The North-Eastern economy is basically an underdeveloped economy. Its basic characteristics are different from rest of the country. So friends, in today’s article we are going to know about the basic features of North East economy (Basic characteristics of the North-Eastern Economy). So let’s discuss in details.
Table of Contents
Basic Features of North East Economy
The major and fundamental characteristics of north-eastern economy or the basic features of North East Economy are given in the following grounds-
• Slow growth of state domestic products – The growth rates of net state domestic product of various states of north-east are all along very low. Among all the states, the growth rate of net state domestic product of Assam and Manipur are comparatively good. But as a whole the growth rate is still low then the rest of the country.
• Poor rate of Capital formation – Another important feature of the region is the existence of capital deficiency. The economy of the north east is faced with the chronic problem of poor rate of capital formation. It is due to low per capita income, low saving habit and improper coverage of the banking net work.
• Excessive dependence on Agriculture – The economy of North East is depending too much on agriculture and allied activities. It should be noted here that in the entire North-East region more than 70% people engaged in the firm sector. But its agricultural sector is suffering from backwardness and low productivity.
• Technological backwardness – The north-eastern region is suffering from technological backwardness and shortage of skilled labour. This is one of the fundamental factor responsible for its backwardness.
• Lack of Infrastructure – The entire north-eastern region is lagging behind rest of the country in respect of transportation, communication, electrification, credit facility and other essential infrastructural facilities. For this reason the north-eastern states are facing low economic development.
• Poor industrialization – One of the most important feature of the north-eastern economy is that it is an industrial backward region. This is mainly due to geographical isolation and absence of large volume of investments. The important industries of this region are tea, paper, petroleum and jute.
• Underutilized natural resources – The north-east region is very rich in different types of natural resources. Unfortunately, due to geographical isolation, lack of investment and lack of technology. These resource could not able to utilized optimally. It is a major feature of this economy.
• Unemployment and Poverty – The entire north-east region is characterized by the existence of huge volume of unemployed manpower resource and wide poverty.
• Distributed Socio-Political step – Another feature of the north-eastern economy is its distributed Socio-Political step. Different types of extremist groups creates distributed situation.
• Unique culture – The north eastern economy is also characterized by its unique cultural background. Specially different types of tribal culture make this region rich in its ethnicity.
Basic problems of North East region
There are various factors which are considered as the responsible factors for the backwardness of the north east India. The basic problems of north east economy are mentioned in the following points-
Natural factors
• Geographical isolation – The north east region was very much neglected from the very early period due to its geographical isolation. It is a backward region of India.
• Natural Calamities – Natural calamities is another basic problems of the region. Most of north-eastern states are facing the problems of floods and landslides, drought, excessive rain, etc. It should be noted here that the north-eastern region is a serious some of earthquakes.
Economic Factors
• Slow growth of state domestic products – The growth rates of net state domestic product of various states of north-east are all along very low. Among all the states, the growth rate of net state domestic product of Assam and Manipur are comparatively good. But as a whole the growth rate is still low then the rest of of the country.
• Poor rate of Capital formation – Another important feature of the region is the existence of capital deficiency. The economy of the north east is faced with the chronic problem of poor rate of capital formation. It is due to low per capita income, low saving habit and improper coverage of the banking net work.
Socio-Political factor
• Sensitive borders – Borders specially with Bangladesh, China and Myanmar too sensitive since independence.
• Lack of sound administrative machinery – The public administration system of the north-east is very weak and corrupt. It creates unnecessary delay in implementation of various projects in the region.
• Social Structure – The social structure prevailing in the north-east is not very much conductive to its economic growth. Joint family system, castes system, polygamy etc. are still prevailing in this region.
Conclusion
So friends, this was the concept of the basic features of North East economy (Basic characteristics of the North-Eastern Economy). Hope you get the full details about it and hope you like this article.
If you like this article, share it with your friends and turn on the website Bell icon, so don’t miss any articles in the near future. Because we are bringing you such helpful articles every day. If you have any doubt about this article, you can comment us. Thank You!
Read More Article
