India’s Hidden Gem: Thais Are Urged to Look to Northeastern India
By Sudipt Arora, Bangkok Post, Thailand
Jun. 30–Thai businessmen should tap more into the northeast part of India where demand for infrastructure investments is forecast at $15 billion in the next five years, says Commerce Minister Krirk-krai Jirapaet.
“Northeast India and Thailand’s business scopes are immense, particularly in the field of tourism, agro-industry, construction, infrastructure, and even in the capacity building,” Mr Krirk-krai said during a recent visit to the region.
Mr Krirk-Krai’s itinerary included Agartala, the capital city of Tripura state, as part of a mission to expand bilateral commerce and trade ties.
Accompanying the Thai delegation were Mani Shankar, the federal minister for development of the northeastern region; and Jairam Ramesh, the junior minister for commerce.
The team held discussions with senior officials such as state governor D.N. Sahaya, chief minister Manik Sarkar, industry minister Tapan Chakraborty and local entrepreneurs on ways to set up businesses in the region and possible areas of collaboration.
Members of the Thai delegation also acquainted themselves with sectors in the region including rubber, bamboo, handicraft, hand-loom textiles, power, roads, tea, tourism and horticulture.
“In addition to having a free trade agreement (FTA), India and Thailand should look much closely that we have done in the past as joint investment partners in the northeast which embraces Bangladesh and Burma as well because of greater commonality of interest,” said Mr Ramesh.
He also advocated the opening of roads and ports of the region that were closed during the period when India was ruled by the British.
Mr Aiyar said the Indian government intended to spend $15 billion on road construction in eight northeastern states over the next five years.
“Thailand has huge investment potential in the northeast India and can invest in road construction, inland waterway transport, rail construction, air connectivity,” he said.
The visit by the Thai delegation was a follow-up to the visit by Mr Aiyar to Bangkok in April this year, when he had urged Thai companies, especially in infrastructure development such as power generation and roads, to actively look at northeastern India.
“The region is abundant with natural resources and if companies want to invest they can make the region the powerhouse for India,” he said in Bangkok.
“If you take one state alone, Arunachal Pradesh, the potential to use the water systems there to generate electricity would yield about 60,000 megawatts (MW).”
That 60,000 MW may involve some environmental issues, but if conventional hydropower plants were constructed, one site alone could generate about 49,000 MW.
The region, home to some of India’s largest rainforests and waterways, could generate 60,000 MW in total, including the 30,000 from Arunachal Pradesh.
Mr Aiyar said that demand for electricity in the eight states — Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim — was less than 1,000 MW, although the region generates close to 2,000 MW.
India, which has been facing shortages of electricity, is looking for investments to help respond to demand. Under Indian rules, 100 percent foreign direct investment in hydro, coal or gas-based electricity is allowed. The rules do not have any restrictions on cost.
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