IDEAS home Printed from
   My bibliography  Save this paper

Rural development in the North-Eastern Region of India: Constraints and prospects



The rural subsystem of the NER economy consists of some 35 thousand villages inhabited by over 32 million people who constitute about 85 percent of the total population in the region. Of approximately 10.6 million main workers in the NER economy, about eight million workers are directly engaged as cultivators or agricultural labourers. The land-base of the rural economy in NER is not much promising. Infrastructure facilities in the region are inadequate. There is not much prospect for setting up of large-scale industries in the region. One of the reasons is the location of the region at the borders of the nation. The political economy of a frontier region is almost always quite complex and rather opaque. Investment is risky and it becomes more risky due to the location disadvantages and socioeconomic adversities. Tendencies of capital flight from the region have been observed Bandhs and disruption are a day-to-day affair and that too for trifling reasons, political gymnastics or petty pressure tactics at the most. Man-days lost and under-utilization of resources due to these bandhs and disruptive incidents ultimately escalate the cost of production due to which profitability of investment dries up. Sectoral composition of the economy is unbalanced. The structure of employment of work force in the region has a peculiar shape: much like a cone at the base supporting a smaller inverted cone at its apex - more or less "hourglass shaped". This is not indicative of a healthy and self-sustaining structure. The bottleneck due to the narrow scope of the secondary sector limits the development of the primary as well as the tertiary sector. The malady has its roots in the faulty educational and economic policies as well. A strategy for development of rural economy and employment in the region must be outlined in what follows: (a) a well thought out plan to develop the rural infrastructure (b) harnessing of the central non-lapsable pool for supporting projects to build up infrastructure and take up other economic development programmes, (c) harnessing of the Central grants for development of info-tech infrastructure and utilize them, (d) development of agro-based, horticulture based, forest based small scale industries, (e) development of floriculture and mushroom culture, (f) use of the export development fund for setting up marketing infrastructure, (g) change in the educational policy favouring larger outturn of technically educated manpower, and (h) deliberate attempt to train the educated manpower for entrepreneurial activities.

Suggested Citation

  • Mishra, SK, 1999. "Rural development in the North-Eastern Region of India: Constraints and prospects," MPRA Paper 1833, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:1833

    Download full text from publisher

    File URL:
    File Function: original version
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. SK Mishra & Prasen Daimari, 2005. "Poverty and Inequality in Rural Assam An Indicative Study of Seven Villages in Udalguri Subdivision, Assam (India)," Others 0504007, EconWPA.

    More about this item


    capital flight; investment shy; bandhs and disruption; man-days lost; sectoral composition; educational; economic policies; border region;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:1833. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter) or (Rebekah McClure). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.