» Projects: Asia and the Pacific

Northeastern States Trade and Investment Creation Initiative

Global Development Solutions provided assistance in formulating a trade facilitation and competitiveness strategy for the Government of India. GDS designed and developed a framework to support Northeast India to increase productivity, access new regional and extra-regional markets, and develop growth opportunities for the region’s private sector. The final outcome of the project was an investment fund in excess of USD200 million to support the region’s private sector.

For example, in the case of bamboo – a promising sector in terms of resource availability and export growth potential – trade and investment were hampered by a range of issues including:
  • High cost of transportation due to numerous internal checkpoints administered by rent-seeking officials and poor roads, as well as trade-inhibiting regulatory regimes among northeastern states (click here to see).
  • Yields ranging from one-half to two tons per hectare whereas average yields in China are 25 to 27 tons per hectare. Stimulation of India's bamboo plantations is expected to improve yields and to increase varieties to better accommodate demand.
  • As high as 80% processing waste in manufacturing bamboo sticks and parquet flooring was directly correlated to poor expertise of processors unaided by technical extension support.
Over the course of an approximately 1,000 km journey, the cost of transportation of bamboo from forest to the processing facility is increased by nearly one-third due to 24 unofficial, illegal, rent-seeking fee stations enroute.