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Simanta Haat – A Strategic Imperative to Rural Livelihood for the Indo-Bangladesh Border Villages with Special Reference to Tripura*

CASE STUDY, STRATEGIC MANAGEMENT
ET Cases, 11 Pages

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Simanta Haat – A Strategic Imperative to Rural Livelihood for the Indo-Bangladesh Border Villages with Special Reference to Tripura

 

Any trade depends on the basic demand of local community but border trade connotes to fulfill the claim of two or more countries without limit. Tripura being one of the land locked states of the North-East has suffered economically due to lack of major industrialization in the state since its annexation to India in 1949. The proximity of the state to Bangladesh could have facilitated a prosperous bilateral trade but due to long history of extremism and lack of infrastructural development landed the state into the list of one of the backward states. Border trade has huge potential for expansion of trade between countries. Illegal border trade takes advantage of restrictions, low transaction and transportation cost and it is far higher in volume than the legal trade. Legal trade elucidates the budding place for economic activity in the border regions to engender self-sustenance which is superficially linked to both countries. The strategic imperative to commencement of legal border trade, locally termed as Simanta Haat in Tripura and subsequently other four districts in the state have been deliberated for this endeavour.

The case looks at the aspirations of folks of the border towns of both sides paving way for economic prosperity and studies the underutilized avenue, area of up-gradation of border trade at a larger scale in the coming years. The study revealed that despite inertia and goodwill from both sides few unresolved challenges of product variety, currency exchange facility and supply chain issues putting a question mark to the future of border trade. The sanctioned assortment of items sold in these weekly markets under the watchful eyes of the authorities has a limited financial implication in the livelihood of local folks since there is a cap of expenditure on sale and purchases. However, border trade have been initiated in Meghalaya-Bangladesh border areas specifically in Balat (Meghalaya, India)–Dolora (Sunamganj, Bangladesh) and Kalaichar (Meghalaya, India) – Baliamari (Kurigram, Bangladesh) Border markets in 2011. Though the history of Indo-Bangladesh border trade dates back in 1972; still there are only two states of the 4,096 km border areas have implemented the trade practices so far..................

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Simanta Haat – A Strategic Imperative to Rural Livelihood for the Indo-Bangladesh Border Villages with Special Reference to Tripura

 

Synopsis

Tripura being one of the land-locked states of the North-East has suffered economically due to lack of major industrialization in the state since its annexation to India in 1949. The state has a population of only 36 lakh as per 2011 census and lack of political goodwill and industrialization has further lowered employment opportunities within the state. Though the history of Indo-Bangladesh border trade dates back in 1972, still there are only two states of the 4,096 km border areas have implemented the trade practices so far. Border trade has huge potential for expansion of trade between countries. The strategic imperative to commencement of legal border trade, locally termed as Simanta Haat in Tripura and subsequently other four districts in the state have been deliberated for this endeavour. The case looks at the aspirations of folks of the border towns of both sides paving way for economic prosperity and studies the underutilized avenue, area of up-gradation of border trade at a larger scale in the coming years. The study revealed that despite inertia and goodwill from both sides few unresolved challenges of product variety, currency exchange facility and supply chain issues putting a question mark to the future of border trade....................

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Abstract

Tripura being one of the land locked states of the North-East has suffered economically due to lack of major industrialization in the state since its annexation to India in 1949. Border trade with Bangladesh could have prospered in the state but history of extremism and poor infrastructural development worked as a deterrent. Illegal border trade takes advantage of restrictions, low transaction and transportation cost and it is far higher in volume than the legal trade. The study revealed that despite inertia and goodwill from both sides few unresolved challenges of product variety, currency exchange facility and supply chain issues raise a question on the future of border trade. The assortment of items sold in these weekly markets has a limited financial implication in the livelihood of locals since there is a cap on expenditure. The central government intends to propagate the idea of introducing such regulated weekly markets in all North-Eastern states. The researchers went through these markets and studied the patterns of transaction and product assortment. Using Participatory Rural Appraisal (PRA) technique the researchers interviewed the buyers and sellers to reveal the challenges faced by them which are working as an impediment to the success of this initiative.

Pedagogical Objectives

This case looks at the aspirations of people of the border towns of both sides paving way for economic prosperity and studies the underutilized avenues of earning and areas of up-gradation at a larger scale in the coming years.

Case Positioning and Setting

This is a strategic management case for post graduate level in social sciences.


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