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Developing Service Sector Linkages in North East North East Connectivity Summit September 2017

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Developing Service Sector Linkages in North East North East Connectivity Summit September 2017 Developing Service Sector Linkages in North East North East Connectivity Summit September 2017 Developing Service Sector Linkages in North East | North East Connectivity Summit Contents Forewords 04 Introduction 06 Tourism 12 Overview of the tourism industry in India 12 Role of Tourism in economic development of India 15 Key Growth Drivers for the Industry 17 Overview of Tourism in the North East 17 Key tourist spots in the North Eastern Region 18 Key initiatives by state governments in the North East Region to promote tourism 19 Potential for development of tourism in the North East Region 20 A. Identification of tourist circuits 20 B. Emerging themes for attracting tourism in the North East Region 22 C. Strategic location of the region 23 D. Attracting tourists from the Buddhist Tourism and other circuits 25 Success Story: Bhutan 27 Way Forward 29 Healthcare 32 Overview of the healthcare sector in India 32 Healthcare Delivery Landscape in India 34 Key Issues 35 Healthcare Services in North East India 36 Potential for North East as a healthcare hub 39 Success Stories 40 Case Study: Thailand 40 Case Study: Tamil Nadu 41 Way Forward 42 Higher Education & Skill Development 44 Higher Education & Skilling Demand in India 44 Skills Pyramid 45 Issues in the North East 47 Demands in the Neighbouring countries 50 Sectors driving employment generation in India 54 Success Story: Singapore in Higher Education 56 Success Story: Maharasthra in Higher Education 59 Success Story: Kerala in Skill Development 61 Way Forward 61 Glossary 64 03 Developing Service Sector Linkages in North East | North East Connectivity Summit Foreword Deloitte The services sector, which stands at resources who can be effectively engaged about $1.48 trillion and contributes in developing the services sector. Given around 66% to India’s GDP, is the fastest the huge potential of the area, it is growing sector, currently growing at 9.2%. worthwhile to look at the opportunities It has the potential for further growth, for developing service sectors in the riding on various government initiatives region which can positively impact the like Make in India, Skill India, Start-up livelihoods of the people in the region. India, and Digital India. Deloitte India is honoured to be Many industries in the services sector associated with FICCI for the 4th have grown at double digit in the last edition of the North East Connectivity few years backed by digital technologies Summit. We have prepared a publication and institutional mechanisms facilitated highlighting and introducing the by the government. With the availability opportunities in select service sectors in of a rich demographic dividend, human the North East. This publication provides resources with diverse skill sets, the industry profile of key services increasing ease of doing business and sectors, such as tourism, healthcare significant progression in government and skill development in this region. We outlook, India looks set to become an have emphasized on the key drivers of ideal business destination for leading growth in these sectors and how the players across industries. locational advantage of the North East region, giving its proximity to countries To continue India’s success in the services like Bangladesh, Bhutan, Myanmar and industry it is important to continually Nepal can be utilised effectively for faster identify new avenues of growth. The development of these sectors. seven sister states of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, We hope the publication will enable Nagaland, and Tripura along with the various stakeholders such as the services state of Sikkim form the North East industry, government bodies, the public Region and if utilised effectively may as well as the private sector to identify act as an important growth lever for the the future prospects for each of the services sector. Strategically located in service sectors covered in this publication the heart of South Asia, these region and help in their strategic thinking and shares international borders with Nepal, planning. Bhutan, Bangladesh, and Myanmar. The services sector alone contributes to almost 51% of the GSDP of the North Eastern Region driven by trade, tourism, real estate and insurance. The region is endowed with natural resources, breath taking scenic beauties and a wide range of flora and fauna, which appeals to the adventure seeking tourists across the world. The high literacy rate, availability of English Dr. Anand Ramanathan speaking and writing workforce gives Partner the region an abundance of human Deloitte Touche Tohmatsu India LLP 04 Developing Service Sector Linkages in North East | North East Connectivity Summit Foreword FICCI North East India, home to 45 million We have witnessed some positive Well developed infrastructure and people and surrounded by 5300 kms developments in recent times. Apart a supporting agency to expedite of international borders could easily from major Pan Asian Projects like development will be elemental in be India’s Portal to the east. Given its Asian Highway I and II, the Trans-Asian positioning North East as a services hub geographic position, the richness of Railway and the BBIN Corridor, a number catering to the fast growing economies in ecological assets and the increasing focus of regional initiatives like the Trans its vicinity. With a very resilient GDP of 2.4 on engaging with the east, the region Arunachal Highway, rail connectivity to trillion dollars in ASEAN and 2.3 trillion could very well become the new growth state capitals and expansion of airports dollar in India the demand for world class engine for India. have also been taken up. services will continue to outstrip services. Adding to that demand for services will Last year we were privileged to hold the However, the implementation process be countries like Bangladesh, Bhutan and 3rd North East Connectivity Summit has often been slow and some important Nepal. in Tripura. We received overwhelming projects like riverways development, support from the State Government led wayside Amenities etc are yet to see We are happy to have Deloitte India as by Chief Minister Mr. Manik Sarkar and much progress. It is therefore of our knowledge partner and thank them the participants from across India and pertinent importance that a plan to for their support in coming out with Bangladesh, Bhutan, Myanmar, Nepal strengthen the implementation capacity this Paper which makes an attempt to showed a keen interest in taking forward be put in place. highlight opportunities in the service the agenda of connectivity. sector – Healthcare, Education & Tourism. North Eastern Region Implementation We thank and compliment the Agency: We hope the paper will be useful as Government of Nagaland for having This can best be achieved by setting up a a reference document for initiating readily agreed to host the 4th North North East Regional Project Implementing discussions on implementation of service East Connectivity Summit. In particular, I Agency to handle funding and to put in sector linkages between NE India and the would like to thank Hon’ble Chief Minister place a strong monitoring mechanism. Neighbouring countries. Mr. T R Zeliang and former Chief Minister Dr. Shurhozelie Liezietsu for their support The primary objectives of this agency and guidance. would be to coordinate with state Government and other agencies to Over the last few years, the North streamline implementation and ensure East Advisory Council of FICCI has timely completion of projects like roads deliberated at length the idea of and highways, inland water transport, connecting the region through culture, Power, Airports etc. It will also work infrastructure, trade and biodiversity. towards opening up and streamlining We have consulted a cross-section of connectivity with our neighbouring stakeholders in the region and in our countries including Myanmar, Neighbouring Countries. While our belief Bangladesh, Bhutan and Nepal. The in the potential of the region has grown agency may be structured on the lines stronger, it has also become apparent of a development authority, with a that the most critical part is to restore the Chairman appointed by Government Mr. Ranjit Barthakur linkages. of India and supported by an Advisory Chairman Board with representation from the FICCI, North East Advisory Council region and BBIN Countries. 05 Developing Service Sector Linkages in North East | North East Connectivity Summit Introduction Geographical perspective: in terms of the area is Arunachal Pradesh North East India comprising the eight which occupies an area of 83,743 sq. km States of Arunachal Pradesh, Assam, followed by Assam which occupies an Manipur, Meghalaya, Mizoram, Nagaland, area of 78,438 sq. km. The smallest of all Tripura, and Sikkim covers an area of the 8 states is Sikkim which has an area of 262,000 sq. km. It comprises 7.8% of the 7,096 sq. km. land area of the country. The largest state 06 Developing Service Sector Linkages in North East | North East Connectivity Summit Assam Shares international border with Bhutan Arunachal Pradesh Sikkim Shares international border with Bhutan, Shares international Major cities: Myanmar and China border with China, Dispur, Guwahati, Bhutan and Nepal Jorhat, Dibrugadh Major cities: Major cities: Itanagar, Tawang Gangtok Nagaland Shares international border with Myanmar Major cities: Kohima, Dimapur Manipur Shares international border West Bengal with Myanmar Major cities: Imphal Meghalya Tripura Mizoram Shares international
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