Arunachal Pradesh Trade & Commerce

The entire North-east India had a long tradition of trade relations with eastern Himalayan sub-region comprising Bhutan, Tibet, China and Myanmar (Burma). It is more so in case of Arunachal Pradesh, because most of the tribes of Arunachal Pradesh migrated from these countries. Therefore, they had maintained ethnic, cultural, commercial and even matrimonial relationships with their neighboring territories through ages.

The tribes of Arunachal Pradesh living along the international border had trade connections with China, Tibet, Bhutan and Myanmar through several trade routes). While the tribes living along the southern border of Arunachal Pradesh had trade relations with Assam, the eastern part of Arunachal Pradesh had trading relations

With Burma, and the western and the northern part of Arunachal Pradesh had well developed trade links with the Tibetans.

Trade Dynamics

History has recorded a number of trade routes between Arunachal Pradesh and its neighbouring countries. As many as 27 trade routes (passes) including the famous

Tawang route which passed via Tawang and Tsona Dzong have been identified between Arunachal Pradesh and Tibet. Local goods of Tibet and Bhutan were brought through these trade routes to be exchanged for local goods of Arunachal and Assam at different trade fairs (Mela) held annually coinciding with certain religious festivals in the foothills.

On the eastern border of Arunachal Pradesh four trade routes have been identified including the famous Pangsu Pass between Arunachal Pradesh and Burma. A large number of hill tribes from the present Tirap district of Arunachal Pradesh used to carry on trade in tea, blankets, matches, etc., at various places in Burma including in Bhamo, the most important trading centre on the bank of river Irrawaddy in Burma. The major articles from Burma side were amber (Jangphi), gum, nora cloth, silver, etc.

To speed up the process of development in the State, the present ‘inward looking’ paradigms of developmental policy is to be supplemented by an ‘outward looking’ approach based on market and trade. The changing scenario in international trade under WTO regime, India’s emphasis on signing trade agreements with several foreign countries including the South and South-east Asian countries (a few of which share common border with Arunachal Pradesh) and the ‘Look East’ policy of India can be of great help for Arunachal Pradesh in its efforts to introduce this ‘outward looking’ development strategy. ‘The global pattern of agrarian transformation initiated by GATT/WTO suggests that the major portion of third

world peasantries have no future simply as subsistence cultivators’

Prospects of Trade with Neighbouring Countries—Exploring New Frontiers

Arunachal Pradesh has potentials for producing some of the goods which currently India is exporting to various countries including those bordering Arunachal Pradesh.

China, the ASEAN region, Bangladesh and other SAARC countries which are geographically close to Arunachal Pradesh import substantial portion of each of

the above items in which Arunachal Pradesh has export potential.

Biodiversity:

Arunachal Pradesh with 2.54 per cent of country’s geographical area is custodian of more than 23.52 per cent of the flowering plants of India. It is one of the richest botanical treasure houses of the country. A few valuable items of such rich biodiversity of the State, identified on the basis of market demand, could be commercially exploited for economic benefit of the State.

Orchids:

Out of 925 varieties of orchids available in India, more than 500 varieties are found in Arunachal Pradesh due to its favourable soil and climatic conditions.

In fact, approximately 200 varieties are unique to the State and 60 per cent of these are ornamental in nature with high demands in international markets. Thus,

Arunachal Pradesh can be a major exporter of orchids.

Horticultural Crops:

Arunachal Pradesh is famous for production of apple, orange, pineapple, banana, walnut, kiwi and several spices (cardamom, black-pepper, ginger, etc.) including 4500 species of flowering plants. Nearly 55,000 hectares of land is under horticultural crops including spices. At present, Arunachal Pradesh is selling some of these fruit crops only to Assam and neighboring North-eastern states, but its soil and climate are so rich for flower and fruit crop plantation that it can be a major exporter of flowers, fruits and fruit products even to the neighboring countries.

Major Forest Products:

The vast area of forests of Arunachal Pradesh covering 51,540 sq km, which forms

about 62 per cent of the total geographical area of the State, are full of valuable timber trees like hollock, pine, chir, teak, etc., which grow naturally. The commercial use of these trees along with its scientific captive plantation can earn substantial revenue for the State. Value added products from such trees can also be exported to the neighboring countries.

Minor Forest Products (MFP)

(i) Herbal Plants: Arunachal Pradesh has a rich tradition of herbal health care. The tribes have so far identified over 500 species of plants, having medicinal properties. However, some of these ‘medicinal’ plants are yet to be authenticated by appropriate scientific testing. Due to lack of awareness, the State is yet to harness the full potentials of this wealth

(ii) Aromatic Plants: Arunachal Pradesh forests offer a vast array of aromatic plants such as citronella, lemon-grass, vanilla, patcholi, agaroo, etc., which can be used in aromatic industry for the manufacture of perfumes, incenses, etc., for export purposes.

Economic Mineral Resources of Arunachal Pradesh Trade & Commerce

Among the valuable minerals spotted in Arunachal Pradesh are petroleum, limestone, marble coal, dolomite, fuller’s earth and natural gas reserves are worth mentioning.

If properly assessed and explored with required infrastructural development, the products of some of these minerals can be used for making several value-added products locally in small and medium scale industries. Some of the value-added products can be exported to the neighboring countries.

Tourism Products

The State’s unique natural beauty, different species of wildlife, religious places, historical and heritage sites, diverse attractive tribal cultures, friendly and hospitable people could make Arunachal Pradesh, the Switzerland of the East. The sites which can be developed into world class tourist spots are Tawang for religious, adventure and eco tourists; Parusuramkunda and Malini Than, for religious and eco tourists; Namdapha Tiger Project, Mowling National Park, and ten wildlife sanctuaries of the State for wildlife tourists; ‘Lake of No Return’ on the border of Arunachal Pradesh and Myanmar near Phangso Pass.

Hydro-electric Power

Arunachal Pradesh possesses immense potential of powers, primarily in the form of hydel. But the progress of this sector has not taken place on a scale proportionate to resource availability. The total unexploited hydel potential of the State is estimated to be 49000 MW. The National Hydro Power Corporation (NHPC) has undertaken survey and investigation works of Siang and Subansiri basins for establishing mega hydro power project with an installed capacity of 20700 MW. When this project will be completed, Arunachal Pradesh can be a major exporter of cheap hydel power not only to the entire North-east, but also to its neighbouring countries having power deficit like China and Myanmar.

Trade Routes

(i) Tezpur-Bomdila-Towang-Bum La (China)

(ii) Lakhimpur-Daparijo-Nacho (China)

(iii) Jonai-Sadiya-Mekha-Malvinil-Tajobum (China)

(iv) Sadiya-Tezu-Chirangal-Kahao (China)

(v) Tinsukia-Winstong-Mogung (Myanmar)

(vi) Khonsa-Wakha (Myanmar)

(vii) Ledo-Pangsou Pass-Myitkyina-Bhamo-Kunming

(Myanmar and China)

Out of these seven old border trade routes of Arunachal Pradesh, the most useful and economic route is the Ledo-Pangsou Pass-Myitkyina-Bhamo-Kunming route,

popularly known as StilWell Road.