Prospects of Border Trade for North East Region of India with South Asian Countries

The North East Region (NER) of India comprises of seven states namely-Arunachal Pradesh, Assam, Monipur, Meghalaya, Mizoram, Nagaland, and Tripura. The region is located in the remote eastern corner of Indian union. The total geographical area of the region is about 2.62 lakh sq km, which covers 7.9 percent of the country's total area. The region has some peculiar characteristics which are different from other regions of the country. Only 27% percent area of the region is plain and the remaining 73% is hill areas. Moreover the region shares only about 2% of it's border with the main land of the country and the remaining 98% connected with international border of neighboring countries like China, Bhutan, Myanmar and Bangladesh.

Border Trade refers the exchange of local products across the border between the inhabitants living near the international boundary. Border trade becomes an engine of growth in developing border area. Since the 98 percent border of the north east region is international border with neighboring countries like China, Bhutan, Myanmar and Bangladesh. It is becoming much more significant and relevant in present day context in respect of areas like North East India. Owing to comfortable isolation from the mainland due to its geographical location and proximity to the neighboring countries of South Asia, the region has a natural trading advantage. The present paper makes an attempt to assess the prospects of border trade for North East India with the South Asian countries.