Outmigration of youths from north east India to other parts of the country is on the rise. Lack of proper infrastructure, current unemployment rates, and socio-political conditions in the region have instilled in the youths of the region the belief that the region's economic stereotypes will never change. This belief leads to an increase in the number of young people leaving the country. A large number of young people from

this region have migrated to Delhi, Mumbai, and Bangalore in search of work in private farms.

Infrastructure

Purusottam Nayak defines infrastructure as "certain facilities and services rendered to the society on which the structure of the economy largely depends" in his paper "Infrastructure: its development and impact on agriculture in north-east India." It is recognised as a complementary sector and a boom to other sectors of the economy by creating external economies because of its multidimensional and multipurpose nature. It is generally financed by the government without any profit motive due to its long gestation period and high establishment and maintenance costs. The availability of infrastructural facilities is critical to a region's development. Agriculture and industry development are solely dependent on infrastructure. A region within a country cannot develop its economy without a strong infrastructure base. According to P k Dhar, a renowned Assamese economist, the most important and difficult task in the country's development process is to provide basic infrastructural facilities. Energy (coal, oil, and electricity), irrigation, transportation and communication, banking, finance, insurance, science and technology, and other social overheads like education, health, and hygiene are all included in these infrastructural facilities. 70% of the people in the region rely on agriculture for their livelihood. Around 51% of the population of Mizoram lives in rural areas and is reliant on agriculture. Sikkim has a high percentage of 89 percent. The pattern of agricultural growth, on the other hand, has remained uneven across regions. Even for their own consumption, the states remain net importers of food grains. Though agriculture is the main source of income in this area, it has been noted that there is a limited amount of land available for farming. Compared to the national average of 21 percent, the region has a forest cover of more than 66 percent (ranging from 35 percent in Assam to 90 percent in Mizoram). Rubber, sugarcane, tea, and other crops are grown in the area in addition to paddy.

  1. Lokpriya Gopinath Bordoloi International Airport and 2) Lokpriya Gopinath Bordoloi International Airport. 2) The international airport of Bir. An airport is being built in Arunachal Pradesh and Sikkim. Apart from that, domestic airports can be found in Assam, Meghalaya, Nagaland, Manipur, and Mizoram. Despite the fact that the Brahmaputra and Barak rivers have waterways connectivity, it can be argued that the region's water transport infrastructure is lacking. In the case of tourism, waterways connectivity can be an important factor for change, but a lack of knowledge about waterways connectivity and transportation is a barrier to the region's tourism industry's development. Infrastructures such as power and electricity are critical for any industrial and economic development. Previously, we couldn't say that the north eastern region had an advantage in terms of power and electricity. However, the development of hydropower projects in recent years has resulted in a significant shift. According to a DONER ministry report, three north eastern states, Sikkim, Tripura, and Mizoram, have become power surplus states. According to a report by the DONER ministry, 16 hydropower projects are under construction in the region, including the lower Subansiri project, Kameng project, Umtru hydropower project, Mizoram Turial project, and others. The completion of these projects, according to this report, will provide 5576 MW of power. Though it has a significant impact on future industrial development, it has also resulted in a broader set of environmental issues. Educational infrastructure and skill development are critical for industrial development. Several central and state universities, engineering, and medical institutions have developed in the north east. Technical institutes and higher educational-skill base institutes, on the other hand, are not developing at a rate that is commensurate with the rest of the country. In the region, the development of IITS, IIMS, and NITS is not significant. It is worth noting that proper industrial development cannot be achieved without proper development of skills and entrepreneurial abilities.

Industrialization-

Industrialization, according to the Britannica encyclopaedia, is the process of transitioning to a socioeconomic order dominated by industry. Despite the enormous potential for industrial development in north east India, such development has not occurred for a variety of reasons. Tea and oil are two of the North East's most important industries. Assam's tea industry accounts for nearly 53% of all tea production in India. The oil industry, on the other hand, has a long history. In the state of Assam. In Digboi, Assam, there is Asia's largest oil refinery. Despite having all of these resources, industrial development has not been successful. Governments have not adequately addressed the problems of small and medium tea planters in the tea industry. In the North East, there has been a heated debate about the quality of tea products. In the oil sector, proposed oil field auctions in Assam resulted in huge losses for ONGC and Assam Petrochemicals Limited. Sualkuchi, an Assamese village, rose to prominence in the silk industry due to the presence of cottage industry. It is known as the Manchester of Assam. Meghalaya has a large supply of lime stones and granite, which could be used in the cement industry. Manipur and Tripura have enormous potential in the bamboo and handloom industries. Rubber production, as previously mentioned, has another potential in the North Eastern region. Bamboo production could be a potential industrial development in Sikkim. In terms of tourism, it has been observed that the scenic beauty of Meghalaya, Arunachal Pradesh, Gangtok, and other places has attracted visitors from all over the world, and that special festivals such as the Hornbill Festival, Tawang Festival, and Ambubachi Mela have attracted visitors from all over the world. The presence of rivers such as the Brahmaputra, Barak, and Kaladan, as well as the world's largest and smallest river islands, places with the highest rainfall, and Asia's cleanest village has made the northeast one of the most important tourist destinations. Despite having all of these amenities, the region's tourism industry has not developed to its full potential. The following are the main causes of underdevelopment: colonial oppression and exploitation; post-independence negligence; and unequal distribution of resources. Corruption, infrastructure underdevelopment, insurgency and violence, a lack of proper industrial policies for the North East, and a lack of entrepreneurial skills among the population

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Economic Problems IN North EAST India

Course: Sociology I (BL111)

143 Documents
Students shared 143 documents in this course

University: Jamia Millia Islamia

Was this document helpful?
ECONOMIC PROBLEMS IN NORTH EAST INDIA
INTRODUCTION
This unit introduces you to NE India's economic issues. The North-East is made up of
eight states. Despite the cultural and linguistic differences among the eight states, it
can be said that colonial history and people's social interactions have resulted in
common problems in this region. As a result, economic, development, and
exploitation issues can all be viewed through the same lens.
ECONOMIC PROBLEMS
It has been suggested that the region's economic problems have historical roots.
Colonial history and exploitation have left an indelible mark on the country's
economic infrastructure. The spectre of colonial history still haunts the country's
economic sectors, even after independence from colonial rule. Despite its natural
resources, this region's economic development lags behind the country's overall
development. This region's economic underdevelopment is due to a variety of factors
and causes. The following sections go over each of these points in detail.
Unemployment
Unemployment refers to the state of being actively looking for work but not currently
employed. Unemployment can be viewed as a major economic issue. Unemployment
is also a major social issue because it can lead to other social catastrophes. In every
state, a person should be hired based on his or her qualifications and merit. Any state's
primary responsibility is to ensure that citizens have decent jobs that are appropriate
for their qualifications. However, it has been observed that unemployment has become
a visible content in every country. This does not go unnoticed in North East India.
According to the Ministry of Labor and Employment's 2012-13 employment and
unemployment survey, the unemployment rate in the north eastern states is higher than

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