New Delhi, Feb 24: The north-eastern states should make use of “screwdriver technology” to reduce transportation costs that ratchet up product prices in the state, says the Federation of Indian Chamber of Commerce and Industry (Ficci).
Large-scale marketing is crucial to pool north-eastern region's vast resources to the exporting nodes, says the apex chamber.
Economists and policy makers have been emphasising the importance of revenue generation from exports for the development of the north-east region as it provides a scope to overcome the limitation of domestic markets.
“One way to overcome the vicious cycle of backwardness of the region is by opening up export opportunities through greater access to external markets,” says the background paper on promotion of exports prepared by Ficci.
Considering the advantage of the skilled labour force in the north-east, the chamber suggests “special economic zones (SEZs) should be established with all necessary infrastructure at suitable locations to attract export industries”.
The chamber further suggests the formation of joint ventures with Bangladeshi and other entrepreneurs to exploit the north-east development.
There is an export potential for agro-based, forest based, engineering, textile and handicraft products from the north-east to Bangladesh, Russia, the US, the UK, France, Germany, Japan, China and West Asian countries.
With the opening up of border trade with these neighbouring countries and easy access to South and South-East Asian markets, the region can provide an ideal base for setting up industries in the pharmaceutical, petrochemical and consumer industries sector.