Eight States with International Borders, 0.13% of Exports – Notes
Context
- US imposed 25% tariffs on Indian imports (Aug 2025).
- India’s response: muted, non-retaliatory.
- Tariffs expose structural weakness in India’s export geography.
Export Concentration
- 4 states dominate exports: Gujarat, Maharashtra, Tamil Nadu, Karnataka → 70%+ of exports.
- Gujarat alone → 33%+.
- Heartland states (UP, Bihar, MP) → only ~5%.
- Reflects uneven development & policy focus.
Northeast Marginalisation
- 8 NE states share 5,400 km of int’l borders but contribute only 0.13% to exports.
- Causes:
- No global trade corridors.
- Poor logistics & infrastructure.
- No role in trade policymaking.
- Export schemes (RoDTEP, PLI) bypass region.
- Assam’s tea industry vulnerable (bulk, low value-add).
- DGFT’s 2024 export plan excluded NE.
Borders as Bottlenecks
- India–Myanmar gateways (Zokhawthar, Moreh) stagnant.
- Myanmar coup (2021) + scrapping of Free Movement Regime (2024) → trade collapse.
- Borders securitised, not commercialised.
- Customs weak, infrastructure absent.
- China consolidates presence in Myanmar with investments & corridors.
Broader Implications
- Asia: China & ASEAN repositioning supply chains, building infrastructure.
- India: focuses on Western trade deals, neglects eastern frontier.
- Reliance on old ports (colonial-era clusters) undermines resilience.
- Weakens India’s Indo-Pacific centrality claim.
Way Forward
- Need cohesive national economy → decentralised export hubs.
- Build infrastructure to connect NE with markets.
- Policy inclusion of NE in trade strategy.
- Representation in national institutions.
- Move beyond slogans → concrete roads, policies, and governance.
- Delay in NE integration appears deliberate.