North-east set to become India's next IT hub

The seven states of north-east are all geared up to become the next IT hub of the country.

With a slew of IT and telecom projects in their kitty, the region, which has recently seen great improvement in the law and order situation, is now wooing investors from all over.

"IT has great scope in the north-east. There has been a marked improvement in the road, power and telecom sectors in the last few years," said H K Paliwal, joint secretary of the Ministry for the Development of the north-eastern region.

"Two Information Technology parks are going to be set up in the region which would provide quality infrastructural support to the investors, " he added.

"Moreover, the north-east is the only region in the country to have Internet access upto the block level. With eight engineering colleges in the region churning out skilled professionals every year, human resource is not a problem either," he said.

Government organisations such as North-Eastern Development Finance Corporation are also offering financial assistance to potential investors.

"NEDFi provides finances to those who are keen to invest in the IT sector in the north-east," said K N Hazarika, CMD, NEDFi.

"Due to its unique geographical location, investing in the region would also open up business possibilities with neighbouring countries such as Bangladesh, Myanmar, Nepal and Bhutan.".

Some of the north-eastern states such as Assam, Meghalaya and Sikkim have come up with their IT policies as well.

"As part of the IT policy, these states are offering developed land to the investors at reasonable rates," said Jayanta Madhab, the economic and financial advisor to the Government of Assam.

"With land and real estate rates much lower than other parts of the country and pollution free environment, IT can thrive in the north-east.".

Improvement in the law and order situation has also given north-east, the much needed impetus to push for growth in the information technology sector.

"The urban centres such as Guwahati, Shillong have no law and order problems," said Hazarika, adding, "I don't deny there are problems in some of the border and interior areas, but the towns and cities are safe.".

"Militancy in the north-east is a mental barrier for the investors coming from other parts of the country. Those like us, who stay there know, it's not much of an issue anymore," said Gautam Barua, director, Indian Institute of Technology Guwahati.

The information technology enabled services sector has great growth possibilities in the region.

"Almost thirty per cent of the non technical staff in the call centres in different parts of the country are from the north-east. If they get employment opportunities in their region itself, they would work at even lower wages," Hazarika pointed out.

Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group