Economists opine on border trade

From Subhaschandra M
Mizzima News: 17 November, 2006

Indian economists in the Indo-Myanmar border areas are for defining the 'Look East’ policy in its entirety and want it to be crystallized into specific action programmes so that it does not remain a mere policy statement or an attractive slogan.

To reap the benefits of India's ‘Look East’ policy, industrialization of the Indo-Myanmar border state like Manipur is essential. Sharing his thoughts, Dr. Ch Priyoranjan Associate Professor of Economics in Manipur University, said "industrialization of Manipur is necessary if the state is to actually reap the benefits of India's new policy".

Professor Priyoranjan, a member of the Joint Study Group headed by Manipur's Chief Secretary Jarnail Singh, constituted to study why formal border trade between India and Myanmar is on a down swing, said Myanmar produces a huge quantity of mustard seeds and lentils. To tap the benefits of these items, Manipur will need to set up plants to extract mustard oil as well as to process lentils. This in effect will mean that this border Indian state can meet its own demand of lentils as well as mustard oil and also supply the output to other parts of the country. The benefits will also flow to Myanmar as its farmers will find a ready market in Manipur, he observed.

The observations of the professor came even as official border trade shows a downward trend while unofficial trade has seen an upswing. Dr. Priyoranjan further said that though border trade was opened in April 1995 and covers 22 items, the official trade is plummeting while non-official trade is booming.

Increasing the number of trade items is one step that can be taken to counter this trend, he observed. Noting that there is a big demand for cycles in Myanmar, the professor said that if the required industries are set up in Manipur, the product (cycles) can be exported to Myanmar. And given the distance it will be cost effective. The extended benefits will be a fillip for the transport segment while exporting the cycles, he added.

Furniture units specializing in teak can also provide immense benefits to Manipur, he observed. "Border trade has not been able to provide impetus to industrialization and the productive base, as envisaged in the Look East policy," he said.

Observing that a majority of traders involved in border trade are from outside India's border states, another Manipur based economist said that the government ought to arrange for certain programmes to encourage local traders as well as residents to be involved." It's not encouraging to have a large number of contractors without expanding productive bases" he pointed out.

Though the Indian Commerce and Industries Minister, Mr. Jairam Ramesh during his recent visit to Moreh border town had assured that there would be henceforth no restrictions on the number of trade items the Centre has not taken a definite decision in this regard.