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DIMAPUR — Nagaland Chief Minister Neiphiu Rio on Friday underscored the significance of discussing logistics across various sectors, noting that logistics serves as the backbone of the economy.
Addressing the second Nagaland International Trade Expo (NETex) at Senden Riju, Dimapur, he said that when one examines the business landscape in Nagaland, approximately 90% of business activities are being conducted by non-Nagas.
And despite Nagaland being in the 61st year of statehood with significant influx of fund, the state has not progressed as anticipated in the business sector, particularly in the establishment of factories and manufacturing industries, Rio said
He said that an assessment of the marketplace in Nagaland reveals that there are hardly any investors from outside the state, primarily attributed to the unresolved Naga political issue, which, he said, has impacted the state a lot.
Local entrepreneurs and business persons were not making significant contributions and prompting the need for interventions, he said.
While the state has ample human resources, Rio said, the opportunities available do not align with their expectations and so the potential and talent of the youth are not fully utilised.
He, however, expressed optimism that interventions and a shift in the mindset of the people can bring about a positive change in this scenario.
The chief minister also conveyed his satisfaction over the increased sense of responsibility among the youth today, acknowledging their efforts in undertaking various initiatives.
He noted that with the initiatives of the Business Association of Nagaland (BAN) and the backing of the state government as well as the concerned ministries, there is a gradual entry of local producers into the markets.
Lauding the dedication demonstrated by the panelists in the discussion sessions with entrepreneurs, he acknowledged their commitment and said that the signing of Memorandum of Understanding (MoU) will provide opportunities for interested individuals to venture into business.
Expounding on the concept of Chief Minister’s Mirco Finance Initiative (CMMFI), Rio shared that it is up to INR 15 lakh without any collateral, where an entrepreneur will contribute 10%, state government 30% and the remaining 60% capital by the bank; after seven years, an entrepreneur can pay back the principle amount owed.
The banks have to evaluate the viability and economic feasibility of the proposed initiative for it to intervene, he said.
Stating that Nagaland’s handicraft and handloom products are widely appreciated across the world and that there is a huge demand and potential in this sector, he called upon the youth to come forward so that banks and various ministries can assist them.
Lamenting Nagaland’s dependence on ‘deficit grant’ recommended by the Finance Commission of India, the chief minister stressed the need for the state to generate its own revenue so that it can mange small projects by itself.
He further expressed hope that the expo will bring awakening and instill a sense of business in the society, which will lead to income generation.
It’s high time for the state to start producing and selling locally, nationally and internationally, so that it does not remain a “parasite or a liability” to the country but a contributor to the growing economy of the country, said Rio, who also virtually inaugurated the National Small Industries Cooperation (NSIC) office, Dimapur.
Earlier in the day, a panel discussion on ‘Future of startups and entrepreneurship’ was conducted, featuring expert panelists from Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Mumbai; State Bank of India, Jorhat Zonal office; Small Industries Development Bank of India; Entrepreneurship Development Institute if India; Exports Promotion Council for Handicrafts; North Eastern Development Finance Corporation Ltd. (NEDFi); and others.