VNBusinessNews – Northeast India, a region that teems with socio-economic potential, can deepen links between India and ASEAN nations, senior Indian officials said on Feb 14.

“The Northeast region of India has a lot of commonalities with the development of the Mekong sub-region. Given the proximity and land connectivity to Southeast Asia, the region can be a connecting link between India and ASEAN countries,” said Dr. Govinda Rao, director of the National Institute of Public Finance and Policy and member of the Economic Advisory Council to the Indian Prime Minister.

He was speaking on the second day of the ASEAN – Northeast India Investment and Trade Opportunities Summit, which is taking place in HCM City.

The eight states in the region, a reservoir of rich natural resources and a beautiful amalgamation of different peoples and cultures, are ripe investment destinations with a lot in common with the Greater Mekong Sub-region, according to Rao.

Rao said the region had low market development, very little manufacturing activity, and low per capita income at 62 per cent of the national average.

However, the region has huge potentials in hydropower, oil and gas, coal, limestone and forestry industries, not to mention stunning natural beauty and cultural diversity that makes it a tourism paradise, he added.

The region is home to many different ethnic minorities unique traditions and festivals.

Rao said the region needed at least US$30 billion to develop various industries including its agro-processing, handloom and handicraft, bamboo, cement, oil, hydropower, information technology and tourism.

Right now, tourism is the third largest foreign exchange earner for India.

Indian officials are hoping to highlight northeast India’s temperate climate, majestic landscapes, pilgrimage sites, handicrafts, wildlife and high cultural diversity as ideal eco-tourism and adventure destinations.

“We can co-operate to create a package tour that includes Viet Nam and the Northeast of India for U.S, European and Japanese visitors,” suggested Conrad Sangma, Tourism Minister for the government of Meghalaya, one of the eight states in the region.

K.C Nihoshe, Parliamentary Secretary for the government of Nagaland, said: “Vietnamese Government and the business community should consider the Northeast of India as a true business opportunity. We know that the two nations have many areas and advantages to co-operate, and we warmly welcome you to the region. Local governments have pledged preferential policies for foreign investors.”

India’s northeastern region shares almost 98 per cent of its borders with China, Bangladesh, Bhutan and Myanmar. This makes the region a prospective hub for regional and international trade. The region occupies 7.8 per cent of the country’s land mass but only 3.73 per cent of its population.

At present, India accounts for 10 per cent of ASEAN exports, while Indian imports from the region form 9.5 per cent of its total, underlining the potential for increased trade and investment relations.

Viet Nam enjoys longstanding, strong ties of friendship with India. Last year, bilateral trade turnover between the two nations reached $2.5 billion. (VNS)