The one question which was expected to come up in media discussions of the Union Budget 2015-2016 in the Northeast was, what did the budget have for the Northeast? The question itself betrays a sense of deprivation, and consequently an all round expectation for special treatment. This expectation is not altogether unjustified. After all, the region has been in the blind spot of the nation for a long time, leaving it far behind in development. And, it is also only to be expected that the Union is also acutely aware, and indeed acknowledges this fact. Unfortunately however, when it comes to the Northeast, the Union`™s concern has always been a case of the shadow falling between policy intent and implementation. Thus, in the preamble to his budget speech, Finance Minister, Arun Jaitley did underscore the point that the need for `mainstreaming`™ Northeast is a priority area for his government. His budget however had little special to offer for the Northeast, except for a film institute in Arunachal Pradesh and an AIIMS in Assam, as part of the government`™s opening overture to have one such institute developed in every state. This is welcome, but far short of expectations.
The thing most talked about, and one which is a source of hope and motivation for a great section of the people of the region currently is India`™s much hyped, but little acted upon, `Look East Policy` which has now been re-christened `Act East Policy` under Prime Minister Narendra Modi. It is heartening that Jaitley`™s Budget speech yesterday does mention the government`™s serious intent to take this policy forward, unfortunately the mention was only very briefly. From what he said, it is doubtful if the government has at all gone beyond platitudes on the matter. He did say, as a step to make sure the Act East Policy is given wings, the government would be opening manufacturing hubs in Cambodia, Laos and Vietnam. This was all. The rest which should have followed with elaboration was left up to the people`™s imagination. It was, in the end, another statement of policy intent indeed, but one which tragically still lacked a definite road map. Quite obviously, there has been little mind applied to the question in the policy making circuit, and therefore the minister had little more to say or show than a nod of agreement that the matter is important. Among others, it also reflects there have been little tangible research or data input on the matter.
Probably, as the minister said, India will explore ways to set up manufacturing hubs in these three named countries falling in the Greater Mekong Sub-region. India probably has China in mind in coming up with this idea, for China has been doing precisely this for quite some time now. The idea is to set up factories in places where labour is cheap and the work force is disciplined and skilled so as to produce quality products at very competitive prices. The trouble is, these countries are no longer virgin territory. Chinese, American and Korean companies already have a strong presence there, doing what Jaitley declared India also intends to do. One does not even have to go far for evidence. At the Paona Market there are shops selling the popular SWAT combat boots, which have virtually become part of the uniform of Manipur Police Commando officers. Look closely and don`™t be surprised if these macho American footwear are branded as made in Cambodia or Laos. But beyond doubts of feasibility of new entrants making it big in these markets, the more pertinent question is, even if this overture meets with success, how would it benefit the Northeast? For all one knows, such an outreach programme would be a maritime affair, completely sidelining the Northeast. The Act East Policy is interesting to the Northeast only if the Northeast has a stake in it. Otherwise, to posture it as a Northeast mainstreaming policy would be nothing but dishonesty. One cannot also fight the temptation to ask Jaitley, why must India only think of aping China and not come up with something more imaginative?
Leader Writer: Pradip Phanjoubam
Read more / Original news source: http://kanglaonline.com/2015/03/ne-in-union-budget/