Special Northeast cell to promote exports set up

An Export Development Fund has also been set up with the objective of promoting exports from the region

The government has firmly fixed its eye on the Northeast region in an effort to strengthen its look east policy. The ministry of commerce and industry has set up a North East Cell as part of the strategy which will seek to examine the development of the region for promotion of exports.

As part of the look east policy, India and the 10-member Association of Southeast Asian Countries (ASEAN) signed a free-trade agreement on goods on August 2009. Discussions to have a trade deal on services also got concluded last year. Once this is signed, the trade pact will become a Comprehensive Economic Cooperation Agreement (CECA). India is also negotiating a separate bilateral trade deal with Indonesia and Thailand. It already has trade deals with Singapore and Malaysia.

Hence, the northeast region is going to assume much significance if India wants to do business with Southeast Asian countries. The northeastern region will act as the gateway to this huge market. This region is also crucial for India to increase its footprint in Myanmar.

“The cell has been set up under the aegis of the Department of Commerce with a special focus on connectivity with the region, including land, sea and air connectivity, to promote exports from the Northeast region,” said minister of state for commerce and industry D Purandeswari.

She said an Export Development Fund (EDF) has been set up with the objective of promoting exports from the region.  

“Activities which have a linkage with exports from the region are eligible for assistance from the EDF such as setting up of pilot projects aimed at exports, provision of equipment and machinery for the pioneering pilot projects aimed at export, creation of common facilities for boosting exports, facility for developing testing and standardisation, as well as quality improvement of export products,” she added.

The commerce department has asked the state governments of northeast to send their proposals for assistance. So far, 72 proposals have been approved for final assistance under the EDF for Northeast region.