BORDER TRADE IN NORTH EASTERN REGION

Border Trade has special significance for the economics of North Eastern States, which have a large segment of international borders. Accordingly, measures connected with simplification and facilitation of Border Trade are being treated as a priority area by the Government. Presently, Border Trade with Myanmar and Bangladesh accounts for major portion of border trade in the North East.

The present status of Border trade with various neighbouring countries is as follows :

MYANMAR

The border trade between India and Myanmar started on the basis of border trade agreement (signed on 21.1.1994) which came into effect on 12.4.1995. The agreement provides for border trade initially through two points i.e. Moreh (Manipur) and Champhai (Mizoram) and subsequently through any other points to be mutually identified. Currently, the border trade with Myanmar is functional only at Moreh. Besides the two identified points for border trade with Myanmar, some further points which could be developed for border trade are Lungwa/Ledo, Pongru and Pokhungri in Nagaland and Nampong, Vijayanagar and Khimiyang in Arunachal Pradesh. But so far, Government of Myanmar has not been enthusiastic to the proposal of opening further trading posts and have indicated that the existing trade point in Moreh should be strengthened first and full potential thereof should be achieved before any new trading point is opened. In this regard, a trade centre building with modern communication facilities has been constructed at Moreh. Further, a sum of Rs. 95 lakh has also been approved under the critical infrastructure scheme for the development of roads and street lighting at Moreh.

BANGLADESH

At present, there is no formal agreement on the opening up of Border trade with Bangladesh. However, border trade takes place either through authorized Customs Stations or otherwise. Department of Commerce has approved infrastructure development of Old Raghna Bazar Land Customs Station under the critical infrastructure scheme at a cost of Rs. 950 lakhs.

BHUTAN

India has a free trade agreement with Bhutan. There are three notified land customs stations on Indo- Bhutan border, namely Darranga, Halisar and Ultapani. They are not operational and are largely used for the purpose of keeping records. The action that needs to be taken is in respect of strengthening of the infrastructure facilities at these three identified stations.

CHINA

There is no formal point of trade with China in the North East. Government of Arunachal Pradesh has recommended three specific points for such trade i.e. Zemithang/Khiuzemane, Gelling and Kibithoo. Since these areas are not well connected on either side with the main land, there is a need for connecting these locations to the State and National Highways and improving the communications.

• Initiatives to boost Trade & Commerce in the North Eastern Region : Department of Commerce Annual Report 2004-05, Chpt-14  

• Border Trade : North-East India and Neighbouring Countries/edited by Gurudas Das and R.K. Purkayastha