Export Potential Survey and Strategies for Nagaland

Final Report

Export Potential Survey and Strategies for Nagaland

Submitted to

Directorate of Industries and Commerce,

Kohima

Nagaland

Submitted by INDIAN INSTITUTE OF FOREIGN TRADE DECEMBER, 2018

i

ACKNOWLEDGEMENTS

The research team at the Indian Institute of Foreign Trade (IIFT) conducting Export

Potential Study on Nagaland received unwavering support from Prof. Manoj Pant, Director

IIFT, who helped in right positioning of the study with his great understanding of Northeast

India and passion for economic development of the region.

We will remain grateful to Mr. Temjen Toy, IAS, Chief Secretary, Government of

Nagaland who not only spared his valuable time during the presentation of draft report but

also supported through his deep understanding of Nagaland economy, which helped us

further in aligning the report with the objective. We are also indebted to Smt. N. Hushili

Sema (IAS), Commissioner & Secretary, Industries, and Mr. I. Bendangliba Ao, Director of

Industries & Commerce, for their insights and guidance during throughout the project.

We are grateful to the officers of the Economics and Statistics Department, State

Planning and Coordination Department, APC and Allied Departments including

Horticulture, Land Resources Department, Bamboo, Honey and Bio Resource Missions,

Information Technology and Communication Department, PWD (Roads & Bridges),

Department, Transport (NST) Department, Nagaland Industrial Development Corporation

Ltd. (NIDC), Nagaland Handloom & Handicrafts Development Corporation Ltd. (NHHDC),

Nagaland State Mineral Development Corporation Ltd. (NSMDC) for allowing the research

team to have access to their reports and data and providing valuable suggestions.

We are also grateful to Mr. A. Jamir, Ex. Chief Secretary, Nagaland for his valued

suggestions at the beginning of the study.

We need to specially mention Mr. Lipongse Thongtsar, Deputy Director of Industries

and Commerce who left no stone unturned for facilitating data collection and arranging

interactions with different officials at different point of time from various departments of

Nagaland. Throughout the length of the study he was always supportive towards the

research team.

We are also thankful to the Exporters, Industry Bodies, Chambers of Commerce, and

Associations of Nagaland who have spent their valuable time and energy for providing

valuable inputs during the questionnaire survey.

ii

Ms. Soma Ghosh, MDP Associate, provided able research assistance and coordinated

with the IIFT MBA IB students (Ms. Saloni Garg, Mr. Nakulesh P. Kagathra, Ms. Neha

Oswal, Mr. Nishithkumar A. Patel, Mr. Paras Goel, Mr. Harshit Goel) and Ms. Umama

Nasrin Haque and Ms. Upasana Acharya, who prepared certain background materials. Mr.

Ayan Kr. Seth made a sincere effort for formatting and printing of the study report.

This research has indeed been a worthy exercise, and we hope that the outcome would be

used as reference in Nagaland for export enhancement process and would generate

considerable interest and orientation amongst the exporting community in the state.

Dr. Gautam Dutta

Principal Investigator

Professor, IIFT Kolkata Campus

Dr. Debashis Chakraborty

Associate Professor, IIFT Kolkata Campus

Dr. Rakesh Mohan Joshi

Professor, IIFT Delhi Campus

Dr. Jaydeep Mukherjee

Associate Professor, IIFT Delhi Campus

Kolkata: 21. 12. 2018

iii

EXECUTIVE SUMMARY

Nagaland is a land of incredible natural beauty, moulded with the picturesque landscapes

and verdant flora and fauna. The state shares its borders with Assam in the West,

Arunachal Pradesh and part of Assam on the North, Manipur in the South, and Myanmar

(Burma) on the east.

Of late there has been an all-round push in the country to enhance export from the

different states of the country where the state of Nagaland is not an exception. The in

vogue policy of ‘Act East’ and advantageous geographic position of state in terms of

geographical proximity of Myanmar and beyond make the policy makers optimistic

about the possible export prospect of the state.

Nagaland state is blessed with enormous natural resources, which if properly utilized

would bring substantial economic benefit not only to the state but also to the entire

region.

The state is rich with its medicinal plants and different orchids, rich horticulture

resources, forest and mineral resources.

It has a plethora of products in handicraft and handloom sector, which may have good

markets outside the state and in the external markets.

The objective of the present study, commissioned at request of the Government of

Nagaland, is to assess, appraise and analyze the export prospects of Nagaland and

suggest the strategy for enhancing exports from the State. The specific terms of reference

of the study are as follows:

a. Under Agriculture and Horticulture sector, products like apple, citrus fruits, pineapple,

banana, kiwi, orange, rice, maize, potato, ginger, plums, spices turmeric, chilli, black

pepper, large cardamom, fresh vegetables, guava, mushroom, walnut, other organic

products etc.

b. Under Plantation based industries, sectors like bamboo, rubber, tea, coffee etc.

c. Under Forests and Environment related produce sector, orchids, floriculture, herbal,

medicinal plants, cane, bamboo, honey etc.

d. Under Handicrafts and Handloom sector, products like cane and bamboo handicrafts,

wood carving, carpet weaving, basketry, traditional handloom designs and products

etc.\

e. Under Mineral ore sector, dolomite, coal etc.

f. Under Tourism sector, medical tourism.

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This study has first reviewed the various sectors of the state along with production status

to identify exportable products and commodities having export potential. For the

products with identified export potential, the study has attempted to locate the potential

international markets where they can be exported.

Also the study has explored cross border trade routes with neighbouring country of

Myanmar and weighed them in terms of usability for trade prospect.

The problems faced by the existing and potential export orient entrepreneurs are also

analyzed to develop a pragmatic and realistic action plans and strategies for enhancing

export from the state.

The study was conducted through both primary and secondary survey. The existing

literature was surveyed to map the resource of the state. In order to identify exportable

from the state, (1) resource availability and (2) trend of production were assessed. In

order to select the possible value added exportable products from the state, first, available

skills and possible export through economic cost were assessed. The health tourism

sector had also been evaluated to identify its strength and potential so far as cross border

Myanmar market is concerned.

The possible export products from the available primary products from Nagaland has

been identified on the basis of compound annual growth rate (CAGR) and the list is as

follows:

Sl. No. Item CAGR Sl. No. Item CAGR

Very High Opportunity (Greater than 5)

1 Rose 226.48 9 Naga Chilly 11.75

2 Cabbage 43.33 10 Naga Dal / Rice

Bean

11.46

3 Honey 18.77 11 Pineapple 10.92

4 Vegetables 16.36 12 Black pepper 5.89

5 Arecanut 15.06 13 Sunflower 5.77

6 Cardamom 14.32 14 Oilseed 5.39

7 Aromatic & medicinal 13.88 15 Lilium 5.32

8 Fruits 12.82 16 Orchid 5.29

High Opportunity (Between 3 and 5)

1 Seasamum 4.33 4 Foodgrains 3.75

2 Cereals 3.80 5 Pulses 2.95

3 Gerbera 3.78

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Based on the Revealed Comparative Advantage (RCA), the export opportunity products

from Nagaland are identified as follows:

Time duration Product HS Code

Near future

Rose 060240

Cabbage 070511

Honey 040900

Arecanut 080280

Cardamom 090831

Naga Chilly 090422

Pineapple 080430

Black pepper 090411

Sunflower 120600

Lilium 060315

Orchid 060313

Cereals 100890

Gerbera 060319

On the basis of feedback received from stakeholders, for which detailed data is not

available, few more products identified as possible export products are as follows:

HS

Chapter Base Product

Product's HS

Code Product Description

14 Vegetable plaiting materials 140110 Bamboo Dyeing and Treatment

Plant

44

Wood and articles of wood

440122 Bamboo Chips

441210 Bamboo Floor Board

441900 Wooden Utensils, Dining Sets

441912 Chopsticks

441990 Bamboo Board Furniture

442090 Candle Stand

442090 Dhup Stand

442190 Ashtray

442190 Mask

442190 Wooden Flower Vas

442190 Different types of dancing mask

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460210 Nara

460211 Fancy Basket & Trays

470630 Bamboo Pulp

660200 Walking Stick

711311 Coins necklaces

711311 Silver ornaments

711411 Ladies decorative hair clips

711411 Smoking pipe

820140 Axe

844319 Screen Printing

930700 Dagger

930700 Sword

940330 Wooden furniture

960340 Vanishing, Polishing, and Painting

960500 Cotton ear buds

960899 Pen Stand

970110 Decorative items

Possible export markets for the identified products have then been analyzed through Shift

Share Analysis and they have been categorized in three classifications: High Growth

(Positive net shift above 5 percent), Medium Growth (Positive net shift between 3 – 5

percent) and Low Growth (Positive net shift is between 0 -1 percent).

Through Export Intensity Index (EII) and Export Specialization Index (ESI), the

opportunity markets for these identified products from India has been identified.

The tariff and non-tariff barriers (NTBs) on import of the identified products from India

across countries have been obtained and analyzed.

On the basis of trade indices, i.e., EII (greater than 1) and ESI (greater than 1), and trade

barriers, i.e., trade barriers, i.e., tariff (less than 5 percent) and NTBs (less than 10

requirements), the final export destinations have been finalized.

The three designated border trade points of the state with Myanmar, namely, Avangkhu,

Pangsha and Longwa have been comprehensively evaluated in terms of connectivity,

existing border trade infrastructure, government initiative, status on the other side,

Strength-Weakness-Opportunity-Threat (SWOT) analysis etc.

The location-specific as well as state-specific exportable products from each of the three

border trade points have been identified with a primary survey.

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After analyzing the transport infrastructure scenario in the state, the possibility of trade

through Land Customs Station, Guwahati has been evaluated. In addition, the alternative

trade routes from Kohima and Dimapur have been suggested.

The required infrastructure has been identified and existing facilities have been

enumerated through a primary survey. On the basis of this, the gaps have been

highlighted for action by the stakeholders for developing exportability of the state.

Both the hard (e.g., physical infrastructure) and soft (e.g., institutional infrastructure,

support mechanisms) infrastructure in Nagaland has been analyzed, which are important

for export businesses to continue and flourish.

A survey was then undertaken amongst the potential and existing exporters in Nagaland

to understand the gaps and requirements in order to boost the exports from Nagaland.

The existing exporters noted the importance of several non-price factors, namely

capacity, technology, products, quality, time of response and international standards

adopted in the business practices etc. which impede their export access to foreign

markets.

It was further noted that entrepreneurs are not comfortably placed in all the price factors,

namely - product variety, number of buyers, competitiveness of the product produced,

transportation cost to the port, order size, pressure on prices and dependency on

intermediaries.

It has been learnt from the potential entrepreneurs that factors like knowledge about the

prospective buyers, cultural differences and language differences does not seem to be

major factors that hinders export from Nagaland. The factors that the potential

entrepreneurs considers to hinder the trade activities most are the infrastructural and

institutional gaps.

The district wise infrastructural status has then been assessed and ranked by way of

computing Infrastructural Index. Kohima and Dimapur are identified as developed and

advanced in infrastructure and Tuensang is identified to be backward.

Based on primary survey and data analysis, internal and external barriers hampering

export in Nagaland have been summarized, which include the areas for future action.

Given the poor public health scenario in bordering districts of Myanmar, medical tourism

has been identified as a major opportunity for Nagaland.

Based on overall research on opportunities and challenges, the following sector-specific

intervention to promote export has been recommended:

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Products Problem of export Direction towards export orientation

Agro-Horticultural

products having

resource advantages

with or without value

addition (e.g.,

Cardamom, Spice,

Cabbage etc.)

Production quantity

not sufficiently large

Lack of organized

farming

Short Term:

Support in identification of markets to find

orders, help with export documentation

trainings and mentoring from IIFT-trained DIC

officials.

Medium Term:

Organic certification initiative with the help of

APEDA to be introduced. Testing laboratory to

be set up to certify the products.

Private Players are required to be encouraged

to invest, expand and diversify farming with

organic orientation for export of output.

Training on preservation of processed food and

packaging and quality control, linking with

organization like APEDA and NHB should be

explored.

Long Term:

Growing low volume but high value should be

the objective.

Technology development suitable for local

needs with APEDA and NHB have to be

facilitated.

Sensitization of banking institutions etc. for

export finance at district level.

Warehouse facility to be set up.

Wood based handicraft

products

Only few exporters are

cultivating this

opportunity at present.

Short Term:

Skill Development at the district level export

marketing channels.

Medium Term:

Suitable packaging of products is being

developed.

Design centre to be set up along with databank

on customers’ choice.

Buyers, sellers meet are being required to be

organized.

Long Term:

Buyers, sellers meet are being required to be

organized.

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Bamboo and Rattan-

based value added

products

Lack of awareness about

the opportunities for

export market for various

bamboo based value

added products.

Short Term:

Nagaland Bamboo Resource Centre (NBRC) at

Dimapur is to be positioned the export

marketing centre, which will work in

collaboration with district level production

facilities.

NBRC officials are to be linked with Centre for

North East (CeNest) at IIFT Kolkata campus

for converting NBRC into Export Consortium

on Bambbo and Rattans products with the

mandate to act as facilitator for export

marketing.

Medium Term:

Sustainability awareness in general is

increasing across the globe. Importing

companies often ask not only for origin of

wood but also for social and environmental

impact as well.

NBRC required to focus on these aspects like

Forest Stewardship council (FSC) certification

etc.

Mineral-based value

added products.

The potential has not

been fully explored. Short / Medium Term:

Proximity of the location of resource

availability with Myanmar allow the state

Government to work for future development

keeping in mind the requirement of Myanmar

market.

Roads and transportation facility must be

improved towards and off the mines.

The Foothill road therefore needs to be

completed at the earliest for assessing future

possibilities of export marketing.

Orchid and medicinal

herbs

Earlier studies indicate

that Nagaland has 61

recognised tradable

medicinal flora.

Lack of export

marketing channel at

present for medicinal

plants and orchids

with scattered

resources not allowing

to reach its potential.

Short Term:

Training facility needs to be developed on

handling of medicinal plants at the farmer’s

level.

The activities of the medicinal board (National

Medicinal Plants Board) must be linked with

the grassroots stake holders in the districts.

Testing and certification authority should be

developed at districts of importance.

Medium Term:

Development of farmers’ cooperative as

aggregator and link them with the export

house.

Refrigerator container service required.

x

Handloom and other

handicraft items Scattered production

Lack of export

marketing focus and

design improvement

Link with the small

artisans of the state to

the buyers is missing

to a great extent

Short Term:

Nagaland Handloom & Handicrafts

Development Corporation Ltd. (NHHDC),

Kohima need to act as export facilitation centre

with the mandate of organizing export oriented

training for entrepreneurs, weavers’

consortium, design centre.

Export Promotion Council of Handicraft

(EPCH) for opening and operating export

facilitation centre.

EPCH may actively support handicraft

entrepreneurs with foreign market requirements

and linking them with buyers through

organisation of buyers –seller meet.

Medium Term:

Inviting buyers to Hornbill festival can also

benefit the local traders / artisans.

Organic tea and Coffee

Less cultivation area and

output. Short Term:

Increase the area under cultivation.

Medium Term:

Organic Certification and exclusive branding

under the tag Nagaland Organic Produce are

required to export and gain benefit.

Floriculture

Despite diversity in

topography,

commercialisation

started only recently.

Lack of awareness

about export

possibilities.

Transportation

bottlenecks.

Short Term:

Professionalism in floricultural practice with

export orientation.

Medium Term:

Under the Act East Policy, Guwahati can be

connected to several South Asian countries. Of

late Kunming in China has fast became a

flower centre and thereby putting pressure on

price in the export market.

Linking APEDA with the producers is

suggested to explore the possibilities of

exporting to South Asian country market using

new airport and its possible connectivity with

South Asian countries.

Honey

Export market has not

been explored so far. Short Term:

North Eastern Regional Agricultural Marketing

Corporation Limited (NERAMAC) taking

efforts to take the Nagaland honey brand to

domestic market as well as foreign markets.

In the meantime NBHM need to look for

export possibilities with the active support of

APEDA and CeNest, IIFT.

Brand building should capitalise on two counts:

one natural and other organic.

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Under Institutional Mechanism for export facilitation, the study proposes creation of

Export Development Cell (EDC) under the existing Trade and Commerce

Directorate, which will be responsible and accountable in the matter of export and

trade and will be coordinating agency for all the export related affairs of the state.

The thrust areas of work for EDC would be:

a. To coordinate with departments related to the export from the state

b. Liaison with DGFT

c. Liaison with trade promotion bodies like FIEO, CII, FICCI, APEDA, EPCH

d. Formulation and Disbursement of Export Incentives

e. Formulation of Export Policy and Updatation

f. Devising need-based Export Incentive Programs

g. Liaison with Government of India for schemes under Trade Infrastructure for Export

Scheme (TIES)

h. Liaison with Other Government Departments for other infrastructure development

for facilitation of exports

i. Export Development Cell meeting to be chaired by Hon’ble Chief Secretary of

Nagaland

Under EDC three divisions, namely - Border Trade Division, Export Facilitation

Division and Export Research and Training Division, need to be created for all round

development of export from the state:

a. Border Trade Division, whose role will include:

I. Trade Infrastructure development at the border points

II. Liaison with border countries like Myanmar

III. Devising ways and means for barter trade

IV. Keeping of Records at Border Points

V. Communicating with Land Custom Stations

VI. Monitoring of border trade

xii

b. Export Facilitation Division, whose role will include:

I. Maintenance of Liaison with DGFT, Guwahati and issuance of export import license

II. Export infrastructure at the district level

III. Single Point Clearance for Testing, Inspection, Certification etc.

IV. District level networking through District Level Export Promotion Committee

(DLEPC)

c. Export Research and Training Division, whose role will include:

I. Training on Marketing, Technology up-gradation, Export Finance, Export

Documentation and License procedure

II. Research on Market Identification, Product Diversification

III. Research on Market Access issues and WTO issues

The State Government may introduce the following steps:

Challenges / Issues /

Constraints Suggestions / Interventions

The dry port at Guwahati

is not being utilized by

small exporters at all. So

exports from Nagaland

are to be routed through

KOPT / JNPT

Short Term and Medium Term:

a. At present, the Guwahati dry port does not provide for all trade-

related facilities; single-window for mandatory clearances,

payments, and freight forwarding agents, NVOCCs. Hence it is

not possible to be used by small exporters. This is not only

creating problems for Nagaland exporters but also for all the

northeastern states as well. There is a need to take up the issue

with North Eastern Council (NEC) so that small exporters need

not have to go to Kolkata / Mumbai port for freight forwarding

supports.

Long Term:

a. A proposed multi-product SEZ spread across 400 hectares in

Dimapur has received formal approval. In the long run one Dry

Ports will be required to be set up at Dimapur to cater to the

need of the proposed SEZ as well as exporters of the state. The

setting of Dry port is to be approved by an Inter-Ministerial

Committee (IMC) which acts as a single window clearance

mechanism for setting up of ICDs / CFSs in India. A proposal

required to be put forwarded in this respect for approval.

xiii

Wet port connectivity Medium / Long Term:

a. In order to enable exporters expanding their business, there is a

need to develop wet port connectivity. Accessibility of Sittwe

Port through Mizoram has been a part of Act East Policy

(AEP). As a part of materializing the Act East Policy, the

Kaladan Multi-Modal Transit Transport Project has been taken

up. Future road connectivity needs to be planned keeping in

mind the future connectivity to Sittwe port.

Testing & Inspection

Facilities and Trade

Promotion Measures

Short Term:

a. Provide training and awareness regarding the importance of

testing and inspection of consignments in international trade

for enhancing profitability.

Medium / Long Term:

a. Given the growing requirement of product certification in key

markets, there is need for setting up Testing and Inspection

centres in specific areas like agro-processing sector etc.

Training, Export

Awareness and cross

border research

Short Term:

a. Export development in Nagaland has started taking shape with

formal effort from government. There is an urgent requirement

to hold regular export related workshops for product market

identification, logistics management, trade documentation etc.

to equip the prospective entrepreneurs with required knowledge

and skill towards doing export business.

b. The prospective entrepreneurs from different districts may be

selected to attend short duration export management training

modules. IIFT’s CeNest may be roped in to organize short

duration training at Dimapur / Kohima at the entrepreneur level.

c. The existing entrepreneurs with export possibilities may be

deputed to IIFT Kolkata to undergo short duration programme

on export and market identification to make their operations

export-oriented.

Medium Term:

a. Government should consider providing incentives to the

exporters of Handicraft products, Handloom products, value

added products of cane and bamboo etc. under the Industrial

Policy of Nagaland to compensate transportation cost to the wet

port of Kolkata.

xiv

b. District Industrial Centres (DICs) need to facilitate regular

outreach programmes in association with the different Export

Promotion Councils (EPCs) with sectoral focus for making the

members aware about the existing export incentives and to learn

how to use the tools for gaining market intelligence.

Cross –border interaction

with Myanmar and other

south Asian countries.

Short Term:

a. Nagaland entrepreneurs are in advantageous position to use

cross-border trade route to open cross border business in

Myanmar. In order to avail that it is required that Myanmar

trade bodies are invited to Nagaland on regular basis for trade

meet / business seminar etc. so that Nagaland entrepreneurs get

full opportunities to interact and forge cross-border business

relationship. Trade delegations from Nagaland should also visit

Myanmar for understanding the business climate and

opportunities of Myanmar periodically.

Medium / Long Term:

a. India-Myanmar Border Trade Fair need to be organized from

time to time at Kohima / border districts of Nagaland to promote

bilateral trade between the two neighboring countries with the

involvement of companies from both the countries to showcase

Indian / Northeast / Nagaland products.

b. In the medium run such trade fair should also involve

countries like Thailand and Vietnam in addition to

Myanmar.

c. With the opening of three trade points, emphasis may be

given to the identified ‘location specific product’ for short

listing and allowing barter trade or otherwise across the

border points for the benefit of people living on the either side

of the border.

Organic certification Short Term

a. This study indicates availability of various agro-horticultural

produce in Nagaland, which are organic by default. Nagaland

Vision 2030 has also advocated for measures to convert the

‘organic by default’ areas into ‘organic by design’ for

specific crops with high market value and demand.

xv

b. There is need to facilitate link with foreign traders who are

willing to purchase organic produce with price premium.

Regular buyer-seller meet may be organized in the state in

consultation with APEDA on this front.

Infrastructure

development

a. Road: Dimapur-Kohima four lane highway needs to be

completed. Ministry of Road Transport and Highways

sponsored Special Accelerated Road Development

Programme (SARDP-NE), connecting the district

headquarters to the State capital, also need to be completed.

The four-laning of Asian Highway No.1 (AH-1) to Moreh and

development of highway connectivity to International Trade

centres (ITCs) at Longwa, Pangsha and Avangkhu should be

placed on priority.

b. Railway: Completion of railway project linking Dimapur to

Kohima and Dhansripar to Karong in Manipur should be

placed on priority.

c. Airport: Razaphema airport should be constructed as future

airport hub (both for cargo and tourists) for connecting the

GMS capital region as well.

Medical tourism Short / Medium Term:

a. The healthcare facilities in the Myanmar side of Northeast–

Myanmar border i.e. Sagaing Region and Chin State are largely

inadequate. Entrepreneurs of Nagaland can take advantage of

that by setting up training centre in the districts bordering

Myanmar like nursing college, endoscope training centres etc.

b. Also, different local hospitals, private or government having

testing laboratories like endoscopy, cardiac disease, diabetes etc.

require doing cross border publicity about facilities available.

c. Road connectivity between the border points and Kohima /

Dimapur needs to be improved for facilitating inflow of

patients.

Long Term:

a. A super-specialty hospital in Dimapur may come up with

government support through PPP mode, catering to patients

coming from Myanmar.

xvi

The Central Government may introduce the following interventions:

a. First, the four states of the Northeast, i.e., Nagaland, Arunachal Pradesh, Manipur

and Mizoram, which are sharing 1,643-km-long international border with one of the

Greater Mekong Sub region (GMS) Economic Cooperation constituent country,

namely Myanmar, should have deeper integration with GMS in terms of trade and

infrastructure co-operation.

b. Second, on infrastructure creation, Ministry of Road Transport and Highways

sponsored Special Accelerated Road Development Programme (SARDP-NE) need

to be completed expeditiously. The completion of four-laning of Asian Highway

No.1 (AH-1) to Moreh will provide boost to highway connectivity to the

International Trade centres (ITCs) at Longwa, Pangsha and Avangkhu. It is required

to move step forward fast to make Trans-Asian Railway line a reality. Razaphema

airport should be constructed as future airport hub for connecting the GMS.

c. Third, on trade facilitation, hassle-free provisional medical visa facilities for patients

crossing border from Myanmar, mutual recognition of standards etc. need to be

ensured.

*****

xvii

Table of Contents

Chapter 1: Introducing the Study ....................................................................................................... 1

1.1 Introduction, Study Objectives and Terms of Reference .............................................................. 1

1.2 Identification and Analysis of Export Potential Products ............................................................. 2

1.3 Identification and Study of Potential Markets .............................................................................. 2

1.4 Suggestion for a developing a Mechanism for Export Development in the State ......................... 3

1.5 Deliverables .................................................................................................................................. 3

1.6 Approach and Methodology for the Study .................................................................................... 5

Chapter 2: Overview of the State ...................................................................................................... 11

2.1 Geographical Scenario of the State ............................................................................................. 11

2.2 Social Status of the State ............................................................................................................. 14

2.3 Economic Status of the State ...................................................................................................... 18

2.3.1 Primary Sector...................................................................................................................... 22

2.3.2 Secondary Sector .................................................................................................................. 29

2.3.3 Tertiary Sector...................................................................................................................... 32

2.3.4 Export Market ...................................................................................................................... 34

2.4 Infrastructure Status of the State ................................................................................................. 35

2.4.1 Physical Infrastructure ......................................................................................................... 36

2.4.2 Social Infrastructure ............................................................................................................. 41

2.4.2.1 Education ....................................................................................................................... 41

2.4.2.2 Health ............................................................................................................................. 43

2.4.3 Industrial Infrastructure........................................................................................................ 45

2.5 Doing business in Nagaland ........................................................................................................ 47

2.5.1 Key Sectors .......................................................................................................................... 48

2.5.2 Attracting Domestic and Foreign Investment ...................................................................... 52

2.5.3 Cost of doing business ......................................................................................................... 53

Chapter 3: Identification of Potential Exportable Products in Nagaland ..................................... 54

3.1 Identification of Products ............................................................................................................ 54

3.2 Segments in Nagaland ................................................................................................................. 57

3.2.1 Manufacturing Sector ........................................................................................................... 57

3.2.2 Agricultural Sector…………………………………………………………………………61

xviii

3.2.2.1 Scenario for Food grains………………………………………………………………..63

3.2.2.2 Scenario for Oilseeds…………………………………………………………………...66

3.2.2.3 Scenario for Pulses……………………………………………………………………...70

3.2.2.4 Scenario for Floriculture………………………………………………………………..72

3.2.2.5 Scenario for Fruit and Vegetables.……………………………………………………..72

3.2.2.6 Scenario for Epiculture………….……………………………………………………...77

3.2.2.7 Scenario for Livestock & Fishery Sectors……………………………………………...77

3.2.2.8 Scenario for Spices……………………...……………………………………………...79

3.2.2.9 Scenario for Plantations Crops………….……………………………………………...80

3.2.3 Identification of Potential Products…………………………………………………………82

3.2.3.1 Preliminary Identification of Potential Products……………………………………….82

3.2.3.2 Identification of Potential Products…………………………………………………….84

Chapter 4: Potential Markets for Exportable .................................................................................. 98

4.1 Introduction ................................................................................................................................. 98

4.2 Export Market Identification ....................................................................................................... 98

4.2.1 Shift Share Analysis ............................................................................................................ 98

4.2.2 Export Intensity Index (EII) .............................................................................................. 108

4.2.3 Export Specialization Index (ESI)…………………………………………………………113

4.3 Identified Key Export Markets ................................................................................................. 119

4.4 Trade Barriers ........................................................................................................................... 126

4.4.1 Tariff Barriers .................................................................................................................... 126

4.4.2 Non-Tariff Barriers ............................................................................................................ 145

4.5 Final Selection of Markets ....................................................................................................... 157

Chapter 5: Border Trade Centres between Nagaland and Myanmar .......................................... 165

5.1 Introduction ............................................................................................................................... 165

5.2. Description of Border Trade Points ......................................................................................... 165

5.2.1 Avangkhu ........................................................................................................................... 165

5.2.2 Longwa .............................................................................................................................. 169

5.2.3 Pangsha .............................................................................................................................. 172

5.3. Goods that can be traded through the border trade points ........................................................ 175

5.3.1 Location specific products ................................................................................................. 175

5.3.2 State specific products........................................................................................................ 180

5.4. Transportation Network: Status and Prospects ........................................................................ 182

xix

5.4.1 Bus & Truck services ........................................................................................................... 182

5.4.2 Rail services ......................................................................................................................... 183

5.4.3 Aviation................................................................................................................................ 183

5.4.4 Inland Water Connectivity ................................................................................................... 184

5.5. Possibility of trade through land customs station Guwahati ...................................................... 186

5.6. Trade Route Alternatives ........................................................................................................... 189

5.7. Conclusion ................................................................................................................................. 191

Chapter 6: Trade facilitation hard and soft infrastructure in Nagaland vis-à-vis capabilities

to handle exportable identified ....................................................................................... 193

6.1 Physical infrastructure ................................................................................................................ 193

6.1.1 Road to different exit points like Guwahati dry port/ Kolkata port/ Kolkata cargo depot. 193

6.1.2 Railways to different exit points ....................................................................................... 194

6.1.3 Air to different exit points ................................................................................................. 196

6.1.4 Inland water transport to different exit points ................................................................... 197

6.1.5 Cold storage/ ware house .................................................................................................. 198

6.1.6 Dry port connectivity ........................................................................................................ 199

6.1.7 Wet port Connectivity ....................................................................................................... 200

6.2 Institutional structure ............................................................................................................... 200

6.2.1 Electricity .......................................................................................................................... 201

6.2.2 Special Economic Zones ................................................................................................... 202

6.2.3 Industrial infrastructure ..................................................................................................... 202

6.3 Support facilities ...................................................................................................................... 203

6.3.1 Quality Inspection/Testing Facilities ................................................................................ 203

6.3.2 Export Training Facilities ................................................................................................. 203

6.3.3 DGFT Office ..................................................................................................................... 204

6.3.4 Export Promotion Councils ............................................................................................... 204

6.3.5 Border Trade facilitation service ....................................................................................... 204

Chapter 7: Export capability gaps in Nagaland ............................................................................... 208

7.1 Introduction ................................................................................................................................. 208

7.2 Barriers to enhance export for Existing Entrepreneurs/ Exporters............................................. 209

7.2.1 Types of organizations ......................................................................................................... 209

7.2.2 Level of Investment ............................................................................................................. 209

7.2.3 Major Products Manufactures and Country of export .......................................................... 209

xx

7.2.4 Infrastructure as hindering factors ....................................................................................... 210

7.2.5 Factors affecting export performance .................................................................................. 215

7.2.5.1 . Non-Price Factors for gaining Export Competitiveness…………………………….......215

7.2.5.2 . Price Factors for gaining Export Competitiveness…………………………………..…215

7.2.6 Central Government's Export Promotion Measures and awareness level ............................ 218

7.2.7 Experience in dealing with regulatory agencies ................................................................... 218

7.2.8 Areas of focus for GOI to develop firm-level competencies for export............................... 220

7.2.9 Areas that require financial and non-financial support to develop export capacity ............. 221

7.2.10 Policy Framework .............................................................................................................. 222

7.3. Analysis of the problems and Prospects for Potential Entrepreneurs ........................................ 222

7.3.1 Problems of exporting: Potential Exporters ......................................................................... 223

7.4. Composite Infrastructure Index ................................................................................................. 227

7.4.1 Objective .............................................................................................................................. 227

7.4.2 Methodology ........................................................................................................................ 228

7.4.3 Importance of the parameters ............................................................................................... 234

7.4.4 Significance of the composite infrastructure index .............................................................. 235

7.4.5 Probable Infrastructure Index at 2025 .................................................................................. 237

7.5 Gaps in Physical Infrastructure .................................................................................................. 239

7.6 Gap in Institutional Structure ..................................................................................................... 243

7.7 Gap in Support Mechanism ........................................................................................................ 243

Chapter 8: Opportunities for Medical Tourism ................................................................................ 245

8.1 Introduction ............................................................................................................................... 245

8.2 Health Status of Myanmar ......................................................................................................... 246

8.3 Health Facilities in Nagaland and Opportunities ....................................................................... 250

Chapter 9: Recommendations for Promoting Exports from Nagaland .......................................... 255

9.1 Introduction ............................................................................................................................... 255

9.2 Sector Specific Intervention to promote export ......................................................................... 255

9.3 Institutional Mechanism for export facilitation ......................................................................... 258

9.4 Interventions at the State Level ................................................................................................. 263

9.5 Interventions at the Central Level ............................................................................................. 267

9.5.1 Cooperations with GMS ..................................................................................................... 267

9.5.2 Infrastructure development ................................................................................................. 267

9.5.3 Trade Facilitation ................................................................................................................ 268

xxi

Appendices 5.1 ........................................................................................................................ 269

Appendices 5.2 ........................................................................................................................ 270

Appendices 5.3 ..................................................................................................................... ....270

Appendices 5.4 ........................................................................................................................ 271

Appendices 7.1 ........................................................................................................................ .277

Appendices 7.2 ...................................................................................................................... ...283

Appendices 7.3 ......................................................................................................................... 284

Appendices 7.4 ......................................................................................................................... 285

Appendices 7.5 ......................................................................................................................... 286

Bibliography: .......................................................................................................................................... 290

xxii

No. Descriptions Page

Number

List of Tables

2.1 Overview of Nagaland 11

2.2 Status of Forests in Nagaland as on 31.01.2016 13

2.3 Population Statistics of Nagaland 14

2.4 Comparison of Gross State Domestic Product of Nagaland with all States of India’s GSDP

19

2.5 Growth Rate of Gross State Value Added by Primary Activity at Constant (2011-12) Prices

23

2.6 Land use Statistics in Nagaland (in Hectares) 25

2.7 Area under Major Agricultural Crops (in Hectares) 26

2.8 Production under Major Agricultural Crops (in M.T.) 26

2.9 Average Output Trends for Major Agricultural Crops (M.T. / Hectares) 27

2.10 Scenario for Other Agricultural Crops in 2016-17 28

2.11 Percentage contribution of sub-sectors to Secondary Sector 30

2.12 Growth rate of sub-sectors of Tertiary sector 34

2.13 Physical Infrastructure Status of Nagaland in comparison with All India

36

2.14 Road Length of Nagaland in 2015-16 and 2016-17 37

2.15 Airport Indicators for 2015-16 and 2016-17 38

2.16 Telecom statistics of Northeast states comprising Arunachal Pradesh,

Manipur, Meghalaya, Mizoram, Nagaland and Tripura by March 2017

40

2.17 Number of Different kind of Educational Institutions in Nagaland 41

2.18 Distribution of Colleges under ownership and field of study 42

2.19 District-wise number Health institutions in Nagaland 44

2.20 Manpower employed in the Healthcare sector of Nagaland 45

2.21 Units of Industrial Infrastructure present in Nagaland 46

2.22 MSME clusters in Nagaland- location , products in which MSME deals and units under cluster

47

2.23 Cost estimates of doing business in Nagaland 53

3.1 Gross State Value Added by economic activity at Constant (2011- 12) prices

5

3.2 Growth rate of Gross State Value Added by economic activity at Current prices

56

3.3 Percentage share of various sub-sectors to Nagaland’s Manufacturing sector during 2014-15

58

3.4 Economic activities in Nagaland 60

xxiii

3.3 Production Advantage Scenario for Nagaland 60

3.4 Area, Output and Productivity under Major Agricultural Crops 62

3.7 District-wise Area, Output and Productivity Scenario for Rice (Oryza Sativa) in Nagaland

64

3.8 District-wise Area, Output and Productivity Scenario for Wheat (Triticum spp) in Nagaland

64

3.9 District-wise Area, Output and Productivity Scenario for Jobstear (Coix Lachryma-Jobi) in Nagaland

65

3.10 District-wise Area, Output and Productivity Scenario for Oilseed in Nagaland

67

3.11 District-wise Area, Output and Productivity Scenario for Rapeseed/Mustard (Brassica spp) in Nagaland

67

3.12 District-wise Area, Output and Productivity Scenario for Sunflower (Helianthus annus family Asteraceae) in Nagaland

68

3.13 District-wise Area, Output and Productivity Scenario for Seasamum (Sesamum indicum) in Nagaland

68

3.14 District-wise Area, Output and Productivity Scenario for Soyabean (Glycine max) in Nagaland

69

3.15 District-wise Area, Output and Productivity Scenario for Groundnut (Arachis Hypogaea) in Nagaland

69

3.16 District-wise Area, Output and Productivity Scenario for Naga Dal / Rice Bean in Nagaland

71

3.17 District-wise Area, Output and Productivity Scenario for Rajma / Kholar (Phaseolus Vulgaris) in Nagaland

71

3.18 District-wise Area, Output and Productivity Scenario for various Flowers in Nagaland

72

3.19 Area and Production of Fruits and Vegetables in Nagaland 73

3.20 Crop Zonation in Nagaland 73

3.21 Area, Output and Productivity Scenario of Pineapple in Nagaland 75

3.22 Area, Output and Productivity Scenario of Passion Fruit in Nagaland 75

3.23 Area, Output and Productivity Scenario of Cabbage in Nagaland 76

3.24 Production of Honey in Nagaland 77

3.25 Comparison of 17th, 18th and 19th Livestock Census in Nagaland 78

3.26 Milk, Meat and Egg Production in Nagaland 79

3.27 Fish production in Nagaland 79

3.28 Area, Output and Productivity Scenario of Spices in Nagaland 80

3.29 Area, Output and Productivity Scenario of Plantation Crops in Nagaland

80

3.30 Area, Output and Productivity Scenario of Coffee in Nagaland 81

3.31 District wise Target area under Coffee Plantation 81

3.32 Potential Products identified for Export from Nagaland 82

3.33 Potential Export Products from Nagaland based on CAGR 83

3.34 Final Selection of Potential Export Products from Nagaland 86

xxiv

3.35 Potential Export Products from Nagaland with HS Codes 87

3.36 Export Opportunity Products from Nagaland 93

3.37 Other Potential Export Products from Nagaland 93

3.38 List of Potential Export Products from Nagaland 95

4.1 Shift Analysis of Identified products 102

4.2 Shift Share Analysis of Other potential products 105

4.3 Export Intensity Index of Identified Products 109

4.4 Export Intensity Index of Other Potential Products 111

4.5 Export Specialization Index for Identified Products 114

4.6 Export Specialization Index for Other Potential Products 116

4.7

Export Destinations identified on the basis of Shift Share Analysis,

Export Intensity Index and Export Specialization Index for Identified Products

120

4.8

Export Destinations identified on the basis of Shift Share Analysis,

Export Intensity Index and Export Specialization Index for Other

Potential Products 123

4.9 Non-Tariff Barriers on Import of Honey (040900) in USA 147

4.10 Non-Tariff Barrier Details on Import of Honey (040900) in UAE from India

148

4.11 Tariff and Non-tariff Barriers Summary in Identified Products 150

4.12 Tariff and Non-tariff Barriers Summary for top 10 countries in Other Potential Products

153

4.13 Final Export Destinations on the basis of Trade Indices and Trade Barriers for Identified Products

159

4.14 Final Export Destinations on the basis of Trade Indices and Trade Barriers for Other Potential Products

162

5.1 Road Connectivity and distance from Avangkhu 166

5.2 Major Road Connectivity in Lyashi 167

5.3 Present and Proposed Infrastructure at Avangkhu 167

5.4 SWOT Analysis of Avangkhu (in relation to Physical Infrastructures) 168

5.5 Status of Road Connectivity in Longwa 169

5.6 Status of Road Connectivity in Lahe 170

5.7 Present and Proposed Infrastructure of Longwa 170

5.8 SWOT Analysis of Longwa (in relation to Physical Infrastructures) 172

5.9 Major Road Connectivity in Pangsha 173

5.10 Present and Proposed Infrastructure of Pangsha 173

xxv

5.11 SWOT Analysis of Longwa (in relation to Physical Infrastructures) 174

5.12 The Location-specific products of Avangkhu 175

5.13 The Location-specific products of Longwa 177

5.14 The Location-specific products of Pangsha 179

5.15 Immediate Export products of Nagaland 180

5.16 Future State-specific Export products of Nagaland 181

5.17 The present and future transportation network of Nagaland 185

5.18 Domestic Booking Figures Yearwise (in TEUs) at Amingaon in last decade

188

5.19 Alternative Trade Routes from Border Trade points and Kohima /Dimapur 190

6.1 Length of Highways in Nagaland 194

6.2 Total length of Road in Nagaland PWD (R&B) 2014-15 195

6.3 Distribution of State-wise Rail Network 196

6.4 Airport Indicators for the past 3 years in Dimapur 196

6.5 Connectivity of the Airport with Dimapur 197

6.6 Storage Facility in Nagaland 198

6.7 Installed Power Capacity for the past one decade 201

6.8 List of notified and formally approved SEZs 202

6.9 Number of units of the industrial infrastructures 202

7.1 Factors and their level of hindrances for Potential Exporters 224

7.2 Weightage assigned to Infrastructure Parameters 228

7.3 Indicators of Infrastructure Development Index for Districts of Nagaland (2009)

230

7.4 Indicators of Infrastructure Development Index for Districts of Nagaland (2015)

231

7.11 Normalized Variables of the Infrastructure Development Indicators of Nagaland (2009)

232

7.12 Normalized Variables of the Infrastructure Development Indicators of Nagaland (2015)

233

7.7 Composite District-level Infrastructure Index in Nagaland 235

7.8 Categorizing the districts based on the Composite Infrastructure Index

236

7.9 Current status of infrastructure and expected infrastructure after improvement

238

7.10 Internal and External barriers hampering export in Nagaland 240

7.11 Railway line in progress in Nagaland 242

xxvi

8.1 Comparison of Infant Mortality Rate in India and Neighboring countries

246

8.2 WHO Statistical Profile, Myanmar 247

8.3 Tobacco use data from the latest survey results (31 December 2016) 250

8.4 Prevalence of Alcohol use Disorders and Alcohol Dependence (%), 2010

250

8.5 Number of Hospital/C.H.C/P.H.C/S.H.C/Dispensary 2016-17 251

8.6 Number of Medical Personnel, 2016-17 252

8.7 Number of Beds in Hospital, PHC, CHC, SHC, Dispensary, Mental & TB Hospital 2016-17

253

List of Figures

1.1 Methodology Flow Chart 1 5

1.2 Methodology Flow Chart 2 6

2.1 Map of Nagaland 12

2.2 Actual Population and Percentage of Total Population in Nagaland in

2001 and 2011 15

2.3 Population Density (Per Square Km) and Sex ratio of Nagaland in 2001 and 2011

15

2.4 Literacy Rate of Nagaland in 2001 and 2011 16

2.5 Infant and Child Mortality Rates (per 1,000 live births) for urban areas, rural areas and Overall India in 2015-16

17

2.6 Infant and Child Mortality Rates (per 1,000 live births) in 2005-06 and 2015-16

18

2.7 GSDP Current and Constant at Market Prices (Rs. Crore) 19

2.8 Growth Rate of GSDP Current and Constant at Market Prices (in

percentage) 20

2.9 Per capita income of Nagaland at current and constant prices (in Rs.) 20

2.10 Percentage Contribution of the Sub-sector to GSVA at Constant Prices

21

2.11 Growth Rate of Primary Sector 22

2.12 Percentage Contribution of sub-sectors to the Primary Sector in 2016-

17 23

2.13 Growth Rate of Secondary Sector 29

2.14 Percentage Contribution of sub-sectors to the Secondary Sector in 2016-17 (Advance Estimates)

30

2.15 Growth rate of Tertiary Sector 32

2.16 Percentage Contribution of sub-sectors to the Secondary Sector in 2016-17 (Advance Estimates)

33

2.17 Export Scenario from Nagaland 35

2.18 Installed Capacity of Power in Nagaland 39

xxvii

2.19 Total of all kind of post office 40

2.20 Number of Students who attained degree from Private and Government Colleges

43

2.21 Number of Institutions by ownership in Nagaland 43

2.22 Area of Fruits and Vegetables in Nagaland 49

2.23 Funds allocated under National Agroforestry & Bamboo Mission (in US$ million)

50

2.24 Number of Domestic and Foreign Tourists in Nagaland 51

2.25 FDI equity inflows, 2008-09 to 2016-17 (US$ million) 52

4.1 Tariff Barriers on India’s Export of Natural Honey (HS 040900) 126

4.2 Tariff Barriers on India’s Export of Arecanut (HS 080280) 127

4.3 Tariff Barriers on India’s Export of Pepper of the genus Piper, neither crushed nor ground (HS 090411)

127

4.4 Tariff Barriers on India’s Export of Pepper of the genus Piper, crushed or ground (HS 090412)

128

4.5 Tariff Barriers on India’s Export of Fruits of the genus Capsicum or of the genus Pimenta, crushed or ground (HS 090422)

128

4.6 Tariff Barriers on India’s Export of Cardamoms, neither crushed nor ground (HS 090831)

129

4.7 Tariff Barriers on India’s Export of Cardamoms, either crushed or ground (HS 090832)

129

4.8 Tariff Barriers on India’s Export of Cereals (HS 100890) 130

4.9 Tariff Barriers on India’s Export of Wheat Flour (HS 110100) 130

4.10 Tariff Barriers on India’s Export of Cereals flour (HS 110290) 131

4.11 Tariff Barriers on India’s Export of Sesamum seeds, whether or not broken (HS 120740)

131

4.12 Tariff Barriers on India’s Export of Bamboo Dyeing and Treatment Plant (HS 140110)

132

4.13 Tariff Barriers on India’s Export of Sesame oil and its fractions, whether or not refined, but not chemically modified (HS 151550)

132

4.14 Tariff Barriers on India’s Export of Essential oils of Rose & Honey (HS 330129)

133

4.15 Tariff Barriers on India’s Export of Extracted oleoresins, Rose & Honey (HS 330190)

133

4.16 Tariff Barriers on India’s Export of Bamboo chips (HS 440122) 134

4.17 Tariff Barriers on India’s Export of Bamboo Floor Board (HS 441210)

134

4.18 Tariff Barriers on India’s Export of Wooden Utensils, Dining Sets

(HS 441900) 135

4.19 Tariff Barriers on India’s Export of Chopsticks (HS 441912) 135

4.20 Tariff Barriers on India’s Export of Bamboo Board Furniture (HS 441990)

136

4.21 Tariff Barriers on India’s Export of Candle stand (HS 442090) 136

4.22 Tariff Barriers on India’s Export of Toothpicks (HS 442190) 137

xxviii

4.23 Tariff Barriers on India’s Export of Nara (HS 460210) 137

4.24 Tariff Barriers on India’s Export of Fancy Basket & Trays (HS 460211)

138

4.25 Tariff Barriers on India’s Export of Bamboo pulp (HS 470630) 138

4.26 Tariff Barriers on India’s Export of coins necklace (HS 711311) 139

4.27 Tariff Barriers on India’s Export of Ladies decorative hair clips (HS 711411)

139

4.28 Tariff Barriers on India’s Export of Axe (HS 820140) 140

4.29 Tariff Barriers on India’s Export of Screen printing (HS 844319) 140

4.30 Tariff Barriers on India’s Export of Dagger (HS 930700) 141

4.31 Tariff Barriers on India’s Export of Wooden furniture (HS 940330) 141




4.35 Tariff Barriers on India’s Export of Vanishing, Polishing, and Painting (HS 960340)

143

4.36 Tariff Barriers on India’s Export of Cotton ear buds (HS 960500) 144

4.37 Tariff Barriers on India’s Export of Decorative items (HS 970110) 144

5.1 Location-specific product availability within Avangkhu 177

5.2 Location-specific product availability within Longwa 178

5.3 Export Figures (in TEUs) through ICD, Amingaon for the past two decades

187

5.4 Import Figures (in TEUs) through ICD, Amingaon for the past two decades

187

6.1 Installed Power Capacity for one decade in Nagaland 201

6.2 Avangkhu Border (Phek district) 205

6.3 Longwa border (Mon district) 206

6.4 Phangsa border (Tuensang district) 207

7.1 Condition of Roads in Nagaland 210

7.2 Quality of Electricity 211

7.3 Condition of Quality Inspection / Testing Facilities 212

7.4 Connectivity to Maritime Ports 212

7.5 Common facility Centre / Tool room uses 213

7.6 Exhibition / Display Convention Centre 214

xxix

7.7 Quality of Support from Nodal Agencies 214

7.8 Non-availability of Export Training Facility in the State / Region 215

7.9 Non-price Factors that affects Export Performance 216

7.10 Price Factors that affects Export Performance 217

7.11 Factors that measures the experience in dealing with the Regulatory Agencies

219

7.12 Main focus areas to develop firm-level Competencies for GOI 220

7.13 Areas that require Financial and Non-Financial support to develop Export Capacity

221

7.14 Extent to which the barriers effect the export activity in Nagaland for Potential Exporters

225

8.1 Age and Gender distribution in Myanmar, 2011 247

8.2 World’s Infant Mortality Rate 248

8.3 World’s Maternal Mortality Ratio 249

List of Boxes

1.1 Methodology - Step 1 7







Appendix Tables

A5.1 Connectivity of Border Trade Point - Avangkhu 269

A5.2 Connectivity of Border Trade Point - Longwa 270

A5.3 Connectivity of Border Trade Point – Pangsha 270

A5.4 Survey Questionnaire for Government Officials 271

A7.1 Survey Questionnaire for Existing Exporters 277

A7.2 Survey Questionnaire for Potential Exporters 283

A7.3 Names of the Existing Exporters Participating in Survey 284

A7.4 Names of the Potential Exporters Participating in Survey 285

A7.5 Survey Questionnaire for Medical Tourism Exporters 286

xxx

1

Chapter 1: Introducing the Study

1.1 Introduction, Study Objectives and Terms of Reference

Nagaland is a land of incredible natural beauty, moulded with the picturesque landscapes

and verdant flora and fauna. The state shares its borders with Assam in the West, Arunachal

Pradesh and part of Assam on the North, Manipur in the South, and Myanmar (Burma) on the

east. Of late there has been an all-round push in the country to enhance export from different

states in line with their comparative advantage and resource endowments and the state of

Nagaland is not an exception to this trend. In particular, the increasing importance of the ‘Act

East’ policy in economic and strategic considerations and advantageous geographic position of

state in terms of geographical proximity of Myanmar and beyond has made the policymakers

enthusiastic about the possible export prospect of the state.

There are five aspects of studying the export potential of products and services originating

in the state of Nagaland. The aspects are noted in the following:

The first objective of the study is to review the various sectors of resources of the state;

identify and analyse various exportable products and commodities having export potential

and substantial production in the state.

The second objective is to identify potential international markets with reference to present

trends of demand and supply, where the export potential products identified from Nagaland

are to be exported.

The third objective is to understand the cross-border trade routes with neighbouring country

(i.e., Myanmar) and weigh them in terms of usability for trade prospect.

The fourth objective is to understand problem of the existing and potential export oriented

entrepreneurs of the state and to highlight the export challenges faced in the state, if any.

The fifth objective is to suggest pragmatic and realistic action plans and strategies to be

adopted by the state government for proper export development, in the backdrop of the facts

highlighted in aforesaid objective parameters.

2

1.2 Identification and Analysis of Export Potential Products

The present study intends to focus on various products and services in the state with export

potential, given the evolving demand and supply undercurrents in the global context. As per

the production basket of the state, sector-wise products and services to be focused in the

present context are as under:

Under Agriculture and Horticulture sector, products like apple, citrus fruits, pineapple,

banana, kiwi, orange, rice, maize, potato, ginger, plums, spices turmeric, chilli, black

pepper, large cardamom, fresh vegetables, guava, mushroom, walnut, other organic products

etc.

Under Plantation based industries, sectors like bamboo, rubber, tea, coffee etc.

Under Forests and Environment related produce sector, orchids, floriculture, herbal,

medicinal plants, cane, bamboo, honey etc.

Under Handicrafts and Handloom sector, products like cane and bamboo handicrafts,

wood carving, carpet weaving, basketry, traditional handloom designs and products etc.

Under Mineral ore sector, dolomite, coal etc.

Under Tourism sector, medical tourism.

After the prospect analysis, the study will prepare a strategy for export promotion in the

sectors in which Nagaland has competitive advantages.

1.3 Identification and Study of Potential Markets

The second objective of the study is to identify and study potential international markets

with reference to present trends of demand and prospect of the identified products, which are

grown / produced in the state of Nagaland.

Apart from identifying the global markets, it is equally important to identify and access the

regional markets, as the transportation cost for reaching them might be more favourable vis-à-

vis the promising yet distant locations. In particular, the study will be highlighting the export

potentiality with special reference to neighbour country bordering with Nagaland (i.e.,

Myanmar) along with other advantageous South Asian Countries.

3

1.4 Suggestion for developing a Mechanism for Export Development in the State

The study will suggest a proper mechanism given the present contexts of physical and

social infrastructure pattern of the state for systematic promotion and development of

exports in Nagaland.

The study will also suggest appropriate institutional and infrastructural reforms, including

linking up of various export related agencies, organizations, schemes, facilities etc., if

required, to enable the state government to promote export rigorously and aggressively

and also to prioritize thrust areas.

The study will also to suggest ways and means as to how export potential products of the

state could be brought to the outside potential markets.

The study will suggest various action plans and strategies including short, medium and

long term strategies to be adopted by the state government.

1.5 Deliverables

The terms of references reveals that the need of the study is primarily for preparing a blue

print for putting the state of Nagaland in the export map of India by identifying the export

potential, based on the natural resources and other advantages. The chapterization scheme of

the report is as follows:

The remaining part of Chapter 1 discusses the methodology followed in the report.

Chapter 2 provides an overview of Nagaland, covering the geographical, social, economic

and infrastructural aspects.

Chapter 3 of this study focuses on identifying the potential exportable products of

Nagaland and its production area along with productivity scenario. Further a critical

understanding of resources advantage of the state is discussed.

It is important to understand how the production from primary and secondary sectors,

based on the resource advantage, can be exported to different foreign markets having

demand of such products. The external markets not only opens the door for a larger

markets and gives the scale benefit to the cultivators and industries to produce more, it

also promote the Nagaland Brand in the external markets for certain products. The

analysis conducted in Chapter 4 reveals this aspect.

4

It is also important to explore the existing conditions in the state favouring the export

infrastructure. As the state is a land-locked one, i.e., having only a short international

boundary with no seaport, the trade infrastructure is to be set up specific to the sectoral

requirement with respect to distance and nature of the routes to different border trade

points. Hence, Chapter 5 dwells on the aspect related to the potential of different border

trade points from Nagaland, especially with respect to Avangkhu, Longwa and Pangsha

and the connectivity through these border points between India and Myanmar. Also, the

aspects for several location-specific products, state-specific products and all the

alternative trade routes to facilitate seamless trade flows are discussed in Chapter 5.

The existing infrastructure at the district level for securing export growth from different

sectors as well as the trade facilitation infrastructure along with social infrastructure is

required to be evaluated. The analysis is necessary to identify the existing gaps in district

infrastructure. In Chapter 6, an attempt has been made to identify them.

In Chapter 7, after highlighting the responses obtained from the survey conducted with

traders /exporters from the state and the infrastructural index, the different gaps hampering

trade potentials of Nagaland is discussed. In order to provide trade facilitation to the

existing and potential entrepreneurs in Nagaland, it is essential to identify all the

physical, infrastructural gaps and also the gaps in support mechanisms. Proper

identification of gaps would help in appropriate implementation of the action plans.

Chapter 8 covers the medical tourism aspect of Nagaland, the possibility of attracting

patients from neighbouring countries, particularly from Myanmar.

It is important to develop a plan to bridge these infrastructural gaps after identifying all

the short, medium and long run planning. The planning to cover the gaps needs to

incorporate both the right and obligation for all levels of stakeholders and must chalk out

a responsibility pattern for the institutions / organizations delivering different tasks.

Specific recommendations implementable and effective for all kinds of stakeholders are

to be chalked out and these aspects are discussed in Chapter 9.

With this, the study is expected to contribute in two ways: first, the policymakers who will

find the analysis useful in formulating strategies and for prioritizing issues in respect of

enhancing exportability of the state and second, the prospective / existing exporters will have

a clear understanding of the exportable, markets, barriers etc.

5

1.6 Approach and Methodology for the Study

The approach to the study has been divided into three levels:

Secondary Study

Primary Survey

Policy Suggestions

The flowcharts presented in Figures 1.1 and 1.2 provide glimpses of the sequential chain of

analysis for the purpose of the study:

Figure 1.1: Methodology Flow Chart 1

Source: IIFT Research Team

6

Figure 1.2: Methodology Flow Chart 2

Source: IIFT Research Team

The methodology followed in the research report is explained further through the seven

steps explained in the following:

7

Box 1.1: Methodology - Step 1

Process Output

Review of existing literature and available survey of

the State and Districts therein

Resources map of the districts with

importance

Sectoral Analysis of Agro-Horticulture / Plantation

Crop, Floriculture, Honey, Bamboo and Rattan,

Wood-based products, Forest Resource, Medicinal

Herbs, Mineral Resources with respect to:

Resource Availability

Trend of Production / Growth

Contribution to SDP

Export Possibility Identification

Refinement of the list based on Government initiative

for developing them as exportable

Potential Primary Product


Process Output

Review of tariff lines of selected primary products at

more disaggregated level

Identification of possible value

added products for the state

Scoring the possible value added products in a scale

of 1-5 through Delphi Approach

Raw Material Supply Continuity

Availability of skills

Government Initiatives

Rank of the possible value added

product based on the average score

8


Process Output

Identification of HS Codes of the selected primary

as well as value-added products

Calculation of CAGR over 2011 to 2016 for each

HS Codes to the different destination countries

Sorting of the countries based on the volume and

growth of relative share of import, using Shift-

Share Method

Listing of the external market on the

basis of the export potential

Prioritization of the destination of each codes with

respect to Most Favoured Nation (MFN) Average

Tariff Rates and Non–Tariff Barriers (NTBs)

Tariff and Non–Tariff based

Refinement of the Markets


Process Output

Ascertaining parameters like connectivity, existing Border trade routes usability

border trade infrastructure, government initiative,

status on the other side, tradable items, trade history

in respect of Indo-Myanmar border

9


Process Output

Computation of Infrastructural Index for the districts Ranking of the districts in respect

of roads, electrified villages,

banking, communication, level of

business activity


Process Output

Identification of the existing facilities on the basis of

primary survey and the available secondary

information

Ascertaining the requirements for

each of the above sectors for export

market

Identification of actions required for the state to

fill up the identified gaps / requirements

Status of present ex p o r t organization

structure and its suitability for the required

actions

Identification of sector wise gaps for

potential exportable and designing

organizational structure suitable for

export development of the state

Requirement based phasing and allotting required

actions in the proposed organizational structure

Action plan for export

10


Process Output

Review of possible export products based on eight criteria like:

Identification of products that can be

taken for development as exportable

in the short and medium run

1. Marketability

2. Accessibility

3. Logistics

4. Resource Availability

5. Skill Requirement

6. Investment

7. Policy Level Support

8. Time to Develop

11

Chapter 2: Overview of the State

2.1 Geographical Status of the State

For a long time, Nagaland is known as the ‘Switzerland of the East’ given its incredible

beauty, moulded with the picturesque landscapes and verdant flora and fauna. Nagaland is in

the extreme north-east part of India, covering the geographical area of about 16,579 square

Kilometres, which is about 0.5 percent of the total land mass of the country. It lies between

25°60‟ and 27°40‟ North latitude and 93°20‟ and 95°15‟ East longitude. It shares its borders

with Assam in the West, Arunachal Pradesh and part of Assam on the North, Manipur in the

South, and Myanmar (Burma) on the East.

Table 2.1: Overview of Nagaland

Category Status

Area 16,579 Square Km

Rural 16,335.42 Square Km

Urban 243.48 Square Km

Administrative Districts 11

Capital Kohima

Rainfall 2500 mm

Highest Peak Saramati Peak, Kiphire District (3840 meters.)

Main Rivers Dhansiri, Doyang, Dikhu

Source: Basic Statistics of North Eastern Region 2015 (2015)

The State of Nagaland was formally inaugurated on December 1, 1963, as the 16th State of

the Indian Union Administratively. The State has eleven districts that are further divided into

Extra Assistant Commissioner (EAC) Headquarters for efficient administration.

Nagaland’s terrain is mountainous and full of hill ranges. The soils of Nagaland are recorded

in the form of 4 orders, 7 sub-orders, 10 great groups, 14 sub-groups and 72 soil families. As

12

per the classifications, the four orders or soil types are Inceptisols (66 percent), Ultisols (23.8

percent), Entisols (7.3 percent) and Alfisols (2.9 percent). Given the abundance of rich varieties

of flora and fauna, it is one of the 25 hot spots in the world with reference to its biological

diversity and thus reflects a true picture of ‘Mega bio-diversity’1. Figure 2.1 represents the

State along with all the eleven districts therein.

Fig 2.1: Map of Nagaland

Source: Basic Statistics of North Eastern Region 2015 (2015)

Table 2.2 shows the status of the forests in Nagaland as on 31.06.2016. As per the Nagaland

Basic Fact Report of 2016, 52 percent of the geographical area of Nagaland is under forests,

which covers an area of 8629 Square Km. Forests in Nagaland are coming under both village-

owned and possession of the Government categories. It has abundance of tropical and sub-

tropical evergreen forests - including rattan, bamboo, palms, as well as mahogany and timber

forests. The forests of Nagaland also provide shelter to a number of species of animals

including, elephants, leopards, and bears, many species of monkeys, sambar, deer, oxen, and

buffaloes. The great Indian Hornbill is one of the most famous birds found in the state.

1 Obtained from Government documents, available at: http://www.nagenvis.nic.in/Database/nagaland_923.aspx

(Accessed on June26, 2018).

http://www.nagenvis.nic.in/Database/nagaland_923.aspx

13

Table 2.2: Status of Forests in Nagaland as on 31.01.2016

Legal Status Forest Area

(Sq. Kms.)

% of the Total

Forest Area

% of Total

Geographical Area

Government owned Forests:

Reserved Forests

Purchased Forests

Protected Forests

Wildlife Sanctuary

62.26

192.47

34.69

202.02

0.72%

2.20%

0.40%

2.31%

0.72%

2.20%

0.40%

2.31%

Government controlled (Private owned)

Forests:

Protected Forest

516.79

5.98%

3.1171%

Village Owned Forests:

Virgin Forests

Degraded Forest

4778.27

2842.80

55.40%

32.90%

28.8212%

17.1467%

Total (a+b+c) 8629.3 100.00% 52.0442%

OWNERSHIP

State Government

Private/ Community

1008.23

7621.07

11.70%

88.30%

6.00%

46.00%

Total 8629.3 100.00% 52.00%

Source: Basic Statistics of North Eastern Region (2015)

Nagaland witnesses the presence of various perennial and seasonal rivers and their tributaries.

There are a number of major rivers which originate and flow through the state. Rivers like the

Barak in the southwest, the Doyang and Diphu towards the north and the Chindwin river of

Myanmar in the southeast flows through this state. Doyang is the longest river of the state that

originates from the Japfu Hill. The tributaries of Doyang include Chubi and Nzhu rivers. River

Dikhu has a length of 160 Km and is one of the most prominent river of Nagaland. The

tributaries of Dikhu are Yangyu and Nanung. In the southwestern part of the state river Dhansiri

flows, whose main tributaries are Dzuza and Diphu. The river Tizu forms a drainage system in

the eastern part of the state and river Milak and Zungki are Nagaland’s other two important

rivers.

14

2.2 Social Status of the State

Nagaland enjoys a small population of 19.79 lakhs as per 2011 Census, which is

approximately 0.16 percent of India’s total population. While India as a whole is witnessing an

increasing population size, Nagaland has faced a declining trend in population since 2001

Census, which is around 11,534 persons. In all, the population of Nagaland has decreased from

1,990,036 in 2001 to 1,978,502 in 2011. The population statistics of Nagaland is presented in

Table 2.3.

Table 2.3: Population Statistics of Nagaland

Indicator Nagaland

Population size 1978502

Male Population size 1024649

Female Population size 953853

Population size (Rural) 1407536

Population size (Urban) 570966

Population Growth (Percent) -0.47

Population Density (Per sq.km) 119

Percentage of total Population (Percent) 0.16

Sex Ratio 931

Sex ratio (Rural) 940

Sex ratio (Urban) 908

Literacy Rate (Percent) 79.55

Male Literacy Rate (Percent) 82.75

Female Literacy Rate (Percent) 76.11

Total Literate 13,42,434

Male Literate 7,23,957

Female Literate 6,18,477

Literacy rate (Rural) (Percent) 75.35

Literacy rate (Urban) (Percent) 89.62

Source: Census (2011)

The actual population and the proportional population (percentage of total population in the country)

in Nagaland is shown with the help of Figure 2.2.

15

2011

19,78,502

2001

19,90,036 19,95,000

19,90,000

19,85,000

19,80,000

19,75,000

19,70,000

Actual Population Percantage of total

Population

0.20% 0.19%

0.18% 0.16%

0.16%

0.14%

2001 2011

Population Density

(Per sq.km)

121

120 120

119 119

118

2001 2011 2011

900

2001

Sex Ratio

931 940

930

920

910

900

890

880

Figure 2.2: Actual Population and Percentage of Total Population in Nagaland in 2001

and 2011

Source: Constructed from Census 2001 and 2011 data

The share of Nagaland in India’s total population has decreased by 0.03 percentage points

over a decade. Consequently, the population density of the State has decreased to 119 per

square kilometer. It is noted that social indicators have improved in the State over the past

decade. The sex ratio (i.e., ratio of Female to Male population) has shown a significant

improvement from 900 to 931 females per 1000 males over the decadal period. The scenario

can be noted from Figure 2.3.

Figure 2.3: Population Density (Per Square Km) and Sex ratio of Nagaland in 2001 and

2011

Source: Constructed from Census (2011) data

Nagaland has shown an impressive improvement in its social indicators, e.g., literacy and

health, despite the difficult geographical terrain. It has an impressive literacy rate of 79.55

16

2001 2011

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00%

0.00%

61.46%

Literacy Male Literacy Female Literacy

percent. The overall as well as gender-wise scenario on literacy rate can be noted from Figure

2.4. The bulk of the population in Nagaland speaks English, which is the official language of

the state and also the medium of education. This creates a room for promoting services

exports from Nagaland, particularly the fields where language proficiency might come handy.

In Nagaland, 700 out of every 1000 persons are under the working age group, which is higher

than the corresponding all-India average. Out of the 8.83 lakhs labour force, 7.28 lakh persons

are working and most of them are engaged in agriculture and the allied sector activities,

accounting to almost 60 percent of the total workforce. The unemployment rate of Nagaland

was at 8.5 per cent in 2015-16 (5th Employment and Unemployment Survey, 2016).

Figure 2.4: Literacy Rate of Nagaland in 2001 and 2011

79.55% 82.75% 76.11%

66.59% 71.16%

Source: Constructed from Census (2011) data

Literacy Rates, one of the vital indicators of measuring the state’s real economic and social

development has improved over time in Nagaland, especially among women. As depicted in

Figure 2.4, the overall literacy rate has increased by 13 percentage points from 2001 to 2011.

Among the male and female population, increase in literacy rates are 11.59 and 14.65

percentage points respectively. However, despite the significant increase in female literacy

rate over the last decade, they are still less than the corresponding male literacy rates, both in

2001 and 2011.

Another important indicator to measure state’s development is achievements in the health

sector. Vital measurable indicators for health include Infant Mortality Rate (IMR) and Child

Mortality Rate (CMR) or Under Five Mortality Rate (U5MR). Decrease in the IMR and U5MR

17

45

40

35

30

25

20

15

10

5

0

42

37

33

29

25 Urban

Rural

Total

Infant mortality rate (IMR) Under-five mortality rate (U5MR)

21

in Nagaland over the last decade indicates that the health indicators have improved. In Urban

areas both of these health indicators have performed in a better manner as compared to the rural

area. IMR is used to compare the total number of deaths of infants that are below one year of

age per 1000 live births in a given year. According to National Family Health Survey (NFHS-

4), in Nagaland the IMR reduced from 38 percent in 2005-2006 to 29 percent in 2015-16. In

the case of U5MR the number almost reduced to half in a ten year gap from 65 percent to 37

percent. The IMR and CMR scenario for the state as a whole during 2015-16 and for rural and

urban areas separately, can be noted from Figure 2.5.

Figure 2.5: Infant and Child Mortality Rates (per 1,000 live births) for urban areas,

rural areas and Overall India in 2015-16

Source: Constructed from National Family Health Survey – 4 (2015 -16) data

Figure 2.6 indicates the improvement in IMR and U5MR scenario in the state during 2015-

16 (NFHS-4) over 2005-06 (NFHS-3). The improvement makes a case for medical tourism

exports from the state for neighboring countries (e.g., Myanmar).

18

Figure 2.6: Infant and Child Mortality Rates (per 1,000 live births) in 2005-06 and

2015-16

Source: Constructed from National Family Health Survey – 4 (2015 -16) data

2.3 Economic Status of the State

Nagaland’s economy is witnessing a distinct growth over time. In 2015-16, Nagaland’s

Gross State Domestic Product (GSDP) contributed 0.16 percent in the total GSDP (i.e., for all

states) in India. The growth rate of Nagaland’s GSDP is more than the corresponding all-India

average. While the growth rate of GDP at all India level was 8.64 percentages, Nagaland’s

growth rate of GSDP stood at 12.99 percentage in 2015-16. Moreover, Nagaland’s Economy

is estimated to grow at faster pace in 2016-17 as compared to the estimates of 2015-16. The

GSDP during 2016-17 (A.E.) at current prices is projected to grow at 9.91 percent in contrast

to 5.35 percent achieved in 2015- 16(Q.E.). Similarly, GSDP during 2016-17 (A. E) at constant

prices is projected to grow at 4.04 percent in contrast to 0.72 percent achieved in 2015- 16

(Q.E.).

While GSDP of Nagaland at current and constant prices is increasing, they might conceal

the population change effect, if any. Hence, to eliminate the population growth effect, per

capita income is considered. Per capita GSDP at current prices has increased from Rs. 92507

in 2015-16 to Rs. 100613 in 2016-17. The per capita income at both current and constant prices

has increased over the decade in Nagaland. But GSDP at current prices is influenced by the

price rise and increase in the physical quantity of goods and services. Thus, to avoid this

NFHS-4 (2015-16) NFHS-3 (2005-06)

Infant mortality rate (IMR) Under-five mortality rate (U5MR)

29

37 38

65 70

60

50

40

30

20

10

0

19

illusionary effect, the GSDP at current prices is deflated with the base year (2004-05) prices to

arrive at GSDP at constant prices. Per-capita GSDP in Nagaland at constant prices has

increased by Rs. 2037 (from Rs. 69028 to Rs. 71065) over 2015-16 to 2016-17. The comparison

of Nagaland’s GSDP scenario with All India average is presented in Table 2.4.

Table 2.4: Comparison of Gross State Domestic Product of Nagaland with all States of

India’s GSDP

Parameter ( 2015-16) Nagaland All states

GSDP as a percentage of all states’ of India GSDP 0.16 100.0

GSDP growth rate in percent 12.99 8.64

Per capita GSDP ( in US$) 1,761.1 1,546

Source: Economic Survey of Nagaland 2016-17, Directorate of Economics and Statistics of Nagaland,

CSO

The comparison of Nagaland’s GSDP scenario, expressed in both current and constant

prices, is presented in Figure 2.7. It is seen that Nagaland GSDP has increased in both measures.

Figure 2.7: GSDP Current and Constant at Market Prices (Rs. Crore)

Source: Constructed from Economic Survey of Nagaland 2016-17, Directorate of Economics and

Statistics of Nagaland, CSO data

Constant Current

2013-14 2014-15 2015-16 (Q.E) 2016-17 (A.E) 2012-13 2011-12

0

5000

10000

12868 12177 12177

14917 14337 14234 13793 14121 15000

16584

19214 18237 20000

21119

25000

20

The growth rates of Nagaland’s GSDP, expressed in both current and constant prices, are

presented in Figure 2.8. A fluctuating trend is revealed, with a trough in the year 2015-16.

Figure 2.8: Growth Rate of GSDP Current and Constant at Market Prices (in percentage)



The comparison of Nagaland’s Per Capita GSDP scenario, expressed in both current and

constant prices, is presented in Figure 2.9. An increasing trend in noticed in both measures.

Figure 2.9: Per capita income of Nagaland at current and constant prices (in Rs.)



2014 - 1 5 ( P ) 2015 - 1 6 ( Q . E ) 2016 - 1 7 ( A . E ) 2013 - 14 2012 - 13

0.00%

0.72%

4.04% 3.20% 5.00%

5.35% 5.68% 7.19% 10.00%

9.91% 9.97%

15.00%

15.97% 17.44% 20.00%

Constant Current

120000 100613

100000 88747

69267

92507

69028 71065

80000 61159 61159

70185

63956

81532 67810

60000

40000

20000

0

2011-12 2012-13 2013-14 2014-15 2015-16 (Q.E) 2016-17(A.E)

PCY Current PCY Constant

21

Apart from the GSDP itself, an analysis of its constituents is important in understanding the

sectoral composition and their relative involvement in the economy. The information is noted

in Figure 2.10. It is observed that Nagaland is principally an agrarian economy with majority

of the inhabitants reliant on agriculture for their livelihood. But the primary sector that includes

agriculture and allied activities contributed only 28.42 percent of the GSDP in 2016-17(A.E.),

despite the involvement of a huge number of population in these activities. The contribution of

secondary (i.e., industrial) sector is not increasing over time. The tertiary sector on the other

hand has contributed most to GSDP throughout the period under observation and was above

60 percent during 2016-17. The scenario implies that export opportunities from primary and

tertiary sectors exist in short run, while potential for the same in secondary sector needs to be

created in long run.

Figure 2.10: Percentage Contribution of the Sub-sector to Gross State Value Added

(GSVA) at Constant Prices



A discussion on the three sectors is conducted in the following section.

2 014 - 1 5 ( P ) 2 015 - 1 6 ( Q . E ) 20 16 - 1 7 ( A . E ) 2013 - 14 2012 - 13 2011 - 12

28.42 29.74 32.17 32.46 31.35 31.41

10.27 10.16 9.88 8.98 12.07 12.41

60.29 59.02 57.94 58.56 56.58 56.17

Primary Secondary Tertiary

22

2.3.1 Primary Sector

The population of Nagaland depends intensely on Agriculture and other natural resources

for livelihood. Agriculture and allied sector is the largest employer, which provides

employment to around 72 percent of the working population. The contribution of the sector to

GSDP is declining, but still the importance of the same in GSDP remains. The growth rate of

the Primary sector in Nagaland however shows fluctuating trends and were -6.22 percent in

2015-16 and -0.59 percent in 2016-17. This fluctuating trend underlines the potential

challenges to the sector.

Figure 2.11: Growth Rate of Primary Sector



The primary sector comprises of activities related to Agriculture, Forestry & Logging,

Fishing, and Mining & Quarrying, cultivating crops and raising livestock. Economic

performance under this sector is mainly driven by the first activity, namely – agriculture,

forestry and fishing. The primary sector contributes 28.42 percent in the GSDP of Nagaland.

Within this component, agriculture, forestry and fishing segment contributes around 49

percent to Primary Sector’s GSDP, which is Rs. 4914 Crore. Majority of the people in

Nagaland (more than 60 percent) work in Agriculture. However, the growth of this sub-sector

has been declining since 2013-14. In addition, since 2013-14 the sub-sector with the lowest

growth rate among other primary sub-sectors is Livestock. On the other hand, highest growth

has been witnessed for Mining and Quarrying segment, which contributes just 1 percent

in Primary Sector’s GSDP. The components provide an idea on the state’s potential exports.

Table 2.5 shows the sector-wise growth rate in value–added within the primary sector.

-0.6

2012-13 2013-14 2014-15 2015-16 (Q.E) 2016-17 (A.E)

-6.21

2.8 5.6

10.5 12

10

8

6

4

2

0

-2

-4

-6

-8

23

Figure 2.12: Percentage Contribution of sub-sectors to the Primary Sector in 2016-17



Table 2.5: Growth Rate of Gross State Value Added by Primary Activity at Constant

(2011-12) Prices

Item 2012-13 2013-14 2014-15

2015-16

(Q.E)

2016-17

(A.E)

Agriculture, forestry and fishing 6.18 9.79 2.61 -6.5 -0.76

Crops 15.25 17.35 3.12 1.38 0.85

Livestock -7.09 -2.33 -0.7 -42.67 -12.37

Forestry and logging -3.09 -0.71 3.8 -1.65 -0.82

Fishing and aquaculture 4.22 4.68 4.92 4.26 4.25

Mining and quarrying -32.45 83.69 14.89 9.86 7

PRIMARY 5.6 10.5 2.8 -6.21 -0.6

Source: Economic Survey of Nagaland 2016-17, Directorate of Economics and Statistics of Nagaland,

CSO

Crops

Forestry and logging

Mining and quarrying

Agriculture, forestry and fishing

Livestock

Fishing and aquaculture

35%

49%

5%

1% 1% 9%

24

As Agriculture, forestry and fishing hold the major share in Primary activity, a brief note on

the same is important. The farming practices used in Nagaland is the traditional Jhum, Terrace

Rice Cultivation (TRC) and Wet Rice Cultivation (WRC). Jhum cultivation (or Shifting

cultivation) is an inherent part of the Naga culture which is profoundly established in their way

of life, traditions and convictions. Though there is existing some environment and

productivity related arguments against Jhum cultivation, it is still practiced by farmers as

most of their home necessities can be fulfilled by maximizing cropping in a unit field.

The Horticulture sector covers a wide array of crops like fruit crops, vegetable crops, potato

and tuber crops, ornamental crops, medicinal and aromatic crops, spices and plantation crops

and so on. Horticulture has developed as the budding agricultural enterprise and it would be

instrumental in speeding the growth of the State’s economy. The sector has so far played an

important role in the state’s nutritional security as well as employment generation programs.

In particular, the sector has a huge potential in creating value-added products.

In the global market today, a demand is emerging for organic produce very fast, which

fetches a premium price in key destinations. Agricultural produce from Nagaland has the

potential to reach the lucrative commercial markets but the possibility is constrained by hilly

terrain and topography. The main crops that grow in the State include rice, maize, pulses,

oilseeds, sugarcane, potatoes, ginger etc. Rice is the staple food of the state, which is

cultivated in about

52.34 per cent of the net area sown. According to Economic Survey of Nagaland (2016-17)

figures, rice production recorded during 2015-16 stands at 482.08 MT.

As per Census 2011, the total number of farming households in Nagaland stands at around

2.5 lakh. It has been noted that the area under cultivation is increasing over time. In 2016-17,

it is anticipated that the net sown has increased to 384,770 hectares and total cropped area has

increased to 519,226 hectares. Cropping intensity, which refers to raising the quantity of crops

from the same field during one agricultural year, was found to be 134.94 percent in 2016-17,

accounting an increase of 9.72 per cent since 2005-06. The land use scenario in the state is

summarized in Table 2.6. The rising cropping intensity indicates a possible generation of

marketable surplus, which can be channelized for exports.

25

Table 2.6: Land use Statistics in Nagaland (in Hectares)

2005-06 2011- 2012- 2013- 2014-15 2015- 2016-17

12 13 14 16 (anticipat

ed)

Net Area Sown 308887 379469 380222 380468 383851 383922 384770

Total Cropped Area 386797 474339 488522 499311 500073 507463 519226

Cropping Intensity 125.22 125.00 128.48 131.24 130.28 132.18 134.94

Net Irrigated Area 67350 83500 88410 90970 96850 103500 112010

Gross Irrigated Area 106150 92040 92450 99790 106000 114420 122880

Net

Intensity

hectare)

Irrigation

(Kg/

21.80 22.00 23.25 23.91 25.23 26.96 29.11

Gross

Intensity

hectare)

Irrigation

(Kg/

27.44 19.40 18.92 19.99 21.20 22.55 23.67

Source: Economic Survey of Nagaland 2016-17

The area under major agricultural crops (in hectares) and the output scenario in Nagaland

are summarized in Tables 2.7 and 2.8 respectively. From Table 2.7 it is seen that cultivation of

cereals account for the major proportion of cultivated lands in the state. The area under

agricultural crops has increased by 7.04 percent in the span of 5 years from 2011-12 to 2014-

15. The area of cultivations under pulses and oilseeds are increasing at a modest pace since

2011-12. However, cultivation under commercial crops have witnessed a major increase. Over

the span of five years (i.e., from 2011-12 to 2014-15), area under commercial crops has

increased by 9.99 percent, while the corresponding figure under oilseeds stood at just 2.40

percent.

The rise in cultivable lands have been reflected in the output values. From the figures in

Table 2.8, it can be noted that agricultural crops have increased by 13.78 percent. The increase

in the food grains production stood at 18.66 percent, while oilseeds production has increased

just by 2.79 percent.

26

Table 2.7: Area under Major Agricultural Crops (in Hectares)

Crops 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

(anticipated)

Food grains 299690 303250 310050 316200 322830 332640

a. Cereals 264750 267050 273300 279200 285340 294260

b. Pulses 34940 36200 36750 37000 37490 38380

Total Oilseeds 66280 66820 67100 67300 67870 68300

Commercial

crops

35540 37120 37920 38500 39090 40050

Total 401510 407190 415070 422000 429790 440990


Table 2.8: Production under Major Agricultural Crops (in M.T)

Crops 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

(anticipate

d)

Food grains 570440 598960 625280 651270 676900 711430

a. Cereals 533270 558510 583680 608870 633790 667170

b. Pulses 37170 40450 41600 42400 43110 44260

Total

Oilseeds

68120 68900 69300 69500 70020 70550

Commercial

crops

424230 440240 448950 457000 462350 473760

Total 1062790 1108100 1143530 1177770 1209270 1255740


The average output values for agricultural products per hectare in Nagaland is shown with

the help of Table 2.9. Though there is a rise in overall average output per hectare, the trend is

not distributed evenly across all sectors. It is seen that within foodgrains, the rise is observed

for cereals and pulses, but in the oilseed segment a stagnating trend emerges. On the other

27

hand, under commercial crops a declining trend is visible. The observation underlines a need

to provide pre and post-harvest supports to the farmers engaged in cultivation of pulses,

oilseeds and commercial crops.

Table 2.9: Average Output Trends for Major Agricultural Crops (M.T. / Hectares)

Crops 2011-12 2012-13 2013-14 2014-15 2015-

16

2016-17

(anticipated)

Food grains 1.90

1.98

2.02

2.06

2.10

2.14

a. Cereals 2.01

2.09

2.14

2.18

2.22

2.27

b. Pulses 1.06

1.12

1.13

1.15

1.15

1.15

Total

Oilseeds

1.03

1.03

1.03

1.03

1.03

1.03

Commercial

crops

11.94

11.86

11.84

11.87

11.83

11.83

Total 2.65

2.72

2.76

2.79

2.81

2.85


The agricultural sector benefits from the regular supports provided to cultivators for

different crops under several programs run by State Government like National Food Security

Mission (NFSM), Agricultural Technology Management Agency (ATMA), Rashtriya Krishi

Vikas Yojana (RKVY), National Mission for Sustainable Agriculture (NMSA), National

Mission on Oilseed and Oil Palm (NMOOP), National Mission on Agricultural Extension and

Technology (NMAET), North Eastern Council (NEC), Agricultural Economics And Statistics

(EARAS) and Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). In April 2017, Krishi Vigyan

Kendra (KVK), Dimapur, structured a demonstration and training on soil health management

for the tribal farmers to address a wide range of issues, namely - elucidate the dearth of water

during trim season, water-logging in valley lands, loss of top fertile soil through run-off

water, soil productivity related constraints on soil acidity, fertility constraints, low use of

fertilizers and its low efficiency, low rate of improved agricultural practices, limiting soil

depth and so on.

However, in spite of the increase in the food-grain production, the rising population size has

led to a decline in per capita availability of food. As a result, the state is concerned about

28

increasing both the value of production and per hectare productivity through both technology

use on the farming land (e.g., high-yielding variety seeds, quality farm machinery) and

handling (re-skilling of the cultivators with better farm practices). One important sub-sector

under agriculture that is emerging as the potential sector to exploit is horticulture, reflected

through rise in area and production of such crops. The state has the advantage of having the

amiable conditions for the cultivation of various horticultural crops due to the favourable

presence of agro climatic zones.

The farmers have already started realizing the potential to earn profits through horticulture

crops. In the state, this sector has emerged from kitchen gardens, nurseries and small farms to

engaging in activities of noticeable horticultural crops like Orange, Pineapple, Banana, Flower,

Large Cardamom, Naga Mircha, Naga Cucumber, Ginger, and Turmeric. Government is also

running various programs to increase the growth of this sector, e.g., the “Mission for

Integrated Development of Horticulture” (MIDH). Its prime objective is to advance

production and productivity of horticulture crops through various interventions. As per

Directorate of Economics and Statistics of Nagaland, 1950 hectares of area has been brought

under area expansion for various horticultural crops with an amount of Rs. 5.61 Crores under

MIDH during 2015-16. The growth of Horticultural crops can be seen through the growth of

area and production of Fruits and Vegetables, Spices of Nagaland, Plantation Crops, and

Floriculture. The production and cultivation scenario for other agricultural crops is shown with

the help of Table 2.10.

Table 2.10: Scenario for Other Agricultural Crops in 2016-17

Crop Production

(`000 tonnes)

Area

(`000 HA)

Productivity

(Tonne / Hectare)

Fruits 393.53 38.75 10.16

Vegetables 534.24 46.33 11.53

Spices 109.3 15 7.29

Plantation crops 6.01 1.33 4.52


29

2.3.2 Secondary Sector

The production under secondary sector relates to transformation of the products from

primary sector into manufactured items that can directly or indirectly enter into use of the

consumers. It includes core Manufacturing, Electricity, Gas, Water Supply and Other utility

services and Construction. This segment is an important sector for the growth of Nagaland,

particularly from the value-addition and employment creation perspective. Secondary Sector

contributed 10.27 percent to the GSDP of Nagaland in 2016-17, revealing an overall increasing

trend. It is observed from Figure 2.13 that the growth rate of the secondary sector at constant

prices is estimated to be 5.12 percent for the year 2016-17 as compared to the corresponding

figure of 4.33 percent during the previous year.

Figure 2.13: Growth Rate of Secondary Sector

Source: Constructed with the data from Economic Survey of Nagaland 2016-17

It is observed that there has not been many significant change in the sector over the past

decades. In the early 1990s, the contribution of the secondary sector to GSDP was nearly 7

percent but it fell significantly in late 1990s. The reason for this decline is that Supreme Court

ruled out the felling of trees in 1997 that led to closure of timber industry (Nagaland Vision

2030). Afterwards the secondary sector started reviving through manufacturing. But as seen

from Figure 2.14, in recent period most of the secondary sector growth in 2016-17 is driven by

the expanding construction sector rather than core manufacturing activities in Nagaland. The

growth scenario (in percent) across the sectors has been summarized in Table 2.11.

-30.00%

-20.56% -20.00%

-10.00%

2013-14 2014-15 2015-16 (Q.E) 2016-17 (A.E) 2012-13

0.00%

5.12% 2.83%

4.33% 10.00%

14.14%

20.00%

30

Figure 2.14: Percentage Contribution of sub-sectors to the Secondary Sector in 2016-17

(Advance Estimates)


Table 2.11: Percentage contribution of sub-sectors to Secondary Sector

Item 2012-13 2013-14 2014-15

2015-16

(Q.E)

2016-17

(A.E.)

Manufacturing 21.3 -23.57 14.74 1.74 1.9

Electricity, gas, water supply & other

utility- ty services

2.65 -11.25 2.89 1.09 7.91

Electricity, gas & other utility services 6.23 -15.93 6.8 -1.49 8

Water supply -3.84 -1.89 -3.8 6 7.76

Construction 0.23 -22.72 17.76 5.7 4.87

SECONDARY 2.83 -20.56 14.14 4.33 5.12


Construction has become the most vigorous sub-sector with its stake in the GSDP increasing

from 7.07 percent in 2015-16 to 7.13 per cent in 2016-17. The sector contributed 58 percent to

the secondary sector’s GSDP in 2016-17. The growth of Construction sector has picked pace

in Nagaland since from 17.76 percent in 2013-14 to 4.87 percent in 2016-17. Manufacturing,

one of the vital sectors of the secondary sector consists of both registered and unregistered

manufacturing units in the state. It is contributing 9 percent to the secondary Sector’s GSDP

Construction

Electricity, gas, water supply & other utility services

Electricity, gas & other utility services

Water supply 6%

11% 58%

16%

9% Manufacturing

31

and it has shown the least growth in the year of 2016-17, which is around 1.9 percent. The

fastest growth has been reported in the Electricity, gas and other utility services which are

around 8 percent. The growing generation of utilities, signifying demand, is the sign of positive

industrial growth in the state.

However, the scope of the industrialization drive in Nagaland has remained limited owing

to presence of certain factors, which act as hurdles for secondary sector growth as well. The

first and foremost of these factors is the lack of optimal infrastructure (i.e., connectivity) that

could make Nagaland easily accessible, which includes roads, power, IT and telecom and so

on. Second, there is a challenge for capital formation and it is marked with poor banking

coverage and culture. The third main reason is the dearth of the industrial labor force,

particularly endowed with requisite skill-set. Given the thin population density in Nagaland,

majority of the population remains involved with agricultural activities. The stigma attached to

labor-oriented jobs add to the woes.

The government initiatives to build up industries like Sugar Mill at Dimapur and Paper Mill

at Tuli witnessed limits progress, given the lack of entrepreneurial and management skills.

With increasing focus of industrialization, the government has initiated the “Make in

Nagaland” plan, which presently is not having a well-focused set of products. A plethora of

policies and programs exist with the aim to promote manufacturing, e.g., incentive scheme

package that consists of power subsidy, drawal power line, manpower subsidy, subsidy for

quality control measures, special incentive for 100 per cent export-oriented units and so on.

However there is dearth of resources and technological know-how for the promotion of

industries in Nagaland. As per Directorate of Economic Services and Statistics in Nagaland

(2016-17), the state has total 1712 outstanding claims to be cleared, which amounts to Rs.

61.53 crore under Manpower Subsidy and Rs 0.29 crore from 18 claims under Power

Subsidy.

Despite these sizable obstacles, Nagaland has the potential to overcome them and deepen

industrialization in the state. For example, Nagaland has a high potential to earn through

horticulture. So far around 650 indigenous species of medicinal and aromatic plants have

been identified in the state that contribute significantly in terms of value and there is high

potential to discover newer flora in coming days. Promotion of medicinal and aromatic plants is

expected to attract big pharmaceutical companies in Nagaland, as it is happening in Sikkim.

32

2.3.3 Tertiary Sector

The Tertiary sector encompasses of all economic activities that yield or related to

distribution of services. It includes activities like Transport, Storage, and Communication;

Trade, Hotels and Restaurants, Banking and Insurance, Real E-State and Public Services. The

tertiary sector has become the most prominent sector in percentage contribution to Nagaland’s

GSDP. It is estimated that the tertiary sector has contributed 60.29 percent to the states’ GSDP

in 2016-17. Figure 2.15 depicts the growth rates of the tertiary sector.

Figure 2.15: Growth rate of Tertiary Sector


The growth rate of the tertiary sector stood at a higher level of 6.27 percent in 2016-17

against the 2015-16 estimate of 3.33 percent. The percentage contribution by different sectors

has been shown with Figure 2.16. The major contributor to the growth of this sector is public

administration, which is contributing around 29.8 percent. After that “other service” is second

largest contributor to the GSDP (26.60 percent). Third largest contributor is real estate,

ownership of dwelling & professional services (14.90 percent).

2.00% 2.61%

0.00%

2012-13 2013-14 2014-15 2015-16 (Q.E) 2016-17 (A.E)

3.33% 4.00%

6.27% 6.57%

8.00%

6.00%

10.48% 10.00%

12.00%

33

Figure 2.16: Percentage Contribution of sub-sectors to the Secondary Sector in 2016-17

(Advance Estimates)

Source: Constructed from Economic Survey of Nagaland 2016-17

Air Transport is showing the largest growth since 2014-15 in Nagaland. It had shown growth

of 169.72 percent in 2014-15, while in 2016-17 the corresponding estimated figure stood at

48.73 percent. However the value contribution of air transport to the tertiary sector has been

just 0.80 percent in 2016-17. Public administration showed the largest contribution (29.80

percent) among all the other sub-sectors and its growth rate was also significant over the several

years. Services like trade, repair, hotels and restaurants and real estate, ownership of dwelling

have shown significant contribution among all the other sub-sectors in Nagaland. Water

transport showed negative growth rate among the others. The sub-sector transport, storage,

communication and services related to broadcasting, which contributes 9.40 percent in GSDP,

has witnessed a rise in its growth rate over the past five years. The sub-sectoral growth rates

are summarized in Table 2.12.

35.00%

30.00%

25.00%

29.80%

26.60%

20.00%

15.00%

10.00%

14.90% 13.00%12.30%

9.40%

4.70% 3.90% 6.30%

4.60% 5.00%

0.00% 0.60% 0.00% 0.10% 0.80% 0.00% 0.00%

34

Table 2.12: Growth rate of sub-sectors of Tertiary sector

Item 2012-13 2013-14 2014-15

2015-16

(Q.E)

2016-17

(A.E)

Trade, repair, hotels and restaurants 7.97 -4.47 2.29 3.63 1.49

Trade & repair services 8.26 -4.43 2.13 3.49 1.45

Hotels & restaurants 2.36 -5.33 5.51 6.5 2.1

Transport, storage, communication &

services related to broadcasting 2.24 7.14 6.71 14.3 9.16

Railways 19.37 -36.21 0.35 14.63 -7.29

Transport by means other than Railway 5.08 -8.73 7.79 13.28 6.14

Road transport 5.43 -7.73 0.71 11.17 0.91

Water transport -51.52 -36.59 26.58 27 -15.15

Air transport 72.7 -18.6 169.72 29.98 48.73

Services incidental to transport

Storage 44.28 -23.31 6.95 5.46 2.53

Communication & services related to

broadcasting -2.39 33.59 5.59 15.45 12.63

Financial services 9.18 0.33 5.69 -0.1 3.55

Real estate, ownership of dwelling &

professional services 7.59 -5.14 0.7 0.85 0.22

Public administration -2.14 34.53 1.03 1.03 9.39

Other services 15.79 12.18 3.83 4.78 8.65

TERTIARY 6.57 10.48 2.61 3.33 6.27


2.3.4 Export Market

Nagaland has a great potential to export from its wide diversity of flora and fauna that can

provide the value effect to the population. Although the present export volume of Nagaland is

relatively small, it contributes around 0.005 percent to the total exports from India in 2014-15

as per the data of Ministry of Commerce and Industry, Government of India (2016). The export

from Nagaland data is summarized in Figure 2.17. It is observed that Nagaland’s total export

was worth of Rs. 1.55 Crore in 2009-10, which increased to Rs 19.42 Crores in 2013-14.

Exports from Nagaland however declined to Rs 9.42 Crores in the next year during 2014-

15. The Government of Nagaland has attempted to increase exports from the state by giving

35

special incentives for 100 percent export-oriented units. However, one of the major

underlying reasons behind low contribution of Nagaland to the Indian export basket is

because of infrastructural bottlenecks. Nagaland Industrial Development Corporation (NIDC)

is liable for the development of industrial infrastructure within the state. Promoted by NIDC,

the Export Promotion industrial park (EPIP) at Dimapur has received formal approval as a

special economic zone (SEZ) for the agro and food process sectors, which is expected to

provide the much-required push for exports from the state.

Figure 2.17: Export Scenario from Nagaland


2.4 Infrastructure Status of the State

Nagaland is situated in the North-East Region of the country with the hilly and mountainous

area on one side and thinly inhabited area on the other side. In such kind of terrain,

infrastructure becomes one of the vital requirements for economic development in general and

exports in particular. This section provides a brief account of the existing infrastructure

scenario in the state.

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

0

0.95 2.24 1.55 3.40 5

10

10.00

15

20 19.42

25

(Rs.

in C

rore

)

36

2.4.1 Physical Infrastructure

Table 2.13 summarizes the physical infrastructure status of Nagaland.

Table 2.13: Physical Infrastructure Status of Nagaland in comparison with All India

Physical Infrastructure Nagaland All India

Installed power capacity (MW) 154.87 330,273.65 as of June 2017

Wireless subscribers (No) 12,478,604

1,180,824,744 as of May 2017

Internet subscribers (No) 4,750,000

422,190,000 as of March 2017

National highway length (km) 1,150.09 100,087.08

Airports (No) 1 125

Source: IBEF, July 2017

Developments in major sectors of the economy require adequate physical infrastructure and

services like transport, communication, power etc. Physical and economic infrastructure is

majorly reliant on the transportation linkage of the state. Transport system in Nagaland

comprises of road, railways and air transport. However, road transport shoulders principal

importance in the state because Nagaland being a land-locked state in a hilly terrain, possibility

of enhancing communication by air and railway significantly is limited.

The road transportation network in Nagaland is summarized in Table 2.14. As per Economic

Survey of Nagaland 2016-17, Nagaland State Transport provides the effective transportation

service with the strength of 214 buses covering all the 11 districts which have road accessibility.

It has around 1,150.09 km of national highways in 2015-16. The state is well-linked with

Assam and Manipur through National Highway (NH)-61, NH-39, NH-36, NH-150, and NH-

155. Table 2.14 shows the road length (in Km) of Nagaland, under various heads. The total

road length of the State during 2016-17 excluding the National Highways is 12079.8 Km. This

measure has subsequently witnessed a decline from the previous year’s figure because of the

changes in classification and up-gradation of roads from Other District Road (ODR) to Major

District Road (MDR) or to State Highway. The Government of Nagaland has allocated

substantial funds for the development of roads and bridges in the state to enhance connectivity.

As per IBEF (2017), in 2016-17 the State Government had allotted US$ 40.91 million for this

purpose.

37

Table 2.14: Road Length of Nagaland in 2015-16 and 2016-17

Category 2015-16 2016-17

Road Length (in Km) Road Length (in Km)

State Highway 925 1129

Major District Road (MDR) 1889.65 1751.25

Other District Road (ODR) 3383.58 3377.95

Village Road (VR) 5516.77 4420.5

Urban Roads 391.38 459.3

Town Roads 925.45 941.8

Total 13031.83 12079.8


Railways also serve as the major link of connecting Nagaland with other states via Assam

to make transportation of goods and people easier, as well as to facilitate tourism segment

therein. Dimapur is the only railway station in Nagaland and is on the Guwahati-Dibrugarh rail

section. In August 2016, Union Minister of Railways laid stone for the construction of

Dimapur-Zubza railway line connecting Kohima, which would significantly augment the

connectivity of the state, and consequently the export opportunity. Survey for rail link in the

foot hills of the state from Dimapur – Tizit (246.25 Km) has been completed.

Nagaland also has one operational airport at Dimapur. A second airport is being planned

for the state capital, Kohima. The Government of Nagaland is aiming to shift the current

airport at Dimapur to Razaphema to accommodate demands for commerce and cargo. As per

the data provided by the Air authority of Nagaland, the Aircraft movements are reduced

from 2,307 to 2,251. But the number of passengers and freight (in terms of tons) has

increased by more than 15 percent in a year, underlying the huge potential. As per the

Economic survey of Nagaland, construction of airstrips for the landing of small aircraft and

establishment of an international standard airport in the state is being pursued. In addition,

there exist the State Helicopter Service which is operated on weekly basis connecting all the

major district headquarters. Table 2.15 shows the airport indicators for the last two reported

years.

38

Table 2.15: Airport Indicators for 2015-16 and 2016-17 (April-March)

Indicators 2015-16 2016-17

Aircraft Movements (No.) 2307 2251

Passengers (No.) 111,756 144,449

Freights (Tonnes) 203 398


Power and Electricity help immensely to accelerate economic development, as the

opportunity to run machines enhances productivity and export opportunities. The energy

requirement is increasing with the increase in urbanization, industrialization, and increased

commercial and economic activities in Nagaland. The state is fully dependent on its share of

power allocation from the Central Public Sector Undertaking such as North Eastern Electric

Power Corporation Limited (NEEPCO), National Hydroelectric Power Corporation (NHPC),

and National Thermal Power Corporation (NTPC). The State has three load centers for

transmitting power across the State for 132KV and 66KV level at Dimapur, Kohima, and

Mokokchung.

The capacity of power scenario in Nagaland (installed) is shown with the help of Figure

2.18. As noted by IBEF (2017), Nagaland had total installed power generation capacity of

154.87, of which 123.70 MW was under central sector and 30.67 MW was under state utilities.

Of the total installed power generation capacity, 70.33 MW was contributed by thermal, 53.37

MW by hydro and 31.17 MW of renewable energy. As of July 2017, all villages in the state

had electricity supply. The only district which is 100 percent electrified is Kiphire.

39

Figure 2.18: Installed Capacity of Power in Nagaland

Source: Constructed from Central Electricity Authority, Ministry of Power, Government of India data (2017)

Since industrial activities are quite limited in the state at present, the problem of the power

supply is not the load factor as there exists sufficient power on the grid, if needed. As per the

Economic Survey reports of Nagaland, in 2015-16, the power requirement of the state was 755

Million units Net which is just 0.06 percent of overall power need of India. The main problem

for this segment is of delivery of services in terms of transmission, distribution, and

maintenance.

Communication facility is one the most crucial components in the improvement of the any

state in today’s world. Given the advent of internet, telecom and internet service links even the

remote locations with corners of the globe and even the exporters from small cities and towns

can link with bog corporations. Moreover the traditional network of posts can be used for

sending preliminary orders and samples as well as normal communications. The post office

network in Nagaland is shown with the help of Figure 2.19. In Nagaland, there were 328 post

offices during 2015-16 including one Head Office, 41 sub-post offices, and 286 branch post

offices. As per the data on Economic Survey of Nagaland (2016-17), Dimapur has the largest

number of post offices (55), while Longleng has the lowest number of post-offices therein (5).

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

80

60

40

20

0

103.18 120

100

116.83 117.82

140.04 131.34

154.9

180

160

140

(Meg

a W

att

)

40

Figure 2.19: Total of all kind of post office


One of the emerging and most convenient means of communicating is through the landlines

and mobile phones. Table 2.16 shows the telecom statistics for the North-Eastern states. By

May 2017, there were 1,579,124 BSNL wireless subscribers in the Northeast region and

553206 subscribers had submitted the request for number portability. In all North-eastern

states, total wireless subscribers are 12,628,816 and wireline subscribers are 118,119. It has

been observed that Tele density of North-east region is 90.2.

Table 2.16: Telecom statistics of Northeast states comprising Arunachal Pradesh,

Manipur, Meghalaya, Mizoram, Nagaland and Tripura by March 2017

Indicators Numbers

Wireless subscribers 12,628,816

Wire-line subscribers 118,119

Internet subscribers 47,500,002

Tele density 90.2

Source: Telecom Regulatory Authority of India (2017)

0

7 10

14 15 19

20

24 27 30

30

36 40

49 50

52 55 60

41

2.4.2 Social Infrastructure

To enhance human well-being, amenities such as education, shelter, health care, water and

sanitation need to be concerned about, that collectively accounts for the essential parts of the

social infrastructures.

2.4.2.1 Education

Presence of a vibrant education sector, encompassing integrated primary, secondary and

tertiary segments, is the base for all-round development of the society. It also contributes to

decrease the social inequities within the economy, by providing learning and career

opportunities to young and energetic minds. It is also one of the vital components to measure

the Human Development Index (HDI) in a region. Thus, it is important to develop education-

related infrastructure to educate the society, eradicate social evils like poverty, reduce

inequality and motivate potential entrepreneurs. The number of educational institutions by

category in Nagaland are summarized in Table 2.17.

Table 2.17: Number of Different kind of Educational Institutions in Nagaland

Institution Number

Central University 1

State University 1

Private University 1

Institution of National Importance 1

Total 4

Source: Statistical Handbook of Nagaland, 2016

Nagaland has a literacy rate of around 79.55 percent as on 2015-16. The Nagaland

University (NU) offers bachelors, masters and academic degree degrees in a wide array of

subjects, namely - science, humanities and education, scientific discipline, engineering and

technology, and management. The department of higher education is involved in activities like

awarding scholarships, constructing academic buildings, and employing and training quality

manpower on a regular basis. In 2015, the Transport and information Technology and

Communication departments of the state prepared a project report, estimating an amount of

42

US$ 8.34 million for the event of e-mobile classrooms within the state. As of March 2017, an

engineering college and a School of Planning and Architecture are being planned to be opened

within the state, under the guidance of Union Ministry of Human Resource Development.

The number of educational institutions by ownership category in Nagaland are summarized in

Table 2.18.

Table 2.18: Distribution of Colleges under ownership and field of study

Colleges Number Colleges Number

Government 15 Arts 46

Private 48 Science 09

Total 63 Commerce 16

Total 63


As per Statistical Handbook of Nagaland, 2016 (Tables 2.17 and 2.18), the state has 4

universities that account for 63 total colleges in the state. The government college network is

limited, while the presence of colleges with science stream is also limited. However, with the

growing presence of private institutions, more students are getting degrees through them as

compared to the government institutes. It is seen from Figure 2.20 that in 2015-16, 17,977

degrees are awarded to the students from private institutions as compared to the

corresponding number of 6157 degrees given to the students from government institutions.

The number of educational institutions by ownership category in Nagaland are summarized in

Figure 2.21. One challenge for the state is that education infrastructure within the state is

improving only as a moderate pace, as private and government institutions have not increased

much over the past 5 years.

43

Figure 2.20: Number of Students who attained degree from Private and Government

Colleges

Source: Constructed from Statistical Handbook of Nagaland, 2016

Figure 2.21: Number of Institutions by ownership in Nagaland

Source: Constructed from Statistical Handbook of Nagaland, 2016

2.4.2.2 Health

Healthcare is one of the foremost crucial inputs for human well-being and determines the

level of human activities. Besides its standard meaning, it is one of the important ingredients

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Government 6157 5347

6066 5893 5953 5945 8000

6000

4000

2000

0

Private

14553 14726 14115

15085 16000

14000

12000

10000

17007 17977 20000

18000

60

50 46 46 48

41 43

40 38

30 Private

Government

20 14 15 15 15 15 15

10

0

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

44

for measuring the human development index. Health condition and achievements in a society

are supported by its physical infrastructural facilities like Hospitals, Dispensaries,

Community Health Centers (CHC), Primary Health Centers (PHC), Subsidiary Health Centre

(SHC), Dispensaries, Sub-Centre (SC) and medical personnel like Doctors, Nurses and

Pharmacists. The district-wise medical institution scenario in Nagaland is shown with the help

of Table 2.19.

Table 2.19: District-wise number of Health institutions in Nagaland

District Health Unit

CHC PHC SHC BD SC Total

Kohima 3 14 - - 41 58

Mokokchung 3 14 - 2 52 71

Tuensang 2 12 1 - 39 54

Mon 2 15 - - 51 68

Phek 3 23 - - 45 71

Wokha 2 12 - - 38 52

Zunheboto 2 13 - - 49 64

Dimapur 2 8 - 1 48 59

Peren 1 8 - - 17 26

Longleng - 3 - - 8 11

Kiphire 1 4 - - 21 26

Total 21 126 1 3 409 560


In Nagaland, there exist a total of 560 health units, of which 409 are SCs and 126 are PHCs.

While there is only one SHC in Tuensang as per the estimates of 2015-16. By August 2016, it

had an around 752 hospitals, 151 primary health centers, 558 sub-centers, 29 community health

centers and 14 district hospitals (IBEF, July 2017). Community participation in healthcare

services has led to enhanced maintenance and upgradation of medical infrastructure within the

state. During the 2017-18 budget, the government had planned to apportion US$ 95.76

million for the medical and public health.

However, one challenge associated with the delivery of public healthcare in Nagaland is

that the medical institutes are often not well-connected by roads. One alternate to the challenge

45

might lie in allowing more private hospitals, but they exist only in urban areas of Kohima and

Dimapur. As seen from Table 2.20, presence of trained manpower (i.e., doctors and nurses) is

also less in the state. Upon addressing these challenges, the state can emerge as a major

exporter for medical services.

Table 2.20: Manpower employed in the Healthcare sector of Nagaland

Manpower State National Health Mission (NHM) Total

Doctors (General, Specialist, Dentist) 422 70 492

AYUSH Doctors 06 40 46

General Nursing & Midwifery (GNMs) 348 277 625

Lady Health Visitor (LHV) 59 0 59

Auxiliary Nurse Midwife (ANMs) 850 295 1145

Pharmacists 490 0 490

Lab. Technician 67 44 111


As highlighted in “Nagaland Vision 2030”, IT services in healthcare has been identified as

a major area of intervention. This will enable people to consult medical specialists located in

urban centres even from the remote areas without being physically present in front of the

doctor. Naga Hospital Authority is planning to soon launch the E-hospital facilities for the

Nagaland’s people. Such infrastructure, once established, would play a significant role in

promotion of medical service exports as well.

2.4.3 Industrial Infrastructure

Industrial infrastructure has a crucial role to play to improve the economic situation of the

state. As noted earlier, presently industrial development in Nagaland is only moderate as there

are not many major industries established in the State. Government has set up Nagaland

Industrial Development Corporation (NIDC), which is liable for the development of industrial

infrastructure within the state. NIDC has also tried to improve the international business from

Nagaland by approving special economic zone (SEZ). By June 2017, 2 SEZs are approved by

the State, while in India, there exists 331 SEZs. First, the Export Promotion Industrial Park

(EPIP) for the agro and food process sectors has been formally approved as an SEZ with an

46

area of 50.7 hectares in Dimapur district. Second, another Multiproduct SEZ has been planned

in Dimapur district, Nagaland.

Moreover, at Ganeshnagar close to Dimapur industrial growth center (IGC) has been

developed to support the key infrastructure areas like, banks, post offices, water system

systems, etc. The state has also established a number of Micro, Small and Medium Enterprises

(MSME) industrial clusters, which are principally located in the areas of Kohima, Wokha and

Mokokchung districts of Nagaland. An Integrated Infrastructure Development Centre (IIDC)

was been inaugurated at Kiruphema in Kohima. The state has also build a financial institution,

North-eastern Industrial Consultants Ltd (NECON) to help and provide services to the

entrepreneurs within the state. The industrial infrastructure thus presently includes industrial

training institute, small scale industries, veterinary farms, hospital, etc., all of which play a

crucial role in the industrial development in general and exports in long run. Table 2.21

summarizes the industrial infrastructure in the state. The location of the industrial clusters, their

major products and the firm-intensity therein are noted in Table 2.22.

Table 2.21: Units of Industrial Infrastructure present in Nagaland

Industrial infrastructure Units

District Industries Centre (DIC) 11

Sub-DICs 6

International border trade centers 5

SEZ (agro & food processing) 1

Old industrial estate, Dimapur 1

New industrial estate, Dimapur 1

Mini industrial estates 2

Growth centers 6

Industrial zones 12

Source: IBEF 2017

47

Table 2.22: MSME clusters in Nagaland - location, products in which MSME deals and

units under cluster

MSME clusters in Nagaland District Major products Total units

Fabrication and general

engineering

Kohima welding , Grill, gate, shutte

27

Mokokchung 25

Handloom cluster Kohima handloom , Local loom 50

Longmisa, Mokokchung Cloths, shawl, cot, mekila 20

Bee-keeping Kohima Honey products 45

Cane & bamboo cluster Khar, Mokokchung Cane chair, basket, table,

bamboo mat, bag

25

Pottery cluster Changki, Mokokchung Pot, vase, decorative design

items

15

Stone cluster Wokha Stone crushing, stone chips,

boulder

25


2.5 Doing business in Nagaland

As the discussion indicates, despite the great business potential in the state, lack of certain

infrastructure function as a disincentive to do business in Nagaland. Primarily owing to this

factor and other drivers, Nagaland presently enjoys a modest rank in the “Ease of Doing

Business” scale. The state has improved significantly because of the efforts made by

government. As per the statistics of Economic Survey of Nagaland, Nagaland had earlier had

a modest rank of 31, which has improved to 28th position in 2018 (DIPP Documents). To

encourage business, Department of Industries and Commerce in Nagaland has put lot of

energies for setting up several small scale and cottage, medium sized and large scale industries.

The notable state government initiatives include setting up of Industrial Growth Centre at

Ganeshnagar, the Nagaland Bamboo Mission at Dimapur under the Nagaland Bamboo

Development Agency Export Promotional Industrial Park, Nagaland Mini Tool Room and

Training Centre at Dimapur, establishment of border trade centers at 5 places along the

international bordering areas and so on.

48

2.5.1 Key Sectors

Nagaland has several key sectors which can foster growth, in terms of export business,

namely - agriculture and allied sectors (floriculture, horticulture, rubber plantation, sericulture,

tea cultivation and processing, bamboo shoot preservation, mushroom cultivation and

processing, piggery, poultry, etc.), minerals and mining, handloom and handicrafts and

tourism. These sectors have been reviewed in terms of export possibilities.

Agriculture and allied activities have shown growth in the areas under cultivation though

improvement in productivity across all of these segments are not evenly growing. Because

Nagaland has an appropriate climate for agricultural and horticultural produce, it can produce

multiple types of crops, including exotic ones and medicinal herbs. This opens a major

opportunity for possible exports from Nagaland.

Horticulture has developed as a latent agronomic enterprise. In Nagaland, this sector has

progressed from nurseries, kitchen gardens, and small farms. The major horticultural produce

basket includes Orange, Pineapple, Banana, Flower, Large Cardamom, Naga Mircha, Naga

Cucumber, Ginger and Turmeric. According to the data provided by Economic Survey of

Nagaland, MIDH has spent Rs. 5.61 Crores to expand area under horticulture. Banana and

Pineapple have the highest productivity out of the major fruits and vegetables grown in

Nagaland. In 2015-16, Banana marked a productivity of 15,091 kg/hectare and pineapple of

13,781 kg/hectare, followed by Papaya and Jackfruit with productivity levels of 12,358

kg/hectare and 12,332 kg/hectare respectively. Among the vegetables, Tapioca marked the

maximum productivity with 14,897 kg/hectare, followed by carrot and chowchow with

corresponding figures of 11,958 kg/hectare and 11,923 kg/hectare respectively.

Nagaland also produces variety of spices like Cardamom, Black Pepper, Turmeric and Naga

Chili. During 2014-15 the total area of cultivation under spices was 5,682 hectares that

achieved the production of 19,765 MT. Within spices turmeric recorded the peak productivity

with 15,843 kg/hectare during 2015-16. The major plantation crops grown in Nagaland include

Coconut, Arecanut, Cashewnut and Coffee. The total area of cultivation under plantation crops

recorded at 4,596 hectares in 2014-15, which increased to 4,679 hectares in 2015-16.

Nevertheless, the quantity of production diminished by 269 MT. The area of production under

fruits and vegetables in Nagaland are shown with the help of Figure 2.22.

49

Figure 2.22: Area of Fruits and Vegetables in Nagaland


Another prominent sector in Nagaland is Bamboo cultivation, which is practiced in the state

through centuries and can be widely found all over the state. In the present context, bamboo is

attached with good value because it acts as an alternative to the expanding demand of timber

and wood, which are with time becoming scarce, reflected in rising cost. This growing sector

is considered as the highest yielding renewable natural resource. Taking note of the fact,

Nagaland has initiated the Nagaland Bamboo Policy and it the studies reveal that Bamboo can

be used in more than 1500 ways, covering various applications such as food-based, handicraft,

art, medicinal usage, tiles and flooring.

The Development of Bamboo Industry in the State is seen in a Mission mode, which is

designed by government in two forms:

a. Development of Bamboo as a Resource

b. Development of Bamboo as an Enterprise

For the business purpose Nagaland Bamboo Development Agency (NBDA) has been set

up, which acts a point of coordination with all the entities that are involved in bamboo-related

research, development and business applications. The purpose of establishing NBDA is to garb

the latent potential that bamboo has for contributing to the economic growth, reduce poverty,

2011-12 2012-13 2013-14 2014-15 2015-16

20.000

10.000

0.000

Fruits

Vegetables 30.000

33.656 37.479 40.000

42.155 41.459 40.760 44.36 44.09

57.61

50.000

56.16 60.000 59.24

70.000

Are

a (i

n H

a.)

50

*

generating employment and to enhance ecological well-being of the state. One of the notable

movements of the state to promote bamboo was the inauguration of country’s first bamboo

toilet in Nagaland in July 2015 by the Governor of the State. Over time, a wide array of bamboo

products have been developed which can be considered for exports in the long run. The funds

allocated under National Agroforestry and Bamboo Mission over the last five years is shown

in Figure 2.23.

Figure 2.23: Funds allocated under National Agroforestry and Bamboo Mission (in US$

million)


* Fund released as per Ministry of Agriculture, PIB

Two other segments that have huge potential to grow in Nagaland are the practice of

Apiculture and Sericulture. Agro-climatic conditions of the state aligns with the sericulture

atmosphere. As per the report of Niti Ayog entitled, “Report of the Task Force Nagaland

Executive Summary” (2015), Government has allocated Rs. 400 lakhs for the Nagaland

Beekeeping and Honey Mission and Rs. 600 lakhs for Sericulture in 2016-17. The state has

estimated the production potential of 15,000 MT of honey and 100 MT of wax, which could

generate approximately US$ 100 million per annum. The production of honey was recorded to

be 0.43 thousand tonnes for 2016-17. Despite the growth potential, the sector is presently

characterized by low level of technology, limited investment, low productivity, moderate

quality and lack of market initiative. To aid operations of sericulture at the district-level, district

sericulture offices has been set up in all the 11 districts of the Nagaland. Manufacture of raw

2017-18* 2016-17 2015-16 2014-15 2013-14

0.5

0

0.44 0.6

1.5

1

1.33 2

1.74

3

2.5

3.1 3.5

51

silk in the state of Nagaland stood at around 678 MT in 2016-17. Thus, the state aims to increase

its silk production to 1,700 MT, over the 12th Five-Year Plan period. For a period of three

years (from 2014-15 to 2016-17), projects worth US$ 4.8 million have been allocated to the

state by the central government.

Tourism is one of the vital sectors that have the major contribution towards the revenue-

generation and development of all the North-eastern states, and Nagaland is no exception. The

state provides attraction for tourists given its pleasing weather, olive hills, crisscrossing

rivers, sprinkled lakes, vivacious culture, vivid handicrafts and weavings, and several festivals.

The places to visit in Nagaland include Japfu Peak, World War II Cemetery, Kohima Village,

etc. As per the Ministry of Tourism Statistics, in 2016, Nagaland has attracted 58,178 domestic

tourists and 3260 foreign tourists. Inflow of both domestic and foreign tourists to the state has

been increasing over the years. Maximum tourists visit the state during Hornbill Festival in

December. However, as seen from Figure 2.24, in 2016 there has been decline in Domestic

tourism because of the domestic economic undercurrents.

Figure 2.24: Number of Domestic and Foreign Tourists in Nagaland


FORIEGN DOMESTIC

2016 2015 2014 2013 2012 2011 2010

0

3260 2769 2585 2305 2173 1941 1495

20000

10000

21004 25216 30000

28945

50000

40000

52350 60000

64616

58507 58178

70000

52

2.5.2 Attracting Domestic and Foreign Investment

Several major initiatives taken by the Government of Nagaland to develop the state as an

attractive hub for businesses. In 2016-17, for development of roads and bridges in the state,

Nagaland allocated US$ 40.91 million (IBEF, 2016). The Government has also allocated US$

3.74 million for the development of public health infrastructure in 2016-17, while the

corresponding figure was US$80.86 million in 2015-16. Policy considerations also cover

incentive schemes that consists of power subsidy, drawal power line, manpower subsidy,

Subsidy for quality control measures, the special incentive for 100 per cent export-oriented

units and so on.

India is receiving foreign investment, covering both brownfield (e.g., mergers and

acquisitions with access to best management practices) and greenfield (new investments with

modern technology transfer) that develops domestic sectors in general and industry in

particular. However, service sector receives the highest FDI in India as compared to the other

two sectors (agriculture and industry). FDI data is collected and maintained by Department of

Industrial Policy and Promotion (DIPP), which provides the estimates of overall FDI flows to

North-eastern States, not specifically to Nagaland. In Figure 2.25, FDI inflows to India’s North-

eastern states are given. It is observed that in 2016-17, the FDI flows to Northeast states has

declined sharply from US$ 10 million to US$ 2 million, given the global economic

undercurrents.(IBEF, 2017)

Figure 2.25: FDI equity inflows, 2008-09 to 2016-17 (US$ million)

Source: Constructed from DIPP data

45

40

35

30

25

20

15

10

5

0

42

11 8

10

5 5

1 0.6 2

53

2.5.3 Cost of Doing Business

For doing business in Nagaland, there are many permissions that are required to be taken

from the government. First, incorporation of firms needs to be done in the Department of

Registrar of Companies. Second, it has to register for the industrial entrepreneur’s

memorandum and industrial licenses and permission has to be taken for land use, the concerned

department which is the Industries and Commerce Department. Then the company has to take

clearance from Nagaland Pollution Control Board. Further, it has to register for taxes under

Excise Department. Then it requires to have sanction of power, power feasibility and power

connection from department of power. It is also required to take water and sewerage

clearance from Public Health and Engineering Department. The cost estimates of having the

business in Nagaland (IBEF, 2017) is given in Table 2.23, which indicates that there is room

for procedural improvement:

Table 2.23: Cost estimates of doing business in Nagaland

Cost parameter Cost estimate

Cost of land (per acre) US$ 50,000 to US$ 200,000 (in Kohima and

Dimapur)

Hotel costs (per room per night) US$ 15 to US$ 100

Office space rent (2,000 sq. ft.) US$ 100 to US$ 800 per month

Residential space rent

(2,000 sq. ft. house)

US$ 75 to US$ 300 per month

Labor costs

(minimum wages per day)

Unskilled: US$ 1.8

Skilled: US$ 2.2 to US$ 2.4


Nagaland is now trying to make the state a business-friendly location to work and invest.

The state has the required potential for the same, but it faces certain challenges that it needs to

overcome, most notably in the sphere of allocation of funds to enhance infrastructure in the

remotest of areas.

54

Chapter 3: Identification of Potential Exportable Products in

Nagaland

3.1 Identification of Products

The identification of the products from a geographical region, which have the potential of

capturing export markets, depends on several parameters like resource availability, market

growth trend, local production volume and capability, marketability, skills, requirements in the

market and so on. In case of Nagaland, the identification of export products need to be

conducted both for primary and value-added categories. After a detailed research, the following

criterion has been followed to identify the potential products for export from the state:

The production value, total requirement in Nagaland and then the possibility of surplus

production over consumption in the state has been the first criterion which needs to be

considered. A particular district of the state is said to have export potential if the production of

the commodity in question in the district is very high as compared to the corresponding figure

in other districts. For this purpose, the analysis first look at the product categories on the basis

of value addition.

Table 3.1 reports the gross state value added (GVA) by economic activity at constant (2011-

12) prices in Nagaland, which are classified in three categories. Under primary, value addition

is reported in the sphere of agricultural products, forestry, fishing, mining and the allied sectors.

In secondary segment, manufacturing, electricity, water supply, construction, etc. are included.

Finally within tertiary category, roads, railways, transport, financial services, storage and

warehousing etc. are covered. It is observed that agriculture and service sectors account for

majority of state GVA.

Table 3.2 reports growth rate of gross value added (GVA) by economic activity at current

(2011- 12) prices in Nagaland. It is observed that during 2016-17, primary, secondary and

tertiary sectors grew at a rate of 6.64, 7.25 and 12.54 percent respectively. The seb-sectors

characterized by growth rate in excess of 8 percent are: Air transport (33.51 percent),

Communication and services related to broadcasting (17.48 percent), Hotels and restaurants

55

(9.89 percent), fishing and aquaculture (9.22 percent), crops (8.96 percent), Electricity, gas,

and other utility services (8.06 percent), Trade, repair, hotels and restaurants (8.05 percent).

Table 3.1: Gross State Value Added by economic activity at Constant (2011- 12) prices

(In Rs. Crore)

S No. Item 2011-

12

2012-

13

2013-

14

2014-

15

2015-

16(Q.E)

2016-

17(A.E)

1 Agriculture, forestry and fishing 3734 3964 4353 4466 4176 4144

1.1 Crops 2043 2355 2763 2849 2889 2914

1.2 Livestock 831 773 755 749 430 376

1.3 Forestry and logging 796 771 766 795 782 775

1.4 Fishing and aquaculture 63 66 69 73 76 79

2 Mining and quarrying 57 38 70 81 89 95

PRIMARY 3790 4003 4423 4547 4264 4239

3 Manufacturing 151 183 140 161 164 167

4 Electricity, gas, water supply

and other utility services

295 303 269 277 280 302

4.1 Electricity, gas, and other utility

services

190 202 170 181 179 193

4.2 Water supply 105 101 99 95 101 109

5 Construction 1051 1054 814 959 1014 1063

SECONDARY 1498 1540 1224 1397 1457 1532

6 Trade, repair, hotels and

restaurants

1052 1135 1085 1109 1150 1167

6.1 Trade and repair services 1001 1083 1035 1057 1094 1110

6.2 Hotels and restaurants 51 52 49 52 55 57

7 Transport, storage,

communication and services

related to broadcasting

578 591 633 676 772 843

7.1 Railways 4 4 3 3 3 3

7.2 Transport by means other than

Railway

343 361 329 355 402 427

7.2.1 Road transport 321 338 312 314 349 352

7.2.2 Water transport 13 6 4 5 7 6

7.2.3 Air transport 9 16 13 36 46 69

7.2.4 Service incidental to transport 0 0 0 0 0 0

7.3 Storage 1 1 1 1 1 1

7.4 Communication and services 230 225 301 317 366 413

related to broadcasting

56

8 Financial services 477 521 522 552 552 571

9 Real estate, ownership of 1293 1391 1320 1329 1340 1343

dwelling & professional

services

10 Public administration 1822 1783 2399 2423 2448 2678

11 Other services 1557 1803 2022 2100 2200 2391

TERTIARY 6778 7224 7981 8189 8462 8993

12 TOTAL GSVA AT BASIC 12067 12767 13627 14133 14184 14763

PRICES

13 Taxes on Products 383 412 436 340.95 383 383

14 Subsidies on products 273 312 270 239.4 230 230

15 GROSS STATE DOMESTIC 12177 12868 13793 14234 14337 14917

PRODUCT

16 Population ('00) 19910 20120 20340 20550 20770 20990

17 Per Capita GSDP (Rs.) 61159 63956 67810 69267 69028 71065


Table 3.2: Growth Rate of Gross State Value Added by Economic Activity at Current Prices

(In Percent and Rs. Crore)

S. No. Item 2012-13 2013- 2014- 2015- 2016-

14 15 16(Q.E) 17(A.E)

1 Agriculture, forestry and fishing 21.95 22.25 9.53 -1.4 6.66

1.1 Crops 28.47 29.75 10.12 8.7 8.96

1.2 Livestock 23.11 12.65 7.4 -41.51 -2.71

1.3 Forestry and logging 4.94 11.41 9.97 9.25 4.13

1.4 Fishing and aquaculture 10 10.21 10.14 9.18 9.22

2 Mining and quarrying 16.99 20.91 6.32 13.05 5.49

PRIMARY 21.88 22.23 9.49 -1.2 6.64

3 Manufacturing 28.29 -13.24 9.52 5.19 6.39

4 Electricity, gas, water supply and other 14.38 2.48 9.35 3.49 7.96

utility services

4.1 Electricity, gas, and other utility services 19.31 0.3 13.19 2.32 8.06

4.2 Water supply 5.48 6.94 1.98 6 7.76

5 Construction 8.19 3.62 28.04 5.26 7.18

SECONDARY 11.44 1.43 22.37 4.93 7.25

6 Trade, repair, hotels and restaurants 18.41 3.91 8.55 3.95 8.05

6.1 Trade and repair services 18.72 3.96 8.39 3.52 7.95

6.2 Hotels and restaurants 12.25 2.88 12 12.87 9.89

7 Transport, storage, communication and services related to broadcasting

9.91 12.02 7.94 23.19 12.78

57

7.1 Railways 19.58 -36.95 27.02 9.94 -1.26

7.2 Transport by means other than Railway

7.2.1 Road transport 13.64 -5.57 0.47 28.69 6.17

7.2.2 Water transport -47.72 -32.41 28.9 29.05 -11.32

7.2.3 Air transport 86.12 -13.14 174.41 33.5 33.51

7.2.4 Service incidental to transport

7.3 Storage 55.37 -17.65 10.94 11.3 9

7.4 Communication and services related to broadcasting

4.64 42.73 7.64 16.95 17.48

8 Financial services 11.39 7.42 -10.52 15.93 4

9 Real Estate, ownership of dwelling & professional services

7.62 6.35 7.93 7.91 7.35

10 Public administration 7.35 35.36 11.6 5.65 16.06

11 Other services 26.16 21.05 8.93 10.14 15.83

TERTIARY 13.94 17.58 8.19 8.87 12.54

12 TOTAL GSVA AT BASIC PRICES 16.12 17.19 10.1 4.97 10.04

13 GROSS STATE DOMESTIC PRODUCT

15.97 17.44 9.97 5.35 9.91

14 Per Capita GSDP (Rs.) 14.76 16.17 8.85 4.24 8.76


In the next section, the opportunities under the two main merchandise product segments,

namely, primary and secondary sectors, are discussed.

3.2 Sub-segments in Nagaland

3.2.1 Manufacturing Sector

Though the manufacturing sector’s present contribution to state GDP is moderate, the

segment is a major potential contributor to employment and value-addition. Keeping this

perspective in mind, Table 3.3 reports the percentage share of various sub-sectors to

aggregate manufacturing sector output in Nagaland during 2014-15. From the table it is clearly

noted that manufacture of wood products (43.69 percent), furniture (21.75 percent), non-

metallic mineral products (8.83 percent), petroleum products (5.34 percent), fabricated metal

products (3.73 percent), grain mill and animal feed products (3.65 percent), dairy products

(2.03 percent) etc. are the major contributors to the secondary sector in the state. Though at

present the product quality of all the sub-segments within the broad group may not

necessarily comply with the standard-related requirements in foreign export markets, these

product categories indicate a possible export set from the state. Out of the 30 sub-sectors

58

reported in Table 3.3, several categories showed either low or negligible contribution in the

aggregate value-addition under manufacturing within the state of Nagaland. Some of these

product groups, e.g., Manufacture of pharmaceutical; medicinal chemicals and botanical products

(0.66 percent), Manufacture of beverages (0.52 percent), Manufacture of paper and paper products

(0.33 percent), Production, processing and preservation of meat, fish, fruit, vegetables, oils and fats

(0.00 percent) etc., may be developed into future export products with adequate regulatory and

policy supports.

Table 3.3: Percentage share of various sub-sectors to Nagaland’s Manufacturing

sector during 2014-15

Sl. No. Description Percent share

1. Production, processing and preservation of meat, fish, fruit, vegetables, oils

and fats

0.00

2. Manufacture of dairy products 2.03

3. Manufacture of grain mill products, etc. and animal feeds 3.65

4. Manufacture of other food products 0.84

5. Manufacture of beverages 0.52

6. Manufacture of tobacco products 0.00

7. Manufacture of textiles + cotton ginning 0.12

8. Manufacture of wearing apparel, except custom tailoring 1.07

9. Manufacture of leather and related products 0.00

10. Manufacture of Basic Iron and Steel + Casting of iron and steel 1.30

11. Manufacture of basic precious and non-ferrous metals + Casting of non-

ferrous metals

0.71

12. Manufacture of fabricated metal products, except machinery and equipment 3.73

13. Manufacture of electronic component, consumer electronics, magnetic and

optical media

0.07

14. Manufacture of computer and peripheral equipment 0.00

59

15. Manufacture of communication equipment 0.02

16. Manufacture of optical and electronics products n.e.c 0.08

17. Manufacture of Electrical equipment 0.61

18. Manufacture of machinery and equipment n.e.c 0.68

19. Manufacture of Transport 0.44

20. Manufacture of coke and refined petroleum products 5.34

21. Manufacture of chemical and chemical products except pharmaceuticals,

medicinal and botanical products

1.37

22. Manufacture of pharmaceutical; medicinal chemicals and botanical

products

0.66

23. Manufacture of rubber & plastic products 0.84

24. Manufacture of other non-metallic mineral products 8.83

25. Manufacture of wood and of products of wood and cork, except furniture;

manufacture of articles of straw and plaiting material

43.69

26. Manufacture of paper and paper products 0.33

27. Printing and reproduction of recorded media except publishing 1.32

28. Manufacture of furniture 21.75

29. Other Manufacturing 0.00

30. Repair and installation of machinery and equipment 0.00

Total 100.00

Source: Directorate of Economics and Statistics, Nagaland (2017)

To be able to identify the possible manufacturing export products from Nagaland, one can also

access the “Annual Survey of Industries” (ASI) database, which is released by the Central Statistical

Organization (CSO), Ministry of Statistics and Programme Implementation. The database provides data

on important characteristics of registered manufacturing sector for objectively evaluating the industrial

scenario of India and also within the states. Hence the current analysis accesses the 3-digit level NIC

codes for commodities mainly manufactured in Nagaland during 2013-14 as per ASI database. From

this database the production values for all the products produced in Nagaland are enumerated alongside

India’s total production for these respective commodities. This is done to identify whether Nagaland

has a competitive production advantage in these products compared to that of the aggregate Indian

scenario. From ASI data, the 3-digit level National Industrial Classification (NIC) codes for

commodities produced in Nagaland are reported in Table 3.4.

60

𝑖

𝑖

𝑖

Table 3.4: Economic activities in Nagaland

NIC Code Description

106 Manufacture of grain mill products, starches, and starch products

110 Manufacture of Beverages

161 Sawmilling and planing of wood

162 Manufacture of products of wood, cork, straw and plaiting materials

181 Printing and service activities related to printing

239 Manufacture of non-metallic mineral products n.e.c

259 Manufacture of other fabricated metal products; metalworking service activities

310 Building of ships and boats

Source: ASI Data (2015)

The presence of Production Comparative Advantage (PA) for Nagaland products can be

checked with the following formula:

𝑃𝐴i𝑁𝐺 is the production advantage / disadvantage of Nagaland in product i. 𝑋i𝑁𝐺 is the

production of the ith product in Nagaland. ∑𝑋𝑁𝐺 is the total production of all products in

Nagaland. 𝑋𝐼𝑛𝑑𝑖𝑎 is the production of the ith product in India and is the production of

all goods in India. If 𝑃𝐴𝑁𝐺 > 1 then Nagaland produces the ith commodity group relatively

more as compared to the corresponding figure for India and hence the state can be said to have

a production advantage in producing the same. The four Nagaland products, characterized by

a PA and consequently possible export opportunities, are listed in Table 3.5.

Table 3.5: Production Advantage Scenario for Nagaland

NIC Code Description PA

162 Manufacture of products of wood, cork, straw and plaiting materials 184.92

161 Sawmilling and planning of wood 36.15

106 Manufacture of grain mill products, starches, and starch products 5.45

239 Manufacture of non-metallic mineral products n.e.c 1.81

Source: Computed from ASI Data (2015)

61

3.2.2 Agriculture Sector

Table 3.6 shows the overall agricultural scenario in Nagaland (area of cultivation and

output) along with the productivity scenario for three sub-section of crops, namely: foodgrains,

oilseeds and commercial crops for the last six years, i.e., 2011-12 to 2016-17. In the table area

of production, agricultural output and productivity are indicated by A, O and P respectively. It

is observed that values of production have been increasing over the last six reported periods in

Nagaland, but per Hecate productivity growth has not been witnessed for commercial crops

and oilseeds. In the following section, the scenario within the three sub-sectors have been

explored with greater details. .

62

Table 3.6: Area, Output and Productivity under Major Agricultural Crops

[A: Area (in Hectares); O: Production Output (in M.T.); P: Output per Hectare] Product

Category

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 (anticipated)

A O P A O P A O P A O P A O P A O P

Food-grains 299690 570440 1.90 303250 598960 1.98 310050 625280 2.02 316200 651270 2.06 322830 676900 2.10 332640 711430 2.14

Cereals 264750 533270 2.01 267050 558510 2.09 273300 583680 2.14 279200 608870 2.18 285340 633790 2.22 294260 667170 2.27

Pulses 34940 37170 1.06 36200 40450 1.12 36750 41600 1.13 37000 42400 1.15 37490 43110 1.15 38380 44260 1.15

Total

Oilseeds

66280 68120

1.03

66820 68900

1.03

67100 69300

1.03

67300 69500

1.03

67870 70020

1.03

68300 70550

1.03

Commercial

crops

35540 424230

11.94

37120 440240

11.86

37920 448950

11.84

38500 457000

11.87

39090 462350

11.83

40050 473760

11.83

Total 401510 1062790 2.65 407190 1108100 2.72 415070 1143530 2.76 422000 1177770 2.79 429790 1209270 2.81 440990 1255740 2.85


3.2.2.1 Scenario for Food grains

The following part analyses the district-wise potential of the key agricultural products in

Nagaland. Table 3.7 provides the scenario for rice (Oryza Sativa), the kharif crop, which is

grown widely in Nagaland in Jhum and Terrace Rice Cultivation (TRC) / Wet Rice Cultivation

(WRC). The production levels are compared district-wise for 2009-10, 2010-11 and 2014-15

for six different districts. A mixed trend is noted. On the other hand, the area under

cultivation is continuously increasing in the districts of Kohima, and Tuensang. It is observed

from the table that there is need to improve the per unit productivity in all the districts

reported here in order to enhance the exportable surplus / produce value-added products.

Table 3.8 provides the district-wise scenario for Wheat (Triticum spp) during 2010-11,

2011-12 and 2014-15. The importance of wheat for state economy in general and export in

particular is obvious as this crop provide more opportunities in terms of processed products. It

is observed from the table that there has been some improvement in the per unit productivity

in all the districts, which is good for future export potential. Given the fact that the production

level of wheat has increased in both Mon and Dimapur district, but not in the remaining two,

there is considerable scope for increasing the production of wheat to increase export of

processed products like flour, pellet etc.

Table 3.9 shows the district-wise data on production of Jobstear in Nagaland. The level of

production of Jobstear has not been changed much over time. In addition, the productivity

levels have grown marginally and there is considerable scope to focus on this front.

63

64

Table 3.7: District-wise Area, Output and Productivity Scenario for Rice (Oryza Sativa) in Nagaland

District

2009-2010 2010-2011 2014-2015

Area (Ha) Production (MT) Productivity

(MT/Ha)

Area

(Ha) Production (MT)

Productivity

(MT/Ha) Area (Ha) Production (MT)

Productivity

(MT/Ha)

Jhum Jhum Jhum

Wokha 11320 13810 1.22 11670 21200 1.82 10470 20270 1.94

Mokokchung 10600 12950 1.22 11670 21000 1.80 9630 18660 1.94

Tuensang 12430 15130 1.22 11490 20810 1.81 10440 20250 1.94

TRC/WRC TRC/WRC TRC/WRC

Dimapur 31060 51550 1.66 35310 85610 2.42 38270 103830 2.71

Phek 11000 19030 1.73 11920 29610 2.48 13390 36280 2.71

Kohima 7380 12820 1.74 8050 19620 2.44 9460 25540 2.70

Source: Compiled from Statistical Handbook of Nagaland (2011, 2012, 2015)

Table 3.8: District-wise Area, Output and Productivity Scenario for Wheat (Triticum spp) in Nagaland

District 2010-11 2011-12 2014-15

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Mon 410 670 1.63 420 690 1.64 410 750 1.80

Mokokchung 370 640 1.73 370 640 1.73 360 650 1.80

Dimapur 370 630 1.70 380 650 1.71 410 760 1.80

Kohima 350 610 1.74 350 610 1.74 340 620 1.80

Source: Statistical Handbook of Nagaland (2015)

65

Table 3.9: District-wise Area, Output and Productivity Scenario for Jobstear (Coix Lachryma-Jobi) in Nagaland

District 2010-11 2011-12 2014-15

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Mon 190 210 1.10 160 160 1.00 180 180 1.00

Kohima 180 160 0.89 190 190 1.00 210 220 1.00

Phek 120 130 1.08 130 120 0.92 150 160 1.06

Kiphire 100 120 1.20 100 90 0.90 100 100 1.00


n0064n0064n

3.2.2.2 Scenario for Oilseeds

Table 3.10 shows the district-wise scenario on production of Oilseed in Nagaland, compared

over 2010-11, 2011-12 and 2014-15. It is observed from the table that the area of production

of Oilseed has been increased in Dimapur and Zunheboto districts. Production has been

increasing in all the districts except Tuensang, where productivity level is almost constant. A

similar productivity scenario persists in all the districts.

Table 3.11 shows the district-wise scenario on production of Rapeseed / Mustard over the

study period. It is observed from the table that the area under cultivation has increased only

marginally, with marginal increase in production. As a result productivity level remains almost

constant throughout the period.

Table 3.12 shows the district-wise scenario on production of Sunflower. It is noted that in

terms of volume Dimapur district produces the maximum, which has increased over 2010 to

2015. The production has increased in Peren and Mokokchung district as well. However, only

in Mokokchung a decent increase in productivity is noticed.

Table 3.13 shows the district-wise scenario on production of Seasamum. The product shows

no sign of growth in terms of area of production, production level or productivity, showing a

low productivity value.

Table 3.14 shows the district-wise scenario on production of Soyabean. Like Seasamum,

here also not much change in terms of growth in terms of area of production, production level

or productivity has been witnessed. A similar scenario is witnessed for production of

Groundnut in the state from Table 3.15 as well, where productivity stagnated after 2011-12. As

all these product groups can generate value-added export products, potentially capable of

fetching premium prices, focus on productivity enhancement are important.

66

Table 3.10: District-wise Area, Output and Productivity Scenario for Oilseed in Nagaland

2010-11 2011-12 2014-15

District Area (Ha) Production

(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Mokokchung 120 130 1.08 100 100 1.00 130 140 1.07

Tuensang 90 90 1.00 90 90 1.00 90 90 1.00

Dimapur 90 90 1.00 130 140 1.08 160 170 1.06

Zunheboto 90 90 1.00 90 90 1.00 120 120 1.00


Table 3.11: District-wise Area, Output and Productivity Scenario for Rapeseed / Mustard (Brassica spp) in Nagaland

2010-11 2011-12 2014-15


(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Mokochung 3080 3070 1.00 3080 3100 1.01 3090 3120 1

Mon 3600 3610 1.00 3620 3640 1.01 3630 3670 1.01

Dimapur 4120 4130 1.00 4140 4180 1.01 4210 4290 1.01

Source: Compiled from Statist ical Handbook of Nagaland (2011, 2012, 2015)

67

Table 3.12: District-wise Area, Output and Productivity Scenario for Sunflower (Helianthus annus family Asteraceae) in Nagaland

2010-11 2011-12 2014-15


(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Dimapur 590 310 0.53 610 320 0.52 680 410 0.6

Peren 400 210 0.53 400 210 0.53 430 230 0.53

Mokokchung 310 160 0.52 320 170 0.53 350 260 0.74


Table 3.13: District-wise Area, Output and Productivity Scenario for Seasamum (Sesamum indicum) in Nagaland

2010-11 2011-12 2014-15


(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Kohima 370 240 0.65 370 240 0.65 370 240 0.64

Mokokchung 450 260 0.58 450 260 0.58 450 260 0.57

Tuensang 300 180 0.60 330 200 0.60

Dimapur 620 390 0.63 630 400 0.63 630 400 0.63

Source: Compiled from Statist

ical Handbook of Nagaland (2011, 2012, 2015)

68

Table 3.14: District-wise Area, Output and Productivity Scenario for Soyabean (Glycine max) in Nagaland

2010-11 2011-12 2014-15


(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Kohima 1990 2530 1.2714 2010 2560 1.2736 2050 2610 1.27

Phek 2070 2640 1.2754 2080 2650 1.274 2090 2680 1.28

Mokokchung 1080 1300 1.2037 1090 1310 1.2018 1110 1340 1.2

Mon 3000 3720 1.24 3020 3780 1.2517 3050 3820 1.25

Zunheboto 7510 9650 1.285 7540 9620 1.2759 7590 9750 1.28


Table 3.15: District-wise Area, Output and Productivity Scenario for Groundnut (Arachis Hypogaea) in Nagaland

District Area (Ha) Productivity (MT) Productivity

(MT/Ha)

Kohima 80 80 1.00

Mokokchung 130 140 1.07

Tuensang 90 90 1.00

Dimapur 160 170 1.06

Zunheboto 120 120 1.00


69

3.2.2.3 Scenario for Pulses

Pulses include a large number of crops which are mostly leguminous and rich in vegetable

protein. They fix the nitrogen in the soil and hence are usually rotated with other crops to

maintain soil fertility. The important pulses in the state are Tur / Arhar, Naga dal, Beans,

Rajmah Kholar, Peas, Lentil, etc.

Table 3.16 shows the data on production of Naga Dal / Rice Bean in Nagaland. It is observed

from the district-wise comparison for five districts that the production of the commodity has

increased in 2014-15 from the corresponding 2011-12 level by an average amount of 15

percent, which is a decent increment. The productivity level is almost similar across all the

districts during 2014-15. The convergence of productivity across districts indicates need for

adoption of newer seed varieties or technologies.

Table 3.17 shows the data on production of Rajma / Kholar. Interestingly, the production of

the commodity in all the four districts has increased over 2011-12 to 2014-15. There is however

little variation in the productivity in 2014-15, which is falling in Tuensang and stagnating in

Mokokchung.

70

Table 3.16: District-wise Area, Output and Productivity Scenario for Naga Dal / Rice Bean in Nagaland

District 2010-11 2011-12 2014-15

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Kohima 760 780 1.03 770 800 1.04 810 920 1.14

Phek 710 720 1.01 720 740 1.03 770 880 1.14

Wokha 410 430 1.05 410 430 1.05 430 490 1.14

Tuensang 420 390 0.93 450 510 1.13

Zunheboto 450 440 0.98 460 520 1.13


Table 3.17: District-wise Area, Output and Productivity Scenario for Rajma / Kholar (Phaseolus Vulgaris) in Nagaland

District 2010-11 2011-12 2014-15

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Tuensang 5530 6950 1.26 5560 6940 1.25 5680 7160 1.20

Kiphire 2810 3550 1.26 2860 3610 1.26 3000 3840 1.28

Longleng 1590 1950 1.23 1620 1990 1.23 1660 2090 1.25

Mokokchung 960 1150 1.20 990 1210 1.22 1050 1290 1.22


71

3.2.2.4 Scenario for Floriculture

Flower cultivation generates employment not only at cultivation level but also at further

processing activities. It also has a vibrant global market. Table 3.18 compares the production

data as well as productivity scenario for various flowers for 2014-15 and 2015-16. It is clear

that area under cultivation has risen for all the types of flowers, with a consequent increase in

production. The area under cultivation has also increased over the years. However, it deserves

mention that productivity levels have declined in all the six categories of flowers. Presently,

Lilium has highest area under cultivation, while Anthurium has highest production figure as

well as the highest productivity level.

Table 3.18: District-wise Area, Output and Productivity Scenario for various Flowers in

Nagaland

Sl.

No

Name of

crops

2014-15 2015-16

Area

(in m2)

Production

(stems)

Productivity

(Stems/m2)

Area

(in m2)

Production

(stems)

Productivity

(Stems/m2)

1 Rose 16,560 165600 100 19,626 1765142 89.94

2 Lilium 21,280 1287600 60.51 32,337 1428193 44.17

3 Alstromeria 15,000 1054500 70.3 21,445 1074192 50.09

4 Anthurium 19,840 1984000 100 22,345 2036800 91.15

5 Gerbera 9,840 881100 89.54 14,844 948880 63.92

6 Orchid 6,320 189600 30 11,370 210200 18.49

TOTAL 88843 7052804 450.35 121970 7463411 357.76

Source: Directorate of Horticulture (2016), Statistical Handbook of Nagaland (2015)

3.2.2.5 Scenario for Fruit and Vegetables

With rising awareness on healthy lifestyle, veganism and growing income levels, demand

for fruits and vegetables are rising in both India and abroad. Table 3.19 represents area under

cultivation and production of fruits and vegetables in Nagaland. The data is provided for five

financial years over 2011-12 to 2015-16. The area under cultivation of this category has risen

significantly and consequently the production has also risen. It is clear that year-on-year basis,

production of fruits and vegetable is increasing and it is a very good indication for

competitiveness of the state. This makes Nagaland a potentially competitive player in fruits

72

73

and vegetables category. Thus, there is a case for greater focus on production of this category

and gain from the available expanding market.

Table 3.19: Area and Production of Fruits and Vegetables in Nagaland

Sl. No Year Fruits Vegetables

Area (in Ha.) Production (MT) Area (in Ha.) Production (MT)

1 2011-12 33,656 2,25,081 44,090 3,12,890

2 2012-13 37,479 2,86,920 44,355 4,30,785

3 2013-14 40,760 4,13,026 56,163 6,05,984

4 2014-15 41,459 4,15,604 57,608 6,77,100

5 2015-16 42,155 4,11,317 59,244 6,67,377

Source: Directorate of Horticulture (2016), Statistical Handbook of Nagaland (2015)

In various districts of Nagaland, different fruits and vegetables are cultivated. The district-

wise productions of major crops are summarized in Table 3.20.

Table 3.20: Crop Zonation in Nagaland

Sl. No. Districts Category

Fruits

1 Dimapur Pineapple, lemon, Litchi

2 Mokokchung Orange, Banana

3 Wokha Passion Fruit, Plum

4 Kohima Banana

5 Phek Kiwi , Plum

6 Zunheboto Kiwi

Vegetables

1 Kohima Tomato, Tree Tomato, Chilly, Chow Chow

2 Mokokchung Naga Cucumber, Tomato

3 Tuensang Beans

4 Mon Leafy Vegetables, Tree Tomato

5 Phek Cabbage

6 Wokha Tree Tomato, Chilly, Chow Chow

Spices

1 Dimapur Naga Chilly, Turmeric

2 Kohima Cardamom

3 Zunheboto Cardamom, Naga Chilly

4 Peren Turmeric

Commercial Crops

74

1 Dimapur Sugarcane

2 Kohima Potato

Source: Directorate of Horticulture, Government of Nagaland (2015)

Pineapple is now the third most important tropical fruit in terms of production after banana

and citrus, with significant opportunities for value-addition. Rising global demand for the fruit

is particularly notable. Table 3.21 shows production scenario for pineapple. It is clear that

over 2010-11 to 2014-15, area under cultivation for pineapple is increased, with rise in

production and productivity as well. This puts pineapple in a category, which can potentially be

considered for export from Nagaland. While Dimapur district has maximum production of

pineapple, productivity is highest in Phek. Peren district is the second highest producer of

pineapple, which has also witnessed significant rise in productivity.

The health benefits of passion fruit have been underlined in recent period and Brazil is one

of the biggest producer of the same. Global demand for passion fruit juice is also on the rise.

Table 3.22 shows production figures for passion fruit. It is clear that area under cultivation for

passion fruit is increasing in the state with production and productivity as well. This makes

passion fruit a product which can be considered for export from Nagaland. The production of

passion fruit is maximum in Wokha, while productivity is highest in Zunhebeto district.

Table 3.23 shows the district-wise production of Cabbage in Nagaland. The table reveals

that see there is a significant increase in the area under cultivation for cabbage which explain

the increase in production. Phek district produces the maximum amount of Cabbage, while

productivity is highest in Dimapur. Phek and Dimapur districts show a considerable increase in

productivity, while the same in Peren has declined.

Table 3.21: Area, Output and Productivity Scenario of Pineapple in Nagaland

District 2010-11 2011-12 2014-15

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Kohima 820 7200 8.78 830 7250 8.73 883 12760 14.45

wokha 820 7300 8.90 830 7350 8.86 903 13374 14.811

Mokokchung 1000 8000 8 1050 8020 7.64 1127 15446 13.71

Phek 450 4300 9.56 450 4310 9.58 493 9280 18.82

Dimapur 1900 24000 12.63 1950 24000 12.31 2795 32395 11.59

Peren 1200 11000 9.17 1220 11050 9.06 1555 20526 13.2


Table 3.22: Area, Output and Productivity Scenario of Passion Fruit in Nagaland

District 2010-11 2011-12 2014-15

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Kohima 1125 2250 2 1125 2250 2 1243 3080 2.48

Wokha 1120 2240 2 1120 2240 2 1299 3140 2.42

Mokokchung 1000 2100 2.1 1000 2100 2.1 1120 2727 2.43

Zunheboto 700 1400 2 700 1400 2 791 1996 2.52

Tuensang 800 1600 2 800 1600 2 894 2195 2.46

Phek 625 1250 2 625 1250 2 733 1843 2.51


75 75

Table 3.23: Area, Output and Productivity Scenario of Cabbage in Nagaland

District 2010-11 2011-12 2014-15

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Area (Ha)

Production

(MT)

Productivity

(MT/Ha)

Phek 500 4100 8.20 500 5000 10.00 1293 20378 15.76

Peren 150 1500 10.00 150 1500 10.00 726 4810 6.63

Dimapur 110 1000 9.09 110 1100 10.00 730 14741 20.19


76

3.2.2.6 Scenario for Epiculture

Today given the focus on natural products around the world, honey (one of the best natural

products having many health benefits) can be a major export product from the state. Table 3.24

indicate production of honey in Nagaland. It is seen that over the eight year period 2007-14,

honey production has risen by more than 200 percent. This growing production underlines the

strengthened supply capability from Nagaland.

Table 3.24: Production of Honey in Nagaland

Year Production (MT)

2007 120

2008 150

2009 185

2010 200

2011 250

2012 300

2013 350

2014 400

Source: Honey Mission, Nagaland (2011)

3.2.2.7 Scenario for Livestock and Fishery Sectors

Livestock provides tremendous economic benefits both during the lifetime of the animals

and beyond (e.g., leather business). Table 3.25 compares the livestock scenario of the state for

three census. The data shows that growth rate is not optimistic for many of the livestock sub-

categories. There are only four sub-categories that has risen by around 5 percent, among all

thirteen heads. Overall the growth rate of this sector is negative for the 19th Livestock Census

over the corresponding figures for 18th Census. Hence, proper focus to this particular sector is

required to make it competitive.

77

78

Table 3.25: Comparison of 17th, 18th and 19th Livestock Census in Nagaland

Sl.

No

Species 17th

Livestock

Census, 2003

18th

Livestock

Census,

2007

19th

Livestock

Census,

2012

Growth rate of per cent 19th

Livestock Census over 18th

livestock census (per cent)

1 Cattle 451017 469818 234974 -49.99

2 Buffalo 33757 33920 32648 -3.75

3 Mithun 40452 33355 35258 5.71

4 Sheep 4187 3649 3815 4.55

5 Goat 174929 178072 99350 -44.21

6 Dog 141373 161617 113021 -30.07

7 Rabbit 38408 41922 44227 5.5

8 Pig 644214 697790 503688 -27.82

9 Horse &

Pony

893 799 473 -40.8

10 Ducks 116576 120131 125961 4.85

11 Poultry

Birds

2672554 3282196 1995485 -39.2

12 Turkey 1592

13 Quail 657

Total 4318360 3191149 -36.47

Source: Directorate of Veterinary and Animal Husbandry, Nagaland

There is considerable focus on protein-rich diet in several Asian countries and exploring

that potential is important. Table 3.26 shows milk, meat and egg production in Nagaland during

2011-12 to 2015-16. It is clear that over the course of five years there has been a decline in

production of above mentioned products. It emerges that greater policy focus in these areas is

necessary.

79

Table 3.26: Milk, Meat and Egg Production in Nagaland

Sl. No Items 2011-12 2012-13 2013-14 2014-15 2015-16

1 Milk ('000 tons) 78.15 78.35 79.54 75.92 77.69

2 Meat ('000 tons) 65.7 65.85 67.48 66.91 35.27

3 Egg (Lakh Nos.) 702 618 706 352.75 464.52

Source: Directorate of Veterinary and Animal Husbandry, Nagaland

Table 3.27 shows the fish production in Nagaland during 2015-16 and 2016-17. There

has been a general rise in production from the categories in both volume and area terms.

This is a good indication and requisite persuasion might make fish an exportable

commodity from the state.

Table 3.27: Fish production in Nagaland

Sl. No. Type of Resource 2015-2016 2016-2017

Volume (MT) Area (ha) Volume

(MT)

Area (ha)

1 Ponds and Tanks 6758.5 3218.5 7090 3297

2 Paddy cum Fish culture 1094.6 3120 1147.85 3230

3 Doyang Reservoir 358 2258 358.2 2258

4 Rivers/ Streams etc 2.98 3.01

5 Lakes/ Weirs/ Swamps 5.92 960 5.94 1000

TOTAL 8220 9556.5 8605 9785

Source: Directorate of Fisheries, Nagaland (2017)

3.2.2.8 Scenario for Spices

India, aided by fertile soils and favorable climatic conditions, enjoys strategic

advantage in terms of spice production and potential export opportunities. Table 3.28

shows data for production scenario of spices in Nagaland. From the stated six spices

only two (black pepper, betel vine) has lower area under cultivation in 2015-16 over

previous year. Overall, area under cultivation is increasing, but productivity is decreasing

for turmeric and Aromatic and medicinal plants.

80

Table 3.28: Area, Output and Productivity Scenario of Spices in Nagaland

Sl.

No.

Spices

2014-15 2015-16

Area (in

Ha.)

Production

(MT)

Productivity

(Kg/ha)

Area (in

Ha.)

Production

(MT)

Productivity

(Kg/ha)

1 Cardamom 3,314 1,476 4,45.38 3,951 1,929 4,88.23

2 Black

pepper

1,57

33

2,10.19

1,53

37

2,41.83

3 Turmeric 6,57 10,772 16,395.74 6,63 10,504 15,843.14

4 Naga Chilli 1,181 6,197 5,247.25 1,385 7,739 5,587.73

5 Betel Vine 2,18 4,11 1,885.32 2,10 4,18 1,990.48

6 Aromatic &

medicinal

1,55

8,76

5,651.61

2,16

1,136

5,259.26

Total 5,682 19,765 29,179.92 6,578 21,763 28,680.61

Source: Directorate of Horticulture, Government of Nagaland (2017)

3.2.2.9 Scenario for Plantation Crops

Northeastern states are known for cultivation of plantation crops. Table 3.29 shows data for

district-wise production scenario of these products in Nagaland. Area under cultivation has

increased in general, barring the modest decrease for cashewnut. Productivity however has

declined for coffee and cashewnuts, which deserve policy focus.

Table 3.29: Area, Output and Productivity Scenario of Plantation Crops in Nagaland

Sl.

No

Plantation

crops

2014-15 2015-16

Area

(in

Ha.)

Production

(MT)

Productivity

(Kg/ha)

Area

(in

Ha.)

Production

(MT)

Productivity

(Kg/ha)

1 Coffee 1295 136 105.02 1311 137 104.5

2 Cashewnut 1436 786 547.65 1429 764 534.64

3 Arecanut 378 2247 5944.44 488 2975 6096.31

4 Coconut 1487 11712 7876.26 1451 1143 7886.29

Total 4596 14881 14473.37 4679 15319 14621.74


Table 3.30: Area, Output and Productivity Scenario of Coffee in Nagaland

2010-2011 2011-2012 2014-15

District Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Area

(Ha)

Production

(MT)

Productivity

(MT/Ha)

Kohima 400 20 0.05 250 35 0.14 255 39 0.15

Wokha 100 20 0.20 100 20 0.20 102 22 0.22

Mokokchung 500 40 0.08 500 40 0.08 505 43 0.09

Zunhebotto 100 10 0.10 100 10 0.10 103 11 0.11

Phek 300 5 0.02 200 5 0.03 220 6 0.03

Mon 100 10 0.10 100 10 0.10 110 15 0.14


Table 3.31: District-wise Target area under Coffee Plantation

Year- wise Physical Targets (In Ha.)

Sl. No. Name of the

District

No. of Household identified

2015-16

2016-17

2017-18

2018-19

2019-20

Total Physical target (Ha)

1 Kohima 1548 110 154 180 200 140 774

2 Mokokchung 994 10 80 105 200 97 497

3 Wokha 888 20 83 110 150 81 444

4 Mon 860 35 55 100 150 85 430

5 Tuensang 810 0 80 100 150 75 405

6 Zunheboto 900 15 75 110 150 95 450

7 Kiphire 690 0 55 90 150 50 345

8 Phek 840 0 90 100 150 80 420

9 Dimapur 800 20 70 85 150 80 400

10 Peren 980 20 115 110 150 95 490

11 Longleng 690 0 60 100 110 75 345 Total 10000 230 917 1190 1710 953 5000

Sources: Directorate of Land Resource, Nagaland (2017)

81

Table 3.30 shows the district-wise production scenario for coffee in Nagaland. Area under

cultivation has declined in several districts, but productivity has increased. Mokokchung and

Kohima contributes most in the state’s production of the crop. Identifying the opportunities,

the state has initiated the process of expanding production in target districts, as outlined in

Table 3.31.

3.2.3 Identification of Potential Products

3.2.3.1 Preliminary Identification of Potential Products

In the earlier sections the production scenario in Nagaland, both for primary and secondary

sectors, have been noted. The data on the sectors covered have primarily been sourced from

the reports published by the government. In addition, in-depth interactions have been held

with government officials from many economically important departments and leading

producers (including both current and potential exporters) during the field visits in Nagaland.

Based on the interactions, the following products have been short-listed for initial focus, which

are noted in Table 3.32.

Table 3.32: Potential Products identified for Export from Nagaland

Sl. No. Primary Products Value Added Products

1 Vegetables:

1. Passion fruit

2. Banana

3. Pineapple

4. Orange

5. Papaya

Processed Food Products:

1. Canned juice

2. Slices / Dehydrated products

3. Jams / Squash

4. Processed Spices

2 Spices:

1. Ginger

2. Turmeric

3. Chilli

4. Black pepper

5. Large cardamom

Bamboo Products:

1. Bamboo panel and partition

2. Fancy basket and trays

3. Bamboo dyeing and treatment plant

4. Bamboo mats

5. Bamboo floor board

82

83

6. Mushroom 6. Bamboo board furniture

7. Chopsticks

8. Toothpicks

9. Bamboo Chips and Pulp

3 Floriculture:

1. Gladioli

2. Roses

3. Lillium

4. Orchids

5. Anthurium

Cane and Bamboo Products:

1. Headgear

2. Cane molasses

3. Cane mat

4. Furniture (Chairs, Teapoy, Sofa sets,

TV stands, Phone stands, Decorative

articles)

4 Medicinal and Aromatic Plants:

1. Patchouli

2. Neem

3. Agar

4. Ginseng

Handicrafts:

1. Toys

2. Decorative items

3. Wall hanging

4. Pan batha

5. Nara (carry basket)

6. Bow and Arrow

7. Pen Stand

8. Walking Stick

5 Plantation Crops:

1. Rubber

2. Tea (along with Organic tea)

3. Coffee

Wood Carving / Carpentry:

1. Wooden utensils / Dining sets

2. Wooden animals

3. Mask

4. Different types of dancing mask

5. Satdor (Pan bata with cover)

6. Wooden furniture

7. Beautiful painted chokes

(traditional centre table)

8. Other domestic utility and decorative

items (Wooden flower vas, Ashtray,

Candle stand, Dhup stand)

6 Minerals: Handloom:

84

1. Limestone

2. Coal

3. Magnetite with Nickel

4. Cobalt

5. Chromium

6. Decorative and dimensional stones

1. Shawls (Angami Naga Shawls,

Laiaichangfei, Naga Traditional items)

2. Bed sheets

3. Curtain clot

4. Pillow covers

7 Sericulture:

1. Eri Silk

Blacksmithy:

1. Traditional dao

2. Spear

3. Axe

4. Dagger

5. Sword

8 Epiculture:

1. Honey

Silversmithy:

1. Ladies decorative hair clips

2. Coins necklaces

3. Smoking pipe

4. Silver ornaments

Source: Constructed on the basis of Primary and Secondary data analysis

3.2.3.2 Identification of Potential Products

After the preliminary identification of potential export products from Nagaland, the analysis

calculated the compound annual growth rate of the different products that are produced in the

state. The idea is to zero in on products which have witnessed a growth in the production rate

over the period of last five years, so as to understand both opportunity and supply potential.

Compound annual growth rate (CAGR) is a useful measure of growth over multiple time

periods, which is computed by the following formula:

𝐶𝐴𝐺𝑅 = ( 𝐸𝑉 (1⁄𝑛)−1

) 𝐵𝑉

85

where,

EV is the Ending value of the variable in question

BV is the Beginning value of the variable in question

n is the Number of periods (months, years, etc.)

Table 3.33 summarizes the CAGR of available primary products from Nagaland and sorts

them to arrive at the possible opportunity set. The Very High Opportunity products are

characterized by CAGR greater than 5 percent, and there are 16 products in this category. It is

seen that Rose has the highest CAGR (226 percent), followed by cabbage (43 percent) and

honey (18 percent). 4 products lie between the CAGR value of 3-5 percent, which are called

High Opportunity products. This set includes Seasamum (4.33 percent) and Gerbera (3.78

percent). There are 7 products having CAGR in between 1-3 percent, which are called

Moderate Opportunity products. Notable products in this category are Pulses (2.95 percent),

Fish (2.32 percent), Wheat (1.74 percent) etc. 5 products lies in between 0-1 percent CAGR

that are called Low Opportunity products. This set includes Betel Vine (0.85 percent), Rapeseed

/ Mustard (0.49 percent), Soyabean (0.36 percent) and Coffee (0.12 percent). Finally, 8

products are having CAGR less than 0 percent, i.e., displays negative CAGR.

Table 3.33: Potential Export Products from Nagaland based on CAGR

Sl.

No. Item CAGR

Sl. No. Item CAGR

Very High Opportunity (Greater than 5) Moderate Opportunity (Between 1 and 3)

1 Rose 226.48 1 Pulses 2.95

2 Cabbage 43.33 2 Fish Production 2.32

3 Honey 18.77 3 Commercial crops 1.86

4 Vegetables 16.36 4 Wheat 1.74

5 Arecanut 15.06 5 Anthurium 1.32

6 Cardamom 14.32 6 Jobstear 1.26

7 Aromatic &

medicinal 13.88

7 Rajma / Kholar

(phaseolus vulgaris) 1.12

8 Fruits 12.82 Low Opportunity (Between 0 and 1)

9 Naga Chilly 11.75 1 Betel Vine 0.85

10 Naga Dal / Rice

Bean 11.46

2 Total oilseeds 0.59

86

11 Pineapple 10.92 3 Rapseed / Mustard 0.49

12 Black pepper 5.89 4 Soyabean 0.36

13 Sunflower 5.77 5 Coffee 0.12

14 Oilseed 5.39 Absence of Opportunity (Below 0)

15 Lilium 5.32 1 Milk ('000 tonnes) -0.12

16 Orchid 5.29 2 Turmeric -1.25

High Opportunity (Between 3 and 5) 3 Cashewnut -1.41

1 Seasamum 4.33 4 Rice -6.68

2 Cereals 3.80 5 Egg (Lakh Nos.) -7.93

3 Gerbera 3.78 6 Passion Fruit -10.92

4 Foodgrains 3.75 7 Meat('000 tonnes) -11.70

8 Coconut -68.76

Source: Constructed using production data obtained from various Government of Nagaland Statistics

Table 3.34 summarizes the products having CAGR above 3 percent, which represents the

opportunity products from Nagaland. Pulses are considered in the list as its CAGR is close to

3. Products with CAGR between 1-3 are those that can be traded, if there is a high demand,

and products that have a CAGR less than one are considered to be the products with not a very

good potential in export in near future. The products noted in table 3.34 are selected for further

analysis, namely for selecting the final potential exportable products. Major products are from

Horticultural and Floricultural sector. The primary products in these sectors can be further

processed and after necessary value addition, can be exported, resulting greater earnings for

the state.

Table 3.34: Final Selection of Potential Export Products from Nagaland

Sl. No. Item CAGR Sl. No. Item CAGR

Very High Opportunity (Greater than 5) High Opportunity (Between 3 and 5)

1 Rose 226.48 1 Seasamum 4.33

2 Cabbage 43.33 2 Cereals 3.80

3 Honey 18.77 3 Gerbera 3.78

4 Vegetables 16.36 4 Foodgrains 3.75

5 Arecanut 15.06 5 Pulses 2.95

6 Cardamom 14.32

87

7 Aromatic & medicinal 13.88

8 Fruits 12.82

9 Naga Chilly 11.75

10 Naga Dal / Rice Bean 11.46

11 Pineapple 10.92

12 Black pepper 5.89

13 Sunflower 5.77

14 Oilseed 5.39

15 Lilium 5.32

16 Orchid 5.29

Source: Constructed using production data obtained from various Government of Nagaland Statistics

In Table 3.35, the Harmonized System (HS) 6-digit and 8-digit codes for all these potential

products (CAGR greater than 3 percent) have been provided, along with the product category

under which they fall and the export policy framework (Restricted / freely exportable).

Table 3.35: Potential Export Products from Nagaland with HS Codes

Product

Category

6-digit

HS Code Product Name

8-digit HS

Code Policy

Honey 040900 Honey 040900 00 Free

Flowers

060240 Rose 060240 00 Free

060315 Lilium 060315 00 Free

060319 Alstromeria 060319 00 Free

060319 Anthurium 060319 00 Free

060319 Gerbera 060319 00 Free

060313 Orchid 060313 00 Free

Milk, Meat and

Egg Production

040110 Of a fat content, by weight, not

exceeding 1% 040110 00 Free

040120 Of a fat content, by weight, exceeding

1% but not exceeding 6% 040120 00 Free

040140 Of a fat content, by weight, exceeding

6% but not exceeding 10% 040140 00 Free

88

040150

Of a fat content, by weight, exceeding

10% 040150 00 Free

040210 Skimmed Milk 040210 10 Free

040210 Milk food for babies 040210 20 Free

040221 Not containing added sugar or other

sweetening matter 040221 00 Free

040229 Whole milk 040229 10 Free

040229 Milk for babies 040229 20 Free

040291 Condensed milk 040291 10 Free

040299 Whole Milk 040299 10 Free

040299 Condensed Milk 040299 20 Free

040711 Of fowls of the species Gallus

domesticus 040711 00 Restricted

040719 Of ducks 040719 10 Restricted

040811 Egg Yolks: Dried 040811 00 Free

040891 Other: Dried 040891 00 Free

041000 Turtle eggs 041000 20 Restricted

- Meat - -

Fruits 080430 Pineapple 080430 00 Free

081090 Passion Fruit 081090 Free

Vegetable 070511 Cabbage lettuce (head lettuce) 070511 00 Free

Food grain

100610 Of seed quality 100610 10 Restricted

100620

Husked (brown) Rice

100620 00

State

Trading

Enterprise

100630

Rice, parboiled

100630 10

State

Trading

Enterprise

100630

Basmati rice

100630 20

State

Trading

Enterprise

100640

Broken rice

100640 00

State

Trading

Enterprise

100821 Job's tear

100111 Durum Wheat Seed 100111 00 Restricted

89

100191 Seed 100191 00 Restricted

100199

Wheat

100199 10

State

Trading

Enterprise

071333

Rajma (Kidney beans, including white

pea beans Phaseolus vulgaris) 071333 00 Free

Plantation Crops

080131 Cashew nut in Shell 080131 00 Free

080132 Cashew kernel, broken 080132 10 Free

080132 Cashew kernel, whole 080132 20 Free

080111 Desiccated 080111 00 Free

080112 Fresh 080112 10 Free

080112 Dried 080112 20 Free

080119 Other: Fresh 080119 10 Free

080119 Other: Dried 080119 20 Free

Livestock

010221 Cattle - Bulls 010221 10 Restricted

010221 Cattle - Cows 010221 20 Restricted

010231 Buffalo 010231 00 Restricted

010611 Mithun 010611 00 Restricted

010410 Sheep 010410 10 Restricted

010420 Goat 010420 00 Restricted

010612 Dog 010612 00 Restricted

010614 Rabbit 010614 00 Restricted

010611 Pig 010611 00 Restricted

010121 Horse & Pony 010121 00 Restricted

010513 Ducks 010513 00 Restricted

010632 Poultry Birds 010632 00 Restricted

010512 Turkey 010512 00 Restricted

010619 Quail 010619 00 Restricted

Fish

030199 Ponds and Tanks 030199 00 Restricted

030199 Paddy cum Fish culture Restricted

030111 Doyang Reservoir Restricted

030111 Rivers/ Streams etc 030111 00 Restricted

030119 Lakes/ Weirs/ Swamps 030119 00 Restricted

Spices 090831 Cardamom - Large ( amomum) 090831 10 Free

90

090831

Cardamom - Small (ellettaria),alleppey

green 090831 20 Free

090831 Cardamom - Small, coorg green 090831 30 Free

090831 Cardamom - Small, bleached, half

bleached or bleachable 090831 40 Free

090831 Cardamom - Small mixed 090831 50 Free

090831 Cardamom - Other 090831 90 Free

090411 Black pepper - Garbled 090411 30 Free

090411 Black pepper - Ungarbled 090411 40 Free

091030 Turmeric - Fresh 091030 10 Free

091030 Turmeric - Dried 091030 20 Free

091030 Turmeric - Powder 091030 30 Free

0904 22 Naga Chilly Free

1404 90 Betel Vine 1404 90 40

Free

Aromatic & medicinal Free

Oil seeds

120750 Mustard seed - of Seed quality 120750 10 Restricted

120750 Mustard seed - Other 120750 90 Free

120600 Sunflower seed - of Seed quality 120600 10 Restricted

120600 Sunflower seed - Other 120600 90 Free

120740 Sesamum seed - of Seed quality 120740 10 Restricted

120740 Sesamum seed - Other 120740 90 Free

120110 Soyabean seed - of Seed quality 120110 00 Restricted

120190 Soyabean seed - Other 120190 00 Free

120230 Ground Nut - Seed - HPS 120230 10 Restricted

120230 Ground Nut - Seed - Other 120230 90 Restricted

120241 Ground Nut - in shell - HPS 120241 10 Free

120241 Ground Nut - in shell - HPS 120241 90 Free

120510 Rapeseed - Low eructic acid rapeseed 120510 00 Free

120590 Rapeseed - other 120590 00 Free

Plantation crops

/ spices

090111 Coffee - Arabica plantation - A Grade 090111 11 Free

090111 Coffee - Arabica plantation - B Grade 090111 12 Free

090111 Coffee - Arabica plantation - C Grade 090111 13 Free

090111 Coffee - Arabica plantation - Other 090111 19 Free

090111 Coffee - Arabica Cherry - AB Grade 090111 21 Free

090111 Coffee - Arabica Cherry - PB Grade 090111 22 Free

91

090111 Coffee - Arabica Cherry - C Grade 090111 23 Free

090111 Coffee - Arabica Cherry - B/B/B

Grade 090111 24 Free

090111 Coffee - Arabica Cherry - Other 090111 29 Free

090111 Coffee - Rob Parchment - AB Grade 090111 31 Free

090111 Coffee - Rob Parchment - PB Grade 090111 32 Free

090111 Coffee - Rob Parchment - C Grade 090111 33 Free

090111 Coffee - Rob Parchment - Other 090111 39 Free

090111 Coffee - Rob Cherry - AB Grade 090111 41 Free

090111 Coffee - Rob Cherry - PB Grade 090111 42 Free

090111 Coffee - Rob Cherry - C Grade 090111 43 Free

090111 Coffee - Rob Cherry - B/B/B Grade 090111 44 Free

090111 Coffee - Rob Cherry - Bulk 090111 45 Free

090111 Coffee - Rob Cherry - Other 090111 49 Free

090122 Coffee - Decaffeinated - Bulk

Packaging 090122 10 Free

090122 Coffee - Decaffeinated - Other 090122 90 Free

090121 Coffee - Non-Decaffeinated - In bulk

packing 090121 10 Free

090121 Coffee - Non-Decaffeinated - Other 090121 90 Free

090190 Coffee husks and skins 090190 10 Free

080280 Arecanuts - Whole 080280 10 Free

080280 Arecanuts - Split 080280 20 Free

080280 Arecanuts - Ground 080280 30 Free

080280 Arecanuts - Other 080280 90 Free

Source: Identified from HS code list though matching with possible export products from Nagaland

Now in order to identify the products that can be exported from Nagaland, there is a need to

look at the trade data. The analysis however need to be conducted with aggregate Indian export

data of the identified commodities, as export data for products from the state of Nagaland are

not available. One of the underlying reason is that there is no port in the state, from where

product-wise export of consignments are documented. The trade data is accessed from the

Trade Map database.

92

𝑖

𝑖

𝑖

𝑖

𝑖

𝑖

𝑖

𝑖

𝑖

𝑖

𝑖

For identifying the comparative advantage for Indian export products in the global context,

the current analysis considers Revealed Comparative Advantage (RCA), which is defined by

the following formula:

𝑅𝐶𝐴𝐼𝑛𝑑𝑖𝑎 =

𝐸𝑋𝐼𝑛𝑑𝑖𝑎

∑𝑖 𝐸𝑋𝐼𝑛𝑑𝑖𝑎

𝐸𝑋𝑊𝑜𝑟𝑙𝑑

∑𝑖 𝐸𝑋𝑊𝑜𝑟𝑙𝑑

where,

𝑅𝐶𝐴𝐼𝑛𝑑𝑖𝑎 is the RCA of the ith product in India

𝐸𝑋𝐼𝑛𝑑𝑖𝑎 is India’s export of the ith product

∑𝑖 𝐸𝑋𝐼𝑛𝑑𝑖𝑎 is the export of all products (i.e., total exports) by India

𝐸𝑋𝑊𝑜𝑟𝑙𝑑 is the export of the ith product in the world

∑𝑖 𝐸𝑋𝑊𝑜𝑟𝑙𝑑 is the export of all products in the world

If 𝑅𝐶𝐴𝐼𝑛𝑑𝑖𝑎 > 1, then it implies that India exports the ith good relatively more as comaprd

to the corresponding world average and hence India enjoys a Revealed Comparative Advantage

in this ith product.

In other words, the HS codes (i.e., product groups) characterized by relatively high supply

capability (i.e., CAGR greater than 3) and higher trade performance (RCA > 1) can be the

products that can possibly be exported from Nagaland in near future (Short term). The list of

products arrived at in this manner are noted in Table 3.36.

93

Table 3.36: Export Opportunity Products from Nagaland

Time duration Product HS Code

Near future

Rose 060240

Cabbage 070511

Honey 040900

Arecanut 080280

Cardamom 090831

Naga Chilly 090422

Pineapple 080430

Black pepper 090411

Sunflower 120600

Lilium 060315

Orchid 060313

Cereals 100890

Gerbera 060319

Source: Identified through data analysis

Apart from the products noted in Table 3.36, several other products are also produced in

Nagaland in volumes and there is good demand for them among tourists. These products were

not added in the earlier table (where the CAGR of production was reported) due to data

unavailability, as consistent value of production for these items over a period cannot be found.

Most of these are handloom products which are the specialty of Nagaland. Hence, the

production can even be increased at a short notice if demand surges. These can also be the

potential products for export as far as trade opportunities are concerned.

Table 3.37: Other Potential Export Products from Nagaland

HS


Product's HS

Code Product Descrption


Plant

44


440122 Bamboo Chips



94

441912 Chopsticks


442090 Candle Stand

442090 Dhup Stand

442190 Ashtray

442190 Mask



46 Manufactures of straw,

basketware and wickerwork

460210 Nara

460211 Fancy Basket & Trays

47 Pulp of wood or of other

fibrous cellulosic material 470630 Bamboo Pulp

66 Umbrellas, walking sticks,

seat-sticks, whips, 660200 Walking Stick

71

Natural or cultured pearls,

imitation jewellery




711411 Smoking pipe

82 Tools, implements, of base

metal 820140 Axe

84 Machinery, mechanical

appliances, parts thereof 844319 Screen Printing

93 Arms and ammunition 930700 Dagger

930700 Sword

94

Furniture, bedding,

mattresses, Stuffed

furnishing

940330

Wooden furniture

96

Miscellaneous manufactured

articles

960340 Vanishing, Polishing, and Painting


960899 Pen Stand

97 Works of art, collectors'

pieces and antiques 970110 Decorative items

Source: Constructed on the basis of field interactions with the stakeholders

Based on all the analysis, the final list of possible export items from Nagaland are noted in

Table 3.38.

95

Table 3.38: List of Potential Export Products from Nagaland

HS


Product's HS

Code Product Description

04 Dairy and Epiculture products

040900 Honey

06

Tree and Plants

060240 Rose

060313 Orchid

060315 Lilium

060319 Gerbera

07 Edible vegetables and certain

roots and tubers

070511 Cabbage

070951 Mushroom

08

Edible fruits and nuts

080280 Arecanut

080390 Banana

080430 Pineapple

080510 Orange

080719 Papaya

081090 Passion fruit

09

Coffee, tea, mate and spices

090411 Black pepper

090422 Naga Chilly

090831 Cardamom

091010 Ginger

091030 Turmeric

10 Cereals 100890 Cereals

12 Oil seeds and medical plants 120600 Sunflower


Plant

44


440122 Bamboo Chips



441912 Chopsticks


442010 Wooden animals

442090 Candle Stand

442090 Dhup Stand

96

442110 Wall hanging

442190 Ashtray

442190 Mask



442190 Toothpicks

46

Manufactures of straw,

basketware and wickerwork

460120 Bamboo mats

460120 Cane mat

460210 Nara

460211 Fency Basket & Trays

47 Pulp of wood or of other

fibrous cellulosic material 470630 Bamboo Pulp

66 Umbrellas, walking sticks,

seat-sticks, whips, 660200 Walking Stick

71

Natural or cultured pearls,

imitation jewellery




711411 Smoking pipe

82 Tools, implements, of base

metal 820140 Axe

84 Machinery, mechanical

appliances, parts thereof 844319 Screen Printing

93 Arms and ammunition 930700 Dagger

930700 Sword

94

Furniture, bedding,

mattresses, Stuffed furnishing

940150 Chairs


940380 Teapoy

940380 Sofa sets

940380 T.V. stands

940380 Phone stands

940380 Electrical appliances

940380 Decorative articles

940380 Bamboo Ply furniture and partition

940380 Bamboo Panel and Partition

96 960340 Vanishing, Polishing, and Painting

97

Miscellaneous manufactured

articles


960899 Pen Stand

97 Works of art, collectors'

pieces and antiques 970110 Decorative items

Source: Constructed on the basis of computations with trade data and field interactions with the Stakeholders

In the next chapter, the potential export markets for the identified product categories have

been analysed.

98

Chapter 4: Potential Markets for Exportable

4.1 Introduction

In the previous chapter, possible exportable products from Nagaland were identified by

checking the supply capability (CAGR) and competitiveness (RCA). In this chapter, potential

export market identification has been carried out for products who has Relative Comparative

Advantage (RCA) greater than 1. Knowing the exportable markets are important because after

identifying the possible export products it is crucial to know the customers and their country.

These markets have been identified with the help of several trade indicators, namely, Shift

Share Analysis, Export Intensity Index, Export Specialization Index, tariff and non-trade

barriers etc.

4.2 Export Market Identification

4.2.1 Shift Share Analysis

The Shift Share Analysis indicates the overall increment or decrease in export value in

export markets for the given time interval. The shift share technique is applied here to

identify the potential export growth of each product by selecting top thirty countries over

2011-16. The methodology is noted in the following. The Actual Change (AC) in export of

any product i can be measured as:

Vi Vi,t Vi,t 1

Where,

Δ𝑉𝑖 is the AC in export / import for an item i over year (t -1) to t (2011 to 2016 here)

Vi,t

Vi,t 1

is the export / import in year t (i.e., 2016), and

is the export / import in year t-1 (i.e., 2011) for an item i

Now the growth rate of all items (k) is the ratio of total value of terminal time periods to the

total value at the initial time period:

99

n

Vi ,t

k i1

Vi ,t 1

i1

, where i = 1 -------- n.

where,

Vi,t

Vi,t 1

is the export / import in year t, and

is the export / import in year t-1 for an item i

The expected value of the growth is the product of growth rate of all items and the value at

the initial time period:

where,

E(Vi,t ) kVi,t 1

(𝑉𝑖,) is the expected value of Change

𝑘 is the growth rate of all items

𝑉𝑖,−1 is the export / import in the initial year for an item i

The expected change of the value of a growth variable for a particular item in a given time

period is the difference between the expected value and the actual value for the item at the end

of the initial time period. If E (Δ𝑉𝑖) is the expected change, then:

where,

E(Vi ) E(Vi,t ) Vi,t 1

E (Δ𝑉𝑖) is the expected change for an item i

(𝑉𝑖,) is the expected value of the Change for an item i

𝑉𝑖,−1 is the export / import in the initial year for an item i

The difference between the actual change and the expected change is the net shift. So, if Net

Shift is 𝑁𝑖:

n

100

Ni Vi E(Vi )

………… (1)

where,

𝑁𝑖 is the Net Shift

Δ𝑉𝑖 is the actual change for an item i


Now the sum of positive net shifts or the sum of negative net shifts 𝑆 represents the total

absolute net shift.

where,

Vi E(Vi )

S i1

2

………… (2)

S is the total absolute net shift

Δ𝑉𝑖 is the actual change for an item i


The relative gain or loss in the value of a growth variable for a particular product i, in a

given time period is defined as the percentage net shift (𝑃𝑖). So,

where,

P Ni (100%)

i S

………… (3)

𝑃𝑖 is the percentage net shift in a given time period

𝑁𝑖 is the Net Shift

S is the total absolute net shift

Following this methodology, Shift share has been computed for each and every identified

product separately with world import growth data. As the data concerns world import by

country, India happens to be present in the list. As a result, India might turn out to be a positive

n

101

net shift country under some circumstances. It can be then said that there exists a domestic

market for these products as well.

It is obvious that the top thirty importing countries for each product could be same or

different, but after combining all the products and comparing under one umbrella, the analysis

for top trading partners can be done easily. The analysis is categorized into 3 levels:

(i) High Growth Countries: Positive net shift is above 5 percent

(ii) Medium Growth Countries: Positive net shift is between 3 – 5 percent

(iii) Low Growth Countries: Positive net shift is between 0 -1 percent.

Any countries characterized by lower than 0 percent net shift implies that the importing

countries have negative growth rate of their imports. In other words, these markets may not be

very lucrative for India as an export destination. Hence, such countries have not been taken

into consideration.

Table 4.1 presents the analysis of Shift Share methodology with respect to High, Medium

and Low Growth Countries for products which has been identified through CAGR analysis.

Table 4.2 presents Shift Share results for products which were identified through

discussion with the stakeholders.

While all the top thirty markets can be targeted for exports, the high and medium growth

markets need to be prioritized.

102

Table 4.1: Shift Analysis of Identified products

(Import Value in USD ‘000)

HS


HS

Code Products Description

Import Value in

'000 $ (2016) High Growth Countries

Medium Growth

Countries Low Growth Countries

04

Dairy and

Epiculture

products

040900

Honey

2032032

China, United Arab

Emirates, Australia,

Japan, Hong Kong,

China, Spain, Canada

Singapore, Taipei,

Chinese, Belgium,

Portugal, Romania, Italy,

Oman

Ireland, Korea Republic

of, Poland, Kuwait,

Finland

08

Edible fruits and

nuts

080280

Arecanut

245373

India, Nepal,

Bangladesh, Vietnam

Malaysia, United States

of America, Thailand,

UAE, Myanmar

Yemen, Italy, Canada,

Iran, Qatar, Australia,

Timor-Leste, Taipei,

China, Mauritius, Iraq,

Tobago, Trinidad, Lao

People's Democratic

Republic

09

Coffee, tea, mate

and spices

090411

Pepper of the genus Piper,

neither crushed nor

ground

2292037

United Arab Emirates,

India, Viet Nam,

Germany, Pakistan

China, France, Thailand,

Iran, Indonesia, UK,

Philippines, Canada, Spain

Malaysia, Austria, South

Africa, Korea, Italy,

USA

090412

Pepper of the genus Piper,

crushed or ground

671885

United States of

America, Germany,

Poland, Thailand,

Algeria, Australia, Saudi Arabia, Sudan

Italy, Mexico

New Zealand, Korea

Republic of

090422

Fruits of the genus

Capsicum or of the genus

Pimenta, crushed or ground

612876

Spain, Indonesia,

Netherlands, Czech

Republic, Sweden, Poland, Algeria, Belgium

USA, Japan, Thailand,

Italy

Mexico, Singapore

090831

Cardamoms, neither

crushed nor ground

343196

India, UAE, Kuwait,

Iraq, Egypt, Iran, Islamic

Republic of

Bangladesh, Nepal,

Bangladesh, Nepal,

Vietnam, Malaysia, Sri

Lanka, Sudan, Bahrain, Jordan

Pakistan, Qatar

103

090832 Cardamoms, either

crushed or ground

35418

Saudi Arabia

Kuwait UAE, Jordan, Syrian,

Arab Republic, Austria, India, Bahrain

10

Cereals

100890

Cereals

192988

Qatar, Kenya, Nigeria,

Israel

Belgium, United States

of America, Greece,

United Kingdom,

Poland, Russian

Federation, Vietnam, Spain

Iran, Islamic Republic of,

Indonesia, Portugal,,

Hungary, Switzerland,

Austria

11

Products of the

milling industry,

malt, starches,

inulin, wheat

gluten

110100

Wheat flour

4722302

Iraq, Afghanistan, Sudan,

Syrian Arab Republic

United States of

America, Yemen,

Mexico, Somalia, Saudi

Arabia, United Arab

Emirates, Tajikistan,

Ireland, France, Bolivia

Hong Kong, China,

Madagascar, United

Kingdom, Philippines,

Canada, Netherlands,

Germany

110290 Cereals Flours 192988 Qatar, Kenya, Nigeria Israel, Greece, Viet Nam,

Russian Federation, Iran

Poland, Indonesia,

Lithuania, Hungary, UK

12

Oil seeds and

medical plants

120740

Sesamum seeds, whether

or not broken

2507098

China, Turkey, Vietnam,

India, Iraq, Taipei,

Chinese, Jordan, United

Arab Emirates, Greece,

Israel, Thailand, Saudi

Arabia, Iran, Islamic

Republic of Lebanon, Spain, Malaysia

Russian Federation,

Poland, Netherlands

Italy, Mexico

15

Animal or

vegetable fats

and oils, prepared

edible fats,

animal or vegetable waxes

151550

Sesame oil and its

fractions, whether or not

refined, but not

chemically modified

243612

United States of

America, Taipei,

Chinese, Qatar, United

Arab Emirates, Vietnam,

Philippines, Indonesia, Canada

Australia, Thailand,

Italy, UK, Saudi Arabia,

New Zealand, Sweden

Netherlands, Belgium,

Singapore, Switzerland

33

Essential oils and

resinoids,

perfumery,

cosmetic or toilet preparations

330129

Essential oils (Rose)

2036436

USA, Canada, Indonesia,

India, France

Australia, UAE, Italy,

Iran, Islamic Republic of

Spain, China

Belgium, Turkey,

Malaysia, Netherlands,

Austria, Taipei, Chinese,

Korea, Hong Kong, Thailand

104

330129

Essential oils (Honey)

2036436

USA, Canada, Indonesia,

India, France


Iran, Islamic Republic of

Spain, China

Belgium, Turkey,

Malaysia, Netherlands,

Austria, Taipei, Chinese,

Korea, Hong Kong, Thailand

330190

Extracted oleoresins

(Rose)

699363


Saudi Arabia, Canada,

Thailand, Indonesia, Netherlands

Austria, Turkey, Russian

Federation, Egypt, Korea

republic of, Algeria

Australia, Mexico,

Vietnam

330190


(Honey)

699363



Thailand, Indonesia,

Netherlands

Austria, Turkey, Russian

Federation, Egypt, Korea

republic of, Algeria

Australia, Mexico,

Vietnam


105

Table 4.2: Shift Share Analysis of Other potential products

(Import Value in USD ‘000)

HS

Chapter

Base Product

HS

Code

Products

Description

Import

Value in

'000 $ (2016)

High Growth Countries

Medium Growth Countries

Low Growth Countries

14

Vegetable

plaiting

materials

140110

Bamboo

Dyeing and

Treatment Plant

138499

India, Spain

Korea, Portugal, Poland

Taipei, Russia, Sri Lanka, Australia,

Saudi Arabia, Malaysia, UAE

44

Wood and

articles of

wood

440122

Bamboo

Chips

4280991

China, India

Germany, UK, France, USA,

Luxembourg, Ireland, UAE, Czech

Republic, Iceland, Australia, Latvia,

Poland, Hungary

441210

Bamboo

Floor

Board

169352

USA, UAE, Kenya

Netherlands, Oman, Japan,

Kuwait

Hong Kong, New Zealand, Czech

Republic, Korea, Germany, Thailand,

Portugal, Singapore, Cayman Islands

441900

Wooden

Utensils ,

Dining

Sets

33665

Saudi Arabia, Mexico,

Singapore

Ukraine, Philippines

Samoa, Jamaica, Egypt

441912

Chopsticks No Shift share as data is not available prior to the year 2017

441990 Bamboo

Board Furniture

No Shift share as data is not available prior to the year 2017

442090 Candle

Stand 1075876

Germany, France,

Singapore, Italy Netherlands, Spain, Poland Australia, Japan, Kuwait

442190

Toothpicks

5781648

China, USA

UAE

Korea, Slovakia, Slovenia, India,

Dominican Republic, Iraq, Chinese

Taipei, Mexico, Saudi Arabia, Brazil,

Kuwait, New Zealand, Qatar,

Philippines, Latvia, Sudan, Vietnam, Somalia, Maldives

106

46

Manufactures

of straw,

basketware

and

wickerwork

460210 Nara

(carry basket)

413 Philippines, Barbados, US

minor outlying islands

Papua New Guinea

460211

Fancy

Basket &

Trays

164890

United Kingdom, Spain,

Malaysia, Saudi Arabia

Taipei, Chinese; Australia,

Sweden, Germany,

Switzerland

Turkey, Israel, UAE, Singapore, Hong

Kong, Portugal, Russia, Netherlands,

Chile

47

Pulp of wood

or of other

fibrous

cellulosic

material

470630

Bamboo

Pulp

4356

Germany, India, USA,

Spain

Japan, Australia, Norway

Saudi Arabia, Russia, Netherlands,

Taipei, UK, Belgium, France, Brazil,

Poland, Uzbekistan, Sweden, Seychelles

71

Natural or

cultured

pearls,

imitation

jewellery

711311 Coins

necklaces 9393070 China, Hong Kong, UAE Italy, China Spain, Singapore

711411

Ladies

decorative hair clips

148865

USA, Israel, Italy

Philippines, China, Netherlands

Ireland, Australia

82

Tools,

implements, of base metal

820140

Axe

196012

Netherlands

Poland, Australia, Guatemala

Canada, Ghana

84

Machinery,

mechanical

appliances,

parts thereof

844319

Screen

Printing

1671980

Mexico, USA

Republic of Korea, Pakistan,

Bangladesh, Sweden, Vietnam

Netherlands, Egypt, Indonesia, Italy,

Canada, Spain, Saudi Arabia, Russia

93 Arms and

ammunition 930700 Dagger 57177 USA, Indonesia France, Venezuela Austria, Peru, Ecuador

94

Furniture,

bedding,

mattresses,

Stuffed

furnishing


3498628 USA, Netherlands Malaysia, UK, Ireland Austria, Korea Republic of, Kuwait

940340 Wooden

furniture 5978423 USA, Netherlands China, Korea Republic of Algeria, Slovenia

940350 Wooden

furniture 10452523 USA, Iraq, Germany China, Netherlands, UAE Spain, Kuwait, Denmark

940360 Wooden

furniture 24054195 USA, UK, Netherlands China, Iraq, UAE Hong Kong, China, Australia

96

Miscellaneous

manufactured

articles

960340

Vanishing,

Polishing,

and

Painting

891219

United States of America,

Iraq, UAE, Republic of

Korea

Bangladesh, Malaysia, Japan,

Mexico, Thailand

Australia, Norway, Russia, Indonesia

107

960500

Cotton ear

buds

249462

Qatar, UAE, Germany,

Hong Kong, China, Taipei,

Chinese

Saudi Arabia, Canada, China,

USA

Malaysia, Belgium, Denmark, Thailand,

Republic of Korea, Switzerland,

Macao, China, Philippines, New

Zealand, Sudan, Singapore, Sri Lanka

97

Works of art,

collectors'

pieces and antiques

970110

Decorative

items

13463985


Hong Kong, Singapore,

Qatar, Republic of Korea, India, Venezuela, Japan

Switzerland, UAE

Mexico, China, Canada, British Virgin

Islands, Germany, Austria, Netherlands,

Taipei, Serbia, Czech Republic, Ireland


𝑗

𝑊

𝑗

𝑊

4.2.2 Export Intensity Index (EII)

Export Intensity Index indicates whether or not a region country exports relatively more (as

a percentage) to a given destination than the world does on average. EII can be computed by

the following formula:

𝐼𝑁𝐷𝑋⁄𝐼𝑁𝐷𝑋

𝐸𝐼𝐼 = 𝑗 𝑊

𝐼𝑁𝐷,𝑗 𝑊𝑂𝑅𝑋⁄𝑊𝑂𝑅𝑋 𝑗 𝑊

where,

𝐸𝐼𝐼𝐼𝑁𝐷, stands for EII of India for the selected product to country j

𝐼𝑁𝐷𝑋 stands for exports of i-th product from India to country j

𝐼𝑁𝐷𝑋 stands for summation i-th product export from India to all countries

𝑊𝑂𝑅𝑋 stands for exports of i-th product from rest of the world to country j / import of

i-th product by country j from rest of the world

𝑊𝑂𝑅𝑋 stands for world’s export of i-th product to the world / world’s import of i-th

product from the world

The EII values range in between 0 and +∞. India is said to be having an intensive export

relationship with a partner country in a product category, if the value of the above index

exceeds unity. Conversely, the relationship is non-intense, if the value of the index is less than

unity. One limitation of EII is that as the index is not including any information on trade barriers

directly while constructing the same, qualitative information on that front may be checked

before coming to definitive conclusions.

In the current context, the analysis is conducted for the top ten export destinations of the

identified product categories. The products exported from India and enjoying an intense

relation in the partner country are marked with green colour. The EII results for the products

identified through CAGR are summarized in Table 4.3. It is observed that for most of the

markets India is enjoying an intense relation, barring the sole exception of HS 100890 (cereals).

The results for the other identified product categories are noted in Table 4.4. It is observed that

India is having EII only with the top trade partners in these categories.

108

109

Table 4.3: Export Intensity Index of Identified Products

HS

Chapter

Base

Product

HS

Code Rank-1 Rank-2 Rank-3 Rank-4 Rank-5 Rank-6 Rank-7 Rank-8 Rank-9 Rank-10

04

Dairy and

Epiculture

products

040900 116.39 26.68 14.62 12.09 8.92 7.15 6.34 5.64 5.43 5.00

Country

Zimbabwe

Zambia

Yemen United

States of

America

United

Kingdom

United

Arab

Emirates

Uganda

Turkey

Tunisia Trinidad

and Tobago

08

Edible

fruits and

nuts

080280 188.50 149.00 36.86 33.92 25.91 23.78 16.52 9.69 9.52 6.37

Country

United

Arab Emirates

Hong

Kong, China

New

Zealand

Uganda

Kuwait

Mauritius

Fiji

Canada

Indonesia

Netherlands

09

Coffee, tea,

mate and

spices

090412 68.09 46.82 3.85 3.45 3.26 3.15 3.00 2.88 2.76 2.50

Country

Benin

Nigeria

Turkey

Korea,

Democratic

People's

Republic of

United

States of

America

Tunisia

Viet Nam

Taipei,

Chinese

Australia

Tanzania,

United

Republic of

090422 398.02 43.00 27.91 18.23 12.23 6.15 6.04 5.03 4.75 3.36

Country Bangladesh Sri Lanka Nigeria Nepal Viet Nam Uganda Pakistan Yemen Turkey Zimbabwe

090830 14.35 8.53 7.27 4.50 4.47 3.82 3.51 3.21 2.88 2.68

Country

Colombia

Kenya

Morocco

Philippines

United

States

Minor

Outlying Islands

Nigeria

Pakistan

China

Sri Lanka

Greece

090831 3.47 3.06 2.20 2.17 2.12 2.10 2.08 1.90 1.62 1.41

Country

Tanzania,

United

Republic of

Algeria

Latvia

Zambia

Hong

Kong,

China

Uruguay

Pakistan

Indonesia

Curacao

Chile

090832 16.10 15.35 5.92 4.81 4.18 3.71 3.18 2.66 2.26 2.16

110

Country

Mauritius

Bangladesh

Japan

Pakistan

Singapore Sri

Lanka

United

Arab Emirates

Hong

Kong, China

Fiji

Chile

10

Cereals

100890 116.91 1.15 0.89 1.82 0.41 6.33 9.54 499.35 0.83 0.45

Country

Japan

Germany

Netherlands

Belgium

Italy Taipei,

Chinese

United

States of

America

Pakistan United

Kingdom

Canada

11

Products of

the milling

industry,

malt,

starches,

inulin,

wheat gluten

110100 111.43 61.96 56.80 53.83 53.29 50.29 45.27 38.75 38.6 37.03

Country Nepal Nigeria Sri Lanka Maldives Zambia Mauritius Tunisia Bangladesh Australia Kuwait

110290 173.72 57.97 54.91 49.91 43.96 40.00 35.43 30.36 24.14 20.81

Country

Sri Lanka

Maldives

Kuwait

Qatar

Nepal

Kenya

Nigeria

Egypt

Saudi

Arabia

Madagascar

12 Oil seeds

and medical plants

120740 31.30 16.42 15.66 15.15 11.63 11.4 8.45 6.33 6.17 5.99

Country Viet Nam Myanmar Philippines Sri Lanka Indonesia Croatia Seychelles Georgia Slovenia Nepal

15

Animal or

vegetable

fats and

oils,

prepared

edible fats,

animal or

vegetable waxes

151550 24.49 18.48 17.53 17.28 11.61 10.07 9.49 9.32 8.96 8.93

Country

Sudan

(before

2012)

Bangladesh

Kyrgyzstan

Oman

Mexico

Malawi

Kuwait

Bahrain

Nigeria

Sri Lanka

33

Essential

oils and

resinoids,

perfumery,

cosmetic or

toilet

preparations

330129 97.33 45.82 32.31 29.92 20.45 16.05 15.47 11.79 9.53 8.73

Country Uganda Sri Lanka Mozambique Sudan Oman Malawi Bangladesh Swaziland Congo Somalia

330190 60.07 8.68 8.17 6.36 5.90 4.98 4.74 4.68 4.56 4.23

Country Hong

Kong,

China

Benin

Congo

Nepal

Israel

Egypt

Thailand

Bhutan

Tajikistan

Denmark

Source: Computed from Trade Map data

111

Table 4.4: Export Intensity Index of Other Potential Products

HS

Chapter

Base Product

HS

Code

Rank-1

Rank-2

Rank-3

Rank-4

Rank-5

Rank-6

Rank-7

Rank-8

Rank-9

Rank-10

44

Wood and

articles of

wood

441900 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Country Saudi

Arabia Mexico Singapore Ukraine Philippines Argentina Georgia Samoa Mauritania Egypt

442090 1.73 1.42 1.19 0.83 0.81 0.33 0.27 0.08 0.08 0.07

Country

Netherlands

Poland

Italy

Germany

Spain

France

Austria

Japan

Korea,

Republic of

Singapore

71

Natural or

cultured

pearls,

imitation

jewellery

711311 2.72 2.05 0.22 0.08 0.08 0.06 0.04 0.03 0.02 0.00

Country United

Arab

Emirates

Hong

Kong,

China

United

Kingdom

Belgium

Thailand

Spain Korea,

Republic of

Italy

China Dominican

Republic

711411 2.29 0.96 0.36 0.14 0.12 0.02 0.01 0.00 0.00 0.00

Country United

Arab

Emirates

United

States of

America

Netherlands Hong

Kong,

China

Japan

Israel

Switzerland

Italy

Poland

Austria

82

Tools,

implements,

of base metal

820140 3.50 3.07 1.36 0.32 0.25 0.19 0.01 0.01 0.00 0.00

Country

United

States of

America

Australia United

Kingdom

Netherlands

Mexico Czech

Republic

Canada

Guatemala

Poland

France

93

Arms and

ammunition

930700 3.98 1.12 1.07 1.02 0.93 0.81 0.67 0.41 0.00 0.00

Country

Spain

Germany

Colombia

Australia

United

States of

America

Canada

United

Kingdom

France

Indonesia

Venezuela,

Bolivarian

Republic

of

94

Furniture,

bedding,

mattresses,

940330 71.82 46.38 35.15 18.59 17.79 17.55 9.23 2.18 1.53 1.29

Country

Netherlands

Spain

Italy Korea,

Republic of

United

Kingdom

Malaysia

Canada

Austria

United

States of

America

France

112

Stuffed

furnishing 940340 5.06 1.46 1.02 0.83 0.70 0.00 0.00 0.00 0.00 -

Country

Australia

Malaysia

China

Netherlands United

States of

America

Korea,

Republic

of

Denmark

Slovenia

Algeria

-

96

Miscellaneous

manufactured

articles

960350 5.67 1.25 1.17 0.67 0.60 0.56 0.49 0.29 0.23 0.00

Country United

Arab Emirates

United

States of America

United

Kingdom

Italy

Netherlands

Germany

Spain Korea,

Republic of

China

Iraq

960360 2.33 1.85 1.70 1.40 0.81 0.59 0.29 0.28 0.16 0.04

Country

Netherlands

Australia

United

States of America

United

Arab Emirates

United

Kingdom

Spain Korea,

Republic of

China

Sweden

Hong

Kong, China


113

𝑖𝑗

𝑇𝑗

𝑖𝐼𝑁𝐷

𝑇𝐼𝑁𝐷

4.2.3 Export Specialization Index (ESI)

It is often observed that bilateral trade in a product category is characterized by both-way

trade. It is then difficult to determine which country (i.e., India or the partner country) would

be having a better trade potential vis-à-vis the other. Under those circumstances, the emerging

specialization in trade of a product category can be verified through the Export Specialization

Index (ESI), a modified RCA-type index, which can be computed by the following formula:

𝐼𝑁𝐷𝑋⁄𝐼𝑁𝐷𝑋

𝐸𝑆𝐼𝑖𝑗 = 𝑖𝑗 𝑇𝑗

𝑃𝑅𝑇𝑋 ⁄𝑃𝑅𝑇𝑋 𝑖𝐼𝑁𝐷 𝑇𝐼𝑁𝐷

where,

𝐸𝑆𝐼𝑖𝑗 stands for ESI of the i-th product export from country India to country j

𝐼𝑁𝐷𝑋 stands for exports of i-th product from India to country j

𝐼𝑁𝐷𝑋 stands for total exports from India to country j

𝑃𝑅𝑇𝑋 stands for exports of i-th product to India from partner country j

𝑃𝑅𝑇𝑋 stands for total exports to India from partner country j

India is said to be developing an export specialization with a partner country in a product

category, if the value of the index exceeds unity. Conversely, the specialization is said to be

moving against India, if the value of the index is less than unity.

In the current context, the analysis is conducted for the top ten export destinations of the

identified product categories. The products exported from India and enjoying specialization

advantage in the partner country are marked with green colour. If export from India is not

presently happening or the partner country’s export orientation to India is too high, then the

index value would be closer to zero. The ESI results for the products identified through CAGR

are summarized in Table 4.5. From the table a mixed pattern is emerging, as specialization is

not evenly distributed in all top ten countries for products of export interest from Nagaland.

The results for the other identified product categories are noted in Table 4.6. A silver lining is

that India is enjoying favourable ESI with the top trade partners in most of these categories.

114

Table 4.5: Export Specialization Index for Identified Products

HS

Chapter

Base

Product

HS

Code

Rank-1

Rank-2

Rank-3

Rank-4

Rank-5

Rank-6

Rank-7

Rank-8

Rank-9

Rank-10

04

Dairy and

Epiculture

products

040900 107.36 23.72 7.86 5.14 2.36 1.85 1.84 1.66 1.33 1.01

Country United

States of

America

Saudi

Arabia

United

Arab

Emirates

Germany

Belgium

Singapore

Nepal United

Kingdom

Japan

Canada

08

Edible

fruits and

nuts

080280 87.44 14.42 10.59 2.51 1.20 1.11 0.5 0.04 0.00 0.00

Country

United

Arab Emirates

United

Kingdom

Nepal

Pakistan

Indonesia

Singapore

Bangladesh

Sri Lanka

Thailand

Maldives

09

Coffee, tea,

mate and

spices

090412 173.77 44.93 6.11 3.42 1.04 0.82 0.28 0.13 0.08 0.08

Country

United

States of America

United

Kingdom

Russian

Federation

Korea,

Republic of

Malaysia

Singapore

China

Hong

Kong, China

Netherlands

Finland

090422 16.48 16.13 9.13 4.31 3.77 3.59 2.37 2.33 1.31 1.24

Country United

States of

America

United

Arab

Emirates

Netherlands United

Kingdom

Thailand

Philippines

Nepal Korea,

Republic

of

Italy

Germany

090830 446.33 125.17 106.61 28.48 20.85 9.49 7.30 4.58 4.44 0.32

Country United

States of

America

Pakistan United

Kingdom

Australia Saudi

Arabia

United

Arab

Emirates

Singapore

France

Sri Lanka

Area Nes

090831 431.86 146.56 0.16 0.14 0.13 0.07 0.00 0.00 0.00 0.00

Country

Pakistan United

Arab

Emirates

Sri Lanka

Belgium

Viet Nam

Netherlands

Nepal

Bhutan Saudi

Arabia

Iran,

Islamic

Republic of

090832 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Country

United

States of

America

Viet Nam

China Saudi

Arabia

Japan

United

Arab

Emirates

Australia

Singapore

Canada United

Kingdom

115

10

Cereals

100890 1.39 0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Country United

Arab

Emirates

Nepal

Japan

Germany

Netherlands

Belgium

Italy Taipei,

Chinese

United

States of

America

Pakistan

11

Products of

the milling

industry,

malt,

starches,

inulin,

wheat

gluten

110100 55.98 17.93 15.88 14.00 13.87 10.26 8.20 5.03 2.19 2.17

Country United

States of America

Thailand

Sri Lanka United

Kingdom

Netherlands Hong

Kong, China

China

Canada

France Brunei

Darussalam

110290 16.80 13.19 7.31 2.93 2.22 1.51 1.13 0.81 0.65 0.46

Country

United

Arab Emirates

United

Kingdom

Canada

United

States of America

Hong

Kong, China

Australia

Singapore

Nigeria

Sri Lanka Korea,

Republic of

12

Oil seeds

and medical

plants

120740 2798.19 132.71 58.00 44.47 44.37 41.95 34.06 19.03 18.12 11.48

Country

China

Germany Taipei,

Chinese

Greece

Israel

Malaysia

United

States of

America

Turkey

United

Arab

Emirates

Sri Lanka

15

Animal or

vegetable

fats and

oils,

prepared

edible fats,

animal or

vegetable waxes

151550 158.26 104.94 102.24 76.75 55.58 45.07 42.51 38.83 37.77 30.59

Country

United

Arab

Emirates

Singapore

Saudi

Arabia

Switzerland

Taipei,

Chinese

Bahrain

United

Kingdom

Australia

Qatar

Netherlands

33

Essential

oils and

resinoids,

perfumery,

cosmetic or

toilet

preparations

330129 285.90 104.01 89.18 76.78 75.93 73.17 70.37 65.22 63.47 35.68

Country

Poland

Korea,

Republic of

Viet Nam

Guatemala

Nigeria

Israel

Philippines

Malaysia

Romania New

Zealand

330190 470.74 391.32 303.35 222.99 140.42 102.01 96.17 86.95 85.63 84.99

Country Korea,

Republic

of

Japan

Canada Hong

Kong,

China

Philippines

Mexico

Turkey Saudi

Arabia

Denmark South

Africa


116

Table 4.6: Export Specialization Index for Other Potential Products

HS

Chapter

Base Product

HS Code

Rank-1

Rank-2

Rank-3

Rank-4

Rank-5

Rank-6

Rank-7

Rank-8

Rank-9

Rank-10

14

Vegetable

plaiting

materials

140110 91.26 35.98 9.52 8.87 8.18 6.34 3.64 0.55 0.08 0.00

Countries

Myanmar Taipei,

Chinese

Area Nes

Thailand Hong

Kong,

China

Sri Lanka United

Arab

Emirates

Viet Nam

China Korea,

Republic

of

44

Wood and

articles of

wood

440122 790.30 0.24 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Countries

France South

Africa

United

States of

America

Italy

Australia

Germany

Chile

Malaysia

Singapore United

Arab

Emirates

441210 32.03 31.48 30.37 8.99 8.09 1.16 0.30 0.01 0.00 0.00

countries

Brazil

Area Nes Russian

Federation

Canada

Thailand

Malaysia

China

United

States of

America

World

Indonesia

441900 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Countries Saudi Arabia

Mexico Singapore Ukraine Philippines Argentina Georgia Samoa Mauritania Egypt

442090 16.69 9.87 9.43 2.57 0.00 0.00 0.00 0.00 0.00 0.00

Countries

Germany

Italy

Spain

Poland

France

Singapore

Japan

Netherlands

Korea,

Republic

of

Austria

46

Manufactures

of straw,

basketware

and wickerwork

460211 2404.17 53.80 7.15 4.42 3.41 2.98 2.51 2.46 2.46 0.69

Countries

Thailand

Japan

Italy

Philippines

Taipei,

Chinese

Indonesia

Nepal

Hong

Kong,

China

Japan

Area Nes

47

Pulp of wood

or of other

fibrous

cellulosic

material

470630 911.87 365.08 182.43 0.01 0.00 0.00 0.00 0.00 0.00 0.00

Countries

South

Africa

Nepal

Chile

Germany

Netherlands

Bangladesh

Myanmar

Canada

Sri Lanka

Chile

117

71

Natural or

cultured

pearls,

imitation

jewellery

711311 14.55 1.70 1.50 1.40 0.52 0.01 0.01 0.01 0.01 0.00

Countries United

Arab

Emirates

Spain United

Kingdom

Hong

Kong,

China

Belgium

Thailand

Italy Korea,

Republic of

China Dominican

Republic

711411 6.86 2.62 0.15 0.01 0.00 0.00 0.00 0.00 0.00 0.00

Countries United

Arab Emirates

United

States of America

Hong

Kong, China

Switzerland

Israel

Italy

Netherlands

Japan

Poland

Austria

82

Tools,

implements,

of base metal

820140 114.83 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Countries

United

States of America

Netherlands

Mexico

Canada

Poland United

Kingdom

Czech

Republic

Guatemala

France

Australia

84

Machinery,

mechanical

appliances, parts thereof

844319 23954.88 475.91 434.02 198.84 119.58 72.45 52.62 51.71 51.14 41.40

Countries Malta Ghana Finland Brazil Ireland Indonesia Australia Russian

Federation Sri Lanka Turkey

93

Arms and

ammunition

930700 0.24 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Countries

Germany

United

States of

America

France

Indonesia

United

Kingdom

Canada

Spain

Colombia

Venezuela,

Bolivarian

Republic

of

Australia

94

Furniture,

bedding,

mattresses,

Stuffed

furnishing

940330 1176.85 639.18 452.08 173.83 78.93 75.14 8.21 2.57 0.43 0.42

Countries

Malaysia

Austria

Netherlands

Italy Korea,

Republic of

Spain

Canada

France United

States of

America

United

Kingdom

940340 524.64 17.54 0.16 0.05 0.00 0.00 0.00 0.00 0.00 -

Countries United

States of America

Netherlands

China

Malaysia Korea,

Republic of

Australia

Denmark

Slovenia

Algeria

96

Miscellaneous

manufactured

articles

960340 82.32 54.22 18.74 17.92 7.62 3.16 2.25 1.83 1.37 0.90

Countries

Netherlands

Poland Korea,

Republic of

Belgium Saudi

Arabia

Malaysia

United

Arab Emirates

Italy United

Kingdom

Sweden

960350 83.16 79.02 31.01 29.98 28.79 4.85 1.49 0.07 0.01 0.00

118

Countries United

States of America

Netherlands United

Arab Emirates

Korea,

Republic of

United

Kingdom

Spain

Germany

Italy

China

Iraq

960360 101.12 95.36 70.95 3.76 2.90 2.08 1.76 1.72 0.21 0.01

Countries

Netherlands

Australia United

States of

America

Sweden United

Kingdom

Korea,

Republic

of

Hong

Kong,

China

United

Arab

Emirates

China

Spain

960500 34.45 31.08 29.76 18.38 4.34 3.79 3.79 2.86 2.28 2.26

Countries United

Arab

Emirates

Kenya United

States of

America

Mauritius

Turkey

Denmark Taipei,

Chinese

Netherlands

Viet Nam

Philippines

97

Works of art,

collectors'

pieces and

antiques

970110 116.80 96.87 93.36 91.67 78.76 77.79 60.93 48.38 35.48 34.17

Countries

Switzerland

Canada

Argentina

Denmark Korea,

Republic of

Thailand South

Africa

Japan Hong

Kong,

China

Nepal


119

4.3 Identified Key Export Markets

Tables 4.1 to 4.6 gives the market identification for the possible export products from

Nagaland on the basis of shift share analysis (for top thirty countries), EII (for top ten countries)

and ESI (for top ten countries) respectively. Positive net shift in the shift share analysis or index

value greater than 1 for EII and ESI implies that the partner country is an attractive export

destination and India (which includes exporters from Nagaland as well) may focus on these

markets. In the shift share analysis, both the high and medium growth markets have been

considered separately for this purpose. The following points may be kept in mind:

If it is found that a partner country has been selected in all three indices (marked in green),

the country is a very highly significant market for India.

If it is found that a partner country has been selected in two indices (marked in green), the

country is a highly significant market for India.

If it is found that a partner country has been selected in only one index (which includes all

the countries noted in the tables), the country is a significant market for India.

The identified markets for the products arrived at on the basis of CAGR have been

summarized in Table 4.7. Whenever a positive net shift market identified through shift share

analysis is also found to be an appropriate export market through EII / ESI, the partner country

are marked with green colour. It implies that the country is an ideal export market. For instance,

honey (HS 040900) can be exported to both UAE (determined favourable through all three

indices) and Singapore (determined favourable through shift share and ESI).

A similar analysis for the other potential products has been summarized in Table 4.8. For

instance, candle stand (HS 442090) can be exported to both Italy (determined favourable

through all three indices) and Germany (determined favourable through shift share and ESI).

120

Table 4.7: Export Destinations identified on the basis of Shift Share Analysis, Export Intensity Index and Export Specialization Index

for Identified Products

HS

Chapter

Base Product

HS

Code

Products Description

Markets according to Shift share

Markets according to

ESI

Markets according

to EII High Growth Countries

Medium Growth Countries

04

Dairy and

Epiculture

products

040900

Honey

China, United Arab


Japan, Hong Kong,

China, Spain, Canada

Singapore, Taipei,

Chinese, Belgium,

Portugal, Romania,

Italy, Oman

United States of

America, Saudi Arabia,

UAE, Germany,

Belgium, Singapore,

Nepal, UK, Japan, Canada

Zimbabwe, Zambia,

Yemen, USA, UK,

UAE, Uganda,

Turkey, Tunisia,

Trinidad and Tobago

08

Edible fruits

and nuts

080280

Arecanut

India, Nepal,

Bangladesh, Vietnam

Malaysia, United

States of America,

Thailand, United Arab

Emirates, Myanmar

UAE, UK, Nepal,

Pakistan, Indonesia,

Singapore

UAE, Hong Kong -

China, Uganda,

Kuwait, Mauritius,

Fiji, Canada,

Indonesia,

Netherlands

09

Coffee, tea, mate

and spices

090411

Pepper of the genus

Piper, neither crushed

nor ground


India, Viet Nam,

Germany, Pakistan

China, France,

Thailand, Iran,

Indonesia, UK,

Philippines, Canada, Spain

Not Available

Not Available

090412

Pepper of the genus

Piper, crushed or

ground

United States of

America, Germany,

Poland, Thailand,

Algeria, Australia,

Saudi Arabia, Sudan

Italy, Mexico

USA, United

Kingdom, Russian

Federation, Korea

Republic of, Malaysia

Benin, Nigeria,

Turkey, Korea

Democratic People's

Republic of, USA,

Tunisia, Vietnam,

Taipei, Australia,

Tanzania

121

090422

Fruits of the genus

Capsicum or of the

genus Pimenta,

crushed or ground

Spain, Indonesia,

Netherlands, Czech

Republic, Sweden,

Poland, Algeria,

Belgium

United States of

America, Japan,

Thailand, Italy

USA, UAE, Netherlands,

UK, Philippines, Nepal,

Korea Republic of, Italy,

Germany

Bangladesh, Sri

Lanka, Nigeria,

Nepal, Vietnam,

Uganda, Pakistan,

Yemen, Turkey, Zimbabwe

090831

Cardamoms, neither

crushed nor ground

India, UAE, Kuwait,

Iraq, Egypt, Iran,

Islamic Republic of

Bangladesh, Nepal,


Lanka, Sudan,

Bahrain, Jordan

Pakistan, UAE

Tanzania, Algeria,

Latvia, Zambia,

Hong Kong - China,

Uruguay, Pakistan,

Indonesia, Curacao,

Chile

090832

Cardamoms, either

crushed or ground

Saudi Arabia

Kuwait

Not Available

Mauritius,

Bangladesh, Japan,

Pakistan, Singapore,

Sri Lanka, UAE,

Hong Kong, Fiji, Chile

10

Cereals

100890

Cereals

Qatar, Kenya, Nigeria,

Israel


of America, Greece,

United Kingdom,

Poland, Russian


United Arab Emirates

Japan, Germany,

Belgium, Chinese

Taipei, USA,

Pakistan

11

Products of the

milling industry,

malt, starches,

inulin, wheat

gluten

110100

Wheat flour

Iraq, Afghanistan,

Sudan, Syrian Arab

Republic

United States of

America, Yemen,

Mexico, Somalia,

Saudi Arabia, United

Arab Emirates,

Tajikistan, Ireland, France, Bolivia

USA, Thailand, Sri

Lanka, UK, Netherlands,

Hong Kong, China,

Canada, France, Brunei

Darussalam

Nepal, Nigeria, Sri

Lanka, Maldives,

Zambia, Mauritius,

Tunisia, Bangladesh,

Australia, Kuwait

110290

Cereals Flours

Qatar, Kenya, Nigeria

Israel, Greece,

Vietnam, Russian

Federation, Iran

UK, Canada, USA, Hong

Kong, China, Australia,

Singapore, United Arab

Emirates

Sri Lanka,

Mauritius, Kuwait,

Qatar, Nepal,

Kenya, Nigeria,

Egypt, Saudi Arabia, Madagascar

122

12

Oil seeds and

medical plants

120740

Sesamum seeds,

whether or not broken

China, Turkey,

Vietnam, India, Iraq,

Taipei, Chinese,

Jordan, United Arab

Emirates, Greece,

Israel, Thailand, Saudi

Arabia, Iran, Islamic

Republic of Lebanon, Spain, Malaysia

Russian Federation,

Poland, Netherlands

China, Germany, Taipei,

Chinese, Greece, Israel,

Malaysia, USA, Turkey,

UAE, Sri Lanka

Viet Nam,

Myanmar,

Philippines, Sri

Lanka, Indonesia,

Croatia, Seychelles,

Georgia, Slovenia,

Nepal

15

Animal or

vegetable fats and

oils, prepared

edible fats, animal

or vegetable

waxes

151550

Sesame oil and its

fractions, whether or

not refined, but not

chemically modified

United States of

America, Taipei,

Chinese, Qatar, United

Arab Emirates,

Vietnam, Philippines,

Indonesia, Canada


Italy, UK, Saudi

Arabia, New Zealand,

Sweden

UAE, Singapore, Saudi

Arabia, Switzerland,

Taipei, Chinese, Bahrain,

UK, Australia, Qatar,

Netherlands

Sudan, Bangladesh,

Kyrgyzstan, Oman,

Mexico, Malawi,

Kuwait, Bahrain,

Nigeria, Sri Lanka

33

Essential oils and

resinoids,

perfumery,

cosmetic or toilet

preparations

330129

Essential oils (Rose &

Honey)

USA, Canada,

Indonesia, India,

France


Iran, Islamic Republic

of, Spain, China

Poland, Korea Republic

of, Viet Nam, Guatemala,

Nigeria, Israel,

Philippines, Malaysia,

Romania, New Zealand

Uganda, Sri Lanka,

Mozambique,

Sudan, Oman,

Malawi,

Bangladesh,

Swaziland, Congo, Somalia

330190


(Rose & Honey)




Netherlands

Austria, Turkey,

Russian Federation,

Egypt, Korea Republic

of, Algeria

Korea, Republic of,

Japan, Canada, Hong

Kong, China, Philippines,

Mexico, Turkey, Saudi

Arabia, Denmark, South Africa

Hong Kong, China,

Benin, Congo,

Nepal, Israel, Egypt,

Thailand, Bhutan,

Tajikistan, Denmark


123

Table 4.8: Export Destinations identified on the basis of Shift Share Analysis, Export Intensity Index and Export Specialization Index

for Other Potential Products

HS

Chapter

Base Product

HS Code

Products

Description

Markets according to Shift share Markets according to ESI

Markets according to EII

High Growth Countries Medium Growth

Countries

14 Vegetable plaiting

materials 140110

Bamboo Dyeing and

Treatment Plant India, Spain

Korea, Republic of,

Portugal, Poland

Myanmar, Taipei, Thailand,

Hong Kong, Sri Lanka, UAE Not Available

44

Wood and articles

of wood

440122 Bamboo Chips China, India France Not Available

441210 Bamboo Floor

Board USA, UAE, Kenya

Netherlands, Oman,

Japan, Kuwait

Brazil, Russian Federation,

Canada, Thailand, Malaysia Not Available

441900 Wooden Utensils ,

Dining Sets

Saudi Arabia, Mexico,

Singapore Ukraine, Philippines - Not Available

441912 Chopsticks No shift share data available Not Available Not Available

441990 Bamboo Board

Furniture

No shift share data available

Not Available Not Available

442090 Candle Stand Germany, France,

Singapore, Italy

Netherlands, Spain,

Poland

Germany, Italy, Spain,

Poland Netherlands, Poland, Italy

442190 Toothpicks China, USA UAE Not Available Not Available

46

Manufactures of

straw, basketware

and wickerwork

460210

Nara (carry basket)

Philippines, Barbados,

USA minor outlying

islands

Not Available

Not Available

460211

Fancy Basket &

Trays

United Kingdom, Spain,

Malaysia, Saudi Arabia

Taipei, Chinese;

Australia, Sweden,

Germany, Switzerland

Thailand, Japan, Italy,

Philippines, Taipei, Chinese,

Not Available

124

Indonesia, Nepal, Hong

Kong, China

47

Pulp of wood or of

other fibrous

cellulosic material

470630

Bamboo Pulp Germany, India, USA,

Spain

Japan, Australia,

Norway

South Africa, Nepal, Chile

Not Available

71

Natural or cultured

pearls, imitation

jewellery

711311 Coins necklaces Hong Kong, China, UAE Italy, China United Arab Emirates, Spain,

UK, Hong Kong, China

United Arab Emirates, Hong

Kong, China

711411 Ladies decorative

hair clips USA, Israel, Italy

Philippines,

China,

Netherlands

United Arab Emirates, USA United Arab Emirates

82 Tools, implements,

of base metal 820140 Axe Netherlands

Poland, Australia,

Guatemala United States of America


Australia, UK

84

Machinery,

mechanical

appliances, parts

thereof

844319

Screen Printing

Mexico, USA

Korea Republic of,

Pakistan, Bangladesh,

Sweden, Vietnam

Malta, Ghana, Finland,

Brazil, Ireland, Indonesia,

Australia, Russian

Federation, Sri Lanka,

Turkey

Not Available

93 Arms and

ammunition 930700 Dagger USA, Indonesia France, Venezuela -

Spain, Germany, Colombia,

Australia

94

Furniture, bedding,

mattresses, Stuffed

furnishing

940330

Wooden furniture

USA, Netherlands

Malaysia, UK, Ireland

Austria, Netherlands, Italy,

Korea Republic of, Spain,

Canada, France

Netherlands, Spain, Italy,

Korea Republic of, UK,

Malaysia, Canada, Austria,

USA, France

940340 Wooden furniture USA, Netherlands China, Korea Republic

of


Netherlands Australia, Malaysia, China

940350 Wooden furniture USA, Iraq, Germany China, Netherlands,

UAE Not Available Not Available

940360 Wooden furniture USA, UK, Netherlands China, Iraq, UAE Not Available Not Available

125

96

Miscellaneous

manufactured

articles

960340

Vanishing,

Polishing, and

Painting

United States of

America, Iraq, UAE,

Korea Republic of

Bangladesh, Malaysia,

Japan, Mexico,

Thailand

Not Available

Not Available

960500

Cotton ear buds

Qatar, UAE, Germany,

Hong Kong China,

Taipei, Chinese


China, USA


Kenya, USA, Mauritius,

Turkey, Denmark, Taipei,

Netherlands, Viet Nam,

Philippines

Not Available

97

Works of art,

collectors' pieces

and antiques

970110

Decorative items

United States of

America, Hong Kong,

China, Singapore, Qatar,

Korea, Republic of,

India, Venezuela, Japan

Switzerland, UAE

Switzerland, Canada,

Argentina, Denmark, Korea

Republic of, Thailand, South

Africa, Japan, Hong Kong,

China, Nepal

Not Available


126

4.4 Trade Barriers

4.4.1 Tariff Barriers

Tariff barriers are the import duties imposed by recipient country governments on exports

coming from various destinations. In the following an attempt has been made to identify the

import tariffs imposed on the potential export products from Nagaland. The data for the

analysis have been sourced from Market Access Map database, which reports the tariff

information across all countries in the world in pictorial representation in the following

manner:

The countries characterized by relatively low tariff barriers (0-15 percent) are marked

in lighter shades, i.e., green colour.

The countries characterized by moderate tariff barriers (15-30 percent) are marked in

yellow colour.

The countries characterized by relatively high tariff barriers (above 30 percent) are

marked in darker shades, i.e., orange, red or brown colour.

If a country displays a lighter shade, India can export to that market with ease and vice versa.

In the following the graphs for all the identified products have been displayed.

Figure 4.1: Tariff Barriers on India’s Export of Natural Honey (HS 040900)

Source: Obtained from Market Access Map database

127

Figure 4.2: Tariff Barriers on India’s Export of Arecanut (HS 080280)


Figure 4.3: Tariff Barriers on India’s Export of Pepper of the genus Piper, neither crushed nor

ground (HS 090411)


128

Figure 4.4: Tariff Barriers on India’s Export of Pepper of the genus Piper, crushed or ground

(HS 090412)


Figure 4.5: Tariff Barriers on India’s Export of Fruits of the genus Capsicum or of the genus

Pimenta, crushed or ground (HS 090422)


129

Figure 4.6: Tariff Barriers on India’s Export of Cardamoms, neither crushed nor ground (HS

090831)


Figure 4.7: Tariff Barriers on India’s Export of Cardamoms, either crushed or ground (HS

090832)


130

Figure 4.8: Tariff Barriers on India’s Export of Cereals (HS 100890)


Figure 4.9: Tariff Barriers on India’s Export of Wheat Flour (HS 110100)


131

Figure 4.10: Tariff Barriers on India’s Export of Cereals flour (HS 110290)


Figure 4.11: Tariff Barriers on India’s Export of Sesamum seeds, whether or not broken (HS

120740)


132

Figure 4.12: Tariff Barriers on India’s Export of Bamboo Dyeing and Treatment Plant (HS

140110)


Figure 4.13: Tariff Barriers on India’s Export of Sesame oil and its fractions, whether or not

refined, but not chemically modified (HS 151550)


133

Figure 4.14: Tariff Barriers on India’s Export of Essential oils of Rose & Honey (HS 330129)


Figure 4.15: Tariff Barriers on India’s Export of Extracted oleoresins, Rose & Honey (HS

330190)


134

Figure 4.16: Tariff Barriers on India’s Export of Bamboo chips (HS 440122)


Figure 4.17: Tariff Barriers on India’s Export of Bamboo Floor Board (HS 441210)


135

Figure 4.18: Tariff Barriers on India’s Export of Wooden Utensils , Dining Sets (HS 441900)


Figure 4.19: Tariff Barriers on India’s Export of Chopsticks (HS 441912)


136

Figure 4.20: Tariff Barriers on India’s Export of Bamboo Board Furniture (HS 441990)


Figure 4.21: Tariff Barriers on India’s Export of Candle stand (HS 442090)


137

Figure 4.22: Tariff Barriers on India’s Export of Toothpicks (HS 442190)


Figure 4.23: Tariff Barriers on India’s Export of Nara (HS 460210)


138

Figure 4.24: Tariff Barriers on India’s Export of Fancy Basket & Trays (HS 460211)


Figure 4.25: Tariff Barriers on India’s Export of Bamboo pulp (HS 470630)


139

Figure 4.26: Tariff Barriers on India’s Export of coins necklace (HS 711311)


Figure 4.27: Tariff Barriers on India’s Export of Ladies decorative hair clips (HS 711411)


140

Figure 4.28: Tariff Barriers on India’s Export of Axe (HS 820140)


Figure 4.29: Tariff Barriers on India’s Export of Screen printing (HS 844319)


141

Figure 4.30: Tariff Barriers on India’s Export of Dagger (HS 930700)


Figure 4.31: Tariff Barriers on India’s Export of Wooden furniture (HS 940330)


142





143



Figure 4.35: Tariff Barriers on India’s Export of Vanishing, Polishing, and Painting (HS

960340)


144

Figure 4.36: Tariff Barriers on India’s Export of Cotton ear buds (HS 960500)


Figure 4.37: Tariff Barriers on India’s Export of Decorative items (HS 970110)


145

4.4.2 Non-Tariff Barriers

Apart from the tariff barriers, the Non-Tariff Barriers (NTBs) also significantly impede the

market access of exports in foreign market. While the tariff barriers are direct in nature, with

their trade effects easy to perceive, the opaque NTBs often create more stringent compliance

related challenges. Six broad types of NTBs are generally noticed in international trade, which

are briefly mentioned in the following:

1. Quantity Restrictions, Quotas and Licensing Procedures: Under these types of NTBs,

the measures are imposed to restrict the volume of imports, with the maximum permissible

quantity of import over a period of time from various countries / from rest of world is fixed

in advance.

2. Foreign Exchange Restrictions: The restrictions imposed under this system requires the

importer to be sure that adequate foreign exchange is there for financing the imports of the

consignment, certified through a clearance from the exchange control authorities of the

country before concluding the contract with the supplier.

3. Technical and Administrative Regulations: These barriers involve imposition of

technical specifications / safety of local bodies etc., to which an importing commodity

must conform to. These restrictions are generally imposed through two channels, namely:

Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) Measures. The

SPS measures are imposed to protect the health of animals, plants and humans through

imposition of stricter process-related (e.g., trace of chemicals like fertilizers or pesticide

residues in eatable final products) standards, embodied in products affecting its quality.

Besides pure technical restrictions, administrative restrictions such as adherence to certain

documentary procedure (e.g., traceability of particular trees in case a fruit from the batch

of exports is found to be contaminated in certain chemicals, so that imports from that field

is banned till further tests are conducted) are adopted to regulate imports. TBT measures

on the other hand relate to the standards, which are not directly related to the quality of the

product. For instance, the restrictions of the packaging material used in case of honey or

the labelling (e.g., foreign language, colour codes) used to describe the same can be a TBT.

These measures impede the free flow of trade to a large extent.

4. Consular Formalities: A number of countries demand that shipping documents must

accompany the consular documents such as:

146

(a) Certificate of origin,

(b) Certified invoices,

(c) Import certificates etc.

Sometimes, it is also insisted that such documents should be drawn in the language of

importing countries. In case the documentation is found to be incomplete and is not drawn

in the language of the importing country in the requisite format, heavy penalties are

imposed. Fees charged for such documentation are quite high, often prohibitive for the

small exporters.

5. State Trading Agencies and Restrictions: In several countries, particularly in the non-

market economies with a socialist government, import and export transactions are handled

by certain State Agencies. These agencies carry out the formalities relating to international

trade strictly in line with their government policies. For instance, in some cases there can

be fixed annual quotas on imports. In some other cases, government determined price floor

or price ceilings can be there.

6. Subsidies: The importing country might be offering input (e.g., subsidized fertilizer or

electricity) or output subsidies (e.g., price or income support) to the local producers. This

lowers the cost competitiveness of the imported varieties.

The NTBs in the importing country influence international business in two manners, as

noted in the following:

(1) Direct price influencers: In case of several measures (e.g., exchange rate manipulations,

methods of imports valuation, customs surcharges, lengthy customs procedures,

establishment of minimum import prices, unreasonable product or process standards,

export subsidies or drawbacks, inspection procedures), either the compliance cost may

directly go up or there would be a downward pressure on the selling price in the destination

market.

(2) Indirect price influencers: In case of certain measures (e.g., import licensing, trade

facilitation), the government barriers would influence the compliance cost and the landed

price of imports indirectly.

147

In Table 4.9, an example of NTBs in the USA market on import of Honey (HS 040900),

which can be one of the major export product of Nagaland, has been provided. It is seen that a

number of SPS and TBT measures impede the market access of the product in the export

market.

Table. 4.9: Non-Tariff Barriers on Import of Honey (040900) in USA

NTM issue Description

Sanitary and

Phytosanitary

Measures

Mandatory country of origin labeling of beef, pork, lamb, chicken, goat

meat, wild and farm-raised fish and shellfish, perishable agricultural

commodities, peanuts, pecans, ginseng, and macadamia nuts.

Sanitary and

Phytosanitary

Measures

This law requires that imports of certain products meet the same or

comparable standards as products covered under Federal marketing orders

in the United States. Currently, the imported commodities subject to Section

8e of the Act are: avocados, dates (other than dates for processing),

hazelnuts (filberts), grapefruit, table grapes, kiwifruit, olives (other than

Spanish-style), onions, oranges, Irish potatoes, raisins, tomatoes and

walnuts. Grading and quality inspection by the U.S. Department of

Agriculture’s Agricultural Marketing Service is required for each lot

(shipment) imported.

Technical Barriers to

Trade

Mandatory country of origin labeling of beef, pork, lamb, chicken, goat

meat, wild and farm-raised fish and shellfish, perishable agricultural

commodities, peanuts, pecans, ginseng, and macadamia nuts.

Export related

measures

The Animal and Plant Health Inspection Service (APHIS) of the

Department of Agriculture (USDA) regulates imports of plants, animals,

and their products.

Non-automatic

licensing, quotas,

prohibitions and

quantity control

measures other than

for SPS or TB

Information on obtaining a permit for the importation of fresh and frozen

fruits and vegetables.

Non-automatic

licensing, quotas,

prohibitions and

Questions and answers about plant protection and quarantine permits.

148

quantity control

measures other than

for SPS or TB

Pre-shipment

Inspection and other

formalities



and their products.

Sanitary and

Phytosanitary

Measures

APHIS works to prevent the entry, establishment, or spread of animal and

plant pests and noxious weeds in the United States.

Sanitary and

Phytosanitary

Measures



and their products.

Sanitary and

Phytosanitary

Measures

The FAVIR Database allows easy access to regulations and information

pertaining to the importation of fruits and vegetables into the United States,

its territories, and possessions.

Source: Constructed from the Market Access Map database on Non-Tariff Barriers

In Table 4.10, a more detailed example of NTBs in the UAE market on import of Honey

(HS 040900), which can be one of the major export product of Nagaland, has been provided.

The data corresponds to the UAE import regulations on the rest or world and not India in

particular. It is seen that in a number of cases, the requirement of organic production, labelling

and certification requirements crop up for exporting to the market. As Nagaland happens to be

a default organic state, the government may try to promote primary exports from the state with

appropriate branding, certification, packaging and promotional activities.

Table 4.10: Non-Tariff Barrier Details on Import of Honey (040900) in UAE from India

NTM

CODE

Additional

Comments on

Products

Additional Comments on NTM

A490 Organic products The materials used in the process of cleaning and sterilization must be allowed

F690 Organic products Certification fees

A830 Organic products Certificate of Conformity

A210 Organic products

149

A330 Organic products The use of special materials for the packaging of organic food; composed of

safe and healthy materials and could be reused or recycled



A310 Organic products Bio Label use requirements

C400 Organic products Export certification from the original country



B310

Labels must be in Arabic and must present items specifications like name,

nature, components, date of production or packaging, expiration date, net

weight, country of origin and country of export. Besides the rules and risks of

use if possible


A830 Sanitary certification and a certificate attesting the absence of radioactive

materials

A220 Organic products Restriction of use of chemical pesticides and fertilizers

A130 Organic products Conditions and standards of certified organic production

C400 Import license

A590 Organic products Special standards for the use of veterinary products

Source: Constructed from the Market Access Map database on Non-Tariff Barriers

The trade barriers summary for the top ten markets for the products arrived at on the basis

of CAGR and the other potential products have been given in Tables 4.11 and 4.12 respectively.

Against each product category, the following two fields are provided:

Category I shows the average tariff (estimated) applied by the importing country (in

percent) on Indian exports by the importing country. A tariff closer to zero indicates that

India would be able to export there with relative ease and vice versa.

Category II shows the number of NTB compliance requirements applied by the

importing country on Indian exports. If the number of NTBs on Indian export are closer

to zero, it may indicate that India would have to fulfill lesser formalities. In other words,

the country might be able to export there with relative ease and vice versa.

150

Table 4.11: Tariff and Non-tariff Barriers Summary in Identified Products

HS

Chapter

Base

Product

HS

Code

Importer

Country 1

Importer

Country

2

Importer

Country 3

Importer

Country 4

Importer

Country 5

Importer

Country 6

Importer

Country 7

Importer

Country 8

Importer

Country

9

Importer

Country

10

04

Dairy and

Epiculture

products

040900

United

States of

America

Germany

Japan

France United

Kingdom

Belgium

China

Italy

Spain

Netherlands

I 0.3 7.1 20.5 7.1 7.1 7.1 18.7 7.1 7.1 7.1

II 11 7 11 11 11 7 11 11 11

08

Edible

fruits and

nuts

080280

Pakistan

India

Singapore

Nepal

Bangladesh

Viet Nam

Myanmar

Malaysia

United

States of

America

Maldives

I 19.4 84.8 0 27.5 25 32.5 9.6 0 0.3 ...

II 1 26 N/A

09

Coffee, tea,

mate and

spices

090412

United

States of

America

United

Kingdom

Japan

Germany

Netherlands

Canada

France

Poland

Australia Saudi

Arabia

I 0 0.9 0.6 0.9 0.9 1.4 0.9 0.9 0 4.6

II 15 13 15 15 15 15 28

090412

United

States of

America

Germany

India

Viet Nam

France

United

Arab

Emirates

Spain

Netherlands

Japan

Singapore

I 0 0 61.9 21.8 0 4.6 0 0 0.6 0

II 15 26 15 25 15 15 13

090422

United

States of

America

Germany

Japan

United

Kingdom

Canada

Netherlands

Thailand

Spain

United

Arab

Emirates

Russian

Federation

I 0.4 1.2 1.1 1.2 0.7 1.2 20.1 1.2 4.6 3.2

II 15 N/A 15 15 15 25 N/A

151

090831 Saudi

Arabia

India

United

Arab

Emirates

Bangladesh

Pakistan

Kuwait

Iraq

Jordan

United

States of

America

Egypt

I 0 67.7 0 24.4 3 0 ... 23.9 0 1.5

II 28 26 25 1 17 11 20

090832 Saudi

Arabia

United

States of

America

Germany

Norway

United

Arab

Emirates

Kuwait

Sweden

Qatar

Canada

Denmark

I 0 0 0 0 0 0 0 0 1.4 0

II 28 15 25 17 15 10 15

10

Cereals

100890

Qatar

Italy

Belgium

United

States of

America

Netherlands

Germany

Kenya

Israel United

Kingdom

Spain

I 0 0.2 0.2 0.7 0.2 0.2 23.2 0 0.2 0.2

II 10 14 14 14 14 9 14 14

11

Products of

the milling

industry,

malt,

starches,

inulin,

wheat

gluten

110100

Afghanistan

Iraq

Netherlands

USA

Sudan

Angola

Uzbekistan

France

Brazil Hong

Kong, China

I 5 ... 3.9 0.5 ... 2 40 3.9 11.5 0

II N/A 17 17 11 9

110290

Spain

United

States of

America

China

France

Germany

Malaysia

Netherlands

Hong

Kong,

China

Canada

Russian

Federation

I 2.5 1.7 34.8 2.5 2.5 0 2.5 0 5.5 6.4

II 15 13 15 15 15 9 25

12

Oil seeds

and medical

plants

120740

China

Turkey

Japan

Korea,

Republic

of

Viet Nam

Israel

United

States of

America

Germany Taipei,

Chinese

Saudi

Arabia

I 7.1 12.4 0 610 5.4 0 0 0 13.4 4.6

II 12 N/A 13 14 17 28

152

15

Animal or

vegetable

fats and

oils,

prepared

edible fats,

animal or

vegetable waxes

151550

United

States of

America

United

Kingdom

Canada

Australia

Germany

Hong

Kong,

China

Japan

Netherlands

Singapore

France

I 0.1 1.8 5.7 0 1.8 0 1.3 1.8 0 1.8

II

21

21

8

7

21

21

33

Essential

oils and

resinoids,

perfumery,

cosmetic or

toilet

preparations

330129

United

States of

America

France

Germany United

Kingdom

India

Switzerland

Spain

Indonesia

Canada

Singapore

I 0.5 0.3 0.3 0.3 16.4 0 0.3 4.8 0 0

II 6 6 6 3 8 6

330190

United

States of

America

India

United

Kingdom

Germany

Netherlands

France

Korea,

Republic of

Canada

United

Arab

Emirates

China

I 0.9 16.3 0.4 0.4 0.4 0.4 62.8 0 4.6 22

II 3 8 8 8 8 10 2

Source: Constructed on the basis of Market Access Map data

I: Average tariff (estimated) applied by the importing country (%) on Indian Exports

II: Number of Non-tariff compliance requirements applied by the importing country on Indian Exports

153

Table 4.12: Tariff and Non-tariff Barriers Summary for top 10 countries in Other Potential Products

HS

Chapter

Base Product HS

Code

Importer

Country

1

Importer

Country 2

Importer

Country 3

Importer

Country 4

Importer

Country 5

Importer

Country

6

Importer

Country 7

Importer

Country 8

Importer

Country 9

Importer

Country

10

14

Vegetable

plaiting

materials

140110 United

States of

America

India

Netherlands

Spain

Italy Hong

Kong,

China

Poland

Japan

France United

Kingdom

I 0 29 0 0 0 0 0 5.1 0 0

II 4 N/A N/A N/A 8 N/A 8 N/A N/A

44

Wood and

articles of

wood

440122

China

Japan

Portugal Taipei,

Chinese

Turkey Korea,

Republic of

India

Austria

Canada

Finland

I 0.9 0 0 0 0 0.6 4.1 0 0 0

II 1 7 7 N/A 9 7 7

441210 United

States of

America

Netherlands

Singapore

Philippines Saudi

Arabia

China

Canada

Japan Cayman

Islands

United

Arab

Emirates

I 1.9 2.8 0 14.1 4.6 9.4 0 5.9 ... 4.6

II N/A N/A 18 N/A 4 1

441900

United

States of America

Netherlands

Belgium

Denmark

United

Arab Emirates

Spain United

Kingdom

Australia

Germany

Italy

I

II 2 2 2 1 2 2 2 2

442090 United

States of

America

Germany United

Kingdom

Netherlands

Italy United

Arab

Emirates

China

France

Sweden

Australia

I 0 0 0 0 0 5 0 0 0 4

II N/A N/A N/A N/A 9 N/A N/A N/A

442190

United

States of America

Germany

Japan

China

France United

Kingdom

Italy

Netherlands

Canada

Austria

154

I ... ... ... ... ... ... ... ... ... ...

II 3 7 N/A 3 3 3 3 3

46

Manufactures

of straw,

basketware

and

wickerwork

460211 United

States of

America

Japan

Germany United

Kingdom

France

Spain

Netherlands

Italy

Canada Taipei,

Chinese

I 2.4 3.4 0.9 0.9 0.9 0.9 0.9 0.9 2.7 5.9

II 14 3 3 3 3 3 3

47

Pulp of wood

or of other

fibrous

cellulosic material

470630 Germany Australia Italy Spain United

Kingdom Norway

Korea, Republic of

Japan Taipei, Chinese

Netherlands

I 0 0 0 0 0 0 ... 0 0.5 0

II N/A N/A N/A N/A N/A N/A

71

Natural or

cultured

pearls,

imitation

jewellery

711311 Hong Kong,

China

United States of

America

United Arab

Emirates

United

Kingdom

Germany

Australia

Canada

Italy

France

Thailand

I 0 1.7 5 2.5 2.5 5 6.8 2.5 2.5 8.6

II 3 7 3 3 3 3

711411

Oman

United

States of America

United

Kingdom

United

Arab Emirates

Australia

Germany

Canada

Norway

Netherlands

Thailand

I 5 0.4 2 5 5 2 5.5 0 2 17.3

II 0 3 7 3 3

82

Tools,

implements,

of base metal

820140 United

States of

America

Australia United

Kingdom

Germany

Netherlands

Mexico

Ireland

Sweden

Argentina

Fiji

I 0 5 1.7 1.7 1.7 15 1.7 1.7 18 0

II 2 2 2 1 2 2 2

84

Machinery,

mechanical

appliances,

parts thereof

844319

China United

States of America

Taipei,

Chinese

Viet Nam Korea,

Republic of

India

Germany

Mexico

Philippines

Indonesia

I 10.2 0.6 2.8 0 4.8 6.1 0.3 0 0.9 4.7

II 12 9 7 1 10

155

93

Arms and

ammunition

930700 United

States of America

Spain Tanzania,

United Republic of

Germany

Poland

Colombia

Canada United

Kingdom

France

Australia

I 0 1.7 25 1.7 1.7 15 7 1.7 1.7 0

II N/A N/A N/A N/A 3 N/A N/A

94

Furniture,

bedding,

mattresses,

Stuffed

furnishing

940330 United

States of

America

Netherlands

Germany United

Kingdom

France

Australia

Canada United

Arab

Emirates

Belgium

Italy

I 0 0 0 0 0 5 0 5 0 0

II 2 2 2 2 1 2 2

940340 United

States of

America

United

Arab

Emirates

Kenya

Oman United

Kingdom

Australia

Netherlands

Nepal

Singapore

China

I 0 5 25 5 0 5 0 11.3 0 0

II 1 N/A 2 2 10 N/A

940350

United

States of America

United

Arab Emirates

Canada United

Kingdom

Germany

Australia

France

Netherlands

Nepal

Kuwait

I 0 5 9.5 0 0 5 0 0 11.3 5

II 1 2 2 2 2 10 3

940360 United

States of

America

Germany

Netherlands

France United

Kingdom

Australia

Canada United

Arab

Emirates

Belgium

Spain

I 0 0 0 0 0 5 4.8 5 0 0

II 2 2 2 2 1 2 2

96

Miscellaneous

manufactured

articles

960340 United

States of America

Germany United

Kingdom

Netherlands

France Russian

Federation

Belgium

Canada

Mexico

Japan

I 2.5 0.9 0.9 0.9 0.9 8.8 0.9 4.3 12 4.4

II N/A N/A N/A N/A 1 N/A 1 13

960500

Hong

Kong,

China

United

States of

America

Germany United

Kingdom

United

Arab

Emirates

Australia

Qatar Taipei,

Chinese

Saudi

Arabia

Netherlands

156

I 0 3.4 0.9 0.9 4.5 0 4.5 5.4 4.5 0.9

II 2 N/A N/A 1 1 18 N/A

97

Works of art,

collectors'

pieces and

antiques

970110 United

States of

America

United

Kingdom

Switzerland Hong Kong,

China

France

Singapore

Japan

Germany Korea,

Republic of

Austria

I 0 0 0 0 0 0 0 0 0 0

II N/A 1 2 N/A 5 N/A N/A


I: Average tariff (estimated) applied by the importing country (%) on Indian Exports

II: Number of Non-tariff compliance requirements applied by the importing country on Indian Exports

157

4.5 Final Selection of Markets

Tables 4.1 – 4.12 in the earlier part of the chapter describes the identified markets and the

possible tariff and non-tariff barriers being imposed on them. The purpose of the analysis is the

following:

Shift share analysis is important in identifying the markets with high demand. High and

medium positive net shift shows that these markets are lucrative for India.

The Export Intensity Index (EII) is important to understand if India is able to penetrate a

market better vis-à-vis rest of the world. EII greater than 1 means that India enjoys

opportunities in these markets.

The Export Specialization Index is important to understand if India is able to penetrate a

market better vis-à-vis that particular trade partner’s export to India. ESI greater than 1

means that India enjoys opportunities in that market.

Tariff barriers show the inclination of a country to protect its domestic players through

direct measures. If the tariff barriers are low, it means Indian exports would enjoy greater

access in these markets. In the current context 8 percent tariff has been considered as the

benchmark for trade barrier.

Tariff barriers show the inclination of a country to protect its domestic players through

indirect measures. If the NTBs are less in number, it means Indian exports would enjoy

greater access in these markets. In the current context 10 NTBs (i.e., different types of

compliance requirements) have been considered as the benchmark for trade barrier.

Tables 4.13 and 4.14 show the potential markets selected both through the CAGR analysis

and from the field interactions respectively. For the identification, all the drivers (i.e., demand,

competitiveness and trade barriers) have been considered. The countries characterized by

better export potentials are marked in green.

On the basis of the obtained results, a few points deserves mention:

The products for which CAGR / ESI and EII values are not available, there could be an

attempt to analyze tourists from which countries buy these products during their visit to

158

Nagaland. In line with the observations, the export opportunities to those particular

markets can be explored.

There are several common countries for the exportable products from Nagaland where the

opportunities exist. For example, both UAE and Sri Lanka emerge as good exportable

destinations for several products (as noted in Table 4.1 – 4.14). So, strategies for reaching

these countries should be considered.

There are some products which can become value added products with the help of

technology, often marginal upgradation. For example, a simple wooden pen stand can

become an attractive decorative item in office tables, after fitting a small battery-fitted

clock. Training for making these marginal value additions must be provided to the

Nagaland workers.

159

Table 4.13: Final Export Destinations on the basis of Trade Indices and Trade Barriers for Identified Products

HS

Code

Products

Description

Markets according to Shift share Markets according to

ESI

Markets according to

EII

Tariff < 8%

No. of Non-

Tariff Barriers

< 10 High Growth

Countries

Medium Growth

Countries

40900

Honey

China, United Arab


Japan, Hong Kong,

China, Spain,

Canada

Singapore, Taipei,

Chinese, Belgium,

Portugal, Romania,

Italy, Oman

United States of

America, Saudi Arabia,

UAE, Germany,

Belgium, Singapore,

Nepal, UK, Japan,

Canada

Zimbabwe, Zambia,

Yemen, USA, UK, UAE,

Uganda, Turkey, Tunisia,

Trinidad and Tobago

USA, France, UK,

Belgium, Italy, Spain,

Netherlands

Japan, China

80280

Arecanut

India, Nepal,

Bangladesh, Vietnam

Malaysia, United States

of America, Thailand,


Myanmar

UAE, UK, Nepal,

Pakistan, Indonesia,

Singapore

UAE, Hong Kong -

China, Uganda, Kuwait,

Mauritius, Fiji, Canada,

Indonesia, Netherlands

Singapore, Malaysia,

USA, Maldives

Pakistan, Nepal

90411

Pepper of the genus

Piper, neither

crushed nor ground

United Arab

Emirates, India, Viet

Nam, Germany,

Pakistan

China, France,

Thailand, Iran,

Indonesia, UK,

Philippines, Canada,

Spain

Not Available

Not Available

USA, UK, Japan,

Germany,

Netherlands, Canada,

France, Poland,

Australia, Saudi Arabia

-

90412

Pepper of the genus

Piper, crushed or

ground

United States of

America, Germany,

Poland, Thailand,

Algeria, Australia,

Saudi Arabia, Sudan

Italy, Mexico

USA, United

Kingdom, Russian

Federation, Korea

Republic of, Malaysia

Benin, Nigeria, Turkey,

Korea Democratic

People's Republic of,

USA, Tunisia, Vietnam,

Taipei, Australia,

Tanzania

USA, Germany,

France, UAE, Spain,

Netherlands, Japan,

Singapore

-

90422

Fruits of the genus

Capsicum or of the

genus Pimenta,

crushed or ground

Spain, Indonesia,

Netherlands, Czech

Republic, Sweden,

Poland, Algeria,

Belgium

United States of

America, Japan,

Thailand, Italy

USA, UAE, Netherlands, UK,

Philippines, Nepal,

Korea Republic of, Italy, Germany

Bangladesh, Sri Lanka,

Nigeria, Nepal, Vietnam,

Uganda, Pakistan,

Yemen, Turkey,

Zimbabwe

USA, Germany,

Japan, UK, Canada,

Netherlands, Spain,

UAE, Russian

Federation

Japan, Russian

Federation

160

90831

Cardamoms, neither

crushed nor ground

India, UAE, Kuwait,

Iraq, Egypt, Iran,

Islamic Republic of

Bangladesh, Nepal,


Lanka, Sudan, Bahrain,

Jordan

Pakistan, UAE

Tanzania, Algeria,

Latvia, Zambia, Hong

Kong - China, Uruguay,

Pakistan, Indonesia, Curacao, Chile

Saudi Arabia,

Pakistan, Kuwait,

USA, Egypt

Pakistan

90832

Cardamoms, either

crushed or ground

Saudi Arabia

Kuwait

Not Available

Mauritius, Bangladesh,

Japan, Pakistan,

Singapore, Sri Lanka,

UAE, Hong Kong, Fiji, Chile

Saudi Arabia, USA,

Germany, Norway,

UAE, Kuwait,

Sweden, Qatar, Canada, Denmark

-

100890

Cereals

Qatar, Kenya,

Nigeria, Israel


of America, Greece,

United Kingdom,

Poland, Russian



Japan, Germany,

Belgium, Chinese Taipei,

USA, Pakistan

Qatar, Italy, Belgium,

USA, Netherlands,

Germany, Israel, UK,

Spain

Qatar, Israel

110100

Wheat flour

Iraq, Afghanistan,

Sudan, Syrian Arab

Republic

United States of

America, Yemen,

Mexico, Somalia,

Saudi Arabia, United

Arab Emirates,

Tajikistan, Ireland,

France, Bolivia

USA, Thailand, Sri

Lanka, UK,

Netherlands, Hong

Kong, China, Canada,

France, Brunei

Darussalam

Nepal, Nigeria, Sri

Lanka, Maldives,

Zambia, Mauritius,

Tunisia,

Bangladesh,

Australia, Kuwait

Afghanistan, Iraq,

Netherlands, USA,

Sudan, Angola

France, Hong Kong

Afghanista

n, Hong

Kong

110290

Cereals Flours

Qatar, Kenya, Nigeria

Israel, Greece,

Vietnam, Russian

Federation, Iran

UK, Canada, USA,

Hong Kong, China,

Australia, Singapore,


Sri Lanka, Mauritius,

Kuwait, Qatar, Nepal,

Kenya, Nigeria, Egypt,

Saudi Arabia, Madagascar

Spain, USA, France,

Malaysia,

Netherlands, Hong

Kong, Canada, Russian Federation

Hong Kong

120740

Sesamum seeds,

whether or not

broken

China, Turkey,

Vietnam, India, Iraq,

Taipei, Chinese,

Jordan, United Arab

Emirates, Greece,

Israel, Thailand,

Saudi Arabia, Iran,

Islamic Republic of

Lebanon, Spain,

Malaysia

Russian Federation,

Poland, Netherlands

China, Germany,

Taipei, Chinese,

Greece, Israel,

Malaysia, USA,

Turkey, UAE, Sri

Lanka

Viet Nam, Myanmar,

Philippines, Sri Lanka,

Indonesia, Croatia,

Seychelles, Georgia,

Slovenia, Nepal

China, Japan,

Vietnam, Israel,

USA, Germany,

Saudi Arabia

Turkey

161

151550

Sesame oil and its

fractions, whether

or not refined, but

not chemically

modified

United States of

America, Taipei,

Chinese, Qatar,

United Arab

Emirates, Vietnam,

Philippines, Indonesia, Canada


Italy, UK, Saudi

Arabia, New Zealand,

Sweden

UAE, Singapore, Saudi

Arabia, Switzerland,

Taipei, Chinese,

Bahrain, UK, Australia,

Qatar, Netherlands

Sudan, Bangladesh,

Kyrgyzstan, Oman,

Mexico, Malawi,

Kuwait, Bahrain,

Nigeria, Sri Lanka

USA, UK, Canada,

Australia, Germany,

Hong Kong, Japan,

Netherlands,

Singapore, France

Hong Kong,

Japan

330129

Essential oils (Rose

& Honey)

USA, Canada,

Indonesia, India,

France


Iran, Islamic Republic

of, Spain, China

Poland, Korea

Republic of, Viet Nam,

Guatemala, Nigeria,

Israel, Philippines,

Malaysia, Romania,

New Zealand

Uganda, Sri Lanka,

Mozambique, Sudan,

Oman, Malawi,

Bangladesh, Swaziland,

Congo, Somalia

USA, France,

Germany, UK,

Switzerland, Spain

Indonesia, Canada,

Singapore

France,

Germany, UK,

Switzerland,

Spain

330190


(Rose & Honey)

United Arab

Emirates, Saudi

Arabia, Canada,


Netherlands

Austria, Turkey,

Russian Federation,

Egypt, Korea Republic

of, Algeria

Korea, Republic of,

Japan, Canada, Hong

Kong, China,

Philippines, Mexico,

Turkey, Saudi Arabia,

Denmark, South Africa

Hong Kong, China,

Benin, Congo, Nepal,

Israel, Egypt, Thailand,

Bhutan, Tajikistan,

Denmark

USA, UK, Germany,

Netherlands, France,

Korea Republic of,

Canada, UAE

UK, Germany,

Netherlands,

France, UAE,

China


162

Table 4.14: Final Export Destinations on the basis of Trade Indices and Trade Barriers for Other Potential Products

HS

Code

Products

Description

Markets according to Shift share Markets according

to ESI

Markets

according to EII

Tariff < 8%

No. of Non-Tariff

Barriers < 10

High Growth

Countries

Medium Growth

Countries

140110

Bamboo Dyeing

and Treatment

Plant

India, Spain

Korea, Republic of,

Portugal, Poland

Myanmar, Taipei,

Thailand, Hong

Kong, Sri Lanka, UAE

Not Available

USA, Netherlands,

Spain, Italy, Hong Kong,

Poland, Japan, France, UK

Netherlands, Spain,

Italy, Hong Kong,

Poland, Japan, France, UK

440122

Bamboo Chips

China, India

-

France

Not Available

China, Japan, Portugal,

Taipei, Turkey, Korea

Republic of, India,

Austria, Canada, Finland

China, Japan, Portugal,

Taipei, Turkey, India,

Austria, Canada,

Finland

441210

Bamboo Floor

Board

USA, UAE, Kenya

Netherlands, Oman,

Japan, Kuwait

Brazil, Russian

Federation, Canada,

Thailand, Malaysia

Not Available

USA, Netherlands,

Singapore, Saudi Arabia,

Canada, Japan, Cayman

Island, Arabia

Netherlands, Philippines,

China, Japan, UAE

441900

Wooden

Utensils , Dining

Sets

Saudi Arabia,

Mexico, Singapore

Ukraine, Philippines

-

Not Available

-


Denmark, UAE, Spain,

UK, Garment, Italy

442090

Candle Stand

Germany, France,

Singapore, Italy

Netherlands, Spain,

Poland

Germany, Italy,

Spain, Poland

Netherlands,

Poland, Italy

USA, Germany, UK,

Netherlands, Italy, UAE,

China, France, Sweden,

Australia

Germany, UK,

Netherlands, Italy,

UAE, China, France,

Sweden

442190

Toothpicks

China, USA

UAE

Not Available

Not Available

-

Germany, Japan, China,

France, UK, Italy,

Netherlands, Austria

460210

Nara (carry

basket)

Philippines,

Barbados, USA

minor outlying islands

-

Not Available

Not Available

-

-

163

460211

Fancy Basket &

Trays

United Kingdom,

Spain, Malaysia,

Saudi Arabia

Taipei, Chinese;

Australia, Sweden,

Germany, Switzerland

Thailand, Japan,

Italy, Philippines,

Taipei, Chinese,

Indonesia, Nepal,

Hong Kong, China

Not Available

USA, Japan, Germany,

UK, France Spain,

Netherlands, Italy,

Canada, Taipei

Germany, UK, France

Spain, Netherlands,

Italy

470630

Bamboo Pulp

Germany, India,

USA, Spain

Japan, Australia,

Norway

South Africa, Nepal,

Chile

Not Available

Germany, Australia,

Italy, Spain, UK,

Norway, Korea republic

of, Japan, Taipei, Netherlands

Germany, Italy, Spain,

UK, Japan, Netherlands

711311

Coins necklaces

Hong Kong,

China, UAE

Italy, China

United Arab

Emirates, Spain, UK,

Hong Kong, China

United Arab

Emirates, Hong

Kong, China

Hong Kong, USA, UAE,

UK, Germany, Australia,

Canada, Italy, France

Hong Kong, UAE, UK,

Germany, Italy, France

711411

Ladies

decorative hair

clips

USA, Israel, Italy

Philippines,

China,

Netherlands

United Arab

Emirates, USA

United Arab

Emirates

Oman, USA, UK, UAE, Australia, Germany,

Canada, Norway,

Netherlands

Oman, UK, UAE,

Germany, Netherlands

820140

Axe

Netherlands

Poland, Australia,

Guatemala

United States of

America

United States of

America, Australia,

UK

USA, Australia, UK,

Germany, Netherlands,

Ireland, Sweden, Fiji

UK, Germany,

Netherlands, Ireland,

Sweden, Mexico, Argentina

844319

Screen Printing

Mexico, USA

Korea Republic of,

Pakistan, Bangladesh,

Sweden, Vietnam

Malta, Ghana,

Finland, Brazil,

Ireland, Indonesia,

Australia, Russian

Federation, Sri Lanka, Turkey

Not Available

USA, Taipei, Vietnam,

Korea republic of,

Germany, Mexico,

Philippines, Indonesia

Germany, Mexico,

Philippines

930700

Dagger

USA, Indonesia

France, Venezuela

- Spain, Germany,

Colombia,

Australia

USA, Spain, Germany, Poland, Canada, UK,

France, Australia

Spain, Germany, Poland, Colombia, UK,

France

940330

Wooden

furniture

USA, Netherlands

Malaysia, UK, Ireland

Austria, Netherlands,

Italy, Korea

Republic of, Spain,

Canada, France

Netherlands, Spain,

Italy, Korea

Republic of, UK,

Malaysia, Canada,

Austria, USA,

France

USA, Netherlands,

Germany, UK, France,

Australia, Canada, UAE,

Belgium, Italy

Netherlands, Germany,

UK, France, UAE,

Belgium, Italy

164

940340

Wooden

furniture

USA, Netherlands

China, Korea Republic

of

United States of

America,

Netherlands

Australia,

Malaysia, China

USA, UAE, Oman, UK,

Australia, Netherlands,

Singapore, China

UAE, Oman, UK,

Netherlands, Nepal,

China

940350

Wooden

furniture

USA, Iraq,

Germany

China, Netherlands,

UAE

Not Available

Not Available

USA, UAE, UK,

Germany, Australia,

France, Netherlands,

Kuwait

UAE, UK, Germany,

Nepal, France,

Netherlands, Kuwait

940360

Wooden

furniture

USA, UK,

Netherlands

China, Iraq, UAE

Not Available

Not Available

USA, Germany, UK,

Netherlands, Italy, UAE,

Canada, Belgium, Spain, France, Australia

Germany, UK,

Netherlands, Italy,

UAE, Belgium, Spain, France

960340

Vanishing,

Polishing, and

Painting

United States of

America, Iraq,

UAE, Korea Republic of

Bangladesh, Malaysia,

Japan, Mexico,

Thailand

Not Available

Not Available

USA, Germany, UK,


France, Canada, Japan

Germany, UK,


France, Japan

960500

Cotton ear buds

Qatar, UAE,

Germany, Hong

Kong China,

Taipei, Chinese


China, USA

United Arab

Emirates, Kenya,

USA, Mauritius,

Turkey, Denmark,

Taipei, Netherlands,

Viet Nam,

Philippines

Not Available

Hong Kong, USA, UAE,

UK, Germany, Australia,

Qatar, Taipei, Saudi

Arabia, Netherlands

Hong Kong, UAE, UK,

Germany, Qatar,

Netherlands

970110

Decorative

items

United States of

America, Hong

Kong, China,

Singapore, Qatar,

Korea, Republic

of, India,

Venezuela, Japan

Switzerland, UAE

Switzerland, Canada,

Argentina, Denmark,

Korea Republic of,

Thailand, South

Africa, Japan, Hong

Kong, China, Nepal

Not Available

USA, UK, Switzerland,

Hong Kong, France,

Singapore, Japan,

Germany, Korea

Republic of, Austria

UK, Switzerland, Hong

Kong, France, Japan,

Germany, Austria


165

Chapter 5: Border Trade Centres between Nagaland and

Myanmar

5.1 Introduction

Nagaland has international boundary with the neighbouring country Myanmar and thus

have great potential for border trade. The state can exploit this opportunity once the border

trade with Myanmar would open up which is high on the agenda for both the countries. This

chapter analyzes the prospects of border trade potential between Myanmar and Nagaland and

particularly to what extent the infrastructure can be developed to exploit full trade potential.

The existing status of the border trade points between Nagaland and Myanmar, present as well

as the proposed infrastructures available therein, along with the challenges have been discussed

in this chapter. Initiatives taken by the government and the provision on the other side of

Nagaland border are also noted in the backdrop of their supportiveness towards trade. The three

border points focused here are Avangkhu, Pangsha and Longwa. The two adjacent / bordering

regions in Myanmar side like Lyashi and Lahe that can help in the facilitation of border trade

between Nagaland and Myanmar have also been highlighted. For success of a border trade

point in terms of cross border trade it is necessary that they have capacity to connect critical

areas in the hinterlands on both sides of the border so that infrastructural investments towards

trade facilitation in border points can be rewarding latter. Hence the connectivity aspect has

been duly noted. In addition, the location-specific products and state-specific potential products

that can be traded across the border points are commented upon.

5.2. Description of Border Trade Points

The three border trade points, namely, Avangkhu, Pangsha and Longwa have been discussed

below along with respective infrastructural status, including both present and proposed ones.

5.2.1 Avangkhu

Avangkhu is a place in the Phek District of Nagaland that falls under the Meluri Sub-

division. Meluri is well connected to other districts of Nagaland by road. Meluri Sub-division

is rich with different mineral deposits. Government of Nagaland and Mineral Development

166

Corporation has set up cement, marble and tile factories in the district and their products could

find market in Myanmar in the medium term. With the upcoming development of the different

mineral-based industries, the area Avangkhu can prove to be a good border trade point. In

addition, products can be transported to Kohima, which is close to Dimapur railhead, thereby

connecting other regions in India through railways.

Table 5.1: Road Connectivity and distance from Avangkhu

Routes Distance by Road

Avangkhu to Shiloi Lake 18 km

Avangkhu to Meluri HQ 149 km (NH202)

Avangkhu to Kohima 277 km

Avangkhu to Dimapur 342 km

Meluri to Kohima 161 km via NH 29

Source: Google Maps

The road that connects Avangkhu with town Weziho is under progress for a distance of 14

km. There exists a road, declared as National Highway, from Kohima to Meluri town with

distance of 161 km. Another road connects Meluri to Phokhungri after passing through Waziho

at a distance of 64 km away from the State Highway. Avangkhu is about 118 km away from

the foothill road and therefore transportation through using that route may not be cost effective.

For goods to be transported from Avangkhu to the South East Asian countries may be difficult

in short and medium term as the present road infrastructure on the Myanmarese side is still to

be developed properly (Table 5.1).

Map showing the border point Avangkhu along with the border point on the Myanmar side

is enclosed in the appendices of this report (A5.1). The closest city on the Myanmar side to

Avangkhu (i.e., the border entry point) is Layshi, which is 25 km away from the border. Lyashi

is an important town in the Sagaing district in Myanmar. The town Layshi is connected with

Htamanthi river port that is at a distance of 65 km on Chinwin river, from where transportation

through ferry and steamer is possible to Mandalay. The road from Layshi extends to Tamanthi,

which is a major town in Myanmar. Road connectivity from Layshi to other places of Myanmar

exists as well. The major road connectivity of Lyashi is reported in Table 5.2.

167

Table 5.2: Major Road Connectivity in Lyashi

Road Routes Distance by Road

Border entry point to Lyashi 16 km

Lyashi town to Tamanthi 65 km

Avangkhu to Lyashi 25 km

Source: Google Maps

The scenario at the Avangkhu border point is noted in Table 5.3.

Table 5.3: Present and Proposed Infrastructure at Avangkhu

Present Infrastructure Proposed Infrastructure

Shiloi Lake is a tourist destination in the

south eastern region of Nagaland.

Pokhungri – Avangkhu - Layshi road that

connects Myanmar with Nagaland and is an

incomplete motor vehicle road. It is however

still not feasible for the commercial vehicles

to cross the road. The specification was 3.5

meters however the proposed road widened

to 5 meters.

Kohima to Jesami is connected by road

through NH 150 and Meluri – Kipheri -

Tuensang - Mokokchung is connected by the

road NH 155.

The Highway road from Meluri to Avangkhu

which is at a distance of 149.5 km needs to

be developed.

Two bridges known as the Tizu bridge and

Chizuti Bridge has been constructed that

serves as the mineral linking bridge from

Nagaland to Myanmar.

Construction of one Guest House / Rest

House.

Construction of Administrative Office

Building.

Marketing Complex.

Construction of Chowkidar House/ Quarter

for security guard.

Construction of internal approach road.

Providing soiling and metaling.

Site Development.

Construction of Marketing Shed Godown /

Warehouse.

Constructing a custom house and custom

preventive post.

Arranging security like creating BSF and

Police.

Immigration Check post at the border point.

Creating weighbridge at the border point.

Providing water supply and electricity.

Creating medical centers and educational

institutions, motels and hotels.

168

Improving telecom network for

communication and banking facilities.

Regimes for traffic and custom inspection.

It is proposed for a 7 meter long road from

Pokhungri to Avangkhu.

Government is trying to provide link from

Nagaland to Sittwe Port in Myanmar.

Source: State Human Development Report (2016)

Based on the infrastructural aspects, the strengths, weaknesses, opportunities and threat of

Avangkhu border point is noted in Table 5.4.

Table 5.4: SWOT Analysis of Avangkhu (in relation to Physical Infrastructures)

Strengths: Weaknesses:

Electricity is available in Avankhung.

The nearest healthcare center is Waziho.

There exists a state highway from Meluri to Pokhungri.

Dimapur town is well connected by road, railway and

airport to other parts of India through Assam.

Avangkhu is a mineral rich region.

No rail connectivity

No connectivity to port

Opportunities: Threats:

Proposed Road of 27.5 km from Meluri to Pokhungri.

Kohima city is considered as one of the smart cities in

India that has the potential of development.

Another railway station is Chungajan in Assam which is

at a distance of 256 km from Meluri.

From Meluri the nearest airport is Dimapur which is at a

distance of 226 km.

PWD has constructed roads and bridges from Pokhungri

to the border point via Avangkhu village.

The roads near the points in the

Myanmar side are not properly

developed.

Transportation cost from this

region is high

Source: Constructed on the basis of secondary research

169

5.2.2 Longwa

Longwa is the second proposed border point situated in the Mon district. Mon is the northern

most district of Nagaland. Longwa is 41 km east of the Mon town. The village Longwa is

situated on the Indo-Myanmar border, which is 42 km (by border road) from the headquarters

of Mon district. The connectivity of the border point is shown with Table 5.5.

Table 5.5: Status of Road Connectivity in Longwa

Road Routes Distance

Longwa to Guwahati 515 km

Longwa to Dimapur 304.3 km (approx.) via NH129

Longwa to Kohima 331 km (approx.) via NH2 and 369.2 km via NH129

Dibrugarh to Longwa 190 km (approx.)

Mon to Sibsagar (Assam) 110 km

Longwa to Sibsagar 130 km (approx.)

Longwa to NH in Mon district 34.5 km

Source: Google Maps

Sibsagar in Assam is well connected to other areas of Assam, especially Guwahati, by

highway whose length is about 363 km. The route to reach Lahe in Myanmar is shortest through

Longwa. Dibrugarh is also an important town in Assam which is connected to Longwa directly.

Dibugarh is also well connected to other parts of India by air. Hence, Longwa can utilize two

nearby airports Guwahati and Dibrugarh apart from the railway connectivity through Sibsagar

in Assam. Moreover Longwa is well connected to Kohima and Dimapur by road (NH 129).

Sonari is a center for tea and timber industries and is the gateway to the Mon district of

Nagaland. The best way to reach Sonari by road is from Sivasagar town through the Dhodar

Ali near which the famous royal mausoleum of the Ahom Kings at Charaideo is situated.

Map showing the border point Longwa along with the border point on the Myanmar side is

enclosed in the appendices of this report (A5.2). Lahe township is located in the Hkamti district

of Chin State in Myanmar, in the Naga Hills of Sagaing Division, which is in the north-west

frontier of Myanmar. It is 42 km from the Mon town which is the district headquarter. There is

no road connectivity between Lahe and Longwa areas. Lahe is well connected with the other

170

districts of Myanmar, as seen from Table 5.6. A road is being upgraded for about 15 km from

Sinte across the Chindwin River from Hkamti to Lahe. Mandalay, the second largest town of

Myanmar is at a distance of 650 km from Hkamti. There exists an airport in Hkamti.

Table 5.6: Status of Road Connectivity in Lahe


Longwa to Lahe 60 km

Hkamti to Lahe 43.9 km

Source: Google Maps

The scenario at the Longwa border point is noted in Table 5.7.

Table 5.7: Present and Proposed Infrastructure of Longwa


The NFC funded road connects

Longwa to Sibsagar district in Assam

via Tizit.

The border point has a guest house

facility.

Longwa is also close to the Arunachal

Pradesh border in India. The road

conditions are good though the roads

are narrow.

Presently informal trade takes place

but on a temporary basis and a

marketing shed is created.

Electricity is available and a primary

health Centre is located at Phomching

at a distance of 15 km.

Construction of Guest / Rest House.

Construction of Administrative Office Building.

Marketing Complex / Marketing Shed.

Construction of Chowkidar House / Quarter for

security guard.

Construction of Ware House / Godown.

Construction of internal approach road.

Providing soiling and metaling.

Site Development.

Constructing a custom house and custom

preventive post.

Arranging security like creating BSF and Police.

Immigration Check post at the border point.

Creating weighbridge at the border point.

Providing water supply and electricity.

Regimes for traffic and custom inspection.

171

The total length of NH 702 within

Nagaland is of 177 km, which then

connects to other areas of the state.

The border point Chemoho / Longwa

in Mon to Lahe in Myanmar is around

60 kms.

The different villages of Mon district

is well connected to National Highway

702.

Creating medical centers and educational

institutions, motels and hotels is needed.

The road from Mon to Longwa, which is for a

distance of 16 km, is proposed that needs to be

developed.

A railway line is proposed that would connect Mon

with other districts of Assam, which would make

the trade activities in Longwa beneficial.

A foothill road has been proposed that would

connect the Mon district to other areas to Nagaland

until Dimapur.

It is proposed that NH-702 would connect

Longleng to Namsa foothills via Aboi, Mon and

Tizit with a distance of more than 100 km and NH-

703 that would connect Tuensang to Aboi via

Tobu, Angjangyang and Longchang where the

distance would be more than 100km.

The proposed railway, if constructed, would be

beneficial for trading in the Mon district, as it

would connect Mon to Simulguri in the east Assam.

Railway connectivity from Dimapur to Diphu

would make connectivity to Guwahati in Assam

much easier.

Source: District Human Development Report - Mon (2011)


Longwa border point is noted in Table 5.8.

172

Table 5.8: SWOT Analysis of Longwa (in relation to Physical Infrastructures)

Strength Weaknesses:

In the Mon district there is a road connectivity

from the Chenmoho Trade center to Yangching

in Myanmar and to the other cities in the country.

There are few tourist destinations in the Mon

district in Nagaland which attracts tourists.

The national highway which is of the length 71

km connects Mon to areas in Assam such as

Sinulagari-Bihubar.

The Trans Eastern Highway connects the areas

such as Mon – Longwa – Pangsha – Kiphire -

Avangkhu is around 280 km.

The rail and air connectivity routes needs

to be developed further.

There are no railway connectivity

directly.

No direct road connectivity on the

Myanmar side.

In towns like Lahe and Layshi on the

Myanmar side the high transportation

costs affects the development of

infrastructures.

Opportunities: Threat:

There exists a narrow hilly short bike route on

this border point between India and Myanmar.

The villagers are able to move freely to the

Myanmar side without any restrictions.

There do not exist any railway line presently in

Mon however a railway line has been proposed.

Exchanging goods from Longwa to Mon to other

areas of Nagaland and Assam is easier as

Longwa is connected by road to Mon.

The roads near the points in the Myanmar

side is not properly developed.

Transportation cost from this region is

high.


5.2.3 Pangsha

The Pangsha region is located in Noklak sub-division which falls under the Tuensang

district of Nagaland. This is also a proposed trading point between India and Myanmar. The

nearest state capital from Pangsha is Itanagar, Arunachal Pradesh. Pangsha is situated at a

distance 87 km away from the district headquarter Tuensang which is the nearest town. The

NH 702B that connects different districts of Tuensang meets NH 202 at the Tuensang HQ. The

road connectivity scenario of Pangsha is noted in Table 5.9.

173

Table: 5.9: Major Road Connectivity in Pangsha


Pangsha to Itanagar 174.5 km

Pangsha to Noklak 16 km

Pangsha is Nazira railway station (Assam) 79 km

Pangsha to Simalguri (Railway station in Assam) 79 km

Source: Google Maps

Map showing the border point Pangsha along with the border point on the Myanmar side is

enclosed in the appendices of this report (A5.3). The facilitated trading point in Myanmar is

Lahe which is established in the Saigaing Division. Lahe is at a distance of 60 km (approx.)

away from Pangsha. Roads of Myanmar connects Ponyo to Lahe by road, but there is no road

between Kingphu and Ponyo. Ponyo is nearest to the border point Pangsha is well connected

to other areas of Myanmar like Lahe. Further goods can be transferred onwards from Lahe till

Hkamti (Table 5.6). The trade point Anyun Village in Myanmar can also be used for the trade

purposes.

Table 5.10: Present and Proposed Infrastructure of Pangsha


The health center is presently located

in Noklak.

The Gandhi Ashram Chuchuyimlang

NH-2 to Pangsha is for a distance of

167 km.

A river passes through Pangsha in

Nagaland.

The distance from Tuensang to

Dimapur is 308.5 km via NH129 and

280.8 km via NH2 and NH202.

The road from Pangsha to Noklak

which is for a length of 16 km needs to

be developed.

A road is proposed between Pangsha in India and

Kingphu in Myanmar.

Construction of Rest House building.

Construction of Administrative building.

Construction of Chowkidar quarter.

Construction of Ware House Building.

Construction of Marketing Shed.

Constructing the main road and approach road.

Constructing customs office.

Constructing auditorium hall, seminar hall,

conference room.

Construction of school, hospitals, banks,

telecommunication, postal services etc.

174

The distance from Tuensang to Kohima is about

234 km via NH2 and NH202.

A proposed port would be developed in Sittwe

which is the capital of Rakhina in Myanmar so that

border trade through sea routes becomes easy and

less expensive.

Source: State Human Development Report (2016)


Pangsha border point is noted in Table 5.11.

Table 5.11: SWOT Analysis of Longwa (in relation to Physical Infrastructures)

Strengths: Weaknesses:

There also exists a road of 200 km length that

connects Showuba – Guzunyu – Phughoboto

– Zunheboto – Aghunato – Shamator –

Noklak - Pangsha.

The district headquarter of Tuensang passes

through Noklak on NH 155 for a distance of

about 30 km through which goods can be

transferred to other areas of Assam and India.

There is no rail connectivity in this region.

There is no airport connectivity in Pangsha at

present.

There is presently no road connectivity

between Pangsha and any areas in Myanmar.

Opportunities: Threats:

The distance from Pangsha to railway

stations such as Nazira and Simalguri

railway station is 78.3 km and Amguri is at

distance is 81.2 km.

Informal trade between the local people of

India and Myanmar takes place and thus it is

required to develop the road connectivity

between Pangsha and Lahe in Hkamti

district.

The roads near the points in the Myanmar

side is not properly developed.

Transportation cost from this region is high.


175

5.3 Goods that can be traded through the border trade points

Border trade through the three proposed points between India and Myanmar would be

beneficial to both the countries if the infrastructures and means of connectivity are properly

developed. The products that are available for trade can be divided into two categories such as

location-specific products and state-specific products. For this purpose, a survey has also been

conducted with government DIC officials through a questionnaire (A5.4).

5.3.1 Location-specific products

The term location-specific indicates availability of certain resources in a better condition in

a particular region and hence it would be beneficial if those products were transported to

Myanmar through the border points. The location-specific products would refer to those

products that would satisfy the following conditions:

Condition I: The goods that are produced within the district.

Condition II: Products those are transportable by road.

Condition III: The districts in Myanmar that adjacent to the border points and demand.

Table 5.12 summarizes the location-specific products of Avangkhu, i.e., the ones satisfying

the three conditions.

Table 5.12: The Location-specific products of Avangkhu

Location Specific Products Conditions

I II III

Immediate Goods *

Naga Dal / Rice bean √ √ √

Soya bean √ √ √

Pineapple √ √ √

Passion Fruit √ √ √

Coffee √ √ √

Cabbage √ √ √

Future Goods**

176

Limestone √ √ √

Marble √ √ √

Slate √ √ √

Rice √ √ √

Job’s Tear √ √ √

Meat √ √ √

Lime √ √ √

Pulses √ √ √

Potato √ √ √

Banana √ √ √

Paddy √ √ √

Maize √ √ √

Millets √ √ √

Colocasia √ √ √

Topioca √ √ √

Citrus √ √ √

Perilla √ √ √

Sugarcane √ √ √

Woodcrafts √ √ √

Handicrafts √ √ √

Weaved items (Naga Shawls,Naga Bags, jackets) √ √ √

Source: Primary Survey conducted by IIFT Research Team

* The intermediate goods are those goods whose production has increased in the Phek district while

comparing the figures for years 2009-10, 2010-11 and 2014-15 and hence can be traded currently.

** Future Goods are those products that are available in the Phek district and can be traded in the

upcoming future. The production figures of these goods has not increased significantly when the

figures for the years 2009-10, 2010-11 and 2014-15 are compared. However, these products have

the potential to increase output in near future.

The marked area in Figure 5.1 indicates the area of availability of location-specific products

for border point Avangkhu and listed in table 5.12 that can find access to Myanmar. The

factories in Meluri produces cement and slate tile, which if brought to other Indian states, would

involve high transportation cost. On the other hand if these products are exported to the

Myanmar side, the associated cost would be much lesser.

177

Figure 5.1: Location-specific product availability within Avangkhu

Layshi

Source: Constructed on the basis of Government of Nagaland information

Table 5.13 summarizes the location-specific products of Longwa.

Table 5.13: The Location-specific products of Longwa


I II III

Immediate Goods*

Wheat √ √ √

Soyabean √ √ √

Rapeseed/Mustard √ √ √

Coffee √ √ √

Future Goods**

Cardamom √ √ √

Naga King Chili √ √ √

Kholar /Rajma √ √ √

Tea √ √ √

Job’s tear √ √ √

Cereal (Paddy, Maize, Millet) √ √ √

Oilseed √ √ √

Weaved items (Naga Shawls, Naga Bags, jackets) √ √ √



Meluri (DHQ)

142km

25km

178

* The intermediate goods are those goods whose production has increased in the Phek district

while comparing the figures for years 2009-10, 2010-11 and 2014-15 and hence can be traded

currently.





Location-specific products for Longwa are the products that are available in the Mon district

(Figure 5.2 and Table 5.13) and that can be exported through the Border Trade Centre in

Longwa. Cardamom and Naga Chilli are important cash crops of this area. Oilseed crop such

as soya bean and tea are major commercial crop. Other commercial crops grown are orange

and tapioca. Adequate rain, fertile soil and the favorable climatic conditions helps in good

agricultural production such as leafy vegetables, sweet potatoes, cucurbitaceous, vegetables,

yam, pumpkins, gourd, squash, etc. In addition to these certain fruits that are grown in the hill

slopes and terraces are pineapple, litchi, passion fruit, jackfruit and papaya.

Figure 5.2: Location-specific product availability within Longwa

Lahe

Myanmar

Source: Constructed on the basis of Government of Nagaland information

Mon District

Dimapur Kohima

179

Table 5.14 summarizes the location-specific products of Pangsha. In addition to these items,

agro-export zones needs to be created in order to export spices like Naga chili, ginger, turmeric,

medicinal crops and aromatic crops.

Table 5.14: The Location-specific products of Pangsha


I II III

Immediate Goods*

Rice √ √ √

Naga Dal / Rice bean √ √ √

Rajma / Kholar √ √ √

Soyabean √ √ √

Seasamum √ √ √

Passion Fruit √ √ √

Future Goods**

Groundnut √ √ √

Potato √ √ √

Pineapple √ √ √

Colocasia √ √ √

Paddy √ √ √

Maize √ √ √

Banana √ √ √

Oil Seed √ √ √

Resin √ √ √

Weaved items (Naga Shawls, Naga Bags, jackets) √ √ √



* The intermediate goods are those goods whose production has increased in the Phek district while

comparing the figures for years 2009-10, 2010-11 and 2014-15 and hence can be traded currently.





180

5.3.2 State-specific products

The state specific products refer to the commodities that satisfy the following conditions:

Condition I: Not produced in the district where the border trade centers in Nagaland are

located.

Condition II: The goods that can be transported by road, sea or rail.

Condition III: Can be available in a processed state.

Agriculture is one of the main activities in Nagaland and around 73 percent population are

engaged in agriculture. The horticulture sector plays a major role that helps in development of

the state and can play a significant role during cross border trade. About 40 agricultural

corridors are proposed to be constructed so that different villages of Nagaland can be

connected. Nagaland government is trying to link the rural market with marketing chains. On

the basis of the three aforesaid conditions, the state-specific products that can be exported from

Nagaland immediately through border points in future has been noted in Table 5.15.

Table 5.15: Immediate State-specific Export products of Nagaland

Cabbage

Rice

Wheat Products (Bran, Rava, Atta, Maida, Sooji)

Job’s tear

Flakes

Naga dal/Rice bean

Rajma/Kholar

Sunflower (Roasted Sunflower Seeds)

Mustard / Rapeseed

Oil Seed

Pineapple

Passion Fruit

Coffee

Soyabean

Seasamum

Source: Analysis conducted on the basis of Statistical Handbook of Nagaland (2011, 2012, and 2015)

* Immediate Products are those products whose production / productivity has increased in the past

few years when the time period 2009-10, 2011-12 and 2014-15 are taken into account and are

tradable currently from the different states of Nagaland.

181

Table 5.16 lists the future state-specific products that could be developed for export from

Nagaland.

Table 5.16: Future State-specific Export products of Nagaland

Groundnut

Orange

Sugar

Cements

Milk

Tea

Rubber

Cardamom

Honey

Essential Oils

Perfumes

Cotton

Katha

Betel Nuts

Coriander seeds

Naga Chilies

Tree tomato

Meat

Canned Agro Products

Coal

Medicinal plants

Aromatic plants

Stationery Products

Sweet cucumber

Onion

Cloves

Coriander seeds

Millets

Oats

Gooseberry

Resin

Biscuit

Sweet

Reed broom

Chive

Cinnamon

Garlic

Ginger

Lime

Source: Analysis conducted on the basis of Statistical Handbook of Nagaland (2011, 2012, and 2015)

* The future products are those products whose production has not increased significantly over the

years, but can be traded in the upcoming years if the available resources are utilized properly.

The commodities in Table 5.16 are referred to as future products as these are available in

several region but their production has not increased significantly over the years. The main

areas where most products available are: Wokha, Mokokchung, Dimapur, Kohima, Kiphire,

Zunheboto among others. The state has undertaken many fresh water aquaculture activities as

well so that the production of quality fish seed increases. The agro-climatic conditions of

Nagaland are favorable for growing main crops such as spices, ginger, garlic, black pepper,

cardamom and chilies which can be exported in the future. Livestock and poultry farming is an

important part of livelihood for the people in Nagaland, where the animals are reared for food.

The items related to handloom and handicrafts are good in design and enjoy a good demand in

the domestic and international market. There is huge availability of big reserves of coal, marble

and natural resources that needs to be optimized so that minerals like limestone, decorative

stones etc. can be extracted and traded in the future.

182

5.4. Transportation Network: Status and Prospects

This section discusses the existing transportation network of Nagaland. The status of the

present available transportation network as well as the prospective transportation network that

can be created in the state in future is discussed below with the help of the following sub-

sections.

5.4.1 Bus and Truck services

It has been noted during the field visit that the number of buses purchased by the state

government has diminished over the years and many old condemned bus has not been

replaced. The status and prospect of road transport in the state is noted in the following.

Status:

In the year 2005-06 around 30 buses were purchased. The number in the fleet has

continuously reduced and in the past few years no buses were purchased.

The number of private buses has increased significantly over the past few years.

196 state buses is available for the operational activities.

The buses before had 203 notified routes, but now due to depletion of the number of buses,

the number of operative routes of the buses are 117.

At present there are 127 scheduled services where bus services connect regions like Imphal

in Manipur to Dimapur and Kohima in Nagaland.

From the year 2016 service of buses between Itanagar and Dimapur has started.

Due to increase in the public demand of bus services, in the year 2015-16 new service

routes has been started, even though the availability of the buses has diminished.

Prospect

The new routes are Tuensang - Pangso for a distance of 76 km, Pungro - Dimapur for a

distance of 329 km and Itanagar - Dimapur has been proposed.

An inter-state bus terminus in Kohima is almost completed that was started in the year 2006

and if the required fund is received the project would be completed within a couple of

months.

183

Inter-state truck services is in progress in Kohima.

Inter-state bus and truck terminus is under construction at the district headquarter of Peren

and Tuensang.

Bus station along with parking at night and market complex is proposed. However the funds

has not been properly sanctioned.

5.4.2 Rail services

Status

Railway connectivity only exists in Dimapur where it is connected to areas of Assam.

Prospect:

Land has been acquired and the construction is in progress for railway connectivity between

Dhansiri in Dimapur to Zubza in Kohima for a length of about 90.35 km.

Railway line project proposed that needs to be constructed are:

Connecting Dimapur to Tizit for a distance of 257.19 km

Amguri to Naginimora for a distance of 29.35 km

Amguri to Tuli for a length of 9.15 km.

The railway link that is proposed between Dimapur and Zubza needs to be extended more

so that trade with Myanmar is expanded.

5.4.3 Aviation

Status:

An airport in Dimapur exists

For the past two years, helicopter services is operational that connects the district

headquarters so that patients are been transferred from the rural areas.

The helipads that exists already are used by the state helicopter service that the army and

para-military services uses.

184

Some of the helicopter services are subsidized, while some are non- subsidized which

charges full fare and the difference in fare charges between this two categories is large.

Prospect:

Land acquisition has been done for the purpose of building another new airport as New

Greenfield Airport in Ruzuphema, Dimapur which is in progress.

Survey is been done to construct proposed airstrips in Mon, Mokokchung and Tuensang.

The existing helicopter services can also be used to transfer goods to other parts of the state.

The state government has decided to develop more helipads for the different district and

sub-divisional headquarters.

Dimapur has multiple helicopter services for 6 days in a week while districts like Mon,

Wokha, Longleng, Mokukchung, Kiphire, Phek, Pungro, Tuensang, Zunheboto have

helicopter services once or twice a week that connects to and fro from Dimapur.

5.4.4 Inland Water Connectivity

Status:

The transport of goods on the waterway through Chindwin River in Myanmar from

Mandalay to Kaliwa would cover a distance of more than 400 km.

The goods might have to be transported for nearly 245 km to Kohima via Imphal.

The river Thamanthi can be the nearest port compared to the Indian border.

Goods can also be transported from Avangkhu to Phokhungri to Kohima for a distance that

would be less than 350 km.

The distance between Kohima and Phokhungri is 292 km and Thamanthi in Myanmar is

located about 40 km from the Indian border.

185

Prospect:

The Kaladan multi-modal transit transport road project is proposed which would help in

increasing the link between India and Myanmar when completed.

In order to establish inland water transport, the Government of India has identified many

potentials that would help in creating inland waterway transport.

The Tizu river that flows from Longmatra evolving from the tri-confluence is for a distance

of 42 km (approx.) to Avangkhu.

Inland water transport from Nagaland to Assam can be formed along the Dhansiri river

from Samjuran to Numaligarh via Dimapur for a distance of 110 km (approx.).

The Dikhu river which flows from Yangnyu to Naginimora can be connected to

Brahmaputra river in Assam via Sibsagar for a distance of 52 km.

Inland waterway transport can also be established in Doyang river for a length of 61 km

from the bridge in Sialmari in Assam.

The present and future transportation network of Nagaland is explained with Table 5.17 in

the following.

Table 5.17: The present and future transportation network of Nagaland

Available Progress

Airport in Dimapur

Total road Length under PWD

was 10922 km in 2007-08

There was 203 Notified routes

and 508 scheduled service for

the state transport but private

transport was less

Rail connectivity exists only in

Dimapur which is connected to

Guwahati and Tinsukia

New Greenfield Airport in Ruzuphema, Dimapur.

State helicopter service has increased and started

w.e.f. 02.02.2017.

Total road length under PWD increased to 12033 km in

2012-2013.

Now 117 routes are operative with 127 schedules

services however private transport increased

significantly.

Interstate bus services like buses to Imphal from

Dimapur and Kohima.

Rail connectivity is proposed to be extended from

Dimapur to Zubza in Kohima and Tizit in Mon.

186

Source: Nagaland Vision 2020

5.5 Possibility of trade through Land Customs Station Guwahati

Land custom station is situated in Guwahati in the Amingaon region. The land custom

station that is set by the Custom Department in the Nagaland-Assam border helps in trading

various commodities that would be beneficial for the states. To facilitate exports, all types of

infrastructural facilities has been created in this Area. The region has many locational

advantage that helps in greater economic activities through its linkages. The nearest railway

stations from this land custom station are Agthuri and Guwahati. The area has road connectivity

through NH-37 and State Highway of Guwahati.

The Container Corporation of India Ltd (CONCOR) set up an inland container depot (ICD)

in the year 1988 at Amingaon, a locality in the Kamrup district of Assam. CONCOR helps in

providing inland transport of containers by the railway. The dry port in Amingaon helps in

optimizing the delivery of goods, distributing cargoes and connects to different seaports as the

gateway for the commodities. The company helps in promoting containerization in India and

it helps in inter-state transportation activities by rail or road in an efficient yet cost-effective

way. This inland container depot mainly handles the export of tea and many assorted items to

different destination of the world. The distance of land custom in Amingaon from Dimapur is

290 km (approx.) and the distance from Kohima is 358 km (approx.).

The land custom center in Amingaon have been upgraded and some good facilities is

available. However these facilities are not integrated properly due to lack of planning and thus

the investments are not optimized properly. Lack of a convenient food testing center makes

trade flow of several food items sluggish. The other notable problems revolves around the

lesser number of buyers for the exportable items. Also exporting goods in large containers may

not be feasible and can be associated with huge freight charges at the land custom station.

Also it is proposed that the railway line may be extended

to Naginimora, Tuli from Amguri.

GOI has identified 4 rivers (Tizu, Dhansiri, Dikhu and

Doyang), which has potential to develop Inland water

connectivity for transport of goods.

187

Figures 5.3 and 5.4 shows the export and import scenario in the past decades through the

land custom station in Amingaon. The export figures has increased significantly during 1994-

2001. The exports decreased from 2001-02, but showed a rising trend from 2004-05 and

reached a peak in 2012-13. The import figures have also increased significantly over the last

years, with a clear peak visible in 2016-17.

Figure 5.3: Export Figures (in TEUs) through ICD, Amingaon for the past two decades

Source: ICD, Amingaon

Figure 5.4: Import Figures (in TEUs) through ICD, Amingaon for the past two decades


500

0

861 1000

1100 1189 1174

1335 1364 1500

1614 1718 1674

1859

2005196619201999

2000 2015

2087 2188

2285 2299 2335

25012440

2412 2366 2500

2517 2504 2600 2597

2753

2900 2854

3500

3000

Import Figures (TEUS)

600 557

500

400 357

333

300 287

200

102 109

100 79

36 28 30 42 43 55

3 18 14 28 2 0

0

36

188

Table 5.18 shows the domestic figures of the main items that are booked domestically at

Amingaon in the past 10 years. These commodities was distributed to different states of India

domestically through Kolkata and other inland regions and has not been exported. Tea and dry

fruits are some of the main products that showed high demand in Nagaland. The domestic

demand has also increased over the years along with some additional products such as paper,

cement etc.

Table 5.18: Domestic Booking Figures Yearwise (in TEUs) at Amingaon in last decade

2007-08

TEA CP COKE B NUTS OTHR TOTAL

719 2076 200 107 3102

2008-09


298 1454 50 23 1825

2009-10

TEA CP COKE B NUTS TOTAL

382 1350 170 1902

2010-11

TEA CP COKE B NUTS JUTE OTHR TOTAL

37 1938 312 124 382 2793

2011-12


946 649 452 15 2062

2012-13

TEA B NUTS JUTE OTHR TOTAL

575 614 732 43 1964

2013-14


1194 753 813 186 2946

2014-15

TEA B NUTS PAPER JUTE OTHR TOTAL

56 721 480 881 188 2326

2015-16

TEA CP COKE B NUTS CEMENT OTHR TOTAL

189

619 825 216 1066 197 2923

2016-17

TEA B NUTS JUTE CEMENT OTHR TOTAL

315 1324 957 280 73 2949


5.6 Trade Route Alternatives

In light of the prevailing scenario and the terrain, the various alternative trade routes from

Dimapur and Kohima for export facilitation, which are two major cities of Nagaland, are noted

in the following. They are also summarized in Table 5.19.

Helicopter services is available that connects all the districts of Nagaland to Dimapur. The

time taken for travelling by helicopter would be minimum, but helicopter services involves

huge cost. Goods can be transferred by helicopter from Dimapur to Guwahati and then to

Kolkata by regular transport, from where the commodities can be exported.

The goods from Dimapur can be exported through the land custom station in Amingaon,

Guwahati. Distance between Dimapur and CONCOR in Amingaon is 300 km (approx.).

A four-lane highway that exists between Dimapur and Kohima needs to be extended to

cover the link between Kohima and Imphal by 2022, so that trade to North East countries

via Myanmar becomes easier.

Road linking Kohima-NH2/NH29- Dimapur -Rangapahar Road-Local Bazar NH29-

Kampur Rd-SH17- NH27-Lalganesh Road leading to Guwahati LCS is a high potential

road and through the LCS export can be initiated. However for effective export

performance, the infrastructure at the LCS needs to be upgraded.

The Government of India has recently undertaken an initiatives to start connection of the

state Nagaland to other regions by road which are Bangladesh-Bhutan-India-Nepal (BBIN)

Network and India-Myanmar-Thailand Trilateral Highway Network. The planned railway

line to Kohima may connect it with the other states of India.

Along with airport, Dimapur is the only place in Nagaland where there exists a railway

connectivity as well. The railway station of Guwahati is situated at a distance of 270 km

(approx.) from Dimapur railway station. The nearest railway station from Dimapur is

Lumding in Assam where the time taken by the rail route is around 1 hour 30 mins.

Goods after getting transferred to Assam can be distributed to different sea ports.

190

One of the most feasible alternative for trade is by transferring the goods by road. Dimapur

is well-linked through national highways to many cities in the North Eastern states of India.

Trade in large quantities would be convenient if it is transferred by road from the rural areas

of Nagaland to Dimapur and then to important cities of India. The national highway 29

connects Kohima, Imphal and Moreh passes through Dimapur.

Another way of transporting goods is through the sea routes. Goods once transported to

Assam from Dimapur can be transferred to Kolkata sea port. The Kaladan multi-modal

transit transport project which is under construction would provide a connection for the

seaport in East India like Kolkata to Sittwe port in Myanmar via Bay of Bengal where the

distance is 539 km. It would also connect Chin state in Myanmar via the sea route along

with Mizoram. Another major port in the Arabian Sea is Nhava Seva port which handles

large volumes of containers and the number of buyers are also more and the products of

Nagaland can be exported in large quantities, if they can be transferred to Nhava Seva port

via Kolkata port.

Table 5.19: Alternative Trade Routes from Border Trade points and Kohima /Dimapur

Sl.

No.

Possible routes Distance

(approx.)

Cost* Time

(approx.)

Total No

Modes

1. Kohima-Dimapur-Guwahati LCS 365 km Moderate 9hr 80min 1 (Road)

2. Kohima- Dimapur Railway Stn.-

Guwahati Railway Stn.-CONCOR

326 km Low 9hr 3 (Road +

Rail+ Road)

3. Kohima-Dimapur Rl. Stn.- Guwahati

LCS- Kolkata

1299 km Moderate 1 day 8hr

10min

3 (Road +

Rail+ Road)

4. Kohima-Dimapur-Kolkata Port 1330 km Moderate 1 day 7hr

30 min

1 (Road)

5. Kohima-Tuensang HQ- Pangsha

Border Point

320 km Moderate 12hr 30

min

1 (Road)

5. Kohima- Meluri HQ- Avangkhu

Border Point

302 km Moderate 10hr 30

min

1 (Road)

6. Kohima- Mon District HQ- Longwa

Border Point

368 km Moderate 14hr 1 (Road)

7. Kohima- Imphal- Moreh-Myanmar 245 km Moderate 8hr 30 min 1 (Road)

191

8. Dimapur- Kohima- Phek District

(Jessami)- Avangkhu Border Point

367km Moderate 13hr 1 (Road)

9. Dimapur- Mon District (Sonari) -

Longwa

303km Moderate 11hr 1 (Road)

10. Dimapur- Tuensang District- Pangsha 370 km Moderate 14hr 20min 1 (Road)

11. Dimapur Railway Stn.- Howrah Rl.

Stn.- Kolkata Port

1230 km Low 1 day 3hr 2 (Rail+

Road)

12. Dimapur- Guwahati Rl Stn.-Mumbai

Rl Stn.- Nhava Seva port

3120 km High 2 days 4hr 3 (Road +

Rail+ Road)

13. Dimapur- Guwahati LCS-Kolkata

Railway Stn- Kolkata Port

1010 km Moderate 1 day 4hr 3 (Road+

Rail + Road)

14. Dimapur Airport– Guwahati Airport-

Guwahati Rl station- Kolkata Rl. Stn.-

Kolkata Port

1191 km High 19hr 4 (Air

+Road Rail

+ Road)

15. Dimapur Airport- Kolkata Airport-

Kolkata Port

650km High 3hr 2 (Flight

+Road)

Source: Google Maps

* The cost has been calculated by considering a standard truck load of exportable goods.

5.7 Conclusion

Road, rail, and air connectivity need to be developed on both India and Myanmar sides of

the border points in order to make the trade activities effective. Providing training to the people

living in the state, particularly the existing and prospective entrepreneurs, about the cross-

border market potential would be effective to involve them in trade with Myanmar, utilizing

the three land customs stations at Longwa, Avangkhu and Pangsha. Products available in other

areas of Nagaland can also be exported through the three border points. The infrastructure, in

general, is well developed in both Kohima and Dimapur and hence connectivity of the border

trade points to these major cities is also essential in order to exchange goods and services to

and from Nagaland. Also, from the various alternative trade routes, it is feasible to choose the

ones that requires less time as well as cost to conduct international business. Transportation

of goods through road is the most feasible one within Nagaland now, as all the regions are not

connected to the border points through railways. Transportation of products to Dimapur and

then transferring them to the Guwahati land custom station or the Kolkata port shall help the

192

Nagaland economy and enhance its gross domestic product. The world market has displayed

good demand for products like wooden handicraft, handloom and other handcrafted items and

production possibilities of these items in Nagaland is quite high. Developing a cost effective

transportation network involving less cost and time would help in facilitating trade of these

products from Nagaland.

193

Chapter 6: Trade Facilitation - Hard and Soft infrastructure in

Nagaland vis-à-vis capabilities

In this chapter the different trade facilitation infrastructure, covering both hard (e.g.,

physical infrastructure) and soft (e.g., institutional infrastructure, support mechanisms)

infrastructure, have been critically analyzed, which are important for export businesses to

continue and flourish.

6.1 Physical Infrastructure

Physical infrastructure is one of the most important factors for progress in general and

exports in particular. During various steps of import-export operations, physical infrastructure

plays an important role at each stage of the business. Below mentioned is the physical

infrastructure available in the state of Nagaland towards facilitating trade.

6.1.1 Road to different exit points like Guwahati Dry Port / Kolkata Port / Kolkata

Cargo Depot

Nagaland has 494 km of National Highways and around 1,032.5 km of State Highways. The

state has road density of 80 km per 100 sq. km. The state is well connected with Assam and

Manipur through National Highways: NH-61, NH-39, NH-36, NH-150 and NH-155. Agencies

maintaining roads in the state include the Public Works Department (PWD) and Pushpak (a

Border Roads Organization of the Government of India). Nagaland State Transport provides

road transport across Nagaland, covering 112 routes and 21,300 km, daily. The railway station

at Dimapur connects Nagaland to rest of the country via Assam. Under the Jawaharlal Nehru

National Urban Renewal Mission (JNNURM), US$ 17.2 million has been allocated for road

transport development in Kohima. Table 6.1 above represents existing network of road

transport in Nagaland.

194

Table 6.1: Length of Highways in Nagaland

Road type Road length in km (approx.)

National Highways 494

State Highways 763

Rural Roads 22095

Total Road Length 34146

Source: Ministry of Road Transport and Highways (2017)

Table 6.2 shows the total length of the road (both surfaced and unsurfaced) in Nagaland as

on 2015.

6.1.2 Railways to different exit points

Railway is the lifeline of any region. The Prime Minister’s Office (PMO) has set 2020 as

deadline for completion of the long-pending 83-km rail link between Dhansiri in Assam and

Zubza, near Nagaland’s capital Kohima. The project, which involves building nearly 190

bridges and almost 26 km of tunnels, has been delayed. The first phase involves construction

of Dhansiri to Sukhovi (16km) line, the second phase involves Sukhovi to Khaibong (30 km)

and the third phase involves Khaibong to Zubza (45 km). While the first phase of the project

is targeted for completion by December 2018, the second and third phases are targeted for

completion by December 2019 and March 2020 respectively.

The level of railway network of Nagaland in comparison to the Northeastern region is given

in Table 6.3 (as on 31.03.2015). The table shows that the present rail network in the North

Eastern Region comprises of about around 2602.35 route km, out of which 1454.16 km are on

the broad gauge and the remaining 1148.19 km are on the meter gauge.

195

Table 6.2: Total length of Road in Nagaland PWD (R&B) 2014-15

Division National Highway State Highway Major District Roads

(M.D.R.)

Other District Roads

(O.D.R.)

Rural Road

Surface Unsurface Surface Unsurface Surface Unsurface Surface Unsurface Surface Unsurface

Kohima 180.00 Nil 42.00 Nil 189.60 56.60 362.60 124.70 213.50 414.90

Mokokchung 131.00 Nil 94.30 Nil 200.35 17.00 299.60 367.50 277.17 251.39

Tuensang 150.00 Nil 68.00 Nil 28.00 96.00 40.50 660.60 69.00 529.00

Mon 0.00 Nil 235.00 Nil 110.85 Nil 199.60 259.60 142.50 209.90

Phek 152.00 Nil 165.00 Nil 226.00 22.00 200.50 108.80 26.10 325.70

Wokha 37.00 Nil 60.00 Nil 179.00 Nil 158.00 94.00 150.50 238.50

Zunheboto 33.00 Nil 212.00 Nil 71.00 49.00 206.00 143.50 117.50 503.40

Dimapur 54.00 Nil 41.00 Nil 127.20 Nil 182.00 29.00 264.40 140.00

Peren 0.00 Nil 187.00 Nil 34.50 40.00 125.00 58,00 85.00 129.00

Longleng 0.00 Nil 62.00 Nil 160.50 8.00 17.00 33.00 25.00 60.00

Kiphire 93.00 Nil 40.00 Nil 112.00 Nil Nil 78.50 14.70 303.91

Total 830.00 Nil 1206.30 Nil 1439.00 288.60 1790.80 1899.20 1385.37 3105.70


196

Table 6.3: Distribution of State-wise Rail Network

State Broadgauge Metergauge Total kms.

Aruchanal Pradesh 1.26 1.26

Assam 1443.03 990.96 2433.99

Tripura 0 151.40 151.40

Nagaland 11.14 1.72 12.85

Manipur - 1.35 1.35

Mizoram - 1.5 1.5

Meghalaya - - -

Sikkim - - -

Total 1454.16 1148.19 2602.35

Source: National Transport Development Policy Committee (NTDPC), 2014

6.1.3 Air to different exit points

Nagaland has one operational airport at Dimapur. A second airport is being planned for

Kohima. The airport is located along NH 39. Its terminal building can handle 500 departing

and 300 arriving passengers. There are plans for expansion of the airport to meet international

norms by buying land at Aoyimti village. Guwahati and Kolkata have direct flights from the

Airport. Tables 6.4 and 6.5 show intensity of the Dimapur airport and its connectivity to the

road transport network respectively.

Table 6.4: Airport Indicators for the past 3 years in Dimapur

Indicators Airport Aircraft

movement

Passengers

(no.)

Freight

(tons)

Airport indicator (April-March) (2015-16) Dimapur 2307 111756 303

Airport indicator (April-March) (2016-17) Dimapur 2251 144449 398

Airport indicator (April-September)

(2017-18)

Dimapur 690 90387 285

Source: Accessed from www.ibef.org

http://www.ibef.org/

197

Table 6.5: Connectivity of the Airport with Dimapur

Sl.

No.

Mode Details

1 Name & Distance between Airport to Nearest

city centre

Dimapur city center 05 km

Bus Terminus 07 km


Railway station

Dimapur Railway Station 07 km

3 Name & Distance between Airport to National

Highway

NH 36 07 km


State Highway

SH 36 8 km

Many State Highway connected to

NH 39

5 Details of connecting road to nearest National /

State Highway

Double Lane Road

6 Aerial and distance from Nearby Airport/s Jorhat Airport 55 NM / 129 km

Imphal Airport 68 NM / 210 km

Silchar Airport 72 NM / 294 km


6.1.4 Inland water transport to different exit points

The Nagaland State Government has set up an Inland Water Transport wing in the Transport

Department to liaise and coordinate with the Inland Waterways of India (IWAI) under the

Ministry of Shipping, Government of India. Under this, the Nagaland State Transport is to act

as a nodal department for identification of potential inland waterways and to undertake

feasibility studies, prepare Detailed Project Reports (DPR) and monitor project implementation

of water transport in the state.

From the government resources it is noted that the Ministry of Road Transport, Highways

and Shipping, Government of India and IWAI through M/S. Rites Ltd has identified four rivers

as having potential for inland water transport in the state, namely:

1. Tizu river from tri-confluence near Longmatra to Avangkhu of 42 km (approximately) for

Indo-Myanmar;


198

2. Dhansiri river from Samjuran to Numaligarh of approximately 110 km for inter-state

waterways of Nagaland-Assam;

3. Dikhu river from Yangnyu to Naginimora, Nagaland of about 52 km for connection to

Brahmaputra river in Assam via Sibsagar for inter-state waterways of Nagaland-Assam;

4. Doyang River, 61 km length of the river from bridge near Sialmari, Assam for inter-state

waterways of Nagaland-Assam.

6.1.5 Cold storage / Ware house

Nagaland’s Department of Horticulture signed a Memorandum of Understanding (MoU)

with Concept Management Group (CMG), Kohima to promote and market horticulture produce

of the state by managing a Pack-House and Refrigerator Van. The MOU was signed for 15

years between the Department of Horticulture, Nagaland and CMG Kohima at the Directorate

of Horticulture in Kohima. It is a step to link small farmers and local produce to high-value

urban and export markets, establish new market linkages and strengthen existing ones. The

Department of Horticulture is acting toward providing farmers with the facility of a ten

metric ton cold storage.

Table 6.6 shows present storage facility available in Nagaland. Though multipurpose

facilities have been created, it is clear that they are not enough to facilitate the export potential

of the state. Just for comparison, Gujarat which is having good agriculture production has more

than 250 storage facilities having capacity more than 12 lakh MT as well as strong cooperative

credit and marketing structure.

Table 6.6: Storage Facility in Nagaland

Name Cap-MT Sector Commodity

MARCOFED Cold storage, Dimapur 1150 Co-operative Multipurpose

L. Doulo Builders & Suppliers Co Ltd,

Dimapur

5000 Private Multipurpose

Nagaland State Total 6150

Source: Accessed from http://agriexchange.apeda.gov.in/

http://agriexchange.apeda.gov.in/

199

6.1.6 Dry Port connectivity

Inland Container Depots, otherwise known as ICDs, are dry ports equipped for handling and

temporary storage of containerized cargo as well as the empties. This means that hinterland

customers can receive port services more conveniently closer to their premises.

The nearest ICD from Nagaland is at Guwahati. The majority of export-import activity

related traffics in the region is handled at the port side terminals of Haldia and CONCOR

Terminal KoPT Coal Dock Road (CTKR). Amingaon near Guwahati is the ICD in the region,

functioning almost exclusively for the handling of tea exports. Container Freight Station

(CFS) has been developed at Majerhat with Merry Go Round (MGR) service between KoPT

and CFS.

The study team interacted with the officials of Guwahati Dry port to understand the

possibility of use of the dry port for the exporters of Nagaland. At present, the dry port does

not provide for all trade-related facilities like single-window for mandatory clearances,

payments, and incentives cortication, banks, shipping lines and freight forwarding agents, non-

vessel owning common carriers (NVOCCs) and so on. A freight forwarder, forwarder, or

forwarding agent, also known as a NVOCC, is a person or company that organizes shipments

for individuals or corporations to get goods from the manufacturer or producer to a market,

customer or final point of distribution, customs house agents (CHAs), and transport operators.

Small exporters are not utilizing the dry port at Guwahati at all. This is because that one

individual small exporter of northeast usually finds it difficult to fill a container with product

for export. The study team interacted with the freight forwarders located in Kolkata and they

expressed their inability to locate themselves at Guwahati dry port and act as aggregator /

consolidator of exportable of different individual exporters simply because of the lack of that

critical mass which entails them to arrange full load container and arrangement of full railway

rack (40 wagon) thereof .

Hence, the existing exporters of Nagaland are following a difficult route to export products

at present. For example, from Dimapur to Guwahati by bus or train, then loaded in the carrier

van of Guwahati - Dadar express to reach Dadar Railway station, Mumbai. At Mumbai, either

freight forwarder or buying agent collects the product for shipment to the destination through

JNPT. However, on enquiry it was found that from Dimapur to Amingaon (Guwahati) dry port

200

(distance: 289 km), full truckload (weight seven ton Truck, 6 Wheel, 17 Feet) transportation

cost would have been Rs. 17000/- only.

6.1.7 Wet port Connectivity

Kolkata / Haldia: Wet ports at Kolkata / Haldia are the nearest wet ports for the exporters of

Nagaland. The existing exporters of Nagaland also sometime use the port for exporting their

products like wooden handicraft. The road distance and freight charges for the movement is as

follows:

Dimapur to Kolkata, Road distance: 1250 km (approx.)

Dimapur to Howrah, Road distance: 1309 km (approx.)

Freight Charge: Weight: 7 Ton; Truck Type Truck 6 Wheel (17 Feet), Rs. 52000/-.

Sittwe Port: Wet port accessibility through Mizoram has been a part of Act East Policy (AEP)

by the Government of India. As a part of materializing the Act East Policy, the Kaladan Multi-

Modal Transit Transport Project was taken up. This Project envisaged access to Sittwe port in

Myanmar through Lawngtlai in Mizoram. This Kaladan road from Lawngtlai and Paletwa road

from Myanmar will meet at the Indo-Myanmar Border called Zorinpui near Zochachhuah. The

road distance to Sittwe port from Dimapur will be as follows:

Dimapur to Aizawl: 460 km

Aizawl to Lawngtlai: 247 km (via NH-2)

Lawngtlai to Zorinpui LCS (near Zochachhuah): 104 km

Zorinpui LCS to Paletwa IWT: 129 km

Paletwa IWT to Sittwe Port: 158 km (via Kaladan River)

Total road distance, Dimpaur to Paletwa IWT: 940 km.

6.2 Institutional structure

Nagaland is one of the seven states in the north-east. The state is flanked by Myanmar in the

east, Arunachal Pradesh in the north, Assam in the west and Manipur in the south. Nagaland’s

agro-climatic conditions favor agriculture, horticulture and forestry, offering immense

potential in these areas. Below mentioned are the institutional infrastructure in Nagaland.

201

6.2.1 Electricity

Electricity is one of the basic need for any industry and a good established electricity

network has potential to boost industry output. As of October 2017, Nagaland had total

installed power generation capacity of 154.37 MW, of which 123.70 MW was under central

sector and 30.67 MW was under state utilities. Of the total installed power generation capacity,

70.33 MW was contributed by thermal, 53.37 MW by hydro and 30.67 MW by renewable

energy. As of August 2017, all villages in the state had electricity supply. Table 6.7 and Figure

6.1 show installed power capacity (MW) in Nagaland. It is clear that it has grown by almost 50

percent in the past eight years.

Table 6.7: Installed Power Capacity for the past one decade

Year

2008-

09

2009-

10

2010-

11

2011-

12

2012-

13

2013-

14

2014-

15

2015

-16

2016-

17

Installed Power

Capacity (MW) 102.7 103.1 103.1 103.1 116.8 116.8 131.3 141 154.9

Source: Central Electricity Authority IBEF (2017)

Figure 6.1: Installed Power Capacity for one decade in Nagaland

Source: Central Electricity Authority Central Electricity Authority IBEF (2017)

20

0

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

180

160

140

120

100

80

60

40 Inst

alle

d p

ow

er

cap

acit

y, (

MW

)

202

6.2.2 Special Economic Zones

National Industrial Development Corporation of India (NIDC) and Export Promotion

Industrial Park (EPIP) at Dimapur has received formal approval as a Special Economic Zone

(SEZ) for agro and food processing. A proposed multi-product SEZ spread across 400 hectares

of land in Dimapur has also received formal approval. The details are provided in Table 6.8.

Table 6.8: List of notified and formally approved SEZs

Industrial zones Location Type Area

(hectares)

Nagaland Industrial

Development Corporation

Limited

Ganeshnagar Under Dhansiri

Sub Division, Dimapur

District, Nagaland.

Agro and food

Processing

50.7

H.N. Company Dimapur, Nagaland Multi product 290


6.2.3 Industrial infrastructure

The importance of industrial infrastructure for sustained economic development is well

recognized. Table 6.8 shows present industrial infrastructure in Nagaland.

Table 6.9: Number of units of the industrial infrastructures

Industrial infrastructure Units

District Industries Centre (DIC) 11

Sub-DICs 6

International border trade centres 5

SEZ (agro & food processing) 1

Old industrial estate, Dimapur 1

New industrial estate, Dimapur 1

Mini industrial estates 2

Growth centers 6

Industrial zones 12

Source: MSME & IBEF, (2017)




203

The District Industries Centers (DIC) play a vital role in the development of SSIs and tiny

sector industries. The Government shall strengthen the DICs with adequate facilities and also

train the officers and staff to keep pace with the latest technology / skill. The newly created

Dimapur DIC will be upgraded to full-fledged DIC at the earliest. Each DIC will act as

principal agency to guide the entrepreneurs in matters of setting up of Industries including

selection of industries / entrepreneurs, preparation of project and arrangement of finance for

projects.

From the export point of view SEZs, a specifically delineated duty-free enclave and shall

be deemed to be foreign territory for the purposes of trade operations and duties and tariffs, are

most important. In order words, SEZ is a geographical region that has economic laws different

from a country's typical economic laws. This enables efficient production and exports from

these territories. The number of operational SEZs in Nagaland is not encouraging.

6.3 Support facilities

6.3.1 Quality Inspection / Testing Facilities

Inspection facilities to ensure required quality of the products at an affordable cost are also

required for enhancing exports. The exporters of Nagaland do not have proper facilities to have

a quality check in the state. When interacted with prospective exporters, they felt an absolute

need of quality inspection facility for export in the state.

6.3.2 Export Training Facilities

There are certain areas where the government can focus and intervene to help the existing

entrepreneurs as well as budding entrepreneurs to boost their interest and capacity to export.

The areas which the study team shortlisted are: Market Identification, Trade contracts, Product

improvement / Adaption, Market studies, product design, export incentives, quality control,

export finance, procurement of raw material, marketing missions, packaging, export

management training, factory compliances, information on Foreign Laws and so on. The study

team, while interaction with the existing as well as budding entrepreneurs, found that there has

been absolute lack of understanding in the above referred areas which are considered essential

for carrying out export.

204

6. 3.3 DGFT Office

The regional office of the Joint Director General of Foreign Trade (DGFT) is located at

Guwahati, Assam. This zonal office caters to the requirement of the region and hence for

Nagaland exporters also. The study team while interacting with the existing entrepreneurs as

well as budding entrepreneurs found that the majority of the entrepreneurs were not sure about

the location as well as function of the DGFT office. Several budding entrepreneurs interested

to act into export business are also not aware of Import Export License (IEC Code) issuing

procedure of DGFT and other important steps required for conducting international business.

The highly simplified online facility, provided by DGFT, for application and issuance of IEC

Code are also not being utilized by the entrepreneurs basically because of their ignorance

about the system.

6.3.4 Export Promotion Councils

The Agricultural and Processed Food Products Export Development Authority (APEDA)

has its virtual office at the Directorate of Horticulture office, Govt. of Nagaland, Kohima to

take forward the case of export promotion and development of agro-horticultural products from

the state. Export Promotion Council for Handicrafts (EPCH) has its regional office at Guwahati

to take care of handicraft export from Nagaland as well as entire northeast region. The

Federation of Indian Export Organization (FIEO) has its northeast office at Guwahati to look

after and support exportation process from Nagaland. The respondent budding entrepreneurs,

when asked by the study team, revealed that they were not aware of the support services

rendered by the different support service organizations.

6.3.5 Border Trade facilitation service

The opening of three cross border points with Myanmar at Avangkhu (Somara on Myanmar

side) in Phek district, Longwa in Mon district and Phangsa in Tuensang districts are

comparatively new development in the state. The details about them are noted in the following:

6.3.5.1 Avangkhu Border (Phek district)

Avangkhu is situated in Phek district, in the southeastern part of Nagaland, bounded by

Myanmar in the east, Zunheboto and Tuensang districts in the north, Manipur state in the south

205

and Kohima district in the west. The distance between Kohima to Avangkhu is about 302 km

(via NH 2, NH 29, NH 202 and Laruri Road). The Geological Survey of Nagaland reports that

there is one million tonnes of reserved limestone at Wazeho, decorative and dimensional

stones, coal in Akhegwo, Yesi, and Molen. Brine is also found in Meluri sub-division in the

district. This locally baked salt, as per medical experts, are goiter free and good for health).

Crystalline limestone is also found in Moke and some minerals are also found in the district.

Presently, the State’s only Cement factory in Wazeho (Meluri subdivision) is producing 100

TPD. Also there at Wazeho, a Decorative Stone Factory has been inaugurated recently.

Excepting the cement plant, there are limited numbers of small and medium enterprises in the

district.

Possible cross-border trade items from the districts are Ginger, Kholari, Maize, Chilies,

Cane and Bamboo items, Honey bee products etc. However, based on the cross border

demand of Myanmar, Basketry, weaving, Stone crushing, Wood-based units, Saw mill,

Cement craft, Steel Fabrication, wood carving, pottery, Handloom products, Cane and

Bamboo products, Stone Tiles, Spinning and Blacksmith, Food-processing units and

Carpentry can be developed in the district.

Figure 6.2: Avangkhu Border (Phek district)

Source: http://www.nicngl.nic.in/

http://www.nicngl.nic.in/

206

6.3.5.2 Longwa border (Mon district):

Longwa comes under Mon district of Nagaland. The District is bounded on the north by

Sibsagar District of Assam, on the South by Tuensang District of Nagaland, Myanmar

(Burma) on the East and on the West by Tuensang and Mokokchung Districts of

Nagaland.The distance between Kohima to Longwa is about 367 km (via NH 2, NH129,

Barapathar- Golaghat Road, NH 702C and Mon - Longwa road). The main occupation of the

people of this district is agriculture with nearly 90 per cent of the work force engaged in it.

Based on the cross-border demand of Myanmar value-added products based on Coal, Ginger,

Soya bean etc. can be traded.

Figure 6.3: Longwa border (Mon district)



207

6.3.5.3 Phangsa border (Tuensang district):

Phangsa comes under Tuensang district of Nagaland, located in the eastern fringe of the

state. The distance between Kohima to Phangsa is about 284 km (NH 2, NH29, Mokokchung

–Tuensang road. NH202). Exportables from the district based on the cross-border demand may

include minerals of Cobalt, Limestone, Granite, Coal, Soya bean, Maize etc.

Figure 6.4: Phangsa border (Tuensang district)


With the opening up of the cross-border trade points at the locations like Avangkhu,

Longwa, and Phangsa, there is need for strategically developing the exportables from these

districts and disseminating the information of cross-border demand amongst the local

entrepreneurs. This work needs to be taken up by the respective DICs so that the concerned

district are economically benefited because of land-based connectivity with the neighboring

country, Myanmar. This requires set up of dedicated cross-border trade support cell in each of

the DICs in Phek, Tuensang and Mon district.


208

Chapter 7: Export Capability Gaps in Nagaland

7.1 Introduction

After identifying the short term and long term merchandise products / commodities for

export from Nagaland, a survey was undertaken amongst the potential and existing exporters

in Nagaland to understand the gaps and requirements in order to boost the exports from

Nagaland. The main objective was to understand what actually the Nagaland entrepreneurs

require for taking up export initiatives and the barriers being faced or expected to be faced by

the existing exporters in order to enhance their export. Since the state does not have a well-

established track record of export, hence the elicited responses of the existing as well as

prospective export oriented entrepreneurs will provide a good starting point to understand the

export facilitation gaps and requirement thereof.

The ultimate objective of this part of research was to collect feedback regarding the gaps /

barriers towards enhancing export from Nagaland. For this purposes two questionnaires were

designed where the first part dealt with the gaps / barriers the existing entrepreneurs are facing

in order to enhance their export and the second part contains questions related to the barriers

for export for the potential exporters of the state. Few initial questions of the questionnaire was

inventoried for eliciting basic information of the respondents like company name, type of

business, year of establishment etc. The existing exporters were also required to mention details

about major exportable products, their business model, the countries to which these products

are exported, level of investments and the major challenges the entrepreneurs were facing and

so on. The questionnaire contained a few questions regarding the respondents’ awareness about

different export promotional schemes that are implemented by the Central or State government,

effectiveness of such schemes, extent of the price and non-price factors affecting the export

motive and government policies required to support the exporters from Nagaland.

The respondents who took part in the questionnaire survey were 13 existing exporters and

13 prospective entrepreneurs. It was ensured that the prospective entrepreneurs participating in

the survey are the members of any reputed Chambers of Commerce like Confederation of

Indian Industries (CII) members of Nagaland State who had sound understanding of the gaps /

barriers to export from the concerned state. Opinions were also collected through telephonic

discussions since most were not able to fill the survey questionnaire on time. The

209

questionnaire used for this purpose is attached in the annexure A7.1 and A7.2.

7.2 Barriers to enhance export for Existing Entrepreneurs / Exporters

7.2.1 Types of organizations

A summary of the profiles of those 13 budding export oriented entrepreneurs are given in

the appendix A7.3. The respondents of the survey can fall broadly under four categories:

manufacturer of exportable goods but exported by another merchant exporter, manufacturer

exporter, merchant exporter and services exporters. The first type implies that they are

involved in manufacturing certain types of goods but are not involved in export directly and

rather takes the assistance of merchant exporter. Merchant exporters are the ones who does all

the formalities of export but do not have own manufacturing facility. A manufacturer

exporter manufactures and exports goods directly and the fourth category is service exporters.

The respondents of the survey in Nagaland were mostly manufacturer exporters (60 percent)

and the rest were merchant or trader exporters (40 percent).

7.2.2 Level of Investment

The survey aimed to categorize the existing exporters into four standard categories based on

their level of investment, i.e., micro, small, medium and large. The companies who have

investment level below Rs. 25 lakhs fall under the micro-investment category, investment

level between Rs. 25 lakh to Rs. 5 crore falls under small enterprise category, in case of medium

enterprise the investment shall be more than 5 crore but less than Rs. 10 crore, and enterprises

above 10 crore is considered large. All the respondents in this survey were in the category of

small enterprises.

7.2.3 Major Products Manufactures and Country of export

Through this survey, it was further revealed that the respondent are exporting products that

generally fall under the traditional handicraft category. The handicraft products made of wood

are exported to the European countries. Some trade exporters also revealed that they are not

certain about the destination country markets as the buying agents located in Mumbai or

Kolkata do the necessary consolidation of the products and then exports them to different

countries.

210

7.2.4 Infrastructure as hindering factors

Road, railway and airport

The supportiveness of the existing road, railway and airport infrastructure are important that

help in securing smooth progress of export. The survey questions in this respect reveal that the

existing exporters are not happy with the status of the road, railway and airport infrastructure

available in Nagaland.

Roadways: Through the survey, the respondents were inquired about the condition and

Connectivity of National Highways, State Highways and other roads. Most of the respondents

said that the road condition in Nagaland is average. Respondents further indicated that

improvement in the State Highways is required (Figure 7.1).

Figure 7.1: Condition of Roads in Nagaland

Source: Constructed on the basis of Survey Response

Railways: Railways could be a much faster and cheaper mode of transport for exportable

goods. Based on the responses of the respondents it can be concluded that most entrepreneurs

were not even aware of the process to hire railway wagons and containers. Also, since

Dimapur is not a railway division, booking of railway wagon is not possible from there.

Lumding railway station, which is about 82 km away from Dimapur, is a railway division

from where railway wagon can only be booked.

POOR AVERAGE

1

GOOD

4

8

211

Airport: All entrepreneurs were aware of the Dimapur airport that only provide air

connectivity from Nagaland.

Dry Ports: through the survey, all the respondents were found to be aware of the Dry port

and inland container depot located at Amingaon (Guwahati). Also all the respondents wanted

that there should be freight forwarding agents located at the dry port who will also act as

aggregator of the products from different exporters of the region and then arrange

containerization for further dispatch to Kolkata wet port for shipments to the respective

destinations. All the respondents expressed dissatisfaction for not being able to use the

Amingaon (Guwahati) dry port for export.

Questions were also asked about possibility of using the upcoming Land Customs Stations

at Avangkhu in Phek district, Longwa in Mon district, Phangsa in Tuensang districts. All the

respondents opined that transportation of the products would be a major problem up the border

points and further inside Myanmar because of poor road quality and connectivity.

Electricity: Uninterrupted power supply is an important factor that would help in smoothening

of business activities. Many villages in Nagaland do not have the uninterrupted electricity

facility and thus about 77 percent of the entrepreneurs opined that the power supply in

Nagaland is poor and gets interrupted affecting the production process (Figure 7.2).

Figure 7.2: Quality of Electricity


Quality Inspection / Testing Facilities: Inspection facilities would ensure the quality of the

products produced at an affordable price. Both cost and quality shall be ensured in order to

77% Not available

Poor

Average

0% 8% 15%

Good

212

enhance exports. All the respondents opined that the state do not have proper testing facilities

or facilities to check quality of products. 31 percent of the respondents were not aware of the

facility that is near to their manufacturing unit and 69 percent indicated that even though testing

center existed but the facilities available are poor there (Figure 7.3).

Figure 7.3: Condition of Quality Inspection / Testing Facilities


Connection to Maritime Ports: Connectivity and nearness to the maritime ports are two most

important factors for the exporters as they provide effective and cheap mode of transportation

of products to foreign markets. 10 out of 13 of the respondents responded that non-availability

of maritime port facilities near Nagaland hinders export enhancement to a certain level. The

remaining 3 respondents noted that they are using Kolkata port / JNPT and rated JNPT as better

of the two in terms of quality of services rendered to them (Figure 7.4).

Figure 7.4: Connectivity to Maritime Ports


Not aware Poor Average

69%

31%

0%

0%

23%

77%

Good Average Poor

213

Common Facility Centre / Tool room: Most of the respondents answered that they are not

aware of the availability of such facility Common facility Centre (CFC) / Tool room, which

can be helpful in the production of exportable products (Figure 7.5).

Figure 7.5: Common facility Centre / Tool room uses


Trade Exhibition / Display for export trade: Products of the exporters needs to be showcased

to the existing customers along with the potential customers so that current operations can be

expanded to new markets. Hence a common platform is essential to display the products so that

the targeted audiences become well-aware of the products. The respondents opined that the

Hornbill festival provides a right platform for interacting with people from other nationalities

like Thailand, Japan, South Korea, Myanmar and Singapore, who attend the festival. However,

as shown in the Figure 7.6 below, 54 percent of the respondents expressed that having a

permanent trade exhibition /display centre in prime location of the state would be extremely

important.

0% 15%

85%

Average Poor Not Aware

214

Figure 7.6: Exhibition / Display Convention Centre


Export Nodal Agency / Councils: Availability of accurate export related information at the

opportune time from an authentic source is essential for the entrepreneurs engaged in export

business. Figure 7.7 reflects that the respondent entrepreneurs are not satisfied with the status

of the presence of existing export nodal agency / councils within the state as 61 percent of them

are not aware of the presence of such agencies in the state.

Figure 7.7: Quality of Support from Nodal Agencies


54%

23% 23%

Good Average Poor Not aware

0%


8% 8%

23%

61%

215

Export Training Institutes: In order to export products, entrepreneurs often require proper

information about foreign country demand, documentation requirements, existing tariff and

non-tariff barriers etc. Entrepreneurs may require to be well-versed about the techniques of

identifying new country markets, understanding of requirements of products customisation and

packaging, foreign country regulatory requirements / certifications particularly for food-based

(e.g., consumer safety) or wood-based products (e.g., sustainable forestry) etc. Entrepreneurs

should also have proper knowledge about the prospective markets and hence they need to be

trained in these direction in order to increase exports. Figure 7.8 shows that majority of the

respondents (54 percent) felt that this is a challenge, hindering their exports to other countries.

Figure 7.8: Non-availability of Export Training Facility in the State / Region


7.2.5 Factors affecting Export Performance

Along with infrastructures, other factors may affect the export trade facilitation in a state.

They are discussed in the following.

7.2.5.1 Non-Price Factors for gaining Export Competitiveness

The non-price factors, both tangible and intangible, enable a firm to produce products or

services, which are competitive in the international markets. The non-price factors include

capacity, technology, products, quality, time of response and international standards adopted

in the business practices. These factors are major determinants of export competitiveness and


8%

23%

15%

54%

216

can enhance export in the competitive markets. Non-price factors, based on competencies and

skills, are the most important sources of competitive advantage of the firms, both directly and

indirectly influencing the position and performance of the firms in international markets. The

responses of the respondents, in this regard, are reported in Figure 7.9. It can be noted that the

entrepreneurs generally expressed their dissatisfaction with the existing scenario. In case of

technology and quality of the products produced, most of the entrepreneurs were happy while

they expressed unhappiness with capacity.

Figure 7.9: Non-price Factors that affects Export Performance

Capacity

Technology

7

8

0 0 3 3 0 0 2 3

EXELLENT VERY GOOD GOOD POOR VERY POOR EXECELLENT VERY GOOD GOOD POOR VERY POOR

Quality

Products

7

6

0 0 2 4 0 0 3

4

EXECELLENT VERY GOOD GOOD POOR VERY POOR EXECELLENT VERY GOOD GOOD POOR VERY POOR

Response Time

International Standards

6

5

5

7

0 0 2 0 0 1

EXECELLENT VERY GOOD GOOD POOR VERY POOR EXECELLENT VERY GOOD GOOD POOR VERY POOR


7.2.5.2 Price Factors for gaining Export Competitiveness

Along with non-price factors, the price factors are also important for successful exporting

and expansion of business. Here, the price factors considered were product variety, number of

buyers, competitiveness of the product produced, transportation cost to the port, order size,

217

54% Not Affecting

Moderately affecting 31%

Slightly affecting

Mildly affecting

15% 0%

Very affecting

High Transportation Cost Due To Distant Port

Increasing Competitiveness

pressure on prices and dependency on intermediaries. The responses obtained on these price

factors reveal that the entrepreneurs are not comfortably placed in all the price factors. The

survey reveals that they have knowledge about the prospective buyers but the number of buyers

itself for the product at present are very limited. Level of competition and transportation cost

to dry ports also seems to be major concerns for the entrepreneurs. Export prices fluctuates and

seems to decline with time creating pressure on quality and the entrepreneurs have high

dependency on the intermediaries for exportation process. Most of the respondents responded

that these factors affects export performance in Nagaland to a great extent as reveled in figure

7.10.

Figure 7.10: Price Factors that affects Export Performance

Very affecting

Lack Of Product Variety

15% 0%

39%

Limited Buyers

8%0%

61%

Very affecting

Moderately affecting

Slightly affecting

46%

Moderately

affecting

Slightly affecting

31%

Mildly affecting Mildly affecting

Not Affecting

Not affecting

Very affecting 8%0%

Moderately

affecting

Slightly affecting 31%

Mildly affecting 61%

Not Affecting

Not Affecting

46%

Moderately affecting

Slightly affecting

Mildly affecting

31% 23% Very affecting

Declining Export Prices

0%

Not Affecting 77%

Mildly affecting

15% Moderately affecting Slightly

affecting

8%0% Very affecting

Limited Order size

218


Settlement of Refund: Regarding refund of the IGST amount upon exports, the respondents

noted that apart from initial teething problem no other major challenges are faced by them.

7.2.6 Central Government's Export Promotion Measures and awareness level

The respondents were also asked about the knowledge they have regarding different export

promotion schemes like Merchandise Exports from India Scheme (MEIS), Service Exports

from India Scheme (SEIS), Status holder Scheme, E-Commerce Exports Incentives, Duty

Exemption, Duty Free Tariff Preference (DFTP), Service tax refund, EPCG, EOU, MDA, MA,

and Town of Export Excellence, etc. Based on the responses obtained, it can be concluded that

most of the respondents were unaware of such schemes. Only 2 respondents among the 13

have heard about the MEIS, SEIS, and Duty Exemption schemes.

7.2.7 Experience in dealing with Regulatory Agencies

The survey also consisted of questions that inquired about their viewpoints regarding their

experience while dealing with different Government agencies like industrial directorate,

agriculture and other allied departments, banks dealing with foreign exchange, customs

officials, DGFT in the matter of export process. Majority of the respondents have marked their

experiences with DGFT to be good or very good. Experiences with Indian Customs, different

Nagaland government departments, foreign currency handling banks, were marked ‘very good’

by most of the respondents while most responded their experiences with export inspection

agency to be poor, which can be seen in Figure 7.11.

Moderately 31% affecting

Slightly affecting

69% Mildly affecting

Not Affecting

0% Very affecting

High Dependency On Middleman

219

Figure 7.11: Factors that measures the experience in dealing with the Regulatory

Agencies

DGFT

Indian Customs

6

3

Very Good Good

6

5

4

3

2

1

0

0

4

5

3

2

8

6

4

2

0

1

3

0

Excellent Very Good

Good Poor Very Poor Excellent Poor Very Poor

6

Industrial departments

5

4

3

1

Excellent Very Good Good Poor

6

5

0

Excellent Very Good

Banks

4

Good

4

4

2

2 3

0 1 0 0

Very Poor Poor Very Poor


Export Inspection Agency

6

4

2

0 0

Excellent Very Good

Good Poor Very Poor

2 2

4 5

Poor Very Poor Good Excellent Very Good

6

5

4

3

2

1

0

Exchange Control Department RBI

Excellent Very Good Good Poor Very Poor

0 1 1

10

8

6

4

2

0

Agriculture and allied departments

3

8

1 2 2

3

5

220

7.2.8 Areas of focus for GOI to develop firm-level Competencies for export

In this part, the entrepreneurs were asked to share their views about the role of the

Government of India and the areas where focus shall be given to develop the level of export

competencies. Altogether 16 key areas of competencies were taken into account and the

responses recorded are based on the perception of the entrepreneurs to understand the

respondents viewpoint in respect to the required government intervention towards increasing

export competitiveness. Responses were recorded for the 16 factors in a five point Likert

scale and the mean was calculated for each factors. The level of significance of the various

factors were rated on a scale from 1 to 5, where 1 indicated ‘very low’ level of significance, 2

indicated ‘low’ level of significance, 3 indicated ‘moderate’ level of significance, 4 indicated

‘high’ level of significance and 5 indicated ‘very high’ level of significance. The figure 7.12

represents the mean of 16 factors that was obtained from individual responses of the 13

respondents for each factors.

Figure 7.12: Main focus areas to develop firm-level Competencies for GOI


4.5 4.00 4.08

4 3.77 3.54 3.54 3.54

3.5 2.92

3 2.69

2.5 2.38 2.46

2.08 2.08

2 1.69 1.77

1.5 1.38 1.46

1

0.5

0

221

The factor having high mean indicates that area needs more focus and intervention of GOI

in Nagaland. Areas like ability to generate external funds and technical know-how has high

mean, indicating these areas require more intervention. In addition, some of the other areas of

concern was absorptive capacity of new technologies for the entrepreneurs, systematic market

research, export policies and quality control.

7.2.9 Areas that require Financial and Non-Financial support to develop Export Capacity

In order to expand export oriented business, and capacity entrepreneurs need both

financial and nonfinancial support in order to increase the export capacity. Some of the

areas were shortlisted for analysis here where the government can intervene and focus to

boost capacity in this part. Like the earlier case, the respondents marked their responses and

then for each factors mean was obtained. The results are noted in Figure 7.13. The higher the

mean, it shows the high level of significance that area hold and needs more intervention from

the GOI in Nagaland.

Figure 7.13: Areas that require Financial and Non-Financial support to develop Export

Capacity


1

0.5

0

1.38 1.5

1.46 1.62 1.54

1.85 1.85 2 2.00

2.15

3

2.5

3.15 3.08 3.00 3.31 3.5

3.77 4 4.00

4.23 4.08

3.92 4.5

222

The level of significance of various factors were rated on a scale from 1 to 5, where 1

indicated ‘very low’ level of significance, 2 indicated ‘low’ level of significance, 3 indicated

‘moderate’ level of significance, 4 indicated ‘high’ level of significance and 5 indicated ‘very

high’ level of significance. From the figure 7.13 it can be concluded that marketing missions,

export management training and trade contracts require most amount of support for the

entrepreneurs. Factors like market identification; financial support in research and

development, export incentives, product adaption as well as market studies holds moderate

level of significance.

7.2.10 Policy Framework

The entrepreneurs at the end were enquired about the policies required to be undertaken by

the State and Central government regarding enhancement of export-oriented business in

Nagaland. Entrepreneurs were asked to comment on some new policies, to be implemented by

GOI / Government of Nagaland, that would be helpful. The majority of the respondents opined

that they require a policy that can make Guwahati dry port accessible by even the small

exporters through locating independent freight forwarding companies in vicinity of the port to

act as aggregators of different products from different exporters from entire Northeastern

region and further dispatch the same consignment to the destination via sea port at Kolkata.

Policies that can benefit export-oriented entrepreneurs of Nagaland, as pointed out by the

majority of the entrepreneurs, would be transport subsidy while products are transferred from

Dimapur / Kohima to Guwahati to achieve a level playing field with those who have dry port /

wet port located in their vicinity. A number of respondents (60 percent) desired for installation

of study by a reputed agency on cross-border demand pattern of Myanmar, which would come

out with specific list of products with high / growing demand in Myanmar that essentially can

be manufactured in Nagaland. These views of respondents have become more meaningful

because of opening up of three cross border-trading points to Myanmar in near future.

7.3. Analysis of the Problems and Prospects for Potential Entrepreneurs

The above analysis with opinions of 13 existing entrepreneurs of Nagaland presented current

challenges. A detailed meeting with the Directorate of Industries and Commerce of Nagaland

revealed that the state has very few existing entrepreneurs who are exporting at present. Since

the study also has the objective of enhancing the exporters’ best, therefore, a questionnaire was

223

developed for the potential export-oriented and budding entrepreneurs located in Kohima and

Dimapur. The questionnaire was canvassed among the potential export-oriented budding

entrepreneurs for eliciting their response. However, though the questionnaire was distributed

among the 13 prospective budding export-oriented entrepreneurs, opinions were also collected

through telephonic discussions as well since most of the entrepreneurs could not fill up the

survey questionnaire on time.

A summary of the profiles of those 13 budding export oriented entrepreneurs are given in

the appendice A7.4. Entrepreneurs were divided into 4 age groups which are, 20-30, 30-40, 40-

50, and 50 & above for analysis purpose.

7.3.1 Problems of Exporting for Potential Exporters

The main objective of the survey was to get feedback from the budding entrepreneurs who

can be potential exporters of Nagaland. For this purpose the respondents were required to

mention their business details, level of investment of the organization, the major products

manufactured. The questionnaire for the potential exporters was different from that of the

existing exporters. Potential exporters were asked 32 questions and was asked to rate to what

extent the different barriers to exports hinder their possible export activities. Responses of 13

respondents were taken into consideration to analyze the factors that hinder exports from

Nagaland. Average of the responses for each factor was calculated which is represented in the

diagram 7.14. The factor that have value of 5 and above indicates maximum hindrance. The

factors that have average value below 5 indicates that it does not appear as a factor that hinders

trade in Nagaland for the potential entrepreneurs.

In the following part, all the 32 factors were categorized under three categories based on the

responses obtained. Government needs to put effort so that hindrances caused by these factors

are reduced to a large extent. The results are summarized in Table 7.1 and Figure 7.14.

224

Table 7.1: Factors and their level of hindrances for Potential Exporters

Level of

Hindrances Factors

Factors that

causes less

level of

hindrances

Cultural differences while dealing with Myanmar’s buyer

Language problem in communicating prospective foreign buyer

Lack of knowledge of cross border trade points with Myanmar

Cost of adapting the product to the foreign market

Lack of knowledge of cross border market opportunities at Myanmar

Lack of staff for export planning

Differences in product usages in foreign markets

Cultural differences while dealing with prospective foreign buyer

Lack of information about opportunities for your products/services in Myanmar

General lack of knowledge of how to export

Risk of losing money by selling abroad

Factors that

causes

moderate

level of

hindrances

Insufficient production capacity in your firm

Risk from variation of exchange rates

Ignorance of the financial and nonfinancial benefits that exporting can generate

Fear of Tariff barriers to exports

Lack of resources to face the period of time needed to recover export-related

investments

Political instability in the state/region

Afraid of strong overseas competition

Lack of exportable product with requisite high volume.

Fear of Nontariff barriers related to the standardization and homologation of the

product, or health, phytosanitary or similar barriers

Factors that

causes high

level of

hindrances

Logistical difficulties in reaching to land custom stations with Myanmar

Lack of local banks with adequate international expertise

Absence of export license facility

Lack of export awareness programme in Nagaland

Lack of knowledge of potential but distant export markets other than Myanmar

Lack of understanding of port/customs operation and methods of payment

Lack of information about opportunities for your products/services in abroad

Locating a suitable freight forwarder in Northeast region as a while

Lack of knowledge of export assistance programs of Government

225


Figure 7.14: Extent to which the barriers effect the export activity in Nagaland for

Potential Exporters

Transport costs to the dry port at Guwahati

Logistical difficulties in reaching to dry port at Guwahati

Inadequate foreign network of the banks you work with

Factors That Causes Less Level Of Hindrances (Mean- between 1 to 3)

Risk of losing money by selling abroad 2.85

General lack of knowledge of how to export 2.77

Lack of information about opportunities for your products/services in Myanmar 2.69

Cultural differences while dealing with prospective foreign buyer 2.23

Differences in product usages in foreign markets 2.23

Lack of staff for export planning 2.08

Lack of knowledge of cross border market opportunities at Myanmar 2.08

Cost of adapting the product to the foreign market 1.85

Lack of knowledge of cross border trade points with Myanmar 1.77

Language problem in communicating prospective foreign buyer 1.54

Cultural differences while dealing with Myanmar’s buyer 1.23

0.00 0.50 1.00 1.50 2.00 2.50 3.00

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00

3.46 Insufficient production capacity in your firm

3.46 Risk from variation of exchange rates

3.54 Ignorance of the financial and nonfinancial benefits that exporting can generate

3.62 Fear of Tariff barriers to exports

4.00 Lack of resources to face the period of time needed to recover export-related

investments

4.15 Political instability in the state/region

4.23 Afraid of Strong overseas competition

4.46 High value of the Rs

4.54

Factors That Causes Less Level Of Hindrances (Mean- between 3 to 5)

Fear of Nontariff barriers related to the standardization and homologation of the product, or health, phytosanitary or similar barriers

226


A majority of the entrepreneurs talked about non-existence of proper institutions and

schemes for facilitating export. They also opined that the distance between dry ports from

Nagaland seems to be a major hindrance as the entrepreneurs faces difficulties especially

because of the distance and cost. Potential entrepreneurs thinks factors as knowledge about the

prospective buyers, cultural differences and language differences does not seem to be major

factors that hinders export from Nagaland. From the survey conducted, the factors that the

potential entrepreneurs considers to hinder the trade activities most are the infrastructural and

institutional gaps. These gaps needs to be reduced by the GOI and State Government so that

export activities expand in Nagaland and potential entrepreneurs are encouraged in export

activities. In particular, export facilitating organizations do not have presence in the state and

most have not heard about DGFT even.

From Figure 7.14 it can be concluded that barriers like ‘inadequate foreign network of the

banks you work with’ was marked by most of the entrepreneurs as a major factor affecting

involvement in export business in Nagaland. Factors like ‘logistical difficulties in reaching dry

port at Guwahati’, ‘transport cost to the dry port in Guwahati’ and ‘Lack of knowledge of

export assistance programs of Government’ are factors that also hinders export activities for

the budding entrepreneurs to a large extent. Many potential entrepreneurs have no knowledge

about export promotions schemes and how those are implemented.

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00

5.00 Logistical difficulties in reaching to land customs station with Mynmar

5.08 Lack of local banks with adequate international expertise

5.08 Absence of export license facility

Lack of export awareness programme in Nagaland 5.15

5.15 Lack of knowledge of potential but distant export markets other than

Myanmar

5.38 Lack of understanding of port/customs operation and methods of payment

5.46 Lack of information about opportunities for you products/services abroad

5.46 Locating a suitable freight forwarder in Northeast region as a while

5.85 Lack of knowledge of export assistance programs of Government

5.92 Transport costs to the dry port at Guwahati

5.92 Logistical difficulties in reaching to dry port at Guwahati

6.31

Factors That Causes Less Level of Hindrances (Mean- between 5 to 7) Inadequate foreign network of the banks you work with

227

Fear of tariff and non-tariff barriers, strong overseas competition and lack of sufficient

resources seems to affect trade moderately as per the entrepreneurs. Variation in exchange rate

and value of rupees also seem to affect trade moderately.

7.4. Composite Infrastructure Index

In light of the high expectations of the existing and potential exporters on the infrastructural

gap, the composite infrastructure index is calculated for Nagaland at district level. The

infrastructure index for Nagaland is calculated by taking 12 parameters which would help to

analyse the development of infrastructures in Nagaland. The infrastructure index of Nagaland

for the years 2009 and 2015 is calculated for all the 11 districts to understand how the

development of infrastructures in Nagaland took place. The variables taken for the calculation

of infrastructure index are:

i. Length of Road per 100 sq. km (X1)

ii. Surfaced road as a percentage of total road length (X2)

iii. Supply of Drinking water per 10,000 population (X3)

iv. Health Services per 10,000 population (X4)

v. Electrified Villages as % of Total Villages (X5)

vi. Credit deposit ratio (%) (X6)

vii. No. of Banks per 10,000 population (X7)

viii. No. of banks per 100 sq. km (X8)

ix. No. of post offices per 10,000 population (X9)

x. No. of post per 100 sq. km (X10)

xi. No. of cooperative societies per 10,000 population (X11)

xii. No. of cooperative societies per 100 sq. km (X12)

7.4.1 Objective

The objective of calculating the composite infrastructure index is to understand which

districts have advanced and progressed in terms of all-round infrastructure development among

the 11 districts of Nagaland by considering the 12 parameters mentioned above. To increase

exports, having adequate infrastructure and developing it significantly over the years is

essential. There are possible primary products that can be exported successfully only when the

228

resources would to optimally used, by improving several basic infrastructures in order to

facilitate sufficient assistance in different localities. Channelizing the investments in the

appropriate way is also necessary in order to expand the infrastructure and in this case both

Central and State government plays a crucial role. The government has made several

investments in different sectors and many infrastructures is proposed to be completed by 2020.

An analysis on the basic infrastructure such as roads, power, banks, post office etc. was made

and it is seen that in many aspect the development over the past one decade has not significantly

increased in Nagaland.

7.4.2 Methodology

Each of the parameters are given some weightages which are as follows. The indicators are

chosen on the basis of important role they play while trade in the state is taking place. The units

for each of the variable are different and hence to avoid disparity the variables are normalized

so that all the variables are brought under one platform and would represent only numerical

values with no units. At first the maximum value and the minimum value for each indicator for

each respective district were obtained. Then the maximum value for each indicator was

subtracted from the individual variables and divided by the difference between the maximum

value and the minimum value in order to obtain the normalized value. All the indicators are not

given equal weightages and based on the relevance different weightages are assigned to them.

The weightages are same for the year 2009 and 2015. The different infrastructure indicators

are given a 100 point scale priority. The 12 indicators are assigned different weightages on the

basis on the priority given to them after comparing them with the other indicators. The weights

are noted in Table 7.2.

Table 7.2: Weightage assigned to Infrastructure Parameters

Sl. No. Indicators Weightages

1 Length of the road per 100 sq. km (X1) 13

2 Surface Roads as % of Total Road Length (X2) 8

3 Supply of Drinking water per 10,000 population (X3) 7

4 Health Services per 10,000 population(X4) 6

5 Electrified Villages as % of Total Villages(X5) 11

6 Credit Deposit Ratio (%)(X6) 12

7 No. of Banks per 10,000 population(X7) 13

229

8 No. of banks per 100 sq. km(X8) 9

9 No. of post offices per 10,000 population(X9) 7

10 No. of post offices per 100 sq. km(X10) 5

11 No. of cooperative Societies per 10,000 population(X11) 6

12 No. of cooperative Societies per 100 sq. km(X12) 3

Source: Constructed by Research Team

After obtaining all the variables for all the 12 indicators they were normalized. Minimum

and Maximum for all the indicators were calculated. Then in order to normalize each variables,

each of the district wise variables were subtracted from the minimum values of each indicator

and divided by the difference between the Max and Min values for each indicators for all the

districts. Thereafter the sum of the products of each indicators with the corresponding

weightages that are assigned to them were obtained for each district and then divided by 100

in order to find the composite infrastructure. The formula for the composite infrastructure is

the following:

13 𝑖=1

∑13

𝑠𝑖𝑤𝑖

𝑤𝑖 𝑖=1

where i= 1…13

Si represents scores of different criteria

Wi represents weights assigned on different criteria

The indicators of infrastructure development index for 2009 and 2015 are presented in

Tables 7.3 and 7.4 respectively. According to the tables the important infrastructures which has

shown considerable contribution in the development of the state Nagaland from the year 2009

to 2015 are the length of the road per 100 sq. km, surface road as percent of total road length,

the number of electrified villages as percentage of the total number of villages, number of banks

in all the districts and number of cooperative societies.

The normalised variables of the indicators for 2009 and 2015 are presented in Tables 7.5

and 7.6 respectively.

∑

230

Table: 7.3: Indicators of Infrastructure Development Index for Districts of Nagaland (2009)

Districts Length

of Road

per 100

sq. km

Surface

Roads as

% of

Total

Road

Length

Supply of

Drinking

water per

10,000

population

Health

Services

per 10,000

population

Electrified

Villages

as % of

Total

Villages

Credit

Deposit

Ratio

No. of Banks No. of Post offices No. of Cooperative

Societies

Per 10,000

population

Per 100

sq. km

Per 10,000

population

Per 100

sq. km

Per 10,000

population

Per 100

sq. km

X1 X2 X3 X4 X5 X6 X7 X8 X9 X10 X11 X12

Kohima 46.86 51.01 874.55 2.42 77.68 15.93 0.78 0.67 1.64 1.41 45.78 39.40

Mokokchung 95.43 47.18 1338.59 3.90 78.46 79.79 0.66 0.80 2.41 2.91 32.11 38.69

Tuensang 23.10 8.59 157.63 2.95 72.61 92.73 0.25 0.11 1.47 0.68 29.75 13.83

Mon 59.53 37.37 984.57 2.79 65.10 57.36 0.15 0.22 1.15 1.62 10.46 14.66

Phek 48.11 62.99 152.79 4.34 78.78 80.14 0.55 0.44 2.20 1.77 25.63 20.68

Wokha 67.50 36.94 628.58 3.18 63.09 81.53 0.48 0.49 1.68 1.71 37.03 37.83

Zunheboto 99.95 23.31 806.85 4.61 82.15 75.75 0.49 0.55 1.63 1.83 46.24 51.87

Dimapur 81.57 92.26 545.23 1.58 84.83 29.66 0.87 3.55 1.31 5.39 39.80 162.67

Peren 23.26 54.17 182.31 2.73 58.67 78.49 0.31 0.09 1.99 0.61 19.74 6.03

Longleng 9.21 48.94 191.34 2.37 54.54 50.96 0.19 0.02 1.78 0.21 11.09 1.32

Kiphire 7.54 26.95 43.64 3.37 83.80 24.62 0.27 0.04 1.89 0.33 27.29 4.77


231

Table: 7.4: Indicators of Infrastructure Development Index for Districts of Nagaland (2015)

Districts Length

of Road

per 100

sq. km

Surface

Roads as

% of

Total

Road

Length

Supply of

Drinking

water per

10,000

population

Health

Services

per 10,000

population

Electrified

Villages

as % of

Total

Villages

Credit

Deposit

Ratio


Societies

Per 10,000

population

Per 100

sq. km

Per 10,000

population

Per 100

sq. km

Per 10,000

population

Per 100

sq. km

X1 X2 X3 X4 X5 X6 X7 X8 X9 X10 X11 X12

Kohima 50.86 60.05 944.78 2.50 82.64 18.3 1.26 1.09 1.82 1.57 48.80 42.01

Mokokchung 101.44 63.75 387.72 3.95 78.46 82.31 1.18 1.42 2.67 3.21 35.14 42.35

Tuensang 38.81 87.47 352.34 3.00 72.61 80.2 0.35 0.16 1.37 0.63 30.57 14.22

Mon 64.80 70.44 322.82 2.83 81.87 50.82 0.27 0.39 1.19 1.67 12.18 17.08

Phek 60.51 79.72 383.49 4.52 87.12 79.84 0.48 0.39 2.20 1.77 29.18 23.54

Wokha 56.32 66.35 89.63 3.30 80.35 79.4 0.66 0.67 1.44 1.47 38.89 39.74

Zunheboto 106.40 72.10 590.73 4.75 89.20 87.78 0.56 0.63 1.34 1.51 55.55 62.31

Dimapur 90.35 46.70 503.78 1.66 88.11 25.55 1.45 5.93 1.45 5.93 48.07 196.44

Peren 21.14 62.03 84.96 3.04 72.72 102.81 0.42 0.12 1.57 0.48 21.42 6.55

Longleng 8.64 86.32 942.08 2.77 83.63 54.93 0.19 0.02 1.38 0.16 17.03 2.03

Kiphire 15.18 97.71 146.07 3.91 86.66 77.91 0.40 0.07 1.89 0.33 31.34 5.48


232

Table: 7.5: Normalized Variables of the Infrastructure Development Indicators of Nagaland (2009)

Districts Length

of Road

per 100

sq. km

Surface

Roads as

% of

Total

Road

Length

Supply of

Drinking

water per

10,000

population

Health

Services

per 10,000

population

Electrified

Villages

as % of

Total

Villages

Credit

Deposit

Ratio


Societies

Per 10,000

population

Per 100

sq. km

Per 10,000

population

Per 100

sq. km

Per 10,000

population

Per 100

sq. km

X1 X2 X3 X4 X5 X6 X7 X8 X9 X10 X11 X12

Kohima 0.42 0.50 0.64 0.28 0.76 0 0.15 0.006 0.58 0.02 0.47 0.02

Mokokchung 0.95 0.46 1 0.76 0.78 0.83 0.87 0.18 0.38 0.23 0.98 0.23

Tuensang 0.16 0 0.08 0.45 0.59 1 0.71 0.22 1 0.52 0.60 0.23

Mon 0.56 0.34 0.72 0.39 0.34 0.53 0.13 0.02 0.25 0.09 0.53 0.077

Phek 0.43 0.65 0.08 0.90 0.80 0.83 0 0.05 0 0.27 0 0.082

Wokha 0.64 0.33 0.45 0.52 0.28 0.85 0.54 0.11 0.83 0.30 0.42 0.11

Zunheboto 1 0.18 0.58 1 0.91 0.77 0.45 0.13 0.41 0.29 0.74 0.22

Dimapur 0.80 1 0.38 0 1 0.17 0.47 0.15 0.37 0.31 1 0.31

Peren 0.17 0.55 0.10 0.37 0.13 0.81 1 1 0.12 1 0.81 1

Longleng 0.01 0.49 0.11 0.26 0 0.45 0.21 0.02 0.67 0.07 0.25 0.03

Kiphire 0 0.22 0 0.59 0.96 0.11 0.05 0 0.49 0 0.01 0

Source: Constructed from Secondary data analysis

233

Table: 7.6: Normalized Variables of the Infrastructure Development Indicators of Nagaland (2015)

Districts Length

of Road

per 100

sq. km

Surface

Roads as

% of

Total

Road

Length

Supply of

Drinking

water per

10,000

population

Health

Services

per 10,000

population

Electrified

Villages

as % of

Total

Villages

Credit

Deposit

Ratio


Societies

Per 10,000

population

Per 100

sq. km

Per 10,000

population

Per 100

sq. km

Per 10,000

population

Per 100

sq. km

X1 X2 X3 X4 X5 X6 X7 X8 X9 X10 X11 X12

Kohima 0.43 0.26 1 0.27 0.60 0 0.85 0.18 0.42 0.24 0.84 0.20

Mokokchung 0.94 0.33 0.35 0.74 0.35 0.75 0.78 0.23 1 0.52 0.52 0.20

Tuensang 0.30 0.79 0.31 0.43 0 0.73 0.12 0.02 0.11 0.08 0.42 0.06

Mon 0.57 0.46 0.27 0.37 0.55 0.38 0.06 0.06 0 0.26 0 0.07

Phek 0.53 0.64 0.34 0.92 0.87 0.72 0.23 0.06 0.68 0.27 0.39 0.11

Wokha 0.48 0.38 0.005 0.53 0.46 0.72 0.36 0.11 0.16 0.22 0.61 0.19

Zunheboto 1 0.49 0.58 1 1 0.82 0.29 0.10 0.10 0.23 1 0.31

Dimapur 0.83 0 0.48 0 0.93 0.08 1 1 0.17 1 0.82 1

Peren 0.12 0.30 0 0.44 0.006 1 0.17 0.01 0.25 0.05 0.21 0.02

Longleng 0 0.77 0.99 0.35 0.66 0.43 0 0 0.12 0 0.11 0

Kiphire 0.06 1 0.07 0.72 0.84 0.70 0.16 0.008 0.47 0.028 0.44 0.01


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7.4.3 Importance of the parameters

The length of road network plays an important role in facilitating trade and transfer of goods

to different regions. Increase in length of roads implies connectivity within regions such as

rural regions to the urban areas. Thus road network makes and invigorates access to many

opportunities. Through good road network both the private and public sectors might create

opportunities in movement of goods and services without difficulties.

Constructing roads is comparatively cheap than creating other forms of infrastructures.

Smooth roads help in transfer of goods faster to the destinations, thereby making easy

contact between the factories and markets. Unsurfaced roads can only be used in fair

weather and during rainy season it becomes muddy and thus unfit for transportation.

Improved surfaced roads helps in increasing the capacity so that volume transported can be

increased and carried on during all season.

Supply of drinking water per 10,000 population would help to understand whether the

available water is sufficient to meet the increasing demand of the population.

The health services per 10,000 population is also important as the cost of health systems

affects the quality of services in a region. This would help to understand how improved the

health services in the different districts are.

The country is aiming towards electrifying all the villages. A village is classified to be

electrified if the electricity is used within its revenue area and in the inhabited area. In order

to improve trade conditions energy independence plays a significant role.

Credit Deposit Ratio is a ratio of how much a bank loans out of the stores it has assembled.

It shows the amount of a bank’s assets that are being utilized for loaning. A higher

proportion shows more dependence on deposits for loaning and the other way around. A

high credit-deposit ratio can be alarming for the region as it indicates pressure on the

resources and capital adequacy issues and hence export finance might be a challenge.

The number of banks in a region indicates the economic activity taking place in that area.

Here the two parameters taken are number of banks per 10,000 population and number of

banks per 100 sq. km for each district. Banks indicates the possible growth of trade finance

activity in an area through international trade payments such as Document against

Acceptance (DA) & Document against Payment (DP), Documentary letter of credit etc.

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Post offices help to provide financial assistances along with middle class wages and thus

pumping the demand of the consumers. Post offices situated in several districts also help to

determine the credit worthiness of the districts.

Cooperative societies help to distribute essential commodities to the public. Such

institutions aim at meeting the common economic, social and cultural needs and aspirations

of the society.

7.4.4 Significance of the Composite Infrastructure Index

The derivation of the composite index is done based on the components of infrastructure

that could potentially enhance exports from Nagaland. The objective of finding this composite

infrastructure index is to understand which districts has advanced and progressed in terms of

all-round infrastructure development among the 11 districts by taking the 12 defined

parameters. Analysing this infrastructure index would help to understand the areas in which

future infrastructures need to be created. The index is presented in Table 7.7.

Table 7.7: Composite District-level Infrastructure Index in Nagaland

Districts 2009 2015

Kohima 0.47 0.45

Mokokchung 0.71 0.460

Tuensang 0.31 0.29

Mon 0.29 0.29

Phek 0.54 0.50

Wokha 0.47 0.38

Zunheboto 0.62 0.61

Dimapur 0.70 0.62

Peren 0.30 0.24

Longleng 0.16 0.29

Kiphire 0.26 0.39


The infrastructure index helps the policy makers to measure the performance of different

infrastructures district wise in Nagaland. The different districts of Nagaland are categorized

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based on importance of infrastructure and potential of the districts for trade. The results are

noted in Table 7.8.

Table 7.8: Categorizing the districts based on the Composite Infrastructure Index

Category District Composite

Infrastructure

Index (2009)

District Composite

Infrastructure

Index (2015)

High Mokokchung 0.71 Dimapur 0.61

Dimapur 0.70 Zunheboto 0.61

Zunheboto 0.62 Mokokchung 0.60

Medium

High

Phek 0.54 Phek 0.50

Kohima 0.47 Kohima 0.45

Wokha 0.47 Kiphire 0.39

Wokha 0.38

Medium

Low

Tuensang 0.31 Tuensang 0.29

Peren 0.30 Longleng 0.29

Mon 0.29 Mon 0.29

Kiphire 0.26

Low Longleng 0.16 Peren 0.24


In Table 7.8, the 11 districts of Nagaland are classified on the basis of their infrastructural

development for the years 2009 and 2015. The districts are arranged in four categories, namely

- high, medium high, medium low and low, that indicates how the potentialities of those

districts has developed for trade. The districts which falls under the medium low category have

infrastructure index value between 25 to 35, districts which falls under medium high have value

comes within 36-55 and districts above 55 falls under high category. The districts Dimapur,

Mokukchung and Zunheboto are under the “High” performer category for both the years

considered here, indicating that this three districts are most developed in terms of infrastructure

in Nagaland and has great potentials for trade. The surface roads in these areas has increased

over the years. Dimapur is connected to railway and airport. The number of post offices and

cooperative offices in this areas has increased. The length of the roads per 100 sq. km is also

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quite high in these three districts along with the supply of drinking water per 10,000 population.

The number of cooperatives in Dimapur has increased vastly.

Kohima and Dimapur are identified as developed and advanced in infrastructure and urban

part of Tuensang is identified to be backward. The infrastructure index of the district Kiphire

has seen considerable growth over the past one decade. The total length of surface roads, supply

of drinking water, and the credit deposit ratio has seen vast growth among all the infrastructure

indices in Kiphire. It is also well connected to the National Highway which would help in

facilitation of trade. The district Longleng has seen a vast increase in its infrastructure index

from the year 2009 to 2015. In this districts all the parameters taken into account has shown

considerable growth. Especially the parameters surface road as percentage of total road, the

supply of drinking water, the credit deposit ratio has seen high growth.

The infrastructure index of Phek, Kohima and Wokha remains under the medium high

category, which indicates that the infrastructures have maintained pace in these areas over the

years along with the increase in population. Peren which has the lowest infrastructure index in

2015 has also seen growth in many parameters.

7.4.5 Probable Infrastructure Index in 2025

In the following, the proposed augmentation in infrastructure and the probable composite

infrastructure index of Nagaland for 2025 for each district is discussed. The ongoing

infrastructural investments and proposed initiatives in Nagaland in several districts that would

further help in development of export opportunities are noted in Table 7.9. The length of the

total surfaced road has increased over the years in Nagaland along with improvements in the

education sector. The table discusses some proposed infrastructure initiatives, which if

completed by 2025, might lead to the increase in the infrastructure index of many districts by

2025 in Nagaland.

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Table 7.9: Current status of infrastructure and expected infrastructure after

improvement

District

Benefitted

Details of infrastructure

Expected

Infrastructure

Index value by

2025

Dimapur

Road: Diphu on NH329, (sub jail Jn.) on NH 36 to NH

129A, (Pilma Jn.) via Thahekhu

Proposed Greenfield Airport in Ruzuphema, Dimapur

Railway connectivity between Dhansiri in Dimapur to Zubza in

Kohima for a length of about 90.35 km

Road connecting Dimapur to Tizit for a distance of 257.19 km

The Dimapur-Kohima four lane highway is proposed

The foothills of Nagaland are to be connected with a railway

network from Tizit to Dimapur

Dhansripar in Dimapur district to Karong in Manipur

Dhansiri (Dimapur)-Zubza new broad gauge line at Dimapur

railway station

0.70

Tuensang

Road: Gandhi Ashram NH02 to Pangsha

Road: Showuba-Guzunya-Pugoboto-Zunheboto-Aghunato-

Noklak-Pangsha

0.36

Kohima

The Dimapur-Kohima four lane highway is proposed

The project of the 88 km Dimapur to Zubza (Kohima) new

broad gauge line was sanctioned which is yet to be completed

The percentage of surfaced road is likely to increase by 2025

0.55

Kiphire

Trans-Eastern Highway from Mon to Avangkhu

Road: Pangsha to Assam via Mokukchung

Road: Kiphire to Assam via Zunheboto and Wokha

0.50

Mon

Road from Simalguri-Mon is proposed

It is proposed that educational institutions would increase in the

areas

More villages are about to get electrified by 2025

A trans-eastern Highway from Tizit to Khelma is proposed

0.36

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Wokha

A foothill road is proposed in Wokha

Railway line in proposed that would connect Wokha to

Dimapur by rails

Highway is proposed from Kiphire to Assam via Zunheboto

and Wokha

0.48


7.5 Gaps in Physical Infrastructure

One of the major issues acting as obstacle in export from the northeast region in general and

Nagaland in particular is infrastructure availability. The need for infrastructure is vital due to

hilly and mountainous areas on one hand and sparsely populated areas on the other. Speedy

provision of infrastructure and connectivity becomes critical for the economic development of

the state as well. From the survey conducted, various responses related to infrastructure were

highlighted by the respondent entrepreneurs and based on those responses the gaps in

infrastructure and therefore the challenges are analysed as below.

Roadways:

The respondents of previously mentioned questionnaire survey opined that the quality of

road in Nagaland is average only. The condition of roadways in several areas are not only

inadequate but various stretches need a lot of improvement specially that connects Dimapur,

i.e., the rail and air connectivity point. Also according to them, there is a requirement of a new

highway connecting to the border trade points leading to Myanmar. A better roadway system

in various areas will help in reducing cost, saving transportation time and hence making the

exports more competitive.

Cold Storages and Testing Centres:

According to the respondent firms, the quality of electricity supply requires improvement

in Nagaland. For perishable goods, infrastructures like cold storages are needed at the strategic

positions. In addition, testing centres and inspection centres need to be placed in the key

business locations. The completion of the Dimapur-Kohima stretch of NH 39 is expected to be

completed by 2020. Then cold chain facilities can come up along the road that allow easy

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access for rail and air transportation for the destination markets. Nagaland having a great

potential for exporting seasonal crops and vegetables, construction of cold storage is necessary.

According to an unconfirmed source, almost 40 percent of perishable food in the state of

Nagaland is lost or wasted due to the absence of proper cold storage facilities.

Following the Leonidas (1995) framework, an attempt has been made to understand the

export barriers for the exporters under the standardised grouping. The barriers are divided into

several sub categories that are again clubbed into two major categories like internal and

external barriers. The effort towards trade facilitation requires closing of the gaps, both for

internal and external barriers, for accelerating the pace of export development in Nagaland.

The result of the analysis has been summarized in Table 7.10.

Table 7.10: Internal and External barriers hampering export in Nagaland

Sl.

No. Factor Barriers

Internal Barriers

1.

Managerial focus and

commitment

Focus on management of domestic market

Lack of time management

Lack of managerial aspirations

Lack of commitment of the export markets

Low cost to benefit expectations

Low perception of export profitability

2.

Resource factors

High cost of labor

Insufficient productive capacity in the firm

Lack of skilled and flexible labor

Financing exports (working capital)

Cost of market development

Lack of resources to face the period of time needed to recover

export-related investments

3.

Marketing barriers

Locating foreign distributors

Shipping and distribution overseas

Quality assurance requirements

Need to adapt products to overseas markets

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Pricing and promotion in overseas markets

Lack of information about opportunities

4.

Knowledge and

experience problems

Knowing how to market overseas

Knowing foreign business practices

Inability to identify foreign opportunities

Lack of overseas marketing experience

External Barriers

5.

Export-procedure

barriers

Knowing export procedures

Handling export documentation

Collecting and transferring funds

6.

Economic obstacles

Minimizing foreign exchange risk

Inflation and interest rates

High cost of overseas travel

High transportation costs

7.

Political-legal

constraints

Foreign nontariff barriers related to the standardization and

homologation of the product, or health, phytosanitary or

similar barriers

Foreign tariff barriers to exports

Foreign restrictions and regulations

Unfamiliarity with foreign laws


Railways:

Railways being the most crucial transport medium for business purpose, a healthy and

established rail network is must to boost trade potential of Nagaland. The railway route under

various projects required to be completed sooner. Table 7.11 shows the new projects for

expanding the railway network in Nagaland.

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Table 7.11: Railway line in progress in Nagaland

Sl.

No.

Project Remark Kms.

(approx.)

Cost

(Cr. Rs.)

1 New Line from Dimapur to Tizit Survey is in Progress 190 389

2 New Line from Amguri to Naginimora Survey completed and

report under examination

31 109

3 New Line from Tuli-Tuli Town Shelved 9 109

[Source: National Transport Development Policy Committee (NTDPC), 2014]

In pursuit of multi-model connectivity, the plan for the railways is to connect Kohima with

the rest of the country by a broad gauge railway line by 2020. The foothills of Nagaland are to

be connected with a railway network from Tizit to Dimapur. To enhance international

connectivity in the railways sector, the Government proposed to build a railway line from

Dhansripar in Dimapur district to Karong in Manipur which would logically connect to Moreh

and touch lines with the network in Myanamr, thereby creating the possibility of concretizing

the Trans-Asian Railway line by 2025. Many of the exporters are not fully aware about the

facilities offered by the railways. As mentioned in earlier sections, many exporters lack the

information on access to wagon or containers, nearness of container yard and the likes.

Awareness should be created regarding railways to increase the efficiency of the export sector.

Airport:

In the field of air connectivity, the proposed goal airport at Razaphema will accommodate

the demands for commerce and cargo that will emerge as the economy gets developed along

the envisaged vision. The new airport will have to be created keeping in mind an

infrastructure appropriate for an international airport and should be in place by 2025, creating

a transportation hub for national and international carriers. The Government of Nagaland is

also taking up with the Government of India how to upgrade the cargo handling facilities at

Dimapur airport. In the medium / long term, the vision will be to develop Dimapur /

Razaphema airport as the hub for air connectivity to Bangkok (Thailand), Ho Chi Minh City

(Vietnam), Vientiane (Lao), Yunnan (China), Yangon (Myanmar) and Phnom Penh,

Cambodia.

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Maritime Port / Dry Port:

The handling of containers in the eastern part of the country is still facing many challenges.

Connection to the inland ports or maritime ports is a major factor of concern as the same is

very poor. Nearest inland container depot is around 300 km from Dimapur district in Nagaland.

Also the region has risen to the challenge of ensuring against empty return of containers by

attracting onward traffic of Jute from FCI, Iron and steel consignments, and other

miscellaneous goods from Kolkata area by their diversion from road to rail mode in containers.

7.6 Gap in Institutional Structure

In the digital era, internet connectivity is crucial for communication, especially in hilly

areas, where travel is difficult and expensive. Besides assessing real time information on

markets and prices, the NER in general and Nagaland in particular are climatically well

suited to plug into India’s growing IT-enabled services and commerce. The status of digital

/ IT connectivity in the state is through Optical Fibre Cable and mobile technology and

status of connectivity indicates a tele-density of 69 percent. It needs to be raised to 100

percent by 2020 with at least 4G connectivity.

The Government is undertaking effective steps to provide necessary infrastructure in all the

identified trade centres at Longwa, Pangsha, Mimi, Molhe and Avangkhu on priority. The

Government of India, for expediting formalization of trade with Myanmar, requires to bring

up the status of the trade centres at par with Moreh-Tamu sector in Manipur.

NIDC, the only declared Export House in the State, needs to be further strengthened. The

potential for export of Naga handloom and handicraft products, processed fruits and flowers

(fresh and dry) in particular needs to be fully exploited.

7.7 Gap in Support Mechanism

Display Centers: Exporters require a typical stage where they can display exportable items

produced by them to their intended interest groups. Similar initiatives exits in various

Southeast Asian countries, e.g., Malaysia. Periodic trade fairs need to be arranged in the

prominent location of the state to draw consideration of potential buyers / supermarket

chains.

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Testing Centres: The exporters of Nagaland do not have proper facilities to have a quality

check in the state and hence the inspection facility for export in the state requires immediate

improvement.

Facilitating Agency Offices: Offices of key trade facilitating agencies like DGFT and

Customs do not exist in the state as of now and hence regional offices of these entities are

essential. Lack of proper export training facilities also causes a disadvantage for the state

entrepreneurs to increase export performances.

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Chapter 8: Opportunities for Medical Tourism

8.1 Introduction

Apart from the merchandise products produced in Nagaland, there is substantial scope for

promoting services exports from the state as well. Given the serene natural beauty and climatic

conditions of the state, tourism sector too is capable of attracting inflows both from the rest of

India and abroad. There is considerable scope to expand the tourist inflow further.

Apart from the growth in general tourism, in other Indian states (e.g., Delhi, Kerala) medical

tourism has flourished considerably in recent years. The trend has been greatly aided by the

availability of knowledge, man-power (i.e., trained doctors and nurses), modern equipment and

methods of treatment. It has been noted that the human development achievements of Nagaland

is better than the Indian average and proficiency in English speaking is also good. Hence the

state can make an attempt to specialize in “Medical or Health Tourism”.

A Medical or Health Tourism can be defined, in simple language, as the cross-border

movement of citizens of other countries from neighboring nations to Nagaland for getting a

medical treatment in order to get their diseases treated, covering both preventive and curative

treatment alongside ornamental surgeries. Given the geographical and developmental spread,

the neighbor countries for Nagaland can be Myanmar, Bangladesh, Bhutan and Nepal, where

the state can provide health assistance. Infant Mortality Rate (IMR) as a health indicator in

India, has been among these countries, as shown in Table 8.1. It seems from the data that

Myanmar, the country sharing land border with Nagaland, has the lowest reduction in the

IMR since last 15 years. Hence, Nagaland can surely help Myanmar to reduce these numbers

and to respond to other health challenges as well.

Table 8.1: Comparison of Infant Mortality Rate in India and Neighboring countries

Country India Myanmar Bangladesh Nepal Bhutan

2003 60 61 56 52 50

2004 58 59 53 50 47

2005 56 58 50 47 45

2006 54 56 48 45 43

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2007 52 54 46 43 40

2008 50 57 43 41 38

2009 47 51 41 39 36

2010 45 49 39 38 34

2011 43 47 37 36 33

2012 41 46 35 34 31

2013 39 44 33 33 30

2014 37 43 32 31 29

2015 35 41 30 30 28

2016 34 40 28 29 27

2017 32 39 27 28 26

Source: World Development Index (2018)

8.2 Health Status of Myanmar

Though other countries can be considered for health tourism in long run, Myanmar should

be considered as a key target in short run. In the following, the economic profile of Myanmar

has been considered to find out the areas in which Nagaland can help the neighbour. Myanmar

is divided into 14 states, with 69 districts, 330 townships, and 396 towns. The country had an

estimated total population of 61.3 million in 2011, spread among 135 ethnic groups. The major

ethnic groups are Bamar, Chin, Kachin, Kayah, Kayin, Mon Rakhine and Shan. Buddhists

represent 89.4 percent of the population which is the major religion of Myanmar, with

Christian, Muslim and Hindu minorities. The long-standing cultural exchange makes Nagaland

a natural choice for medical treatment for Myanmarese people, particularly those living in

border districts.

Figure 8.1 shows the age and gender distribution in the country. Myanmar is still young in

terms of age distribution. It is noted that the 15–28 age group currently represents 13 million

people which is about 40 percent of the working population, which is essential to enhance

productivity and competitiveness of the country. Children and teenagers constitute a significant

proportion of population, which is close to 25 percent. They may provide in the years ahead,

proper schooling, and professional training, making the human capital necessary to drive

Myanmar’s economic transformation. However, the framework for protecting their health is

realtively less developed. Table 8.2 shows the health profile of Myanmar.

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Figure 8.1: Age and Gender distribution in Myanmar, 2011

Source: ESCAP online database

Table 8.2: WHO Statistical Profile, Myanmar

Source: Country Statistics and Global Health estimates by WHO and UN partners

It is argued that economic growth is the most effective tool for reducing poverty, though the

same cannot be said on economic development. Myanmar faces multiple constraints to its

growth process, namely - deficient infrastructure and human capital development. The

Integrated Household Living Conditions Assessment (IHLCA) resources indicate that poverty

is widely prevalent in several Myanmar states, with poverty incidence of 73 percent in Chin.

248

High poverty rates are also visible in coastal states of Ayeyarwady, Rakhine and Tanintharyi

and landlocked states of Shan and Kachin, where infrastructure is weaker. Patients from these

states can be possible targets for the medical tourism sector.

Myanmar is consistently attempting, with its limited resources, to attain its health objectives

and improve its key health indicators. According to official sources, all the key health

challenges like IMR, Under Five Mortality Rate (U5MR) and Maternal Mortality Rate (MMR)

declined since mid-eighties. Over the same period, life expectancy increased across genders.

The location on Myanmar in terms of IMR in global canvas is shown with respect to Figure

8.2. The red bordered area is the country Myanmar. It should be noted that the other

neighboring countries of Nagaland have a comparatively low IMR which can be seen by the

color representation.

Figure 8.2: World’s Infant Mortality Rate


The location on Myanmar in terms of MMR in global canvas is shown with respect to Figure

8.3. The percentages of deliveries in Myanmar attended by a traditional birth attendant are:

Ayeyarwady (35.2 percent), Rakhine (30.2 percent), Bago (East) (29.6 percent) and Chin (25.1

249

percent). Also women delivering their baby without any assistance at all is quite prevalent -

Shan North (24.9 percent) and Chin (10.4 percent).

Figure 8.3: World’s Maternal Mortality Ratio


From various reports, it is observed that there are a few major diseases / drivers of deaths in

Myanmar, which requires urgent attention. Tobacco usage and alcohol consumption are quite

frequent in Myanmar. As a result, high blood pressure, obesity, kidney, liver and sugar related

ailments, cancer, heart disease etc. are quite common in Myanmar at present. Table 8.3 shows

the tobacco use pattern in Myanmar, which cuts across gender. However, tobacco

consumption among males is much greater than the corresponding figure for females. That is

the reason why the gender ratio of Male to Female is less than 1 for Age above 65 years in

Myanmar (WHO Health Statistics). Also, adults are more prone to these health foes.

Alcoholic Consumption in Myanmar is shown with Table 8.4, and the possible problem is

clearly noted. Other health problems namely obesity, blood pressure, organ-related problems

and heart diseases are somewhat connected to each other.

250

Table 8.3: Tobacco use data from the latest survey results (31 December 2016)

Source: Global Youth Tobacco Survey, 2016; National, ages 13-15 (Youth), STEPS Survey, 2014;

National, ages 25-64 (Adult)

Table 8.4: Prevalence of Alcohol use Disorders and Alcohol Dependence (%), 2010

Source: WHO Health Report (2014)

8.3 Health Facilities in Nagaland and Opportunities

The health facilities in Nagaland are noted with the help of Tables 8.5, 8.6 and 8.7. It is

clearly seen that Kohima, Dimapur and Mokokchung are the three most developed districts in

terms of available medical infrastructure.

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Table 8.5: Number of Hospital/C.H.C/P.H.C/S.H.C/Dispensary 2016-17

Source: http://www.nagalandonline.in/about/health

http://www.nagalandonline.in/about/health

252

Table 8.6: Number of Medical Personnel, 2016-17



253

Table 8.7: Number of Beds in Hospital, PHC, CHC, SHC, Dispensary, Mental & TB

Hospital 2016-17


For understanding the perspective of the doctors, hospitals and other medical professionals

in Nagaland on possible medical tourism exports to Myanmar, a survey through questionnaire

was conducted among the stakeholders (A8.1). Limited response was however obtained and

mostly came through telephonic conversations. A detailed face-to-face interaction was held

with Dr. Sedevi Angami (Director, Christian Institute of Health Sciences and Research) in

Dimapur. A few focused opportunities for medical tourism in Nagaland, primarily from

Myanmar, emerged from the interactions:

Most of the people expected to come for treatment from Myanmar would be in middle /

lower-middle income class category. They are more likely to enter India by road from the

land borders. Therefore, speedy medical visa granting facilities at the border check posts

would benefit the possible medical tourism segment.

Bus connectivity with the border points is relatively weak at present. Ensuring good road

connecting Mokokchung and Tuensang with Kohima and Dimapur would be crucial for

inflow of patients from Myanmar.

Provision of air ambulance for transporting patients suffering from critical cases from the

border points would be required.


254

Given the type of diseases on both sides of the border, there can be at least one good

super-specialty hospital covering various treatments, namely - endoscopy training centre,

MRI, CAT Scan, Cardiac lab with latest equipments, cancer treatment, dialysis centre,

diabetes treatment etc. with cost-effective models, either in Kohima or Dimapur in long

run. Once the cross-border patient movement flows, private players may come up to make

the initial investment. The facilities can be made initially with government support, through

PPP model. This would establish the credential of Nagaland as a medical hub and then

only patient inflow from Myanmar can increase in long run. In short run, there should be

attempt to upgrade the existing medical facilities, so that they can adequately cover the

various ailments.

TB is emerging as a major disease in some parts of Myanmar, mostly because of not having

the follow-up treatment after initial detection. There is room for medical tourism in these

cases, but in all probability these patients are not likely to travel to Kohima or Dimapur

given poor economic conditions. Having regular medical camps in the three border check-

posts – Avangkhu, Longwa and Pangsha can offer a possible solution to these

Myanmarese patients.

It has been reported that training for nurses is of high demand in Myanmar and hence

aspirants travel to Nagaland seeking such training facilities. However, the accreditation for

the Indian nursing degree is not there in Myanmar, which should be negotiated when

demand for such services increases.

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Chapter 9: Recommendations for Promoting Exports

from Nagaland

9.1 Introduction

The earlier chapters focused on the identification of thrust products, major destination

markets and problems / challenges faced by exporters in the state of Nagaland. The state

enjoys certain resource advantages in the following areas:

Horticultural products having resource advantages with or without value addition.

Wood based handicraft products

Bamboo and Rattan based value added products

Mineral based i.e. lime stone based & coal based value added products.

Orchid, Floriculture ,medicinal, aromatic plants/ herbs

Handloom and other traditional handicraft items.


Honey

The study has also highlighted the problems of harnessing export possibilities for the above

mentioned products based on criteria like resources availability, basic infrastructure, export

infrastructure development possibility, government initiatives and priorities and so on.

9.2 Sector Specific Intervention to promote export

Products Problem of export Direction towards export orientation

Agro-Horticultural

products having

resource advantages

with or without value

addition (e.g.,

Cardamom, Spice,

Cabbage etc.)

Production quantity

not sufficiently large

Lack of organized

farming

Short Term:

Support in identification of markets to find

orders, help with export documentation

trainings and mentoring from IIFT-trained DIC

officials.

Medium Term:

Organic certification initiative with the help of

APEDA to be introduced. Testing laboratory to

be set up to certify the products.

Private Players are required to be encouraged

to invest, expand and diversify farming with

organic orientation for export of output.

Training on preservation of processed food and

256

packaging and quality control, linking with

organization like APEDA and NHB should be

explored.

Long Term:

Growing low volume but high value should be

the objective.

Technology development suitable for local

needs with APEDA and NHB have to be

facilitated.

Sensitization of banking institutions etc. for

export finance at district level.

Warehouse facility to be set up.

Wood based handicraft

products

Only few exporters are

cultivating this

opportunity at present.

Short Term:

Skill Development at the district level export

marketing channels.

Medium Term:

Suitable packaging of products are to be

developed.

Design centre to be set up along with databank

on customers’ choice.

Buyers, sellers meet required to be organized.

Long Term:

Buyers, sellers meet required to be organized.

Bamboo and Rattan-

based value added

products

Lack of awareness about

the opportunities for

export market for various

bamboo based value

added products.

Short Term:

Nagaland Bamboo Resource Centre (NBRC) at

Dimapur is to be positioned the export

marketing centre, which will work in

collaboration with district level production

facilities.

NBRC officials are to be linked with Centre for

North East (CeNest) at IIFT Kolkata campus

for converting NBRC into Export Consortium

on Bamboo and Rattans products with the

mandate to act as facilitator for export

marketing.

Medium Term:

Sustainability awareness in general is

increasing across the globe. Importing

companies often ask not only for origin of

wood but social and environmental impact as

well.

NBRC required to focus on these aspects like

Forest Stewardship council (FSC) certification

etc.

257

Mineral-based value

added products.

The potential has not

been fully explored. Short / Medium Term:

Proximity of the location of resource

availability with Myanmar allow the state

Government to work for future development

keeping in mind the requirement of Myanmar

market.

Roads and transportation facility must be

improved towards and off the mines.

The Foothill road therefore need to be

completed at the earliest for assessing future

possibilities of export marketing.

Orchid and medicinal

herbs

Earlier studies indicate

that Nagaland has 61

recognised tradable

medicinal flora.

Lack of export

marketing channel at

present for medicinal

plants and orchids

with scattered

resources not allowing

to reach its potential.

Short Term:

Training facility need to be developed on

handling of medicinal plants at the farmer’s

level.

The activities of the medicinal board (National

Medicinal Plants Board) must be linked with

the grassroots stake holders in the districts.

Testing and certification authority should be

developed at districts of importance.

Medium Term:

Development of farmers’ cooperative as

aggregator and link them with the export

house.

Refrigerator container service required.

Handloom and other

handicraft items Scattered production

Lack of export

marketing focus and

design improvement

Link with the small

artisans of the state to

the buyers is missing

to a great extent

Short Term:

Nagaland Handloom & Handicrafts

Development Corporation Ltd. (NHHDC),

Kohima need to act as export facilitation centre

with the mandate of organizing export oriented

training for entrepreneurs, weavers’

consortium, design centre.

Export Promotion Council of Handicraft

(EPCH) for opening and operating export

facilitation centre.

EPCH may actively support handicraft

entrepreneurs with foreign market requirements

and linking them with buyers through

organisation of buyers –seller meet.

Medium Term:

Inviting buyers to Hornbill festival can also

benefit the local traders / artisans.

258


Less cultivation area and

output. Short Term:

Increase the area under cultivation.

Medium Term:

Organic Certification and exclusive branding

under the tag Nagaland Organic Produce are

required to export and gain benefit.

Floriculture

Despite diversity in

topography,

commercialization

started only recently.

Lack of awareness

about export

possibilities.

Transportation

bottlenecks.

Short Term:

Professionalism in floricultural practice with

export orientation.

Medium Term:

Under the Act East Policy, Guwahati can be

connected to several South Asian countries. Of

late Kunming in China has fast became a

flower centre and thereby putting pressure on

price in the export market.

Linking APEDA with the producers is

suggested to explore the possibilities of

exporting to South Asian country market using

new airport and its possible connectivity with

South Asian countries.

Honey

Export market has not

been explored so far. Short Term:

North Eastern Regional Agricultural Marketing

Corporation Limited (NERAMAC) taking

efforts to take the Nagaland honey brand to

domestic market as well as foreign markets.

In the meantime NBHM need to look for

export possibilities with the active support of

APEDA and CeNest, IIFT.

Brand building should capitalise on two counts:

natural and organic.

9.3 Institutional Mechanism for export facilitation

At present the Directorate of Trade and Commerce working under the Commissioner is the

Nodal Agency for promotion of Exports of all products from the State. In addition, the

directorate also looks after the interstate trade of goods and commodities. However, export

facilitation from the state requires extra push with the involvement of intra departmental

communication across various departments of the state agencies. Therefore, the study proposes

creation of Export Development Cell (EDC) under the existing Trade and Commerce

Directorate. The proposed Export Development Cell (EDC) will be responsible and

accountable in the matter of export and trade and will be coordinating agency for all the

259

export related affairs of the state. The following are envisaged to be the thrust areas of work

for EDC:

• To coordinate with departments related to the export from the state: For the interest

of promoting exports, different departments should be linked up in order to facilitate

smoother policy implementation. Special emphasis should be given to the departments

having the highest potential exportables (as discussed in Chapters 2 and 3) from the state.

For smooth facilitation, each of the departments should have a nodal export officer who

can be contacted for any export related matter under the respective departments.

• Liaison with DGFT: The policy level issues that are being handled by the central

government may be intimated through DGFT. DGFT Guwahati should be contacted for

all policy level matters related to border trade. Issuance of Export-Import license is a

matter in which the DGFT has an important role to play. The division of DGFT may issue this

license at Dimapur / Kohima so that the prospective exporters of Nagaland may not have to go all

the way to Guwahati to obtain the licenses.

• Liaison with trade promotion bodies like FIEO, CII, FICCI, APEDA, EPCH: The

operations of the trade promotion bodies should be coordinated by the proposed EDC, so

that the information dissemination and capacity building tasks can be carried out

smoothly. Encouraging prospective exporters to export is also a major task, which can be

carried out by the trade promotion bodies through regular and focused interactions, in

close collaboration with EDC.

• Formulation and Disbursement of Export Incentives: Encouraging exporters through

the monetary benefits can be a major stimulus for exports. Various kinds of production

incentives like power subsidy, tax incentives, that will not be WTO-incompatible (i.e.,

would cross 5 percent ad valorem export subsidization), can initially be considered to

encourage the exporters from time to time. After a certain period however, the

obligation-based incentive structure should be introduced.

• Formulation of Export Policy and Updatation: The export policy formulation at the

state level would be a major task for the EDC. This policy includes the trade

infrastructure policy, incentive policy, and above all monitoring and updation of existing

policies as per emerging requirement of various sectors.

• Devising need-based Export Incentive Programs: The incentives should be offered

from time to time based on focus product and focus markets. This will, in fact, help to

realize the state’s export potential in the identified areas.

260

• Liaison with Government of India for schemes under Trade Infrastructure for

Export Scheme (TIES): The TIES scheme is an important scheme for all the states, which

empowers them to boost export infrastructure. Various trade facilitation infrastructure

may be set up at the border points, along with specific trade facilitation infrastructure in

the districts. EDC is expected to plan setting up of border haats, land customs stations,

trade promotion centres, setting up of dry ports, export warehousing etc.

• Liaison with Other Government Departments for other infrastructure development

for facilitation of exports: To build sector-specific trade facilitation infrastructure in a

coordinated manner, different government departments should also be roped in.

Monitoring of this infrastructure may be done by the EDC through the periodic

interdepartmental meeting.

• Export Development Cell meeting to be chaired by Hon’ble Chief Secretary of

Nagaland: The EDC should coordinate with the export promotion councils and

commodity boards a t t h e p o l i c y meeting for all the matters related to trade

facilitation and capacity building for export promotion. The Hon’ble Chief Secretary of

Nagaland may chair the meeting of the export promotion bodies.

Under EDC three divisions need to be created for all round development of export from

the state:

A. Border Trade Division

The role of the Border Trade division will be as follows:

Trade Infrastructure development at the border points: The border trade infrastructure

should be strengthened at each point like Avangkhu, Pangsha and Longwa. This division

will take up the task of making the cross-border trade points with Myanmar functional. A

road connecting Mon to Longwa, for a proposed distance of 16 km, needs to be

constructed. An important impediment here is the laid-back attitude of the Myanmar Govt.

to make the border trade points operational. Hence, require initiatives from EDC needs to

impress upon Myanmar government to take up the work of road connectivity between

Lahe town (Myanmar) and Longwa border point. Expediting the Foothill road construction

in the Nagaland side, would help Mon district to establish road connectivity with other

districts of Nagaland. For this, the evaluation of existing and required infrastructure (like

261

land customs station, office of the certification agency, weigh-bridge, warehouse, foreign

exchange counter, trade hat etc.) has to be examined at par with the infrastructural

development efforts on the Myanmar side. The infrastructure that has already been built

must also be monitored on a regular basis.

• Liaison with border countries like Myanmar: Liaison with the border countries should

be maintained through the External Affairs Ministry at the centre. This would facilitate

crucial agreements with the bordering countries on opening up and proper functioning of

border trade points and its trade infrastructure, connectivity and security factors at the other

side of the border. The potential exportable products from Nagaland can then be effectively

promoted.

• Devising ways and means for barter trade: Emphasis on barter trade at the border trade

points should be done to safeguard the petty traders in the local areas. At the border points,

trade centres may be set up only for barter trade which can be a permanent livelihood

option for the local petty traders.

• Keeping of Records at Border Points: The trade activity should be properly documented

at the border trade points, so that it can be evaluated from time to time. The commodity wise

(as per the six digit HS Code) amount of exports from the border points along with the

information on origin should be documented on a regular basis.

• Communicating with Land Custom Stations: All the matters regarding border trade

must be documented. The recorded trade figures will be informed to the Customs

department so that they can be disseminated and recorded at the central databank, and

possible policy analysis at later point can be facilitated.

• Monitoring of border trade: Time to time inspection at the border trade points should be

made so that the performance of the facilitating agencies at the borders can be evaluated

properly.

B. Export Facilitation Division

The role of Export Facilitation Division will be as follows:

• Maintenance of Liaison with DGFT, Guwahati and issuance of export import license:

For issuance of the export import license to the entrepreneurs from Nagaland, the Export

Facilitation Division should guide the local players and liaison with the DGFT,

Guwahati,

262

• Export infrastructure at the district level: Sector-specific emphasis should be charted

out at the district level. On the basis of the district level inputs, the export infrastructure may

be set up at the districts. Other than this, general infrastructure like road connectivity,

other production specific infrastructure should be set up by this division and its adequacy

of this at the district level may be monitored on a regular basis, which may be done by

EDC.

• Single Point Clearance for Testing, Inspection, Certification etc.: Single window

clearance facilities should be set up at all the clusters, at a location which has good

connectivity with districts. This facility should include testing, inspection and certification

of standards required for exports.

• District level networking through District Level Export Promotion Committee

(DLEPC): The DLEPC should coordinate with all the district-level stakeholders so that

the district infrastructure can be developed and all these matters may be intimated to the

EDC.

C. Export Research and Training Division

The role of Export Research and Training Division are as follows:

• Training on Marketing, Technology up-gradation, Export Finance, Export

Documentation and License procedure: At the district level, training programmes need

to be organized with prospective exporters on marketing of products, production

technology, export finance, export documentation and license procedure. In case of

specific training requirements, outside consultants may be engaged from specialized

agencies.

• Research on Market Identification, Product Diversification: Regular research may be

conducted on market identification by the specialized agencies in case of potential

products. Since trade scenario is dynamic, such evaluation needs to be carried out

periodically for avoiding any downturn in state exports.

• Research on Market Access issues and WTO issues: The favourable tariff and non-

tariff barrier conditions should be identified for the potential products and compatibility

of various sectors may be evaluated.

263

9.4 Interventions at the State Level

The State also has a major role to play in enhancing exports of select products. The major

areas of state intervention along with Short term and Medium Term Strategies are listed

below:

Challenges/ Issues/

Constraints

Suggestions/Interventions

The dry port at Guwahati

is not being utilized by

small exporters at all. So

export from Nagaland are

to be routed through

KOPT / JNPT

Short Term and Medium Term:

a. At present, the Guwahati dry port does not provide for all trade-related facilities;

single-window for mandatory clearances, payments, and freight forwarding

agents, NVOCCs. Hence it is not possible to be used by small exporters. This is

not only creating problem for Nagaland exporters but for all the northeastern

states as well. There is a need to take up the issue with North Eastern Council

(NEC) so that small exporters need not have to go to Kolkata / Mumbai port for

freight forwarding supports.

Long Term:

a. A proposed multi-product SEZ spread across 400 hectares in Dimapur has

received formal approval. A dry port in the LR, will be required to be set up at

Dimapur to cater to the need of the proposed SEZ as well as exporters of the

state. The setting up of Dry port is to be approved by an Inter-Ministerial

Committee (IMC) which acts as a single window clearance mechanism for

setting up of ICDs / CFSs in India. A proposal is required to be put forward in

this respect for approval.

264

Wet port connectivity Medium / Long Term:

a. In order to enable exporters expanding their business, there is a need to develop

wet port connectivity. Accessibility of Sittwe Port through Mizoram has been a

part of Act East Policy (AEP). As a part of materializing the Act East Policy, the

Kaladan Multi-Modal Transit Transport Project has been taken up. Future road

connectivity need to be planned keeping in mind future connectivity to Sittwe

port.

Testing & Inspection

Facilities and Trade

Promotion Measures

Short Term:

a. Provide training and awareness regarding the importance of testing and

inspection of consignments in international trade for enhancing profitability.

Medium / Long Term:

a. Given the growing requirement of product certification in key markets, there is

need for setting up Testing and Inspection centres in specific areas like agro-

processing sector etc.

Training, Export

Awareness and cross

border research

Short Term:

a. Export development in Nagaland has started taking shape with formal effort from

government. There is an urgent requirement to hold regular export related

workshops for product market identification, logistics management, trade

documentation etc. to equip the prospective entrepreneurs with required

knowledge and skill towards doing export business.

b. The prospective entrepreneurs from different districts may be selected to attend

short duration export management training modules. IIFT’s CeNest may be

roped in to organize short duration training at Dimapur / Kohima at the

entrepreneur level.

c. The existing entrepreneurs with export possibilities may be deputed to IIFT

Kolkata to undergo short duration programme on export and market

identification to make their operations export-oriented.

Medium Term:

a. Government should consider providing incentives to the exporters of

Handicraft products, Handloom products, value added products of cane and

bamboo etc. under the Industrial Policy of Nagaland to compensate

transportation cost to the wet port of Kolkata.

b. District Industrial Centres (DICs) need to facilitate regular outreach

programmes in association with the different Export Promotion Councils (EPCs)

with sectoral focus for making the members aware about the existing export

incentives and to learn how to use the tools for gaining market intelligence.

265

Cross –border interaction

with Myanmar and other

south Asian countries.

Short Term:

a. Nagaland entrepreneurs are in advantageous position to use cross-border trade

route to open cross border business in Myanmar. In order to avail the same, it is

required that Myanmar trade bodies are invited to Nagaland on regular basis for

trade meet / business seminar etc. so that Nagaland entrepreneurs get full

opportunities to interact and forge cross-border business relationship. Trade

delegations from Nagaland should also visit Myanmar for understanding the

business climate and opportunities of Myanmar periodically.

Medium / Long Term:

a. India-Myanmar Border Trade Fair needs to be organized from time to time at

Kohima / border districts of Nagaland to promote bilateral trade between the two

neighboring countries including involvement of companies from both the

countries to showcase Indian / Northeast / Nagaland products.

b. In the medium run, such trade fair should also involve countries like

Thailand and Vietnam in addition to Myanmar.

c. With the opening of three trade points, emphasis may be given to the

identified ‘location specific product’ for short listing and allowing barter trade

or otherwise across the border points for the benefit of people living on the

either side of the border.

266

Organic certification Short Term

a. This study indicates availability of various agro-horticultural produce in

Nagaland, which are organic by default. Nagaland Vision 2030 has also

advocated for measures to convert the ‘organic by default’ areas into ‘organic

by design’ for specific crops with high market value and demand.

b. There is need to facilitate link with foreign traders who are willing to

purchase organic produce with price premium. Regular buyer-seller meet

may be organized in the state in consultation with APEDA on this front.

Infrastructure

development

a. Road: Dimapur-Kohima four lane highway need to be completed. Ministry of

Road Transport and Highways sponsored Special Accelerated Road

Development Programme (SARDP-NE), connecting the district headquarters to

the State capital, which also requires serious attention. The four-laning of Asian

Highway No.1 (AH-1) to Moreh and development of highway connectivity to

International Trade centres (ITCs) at Longwa, Pangsha and Avangkhu should

be placed on priority.

b. Railway: Completion of railway project linking Dimapur to Kohima and

Dhansripar to Karong in Manipur should be placed on priority.

c. Airport: Razaphema airport should be constructed as future airport hub (both

for cargo and tourists) for connecting the GMS capital region as well.

Medical tourism Short / Medium Term:

a. The healthcare facilities in the Myanmar side of Northeast–Myanmar border i.e.

Sagaing Region and Chin State are largely inadequate. Entrepreneurs of

Nagaland can take advantage of that by setting up training centre in the districts

bordering Myanmar like nursing college, endoscope training centres etc.

b. Also, different local hospitals, private or government, having testing

laboratories like endoscopy, cardiac disease, diabetes etc. require cross border

publicity on facilities available.

c. Road connectivity between the border points and Kohima / Dimapur needs to

be improved for facilitating inflow of patients.

Long Term:

a. A super-specialty hospital in Dimapur may come up with government support

through PPP mode, catering to patients coming from Myanmar.

267

9.5 Interventions at the Central Level

9.5.1 Cooperation with GMS

The Greater Mekong Sub region (GMS) Economic Cooperation was created by six

countries sharing the Mekong River, namely - Cambodia, Lao PDR, Myanmar, Thailand,

Vietnam, and the Yunnan Province of the People's Republic of China, with the help of the

Asian Development Bank (ADB) in 1992. Guangxi of China joined the cooperation in 2005.

The four states of the Northeast, i.e., Nagaland, Arunachal Pradesh, Manipur and Mizoram,

sharing 1,643-km-long international border with one of the GMS constituent country,

Myanmar should have deeper integration with GMS in terms of trade and infrastructure co-

operation. As these GMS members are mostly market-based open economies, the potential

benefits from this cooperation are large, covering establishment of transport links and trade

infrastructure to create deep markets in Mekong region and connect with local industries

spread across pan-Mekong value chain. Creating this linkage is crucial given the fact that all

these GMS countries and India are going to be finally linked through the Regional

Comprehensive Partnership Agreement (RCEP), the negotiations for which would be

completed shortly.

9.5.2 Infrastructure development

Road: Road infrastructure is very vital for ensuring connectivity with different border

points connecting Myanmar. Ministry of Road Transport and Highways sponsored

Special Accelerated Road Development Programme (SARDP-NE) needs to be completed

expeditiously. The completion of four-laning of Asian Highway No.1 (AH-1) to Moreh

will provide boost to highway connectivity to the International Trade centres (ITCs) at

Longwa, Pangsha and Avangkhu.

Railway: It is required to move a step forward fast to make the Trans-Asian Railway line

a reality.

Airport: Razaphema airport not only accommodates the demands for commerce and

cargo but should be constructed as future airport hub for connecting the GMS capital

region as well.

268

9.5.3 Trade Facilitation

Appropriate reforms need to be implemented for securing hassle-free provision of

medical visa facilities to patients crossing border from Myanmar.

The functioning of the three border check-posts at Longwa, Pangsha and Myanmar, needs

to ensure growing border trade flows between India and Myanmar, through regular

monitoring. (For instance, mutual recognition of standards for key traded products with

Myanmar may be negotiated).

269

Appendices A5.1: Connectivity of Border Trade Point - Avangkhu

Source: State Human Development Report – Nagaland, 2016

270

Appendices A5.2: Connectivity of Border Trade Point - Longwa


Appendices A5.3: Connectivity of Border Trade Point – Pangsha


271

Appendices A5.4: Survey Questionnaire for Government Officials

Nagaland Export Potential Survey

Survey Questionnaire

Government Officials Questionnaire

Name: Department:

Address: Designation:

1. Please specify if the government have planned any additional Infrastructural (including

additional roads / ports) support for export.

No. Project Name Expected date of completion Products / Regions to be benefitted

1

2

3

4

5

2. Why some items produced in huge quantity in Nagaland cannot be exported significantly from

the state?

No. Product Name Reason for not exporting (Serious Problem = 1, Minor

Problem = 5) 1 2 3 4 5

1

2

3

4

5

3. Can you identify any policy related problem in the destination countries in case of exporting

products

No. Product Name and Country Policy

Related Problem

(Serious Problem = 1, Minor

Problem = 5) 1 2 3 4 5

1

272

2

3

4

5

4. What are the Government plans to develop the testing labs and packaging infrastructure in the

state or any training programme on that?

No. Testing Lab

(District)

Packaging

infrastructure

(District)

Status Products

to be

benefitted

No. of

producers /

exporters to

be benefitted

1

2

3

4

5. Can you please specify any new policy initiative of the government to promote the export from

the state?

No. Policy Name Policy Instrument Sectors benefitting

1

2

3

4

5

6. What are the incentives the government is planning for the exporters?

No. Incentive Scheme Policy Instrument Sectors benefitting

1

273

2

3

4

5

7. How the data regarding the export figures from districts and export of the state from other ports

can be made available?

8. What are the incentives the government plans regarding the training programmes on market

knowledge, export procedures and documentation?

No. Incentive Scheme Policy Instrument Sectors benefitting

1

2

3

4

5

9. What type of supports are expected from Government of India?

No. Support expected Policy Instrument Sectors benefitting

1

2

3

4

5

274



Trade Promotion Bodies/ Commodity Boards Questionnaire

Name: Organization:

Address: Designation:

1. Specify the Infrastructural problems faced by the exporters in case of exporting the products

No. Nature of Problem Sectors suffering

1

2

3

4

5

2. Is there any barriers in the export destination for the specified products

No. Barrier type and Country Product (Serious Problem = 1, Minor Problem = 5)

1 2 3 4 5

1

2

3

4

5

3. Can you identify any policy related problem in case of exporting any product to any country

No. Policy type and Country Product (Serious Problem = 1, Minor Problem = 5)

1 2 3 4 5

1

2

3

4

5

275

4. Do you keep records of the exports from each districts of the state and the exports that are taking place

through ports outside the state?

5. Do you organize the training workshop on market knowledge, export procedures and documentation for

the exporters? If yes please specify the frequency of such workshops and their nature.

6. Have your organization taken any initiatives with respect to any product or group of products. Please

mention them.

No. Initiative Type Nature of Support Sectors benefitting

1

2

3

4

5

7. What recommendation you like to give for the Export Policy of Nagaland?

No. Recommendation Policy Instrument Sectors benefitting

1

2

3

4

5

276

8. In your view why some products having high production value are not being exported from the state?

No. Product Name Reason for not

exporting

(Serious Problem = 1, Minor Problem = 5)

1 2 3 4 5

1

2

3

4

5

9. Why the packaging for the exportable items is taking place outside the state?

No. Product Name Reasons

1

2

3

4

5

10. In your view where the additional road / other infrastructure should be developed in the state for export

facilitation?

No. Infrastructure name and

location

Products to be

benefitted

(Major Help = 1, Minor Help = 5)

1 2 3 4 5

1

2

3

4

5

277

Appendices A7.1: Survey Questionnaire for Existing Exporters

Inputs for Strategy Document on Export for Nagaland (For Exporter)

1. Name of respondent:

2. Designation:

3. Organizational Address:

4. Phone:

5. Mobile:

6. Fax No.:

7. E-mail Id:

8. Year of establishment of organization:

9. Website:

(Attach Visiting Card)

10. Type of organization:

a. Manufacturer of an export good that is exported

by another merchant exporter

b. Manufacturer exporter

c. Merchant exporter d. Services

e. Other (Specify)

11. Investment level:

a. Micro b. Small

c. Medium d. More than medium

12. Major products and/Services manufactured/Produced:

SECTION A : FOR EXISTING EXPORTER

13. How many years you are in export business?

14. Major products/Services exported:

15. Major export destinations in last 5 year:

Countries Exports (in Rs ) Port used

16. What are the competing countries for the products of your export

Product/Service Countries Product/Service Countries

17. Approximate value of exports if any (in Rs. crores):

278

18. As an existing exporter or potential exporter please indicate regarding the condition of each as under

mentioned export infrastructure in Nagaland?

Export Infrastructure & Support Availability of

Infrastructure

Quality of

Available

Infrastructure

Mention the new

infrastructure requirements

as per your need (for example,

a road from …. to …..)

Yes No

For Manufacturers

Roads:

a. National Highways

b. State Highways c. Other roads

Railway:

a. Access of Wagons/ Containers b. Nearness of Container yard

Airports:

Dry Ports:

a. Inland Container Depot b. Container Freight Stations c. Land Custom Stations

Electricity / Power

Quality Inspection Agencies / Testing facilities

Connectivity of Maritime Ports & Issues

Common facility centre/ Tool room

Exhibition centres/display centre/convention centre

Nodal agency for information dissemination and market linkage

Effluent Treatment plant

Chamber Support for Certificate of

Origin

Export Training Institutes

For Services Exporters

19. Which of the following price and non-price factors affect the prospects of exports from Nagaland?

Factors Affecting Export

performance

Excellent Very

Good

Good Poor Very Poor Your Suggestion for

Improvements

Non Price Factors :

Capacity

Technology

Products

Quality

Response Time

International Standards

Lack of Knowledge of Prospective Buyers

Price Factors

Lack of Demand

Erratic Demand

Level of Competition

279

High Import Duties

Fluctuating Export Prices

Exchange Rate

High Documentation Cost

Any Other (specify)

20. How much time is generally taken in settlement of your claims for state agencies?

Claims under Policy Time taken Any suggestions for Improvements

Vat refund/ Sales tax refund

Octroi duty refund/ Entry tax

return

Mandi tax return

State Cess on Exports

Claims of Cenvat:

a. Central excise b. Services Tax

Refund of Special Additional

Duty

Freight Rebate/ subsidy If any

If any other, please specify

21. How effective are the central government's export promotion measures for your product category?

Schemes Any Suggestions for Improvements

Excellent Very

Good

Good Poor Very

Poor

MEIS

SEIS

Status holder Scheme

SCOMET

Defense Exports Incentives

Ecommerce Exports Incentives

Duty Exemption

DFTP

Service tax refund

EPCG

EOU

MDA

MAI

Town of Export Excellence


Schemes Rating Any Suggestions for Improvements

Excell

ent

Very

Good

Good Poor Very

Poor

Adequate and timely credit accessibility

280

Accessibility of market

development fund

Effect of labour laws (at State level)

Effect of taxations laws (at State level)

Accessibility to interest subvention credit

Accessibility to latest technology


22. Which of the following factors do you feel is most hampering for export promotion & development in

Nagaland?

23. What is your experience in dealing with any of the following regulatory agencies in export import

process?

Schemes Rating Any Suggestions for

Improvements

Excellen

t

Very

Good

Good Poor Very Poor

Indian Customs

Central Excise

Service Tax Deptt.

Vat / CST Officials

Exchange Control Deptt. RBI

DGFT

Export Inspection Agency

Other if any

24. Which of the following areas that government of Nagaland/India should in focussing in developing the

firm’s level competencies for industrial, agro and services related firms in Nagaland? LEVEL OF SIGNIFICANCE

KEY AREAS OF

COMPETENCIES

VERY

HIGH

HIGH MODERATE LOW VERY

LOW

SUGGESTIONS FOR

IMPROVEMENTS

Speed to reach market first

Cost Advantage (low cost)

Networking with foreign players

Ability to generate external funds

Technical know-how

Handling inorganic growth

Rapid access to information

Absorptive capacity of new technologies

Risk taking ability

Coordination and

configuration of value chain activities

281

Regulatory issues proficiency

Innovativeness

Quality control

Systematic market research

Flexibility in operations

Export policy (exploring,

analyzing and planning)

25. Which of the followings areas should be considered for financial and non-financial support for

developing the export capacity of exports firms from Nagaland?

26. Which are the state government policies that most benefit and hurt you the most?

LEVEL OF SIGNIFICANCE

VERY

HIGH

HIGH MODERATE LOW VERY

LOW

SUGGESTIONS FOR

IMPROVEMENTS

1. Market Identification

2. Trade contacts

3. Product improvement / adaptation

4. Market studies

5. Product design

6. Export incentives

7. Quality control

8. Export finance

9. Procurement of raw materials

10. Marketing missions

11. Packaging

12. Export management training

13. Factory Compliance

14. Financial Support in Research & Development

15. Training of workers

16. Information on domestic laws

17. Information on foreign laws

18. Other (please specify):

Schemes benefitting (facilitating) exports Schemes hurting exports

27. Which are the central government policies that most benefit and Hurt you most?

Schemes benefitting (facilitating) exports Schemes hurting exports

282

28. What changes do you desire in the state & central government policies?

Changes expected from State government

policies

Changes expected from Central Government policies

29. What new policies do you desire/are in urgently in need for?

30. Are you using cross border route to export to Mynamar? Since when and your product, border route?

31. If you are not using cross border route to export to Mynamar, please mention the reasons.

283

Appendices A7.2: Survey Questionnaire for Potential Exporters

Inputs for Strategy Document on Export for Nagaland (For Producer / Potential Exporter)

To what extent does each of the barriers to exports indicated below make it difficult for you/your

company to initiate or expand its export activity?

Does not hinder

Hinders enormously

1 2 3 4 5 6 7

1 Lack of knowledge of potential but distant export markets

2 Lack of knowledge of cross border market opportunities at Myanmar

3 Lack of knowledge of cross border trade points with Myanmar

4 Lack of staff for export planning

5 Lack of knowledge of export assistance programs of Government

6 Ignorance of the financial and nonfinancial benefits that exporting can generate

7 General lack of knowledge of how to export

8 Lack of information about opportunities for you products/services abroad

9 Lack of information about opportunities for your products/services in

Myanmar

10 Lack of understanding of port/customs operation and methods of payment

11 Lack of resources to face the period of time needed to recover export-

related investments

12 Insufficient production capacity in your firm

13 Lack of local banks with adequate international expertise

14 Inadequate foreign network of the banks you work with

15 Transport costs to the dry port at Guwahati

16 Differences in product usages in foreign markets

17 Lack of export awareness programme in Nagaland

18 Language problem in communicating prospective foreign buyer

19 Cultural differences while dealing with prospective foreign buyer

20 Cultural differences while dealing with Myanmar’s buyer

21 Fear of Tariff barriers to exports

22 Fear of Nontariff barriers related to the standardization and homologation of the product, or health, phytosanitary or similar barriers

23 Locating a suitable freight forwarder in Northeast region

24 Cost of adapting the product to the foreign market

25 Logistical difficulties in reaching to dry port at Guwahati

26 Logistical difficulties in reaching to land customs station with Myanmar

27 Afraid of Strong overseas competition

28 Risk from variation of exchange rates

29 High value of the Rs

30 Risk of losing money by selling abroad

31 Political instability in the state/region

If you consider that there is another/other barrier/s to exports not included above, please specify and indicate the

extent to which it/they hinder the initiation or expansion of your export activity

31

32

33

34

284

Appendices A7.3: Names of the Existing Exporters Participating in Survey

Sl.

No.

Name Company Name & Place Contact No.

1. Mr. Neihunuo M/s Ciepfu Handloom and

Handicrafts (Kohima)

9436078774

2. James Lotha M/s Unicraft (Kohima) 813292290/9615119997

3. Yangertoshi Pongen M/s ACME Crafts (Mokukchung) 9436217550

4. Lanuakum A&L

Associates

Lanu Mechanised furniture unit

(Mokukchung)

9436002230

5. Sochi Khiam M/s Handicraft Unit (Tuensang) 9436815050

6. Ghuhevi M/s Cane & Bamboo Traditional

Craft Unit (Zunheboto)

9436427638

7. Mhoyamo Jungio M/s Latex Goods Mfg Unit (Wokha) 94026632574

8. Y Tingkem Konyak M/s Tingkem Konyak Handicraft

Unit (Mon)

9856062619

9. NG Moses MD Greenfields Agro Enterprise

(Dimapur)

9862585448

10. Nature's Creation (Nagaland) 9774069017

11. Margarat Nagaland (Nagaland) 9856870816

12. Korakmong Yinchunger M/s Eastern Mechanised Furniture

(Kiphire)

7085249863

13. Langkai M/s Lungai Handicraft Unit

(Longleng)

9612197361

285

Appendices A7.4: Names of the Potential Exporters Participating in Survey

Sl.

No.

Name Age

Group

Designation & Company Sex

1. Mr. Ajay Sethi 30-40 Director of Lords Infotech Management,

Dimapur

M

2. Mr. Chandu Kumar

Agarwal

30-40 Propriteor of M/S Banshidhar Anandilal,

Dimapur

M

3. Mr. Jwenga Seb 20-30 MD of M/S JS consortium Hotel, Dimapur M

4. Dr. Aotoshi 40-50 CEO of Window Media, Dimapur M

5. Mr. Neichute Doulo 30-40 MD of GAnpati Stock Ltd, Kohima M

6. Ms. C. Merenls 20-30 MD of Fine Windows Company, Dimapur F

7. Mr. Rabinderjit

Singh Panesar

30-40 Director of Panesar Construction, Dimapur M

8. Mr. Neisakholie 40-50 MD of Clairoyance Technologies Pvt Ltd,

Kohima

M

9. Mr. DS Ramesh 40-50 CEO of Exalto NE Technologies, Dimapur M

10. Mr. Jaideep Dey 20-30 CEO of Hornbill Media Pvt Ltd, Dimapur M

11. Mr. Ajit Jain 20-30 FCA of Ajit K. Jain & Associates, Dimapur M

12. Mr. Mao Emchen 30-40 CEO of Confederation of Entrepreneurs &

Skill Development, Mokokchung

M

13. Ms. Hokhuli Sema 20-30 CEO of Faith Hospital, Dimapur F

286

Appendices A7.5: Survey Questionnaire for Medical Tourism Exporters



(Hospitals, Nursing Homes, Intensive cares Units)

1. Name of Hospital:

2. Name of the representative:

3. Designation:

4. Organizational Address:

5. Phone:

6. Mobile:

7. Fax No.:

8. E-mail Id:

9. Year of establishment of organization:

Question 1: Which country would be most likely to visit Kohima, Dimapur (Nagaland) for Medical

Tourism?

Myanmar

China

Bangladesh

Bhutan

If Others, Please Specify

Question 2: Does the hospital amenities (Cafeteria, Wi-Fi, and public telephone) conveniently

located in the hospital care facilities?

Yes

No

Question 3: Please indicate whether the following treatments are offered by your hospital?

Specialities

Availability of the

speciality (Yes/No)

Remarks on

infrastructure

requirement

Cosmetic Surgery

Dentistry (general, restorative, cosmetic)

Cardiovascular

Orthopaedics (joint and spine, sports medicine)

Cancer- Types

Reproductive (fertility, IVF, Women’s Health)

Weight Loss (Lap-Band, gastric bypass)

Nanotechnology

Scans

Tests

Health Screenings

Second opinions/ Consultations

287

Question 4: Are you getting patients from neighbouring countries for medical tourism? If yes, name

the purpose.

Yes

No

Question 5: How much are you ready for each category of treatment. Rank 1 to 5 where 1 means

efficiently ready and 5 means not ready.

Specialties Ratings

1 2 3 4 5

Cosmetic Surgery


Cardiovascular


Cancer- Types



Nanotechnology

Scans

Tests

Health Screenings


Question 6: In which of the speciality you want to be positioning yourself for catering to medical

tourism within a span of 1-5 years. Tick Yes or No.

Specialities

Yes

No

Cosmetic Surgery


Cardiovascular


Cancer- Types



Nanotechnology

Scans

Tests

Health Screenings

Second opinions /Consultations

288

Question 7: Area in which your hospital needs improvement to position your hospital in medical tourism in the next 5 years?

Specialities Yes No

Cosmetic Surgery


Cardiovascular


Cancer- Types



Nanotechnology

Scans

Tests

Health Screenings


Question 8: Rate for each speciality at present, patients that are coming for medical tourism in

Kohima, Dimapur (Nagaland)?

Specialties

Ratings Remarks

Excell

ent

Very

Good

Good Poor Very

Poor

Cosmetic Surgery


Cardiovascular


Cancer- Types



Nanotechnology

Scans

Tests

Health Screenings


289

Question 9: Rate the importance of the factors in promoting medical tourism?

Specialties Ratings Remarks

Very

Essent

ial

Essent

ial

Mod

erate

Less

impo

rtant

Not

requi

red

Government Investment

Private Investment

Demonstrable commitment to international accreditation

Transparency of outcomes

International patient flow

Potential for cost savings on medical procedures

Political stability

Social stability

Tourism infrastructure in Nagaland

Availability of internationally-trained physician

Experienced medical staff

State-of-the-art medical technology

Question 10: Does the hospital provided medical package services (packages may include airfare,

accommodations for the medical tourist and travel companion, local ground travel, coordination of

medical itinerary, post-surgical care, travel site seeing and entertainment) to promote medical ?

Yes

No

Not aware

Question 11: How is the coordination of arrangements between the patient, hospital, third party

insurance companies, embassies and other businesses?

Excellent

Very Good

Good

Poor

Very Poor

Question 12: How convenient is the hospital’s transportation arrangement?

Excellent

Very Good

Good

Poor

Very Poor

Question 13: Does the hospital have arrangement for language interpretation service, or physicians and nurses

who can speak other languages?

Yes

No

Not Aware

290

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