Nongpok Thong Hangba–The prophecy of opening of eastern corridor
18 Oct 2024 23:29:38
Haorokcham Anil
Disintegration of the erstwhile USSR (Union of Soviet Socialist Republics) into fifteen (15) independent countries in 1991 was one the most remarkable events leading to the end of the Cold War, a sigh of global relief. However, from the Indian perspective it was a severe blow to India as the USSR was a very important strategic partner back then. This disintegration along with the severe economic crisis faced by India during that period led to the necessity of a paradigm shift in the India’s foreign policy, especially towards “Look East Policy” with the purpose of engaging India with the East and south Asian countries, especially the ASEAN (Association of South East Asian Nations) for political & economic ties, security co-operations and cultural connects. It must also be noted that the North Eastern region was earlier not given due importance in spite of geo- graphical advantages and strategic location. This policy aims to strengthen India’s relation and influence over the region and to counter the Chinese influence on multiple para- meters. One of the outstanding results of the policy from the lens of economic perspective was the rapid increase in trade volume with ASEAN from US$ 5.8 billion in FY’s 1996-97 to over $131 billion in the fiscal year 2023 although imports exceeded the exports.
In 1995, border trade was formally opened betweena border town, Moreh, in India’s Manipur & Tamu in Myanmar. The trading was initially restricted to a few items but from 2008 it was upgraded to a normal trading pattern without many restrictions which the people of Manipur considered as the fulfilment of the long-waited prophecy “Nongpok Thong Hangba” – the opening of the Eastern Corridor, which finally came true. The Moreh-Tamu region is well known for inexpensive and easily available foreign goods of electronic items, household items, garments etc, and it serves as a means of livelihood for many on both sides of the border. It is expected that this area will remain a major hub unless an alternative place is identified.
The importance of Moreh town was even more pronounced with the initiation of massive trans-border road connectivity of India-Myanmar-Thailand trilateral highway (1360 km) in the year 2002 starting from Mae Sot (Thailand), Bago, Mandalay, Tamu (Myanmar) to Moreh (India) has led to the spotlight of the border town as an international business centre. Overall, the impacts on Indian side are largely positive with scope for growth in the North Eastern Region especially the State of Manipur. The other positive impact is the possible closer connection both in infrastructure and socio-economic interactions amongst the North-Eastern States for common economic growth and closer cultural ties as Manipur serves as the common passage for all peer States of NE India to the ASEAN. All the above parameters were upgraded with the upgradation of LEP to Act East Policy in the year 2014.
Further, with the Induction of Myanmar as a member Nation of the ASEAN in the year 2007, Moreh became the only land port of India bordering with ASEAN. This is one out of 11 operational land ports of India, also known as Integrated Check Posts (ICPs). Thus, as Moreh became India’s Gateway to the Southeast Asian countries, Manipur which was once considered as a land locked region by virtue of its geography has now become the crucial Land Link connecting two mammoth population of mainland India, world most populous country (17.78% of the world's population) and the ASEAN, third most populous region of the world (8.5% of the world population). Alternatively, we can also view from the lens of economic interest as the connecting link or the trade route between the India’s $3.6 trillion (world fifth lar-gest economy) and ASEAN’s $3.6 trillion apex economy. These can get even more pronounced with the upcoming connections of Akhaura (Bangladesh)–Agartala (India), Agartala- Jiribam railway, Jiribam-Imphal railway (yet to be completed).
As a developmental aspect, the number of transactions after the commencement of ICP Moreh was observed to gradually improve and was highest during FY 2019-20 with the trade volume of Rs 355.52 Cr (Figure 1). However, the volume of trade suffered a steep fall due to Covid-19 pandemic and eventually came to a grinding halt. The Moreh ICP remains non-functional till date following the aftermath of Myanmar coup of 1st February 2021.
Owing to the economic importance, mutual interests and dependencies amongst various stake holders (countries) in the region, the present drug sponsored conflict might end soon or at least come to the level of understanding leading to resumption of normal econo- mic activities. However, the issue remains, are we a part of the game or at least prepared to take advantages or grasp the opportunities offered by the geopolitical development in the region ? What preparations or steps should we take up for the larger interest for uplifting the State economy, to solve acute problem of unemployment, creating a conducive environment for all ethnic groups for common economic growth taking the advantage of the Act East Policy ?
MSMEs are considered as the backbone of Indian economy as well as for all States and it accounts for approximately 30% of India’s GDP. In Manipur, the number of employment generated by MSMEs is nearly 30 thousand to 47 thousand in spite of total no. of registered 79023MSME units (as on 16.10.2024) as published by Ministry of MSME, GOI. The lesser employment generation by the MSMEs in Manipur might be due to the limited resources, inadequate infrastructures and lack of knowledge as majority of them belong to the first generation in business apart from the close type of economy where business transactions across the border is limited. Industry-Academia linkage backed by a strong political will is now pivotal and many entrepreneurs are waiting till date for the inputs in the form of research findings, projections as a plan for next 5/10 years from reputed institutions and academics on what will be the important focal points for business which will be crucial for igniting growth in the region in the near future.
As an opinion, focussing on Southeast Asian studies to understand the background such as facts about the land, people, history, Government, political conditions, economy, and their foreign policy will be of great importance. Skill Gap analysis and comparative studies about the strength and weakness for proper planning and execution are also required. This is a part of 4Cs (Pillars) of Act East Policy, Culture, Commerce, Connectivity, and Capacity building.
It is now high time to activate such preparatory steps else the opening of the eastern corridor “Nongpok Thong Hangba” might be disastrous for the region. The opportunities expected by the people of Manipur might not be properly realised if we are ill prepared. Let us be prepared for a better future.
The writer is secretary of Manipur Chamber of Commerce & Industry.
Disintegration of the erstwhile USSR (Union of Soviet Socialist Republics) into fifteen (15) independent countries in 1991 was one the most remarkable events leading to the end of the Cold War, a sigh of global relief. However, from the Indian perspective it was a severe blow to India as the USSR was a very important strategic partner back then. This disintegration along with the severe economic crisis faced by India during that period led to the necessity of a paradigm shift in the India’s foreign policy, especially towards “Look East Policy” with the purpose of engaging India with the East and south Asian countries, especially the ASEAN (Association of South East Asian Nations) for political & economic ties, security co-operations and cultural connects. It must also be noted that the North Eastern region was earlier not given due importance in spite of geo- graphical advantages and strategic location. This policy aims to strengthen India’s relation and influence over the region and to counter the Chinese influence on multiple para- meters. One of the outstanding results of the policy from the lens of economic perspective was the rapid increase in trade volume with ASEAN from US$ 5.8 billion in FY’s 1996-97 to over $131 billion in the fiscal year 2023 although imports exceeded the exports.
In 1995, border trade was formally opened betweena border town, Moreh, in India’s Manipur & Tamu in Myanmar. The trading was initially restricted to a few items but from 2008 it was upgraded to a normal trading pattern without many restrictions which the people of Manipur considered as the fulfilment of the long-waited prophecy “Nongpok Thong Hangba” – the opening of the Eastern Corridor, which finally came true. The Moreh-Tamu region is well known for inexpensive and easily available foreign goods of electronic items, household items, garments etc, and it serves as a means of livelihood for many on both sides of the border. It is expected that this area will remain a major hub unless an alternative place is identified.
The importance of Moreh town was even more pronounced with the initiation of massive trans-border road connectivity of India-Myanmar-Thailand trilateral highway (1360 km) in the year 2002 starting from Mae Sot (Thailand), Bago, Mandalay, Tamu (Myanmar) to Moreh (India) has led to the spotlight of the border town as an international business centre. Overall, the impacts on Indian side are largely positive with scope for growth in the North Eastern Region especially the State of Manipur. The other positive impact is the possible closer connection both in infrastructure and socio-economic interactions amongst the North-Eastern States for common economic growth and closer cultural ties as Manipur serves as the common passage for all peer States of NE India to the ASEAN. All the above parameters were upgraded with the upgradation of LEP to Act East Policy in the year 2014.
Further, with the Induction of Myanmar as a member Nation of the ASEAN in the year 2007, Moreh became the only land port of India bordering with ASEAN. This is one out of 11 operational land ports of India, also known as Integrated Check Posts (ICPs). Thus, as Moreh became India’s Gateway to the Southeast Asian countries, Manipur which was once considered as a land locked region by virtue of its geography has now become the crucial Land Link connecting two mammoth population of mainland India, world most populous country (17.78% of the world's population) and the ASEAN, third most populous region of the world (8.5% of the world population). Alternatively, we can also view from the lens of economic interest as the connecting link or the trade route between the India’s $3.6 trillion (world fifth lar-gest economy) and ASEAN’s $3.6 trillion apex economy. These can get even more pronounced with the upcoming connections of Akhaura (Bangladesh)–Agartala (India), Agartala- Jiribam railway, Jiribam-Imphal railway (yet to be completed).
As a developmental aspect, the number of transactions after the commencement of ICP Moreh was observed to gradually improve and was highest during FY 2019-20 with the trade volume of Rs 355.52 Cr (Figure 1). However, the volume of trade suffered a steep fall due to Covid-19 pandemic and eventually came to a grinding halt. The Moreh ICP remains non-functional till date following the aftermath of Myanmar coup of 1st February 2021.
Owing to the economic importance, mutual interests and dependencies amongst various stake holders (countries) in the region, the present drug sponsored conflict might end soon or at least come to the level of understanding leading to resumption of normal econo- mic activities. However, the issue remains, are we a part of the game or at least prepared to take advantages or grasp the opportunities offered by the geopolitical development in the region ? What preparations or steps should we take up for the larger interest for uplifting the State economy, to solve acute problem of unemployment, creating a conducive environment for all ethnic groups for common economic growth taking the advantage of the Act East Policy ?
MSMEs are considered as the backbone of Indian economy as well as for all States and it accounts for approximately 30% of India’s GDP. In Manipur, the number of employment generated by MSMEs is nearly 30 thousand to 47 thousand in spite of total no. of registered 79023MSME units (as on 16.10.2024) as published by Ministry of MSME, GOI. The lesser employment generation by the MSMEs in Manipur might be due to the limited resources, inadequate infrastructures and lack of knowledge as majority of them belong to the first generation in business apart from the close type of economy where business transactions across the border is limited. Industry-Academia linkage backed by a strong political will is now pivotal and many entrepreneurs are waiting till date for the inputs in the form of research findings, projections as a plan for next 5/10 years from reputed institutions and academics on what will be the important focal points for business which will be crucial for igniting growth in the region in the near future.
As an opinion, focussing on Southeast Asian studies to understand the background such as facts about the land, people, history, Government, political conditions, economy, and their foreign policy will be of great importance. Skill Gap analysis and comparative studies about the strength and weakness for proper planning and execution are also required. This is a part of 4Cs (Pillars) of Act East Policy, Culture, Commerce, Connectivity, and Capacity building.
It is now high time to activate such preparatory steps else the opening of the eastern corridor “Nongpok Thong Hangba” might be disastrous for the region. The opportunities expected by the people of Manipur might not be properly realised if we are ill prepared. Let us be prepared for a better future.
The writer is secretary of Manipur Chamber of Commerce & Industry.