Abstract

The north east region (NER) of India plays an important role connecting the ASEAN countries. Due to infrastructural
bottleneck the region could not able to reach its potential level in participating trade with Asian countries. The study examines
the reasons behind weak infrastructure and discusses the potential economic sectors of production. It further discusses the
possibilities of reverse trade while connecting to the Asian countries. India already have trade deficit with Asian countries.
Thus a rise in import will widen the trade deficit and possibilities are also high that it will help to gain consumer surplus for
some products like fish and garments. The analysis is based on the review of previous literature in the field. It is found that
the IT sectors and other heavy capital industries are not much developed in the region due to various obstacles. Agriculture
being the popular sector in the NER has potential to expand export in the overseas market.