Guwahati: Export preparedness across Northeast India presents a mixed picture, with Nagaland emerging as the region’s best-performing state, while several others continue to grapple with infrastructure gaps, limited value addition and low export volumes, according to the Export Preparedness Index (EPI) 2024 released by NITI Aayog.
The index evaluates states and Union Territories across four pillars—export infrastructure, business ecosystem, policy and governance, and export performance. Nagaland, ranked third in the “Small States, NE & UTs” category, has been classified as a “Leader”, making it the highest-ranked Northeast state in export readiness. Tripura (Rank 6) and Assam (Rank 7) have also been placed in the Leaders category.
At the national level, Nagaland stands 18th overall, ahead of Tripura at 22nd, highlighting its relative strength despite a small economic base.
According to the report, Nagaland recorded total exports worth ₹11.7 crore in FY24, with major export items including minerals, handloom products, engineering goods and manufactured tobacco. “These sectors collectively reflect the state’s growing economic diversification and export potential,” the report notes. It also points out that the state received business investment intent worth ₹4,560 crore from national and international delegates during the Business 20 conference held in April 2023.
The EPI credits Nagaland’s policy-driven export strategy and focus on niche segments for its strong performance. While coal and forest-based products continue to dominate current exports, the report identifies clear opportunities for diversification.
“Categories such as printed books and leaflets and parts for machine tools, including tool holders, offer scope for industrial expansion,” the report says, adding that strengthening local manufacturing ecosystems, upgrading artisan skills and improving market access could help scale up exports. Sustainable resource management and product innovation are seen as critical to driving broader economic growth.
However, the report flags high logistics costs as a major constraint for Nagaland, significantly exceeding the national average of 8.3% of GDP (NCAER estimate). Challenging terrain, inadequate infrastructure, frequent landslides and the absence of direct rail connectivity to ports increase freight expenses, erode exporter margins and discourage investment.
Nagaland also faces significant human capital challenges. The Periodic Labour Force Survey (PLFS) 2023–24 places youth unemployment at 27.4%, rising to 39.6% in urban areas, driven largely by outmigration of educated and skilled youth in search of better opportunities. This trend, the report warns, undermines innovation, entrepreneurship and the growth of export-oriented industries.
Another key concern is the misattribution of Nagaland’s exports to neighbouring states such as Assam and West Bengal due to the absence of local export infrastructure. Without functional dry ports, customs stations or warehousing facilities, many goods are routed through other states, leading to underreporting of Nagaland’s actual export performance and reduced policy visibility.
Tripura’s export performance, meanwhile, has benefited from improved connectivity—particularly the Agartala–Akhaura corridor and enhanced access to Bangladesh—strengthening export facilitation and cross-border trade.
Assam, while remaining a regional export anchor due to its diversified base—tea, petroleum products and agri-commodities—continues to face structural vulnerabilities. Exports from the state stood at ₹3,700 crore in FY24, but tea alone accounts for more than half of total merchandise exports. The report cautions that this over-reliance exposes Assam to global price volatility and climate risks, while limited high-value employment opportunities are driving youth migration and skills shortages.
Meghalaya, ranked 27th overall and 10th among Small States, NE & UTs, has been categorised as a “Challenger”. Its exports remain largely resource-based, dominated by limestone, quartz and niche agri-products such as Lakadong turmeric. Poor connectivity, weak cold-chain infrastructure and low value addition continue to constrain growth.
Sikkim, also a Challenger, remains dependent on pharmaceutical exports and organic agri-products, with logistics bottlenecks and reliance on distant ports limiting scale.
States such as Arunachal Pradesh, Mizoram and Manipur have been placed in the “Aspirers” category, reflecting low export readiness. The EPI cites difficult terrain, weak transport infrastructure, limited industrial bases and low awareness of export procedures among MSMEs as key barriers.
The report identifies cross-border trade with Bangladesh, Bhutan and Myanmar as a major opportunity for the Northeast. States with functional land customs stations and border haats are better positioned to leverage this advantage, particularly for agri-products, minerals and forest-based goods.
However, without sustained investment in logistics, warehousing, processing facilities and export-oriented clusters, much of the region’s trade is likely to remain low-value and informal.
Despite abundant natural resources, biodiversity and GI-tagged products, the EPI 2024 notes that most Northeast states continue to export raw or semi-processed goods, limiting income and employment generation. Strengthening district-level export planning, expanding cold-chain networks and improving access to export finance for MSMEs are identified as critical interventions.
Also Read: From Nido Tania to Anjel Chakma: Did the Bezbaruah Committee fail?
You just read a story that took days to report. Help us keep our reporters on the ground in the Northeast.
Ad-free reading, support and keep important stories alive
Support once (any amount)
Scan to pay via UPI