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The Asian Development Bank (ADB) is carrying out analytical work on the East Coast economic corridor, which presents a potential window for boosting economic relations between India and the Mekong countries, as well as other South-East Asian countries.
Growth drive
This was stated by Rajat M. Nag, Managing Director-General, ADB, at a conference on ‘Promoting Mekong-India Economic Cooperation’ in the Capital on Tuesday.
The study will examine the kind of infrastructure and institutional investments needed to drive manufacturing-led growth that will create jobs and leverage local, national, regional and global opportunities, Nag said.
The East Coast economic corridor is home to many ports in Eastern India, which could serve as gateways and hubs for maritime trade with South-East Asia and beyond.
Nag said closer connectivity between India and the Mekong countries would help unlock the potential of the region by removing constraints and bottlenecks to growth.
The recent opening up of Myanmar in political, economic and financial terms presents a significant opportunity for enhancing physical connectivity through overland routes between India and the Mekong countries.
Road link
ADB is also discussing a development project with the Indian Government, which will, among other things, improve sections of Asian Highway 2 linking North-East India and Myanmar, he added.
N-E access
Access to India’s North-East is a particularly difficult challenge due to its long international border, landlocked location and hilly terrain. Enhanced connectivity would allow less developed regions in this area to expand their economic activities by leveraging their location and resource advantages.
External Affairs Minister Salman Khurshid said annual trade between India and the Mekong region grew from $2 billion in 2002-03 to $17.4 billion in 2012-13, reflecting a compounded annual growth rate of nearly 25 per cent.
Nag said this quantum jump in trade value had come despite the trade costs between India and Mekong countries being 20 to 100 per cent higher than those prevailing among Mekong countries.
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