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Status of Development of NE States in India in the National Perspective

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  • Nayak, Purusottam
  • Mishra, Sudhanshu K

Abstract

The present paper intends to bring out the position of the North Eastern States vis-à-vis the other states of India in matters of prosperity on the basis of the most recent available as well as comparable data compiled from secondary sources. Development or prosperity encapsulates and represents a multidimensional connotation. To capture the multidimensionality of development, this paper visualizes eight aspects of development, namely (i) physical infrastructure, (ii) social or institutional infrastructure (ii) industrial performance (iv) service sector and openness of the region, (v) human development, (vi) employment of the human resources, (vii) privatization of industry and investment and (viii) public efforts expressed in terms of govt. expenditure to facilitate promotion, maintenance and governance of development activities. Applying the Principal Component Analysis the study measures the indices of prosperity and rank of different states accordingly. The findings reveal that although overall infrastructure is unsatisfactory in the entire northeast, the state of Tripura has done commendably well with respect to industrialization and Assam has done well in privatization. In other aspects of development there is a mixed scenario mainly due to rigidities, gaps, and imbalances in priorities and the efforts made to promote different aspects in coordination with each other. Success in achievement in human development in some states is mostly due to the contributions made by the missionaries and easy flow of funds from the Centre. Impact of globalization is unobservable and privatization is at the back end. Private investment from within the region is not coming up and investment from outside is not encouraged due to protectionist attitude. Two important factors such as land and labor that are crucial to private investment are the major stumbling block in the region because of prevalent land laws and the so-called problems associated with migration of laborers from outside the region.

Suggested Citation

  • Nayak, Purusottam & Mishra, Sudhanshu K, 2013. "Status of Development of NE States in India in the National Perspective," MPRA Paper 48441, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:48441
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    References listed on IDEAS

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    1. Kuznets, Simon, 1957. "Summary of Discusson and Postscript," The Journal of Economic History, Cambridge University Press, vol. 17(04), pages 545-553, December.
    2. Fagerberg, Jan & Srholec, Martin, 2008. "National innovation systems, capabilities and economic development," Research Policy, Elsevier, vol. 37(9), pages 1417-1435, October.
    3. Nayak, Purusottam & Ray, Santanu, 2010. "Human development in North East India: a critical appraisal," MPRA Paper 26494, University Library of Munich, Germany.
    4. Universities-National Bureau Committee for Economic Research, 1949. "Problems in the Study of Economic Growth," NBER Books, National Bureau of Economic Research, Inc, number univ49-1, July.
    5. Simon Kuznets, 1949. "Notes on the Quantitative Approach to Economic Growth," NBER Chapters, in: Problems in the Study of Economic Growth, pages 115-172, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Shrabani Mukherjee & Vivek Jadhav & Debdulal Thakur, 2022. "Budgetary Advocacy and Public Finance Management for North-Eastern Region in India," Working Papers 2022-224, Madras School of Economics,Chennai,India.

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    More about this item

    Keywords

    prosperity; development index; principal component analysis; north east India;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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