The Economy of India's Northeast
Border Trade and Border Haats
How the Northeast trades with Bangladesh, Myanmar and Bhutan, including local border markets, and why formal cross-border trade has been limited.
The Northeast borders several countries. Cross-border trade could boost its economy, but it has faced many obstacles.
Border haats
Border haats are small markets on the India-Bangladesh border where local people from both countries can trade local products on set days. The first opened in 2011 in Meghalaya and Tripura. They allow:
- Sale of vegetables, fruits, spices, clothes and household goods.
- Small amounts per person, in local currency.
- Better relations between border communities.
Trade with Bangladesh
- Land customs stations and integrated check posts handle formal trade.
- Agreements allow Indian goods to transit through Bangladesh ports like Chittagong and Mongla to the Northeast.
Trade with Myanmar
- Border towns like Moreh in Manipur and Zokhawthar in Mizoram handle trade with Myanmar.
- The Free Movement Regime allowed residents near the border to cross without visas; India moved to end it in 2024 citing security concerns.
- Myanmar’s 2021 coup and conflict disrupted trade.
Obstacles
- Poor infrastructure at crossings.
- Security concerns and smuggling.
- Political instability in neighbours.
The potential
Better border trade could let the Northeast become a gateway to Bangladesh and Southeast Asia, rather than a remote periphery.
Every week, farmers from a Meghalaya village and a Bangladeshi village meet at a border haat. Indian farmers sell oranges and bay leaves; Bangladeshi traders sell dried fish and plastic goods. Both sides earn income close to home.
Border trade can boost local economies and relations with neighbours.
- Border haats on the India-Bangladesh border began in 2011.
- Transit agreements let Indian goods pass through Bangladeshi ports.
- Trade with Myanmar is disrupted by conflict and security concerns.
- Better infrastructure could make the Northeast a regional gateway.
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