06 NEW DELHI, SATURDAY 23 MARCH 2024 Vol.

CXXXXXVIII 71

Incorporating and directly descended

Re-igniting the NE A MEMBER
OF THE

from THE FRIEND OF INDIA - Founded 1818
MIRV Test
I ndia’s recent test of a missile equipped with multiple
ASIAN VOICES
UNNATI-2024 presents a renewed opportunity to rectify this entrenched industrial
Women racing
backwardness and unbalanced regional growth. The scheme‘s multifaceted incentive
to the top
structure, encompassing capital investment incentives, interest subvention, and

independently targetable re-entry vehicles (MIRVs)
has sparked both admiration for technological
prowess and concern for regional stability. This signifi-
cant milestone underscores India’s determination to
assert itself as a formidable nuclear power in Asia. How-
ever, the implications of this advancement extend far
beyond the Bay of Bengal, potentially reshaping the del-
icate balance of power on the continent. At the heart of
India’s strategic calculus lies the need for deterrence
against potential adversaries, particularly China. The
development of MIRV technology enhances India’s abil-
ity to penetrate enemy missile defences, ensuring the
survivability of its nuclear arsenal in the event of a con-
flict. This bolstered assurance is crucial in a region
marked by long standing geopolitical tensions and ter-
ritorial disputes. Yet, the pursuit of technological ad-
vancement in the nuclear arena is not without its pit-
falls. MIRVs inherently raise the spectre of a heightened
arms race, reminiscent of the Cold War era. The deploy-
ment of these sophisticated weapons systems by India
could trigger a domino effect, compelling other regional
players to ramp up their own military capabilities in a
bid to maintain strategic parity. The risk of miscalcula-
tion and escalation looms large, casting a shadow of
uncertainty over the future security landscape of Asia.
Moreover, the proliferation of MIRVs poses a dual
dilemma. While they offer tactical advantages in terms
of target flexibility and firepower, they also introduce a
dangerous temptation for pre-emptive strikes. The abil-
ity to incapacitate an adversary’s nuclear arsenal in a
single blow may seem enticing from a strategic stand-
point, but it heightens the risk of catastrophic escalation
and undermines the principles of mutually assured
destruction that have thus far prevented nuclear con-
flict. India's intentions in developing MIRV technology
remain a subject of speculation. While proponents argue
that it serves as a deterrent against potential aggression,
A
manufacturing/services-linked incentives, is a well-designed strategy to spur little over a year ago, I had
referred to what should come
investment and job creation. By categorizing districts into industrially advanced (Zone as good news to those on the
A) and backward (Zone B) zones, the scheme aims to address intra-regional disparities global left about this finding
that younger cohorts are retaining
that plagued previous policies their liberal bent for much longer than
they used to in the past.
In other words, unlike previous
generations who discarded their
socialist spurs as they aged, the Mil-
lennials (born between 1981 and 1996)
are retaining their youthful fervour
well into their middle ages.
The story dealt only with the
United States and the United King-
dom, but that is likely the dynamic
elsewhere in the West as well, given
comparable socio-economic-political
conditions.
I had also expressed optimism
that, considering the interconnected
world we live in, similar could be the
trend in our part of the world. It, of
course, is premised on the absence of
spoilers in the form of economic
downturns, social conflicts, natural
disasters, or any such upheaval.
But a recent report in The Econo-
mist magazine highlighted the danger
of another source of a possible assault
on this happy evolutionary process ~
toxic masculinity and its adherents’
seeming fascination with authoritari-
an figures personified by Donald
Trump and his ilk.
Drawing on social surveys from 20
rich countries, The Economist found

sceptics caution against the temptation to engage in
“counterforce” targeting, which could destabilise the
delicate balance of power in the region. The path for-
ward for India lies in striking a delicate balance between
maintaining a credible deterrence posture and avoiding
actions that could exacerbate tensions and provoke a
dangerous arms race. In navigating the complex terrain
of nuclear diplomacy, India must prioritise transparen-
cy and dialogue with its neighbours, particularly China
and Pakistan. Confidence-building measures and arms
control agreements are essential to mitigate the risks
associated with the proliferation of MIRVs and to pre-
vent a descent into nuclear brinkmanship. The stakes
are too high for unilateral actions or reckless brinkman-
ship, necessitating a collective commitment to preserv-
ing peace and stability in Asia. India’s successful test of a
MIRV-equipped missile heralds a new chapter in the
country’s nuclear doctrine. However, the true test lies in
how India navigates the complex web of strategic chal-
lenges that lie ahead. By demonstrating restraint, fos-
tering dialogue, and upholding the principles of respon-
sible nuclear stewardship, India can chart a course
towards a more secure and stable future for itself and
the wider Asian region.
T
he Union Cabinet’s recent approval
of the ‘Uttar Poorva Transformative
Industrialization Scheme’
(UNNATI-2024) signifies a landmark
step in unlocking the Northeast Region’s
(NER) long-stifled industrial potential. With
an outlay of Rs. 10,037 crore, to be spent
over a decade (with an additional eight years
for committed liabilities), this ambitious ini-
tiative aims to foster much-needed indus-
trial development and gainful employment
opportunities in NER, India’s strategically
vital frontier.
The economic rationale underpinning
place-based policies like UNNATI-24 is
grounded in addressing pervasive regional
disparities, a challenge observed globally,
including in India. Factors such as geogra-
phy, resource endowments, and historical
legacies contribute to uneven economic
development within a country. Tackling
these disparities is essential not just for pro-
moting inclusive growth but also for nation-
al cohesion and stability. Neglecting disad-
vantaged regions can breed discontent,
undermine economic potential, and even
trial backwardness.
Fast forward to the present scenario.
The urgent need for intervention is under-
scored by the grim statistics from the Annu-
al Survey of Industries 2021-22: A mere 2.9
per cent of India’s total factories are situated
in the NER states, highlighting the pressing
need for revitalization.
RENJITH AMARENDU
RAMACHANDRAN NANDY
The writers are faculty members in the Economics Area
at the Indian Institute of Management (IIM) Ranchi.
Views are personal
also incorporates a holistic approach to sus-
tainable industrial development, striking a
delicate balance between economic growth
and environmental preservation. The
scheme delineates a positive list of indus-
tries deemed conducive to the region’s sus-
tainable development, such as renewable
energy and electric vehicle (EV) charging
stations. Conversely, sectors with potential
adverse environmental impacts, like
cement and plastic, are excluded from the
incentive framework, underscoring the
commitment to safeguarding the NER’s
ecological integrity.
Crucially, UNNATI-24 incorporates key
lessons from previous policies by adopting a
decentralized approach, empowering state
governments to formulate state-specific
strategies to address localized challenges
more effectively.
The scheme’s implementation strate-
gy involves collaboration between the
Department for Promotion of Industry and
Internal Trade (DPIIT) and respective states,
facilitated through various committees at
national and state levels, promoting trans-
that among young adults aged 18 to 29,
women on average are more likely
than men to identify as liberal in con-
trast to similar outlooks professed by
both groups 20 years earlier.
Viewed from another angle, the
data showed that while more men
from that age category were still likely
to call themselves liberals, they out-
numbered their conservative peers by
only 2 percentage points. On the other
hand, the gap between liberal and con-
servative women was a whopping 27
percent ~ in favour of the former.
The article also referenced anoth-
er survey of 27 European countries
where more men than women were
likely to agree with the statement,
“Advancing women’s and girls’ rights
has gone too far because it threatens
men’s and boys’ opportunities”.
ost alarming was that young men
displayed a stronger anti-feminist
streak compared to older men, which
is at odds with the argument made in
the first paragraph above and makes
one speculate if the mantle of liberal-

Caution needed
pose security challenges. Within the NER, Assam dominates with parency and operational efficiency. ism will eventually be held high more
For India, the imperative of balanced 75.5 per cent of factories, while the remain- However, the scheme’s success hinges by women than men.
regional growth dates back to the First Five- ing seven states share the rest. Sikkim, on resolving deep-rooted systemic bottle- As The Economist notes: “Men

I n the mercurial world of finance, the spectre of a bub-
ble looms ominously over investors, casting shadows
of doubt and trepidation. As share prices surge to
dizzying heights, fuelled by a cocktail of optimism and
nervousness, the perennial question resurfaces. Is the
bull market careening towards a bubble? Two years ago,
amidst the wreckage of plummeting asset prices, many
heralded the demise of an era characterised by rock-bot-
tom interest rates and rampant speculation. Yet, the
trough in American stocks in October 2022 marked the
inception of a remarkable resurgence. Since then, stock
markets worldwide have embarked on an astonishing
ascent, claiming all-time highs with an almost insatiable
appetite for gains. Echoes of past manias reverberate
through the halls of finance, reminiscent of the dotcom
bubble of the late 1990s. Then, as now, visions of trans-
formative technological innovations fuelled exuberance,
propelling share prices to stratospheric heights detached
from economic fundamentals. Yet, while parallels can be
drawn, distinctions must be acknowledged. The valua-
tions of today’s market behemoths, though lofty, pale in
comparison to the exorbitant multiples witnessed during
the dotcom frenzy. Indeed, the defining feature of bub-
bles is the detachment of asset prices from rational valu-
ation metrics, driven instead by speculative fervour and
herd mentality. However, a cursory examination of cur-
rent market dynamics reveals a lack of euphoria and irra-
tional exuberance. Fund managers, while bullish, exhibit
measured optimism, refraining from full-throttle alloca-
tion to equities. Similarly, retail investors, historically the
harbingers of speculative manias, have yet to unleash a
torrent of capital into high-risk assets. But cautionary
tales abound, serving as harbingers of potential peril. The
concentration of gains among a select few mega-cap
stocks evokes memories of past market frothiness, raising
concerns of a broader contagion. Should speculative fever
grip the market, expect a proliferation of risky IPOs and a
frenzied rush into uncharted territories. Professional
money managers find themselves ensnared in a delicate
Year Plan (1950-55), which prioritized indus-
trialization in economically disadvantaged
regions. Subsequent initiatives, such as the
identification of industrially backward areas
by the Pande Committee in 1968 and incen-
tive schemes recommended by the Wan-
choo Committee in 1970, laid the ground-
work. However, it was the Seventh FYP
(1985-90) that unequivocally classified all
NER states as industrially backward, neces-
sitating comprehensive government inter-
ventions, including investment and trans-
port subsidy schemes, to redress the region-
al imbalance.
Previous initiatives for NER, including
the North East Industrial Policy (NEIP) of
1997 and the North East Industrial and
Investment Promotion Policy (NEIIPP) of
2007, yielded modest gains but fell short of
catalyzing transformative change. A policy
evaluation study by Tata Economic Consul-
tancy Services revealed that NEIP facilitated
the setup of 650 units with an investment of
Rs. 753.28 crore, generating 17,279 jobs.
However, benefits were concentrated in a
few states, with Assam and Meghalaya
accounting for a staggering 94 per cent of
the total investment.
Despite these investments, the dispari-
ty in regional development persisted. A Gov-
ernment of India report of the Task Force
on Micro, Small, and Medium Enterprises
pointed out significant regional unevenness
in the distribution and utilization of incen-
tives incorporated under NEIIPP. While
Assam emerged with a diversified manufac-
turing sector in the post-policy phase, owing
to its resource base and geographic advan-
tages, other states remained mired in indus-
LETTERS TO THE EDITOR
notably, accounts for a mere 84 factories.
Moreover, the NER states collectively
employ only 1.89 per cent of India’s factory
workers, contrasting starkly with industrial
powerhouses like Tamil Nadu, Gujarat and
Maharashtra, which cumulatively command
38.3 per cent of factories and 39.5 per cent of
factory workers.
It is crucial to analyze the reasons
behind the limited success of previous ini-
tiatives. Apart from infrastructural bottle-
necks and skill gaps, one potential factor
could be the standardized, one-size-fits-all
approach adopted by these policies.
The NER comprises eight diverse states
with varying resource endowments, cultural
contexts, and developmental priorities. A
more tailored, state-specific approach that
considers these unique local factors may be
more effective in driving industrialization.
UNNATI-2024 presents a renewed
opportunity to rectify this entrenched
industrial backwardness and unbalanced
regional growth. The scheme’s multifaceted
incentive structure, encompassing capital
investment incentives, interest subvention,
and manufacturing/services-linked incen-
tives, is a well-designed strategy to spur
investment and job creation.
By categorizing districts into industri-
ally advanced (Zone A) and backward (Zone
B) zones, the scheme aims to address intra-
regional disparities that plagued previous
policies. Furthermore, the scheme’s empha-
sis on fostering export-oriented industries
aligns with India’s broader economic aspi-
rations, positioning the NER as a potential
export hub for sectors like bamboo, tea, and
agro-based industries. Notably, UNNATI-24
editor@thestatesman.com
three main institutions ~ the leg-
necks that have long deterred industrializa-
tion in the NER. Inadequate infrastructure,
unreliable power supply, and limited access
to skilled labour have historically impeded
private investment.
Prioritizing infrastructure upgrades,
streamlining cross-border trade facilitation,
and leveraging the NER’s strategic location
as a gateway to ASEAN markets are critical
imperatives.
The uneven impact of previous policies
underscores the need for a nuanced, data-
driven approach in designing and imple-
menting industrial promotion schemes. Rig-
orous monitoring and evaluation mecha-
nisms are therefore essential to identify
implementation bottlenecks and to assess
the efficacy of incentive structures.
Additionally, fostering a skilled work-
force through vocational training and skill
development programs is crucial to meet
the projected demand for 83,000 direct jobs
and associated indirect employment oppor-
tunities. According to the 2022-23 Periodic
Labour Force Survey (PLFS), the Worker-
Population Ratio (WPR) for persons aged 15
and above in NER states ranges from 48.7
per cent in Manipur to 74 per cent in Sikkim,
highlighting the need for capacity-building
initiatives. From a macroeconomic per-
spective, the industrialization of the NER
aligns with India’s ambition of achieving a
$10 trillion economy by 2030. Unlocking the
NER’s economic potential through
UNNATI-24 could catalyze a virtuous cycle
of investment, job creation, and inclusive
growth, reinforcing India’s economic
growth and regional integration with East
and Southeast Asia.
and women have always seen the
world differently. What is striking,
though, is that a gulf in political opin-
ions has opened up, as younger
women are becoming sharply more
liberal while their male peers are
not…For young women, the triumphs
of previous generations of feminists, in
vastly increasing women’s opportuni-
ties in the workplace and public life,
are in the past.
They are concerned with continu-
ing injustices, from male violence to
draconian abortion laws (in some
countries) and gaps in pay to women
shouldering a disproportionate share
of housework and child care. Plenty of
men are broadly in their corner.
But a substantial portion are
vocally not.” Further, it explains: “The
most likely causes of this growing divi-
sion are education (young men are get-
ting less of it than young women),
experience (advanced countries have
become less sexist, and men and
women experience this differently) and
echo chambers (social media aggra-
vate polarisation).”
We do not know where we in
Nepal are in terms of general percep-
tions about equal rights for women.
Apart from one-off efforts now and
again, no national surveys are con-
ducted periodically that would enable
us to gauge attitudes to various social
issues over time. What we can only do
is rely on circumstantial and anecdotal
evidence and perhaps come up with a
narrative.

Separation
dance between fiduciary responsibility and market
exuberance. Avoiding overvalued pockets of the market islature, executive and judiciary. CRUCIAL
Montesquieu’s “The Spirit of
risks the accusation of mediocrity, while capitulating to law” speaks of the separation of SIR, It is not an overstatement to
speculative fervour invites the ire of rationalists. The tight- SIR, This refers to Devendra Sak- rightly expressed his concern the three organs of a government say that this Lok Sabha election is
rope walk between prudence and performance grows sena’s article, “Changing Equa- over changes that have crept into as one of the prerequisites for a like no other. This election is not
ever narrower as markets teeter on the brink of exuber- tions", published today. He has the relationship between the better government. just about voting a party or an
ance. Against this backdrop, the role of central banks The success of a democracy alliance to power.
looms large. The spectre of interest rate cuts, a siren song depends on the functioning of It assumes far more impor-
to investors intoxicated by cheap debt, threatens to these organs independently. This tance, for it will decide what kind
exacerbate speculative excesses. As lenders shower risky doctrine helps to maintain the of society we want to be and are going to be. Broadly speaking,
borrowers with a deluge of liquidity, the seeds of a future system of checks and balances. the contest is largely between two political forces representing
But, in the last decade, efforts two visions of India.
reckoning are sown. While the current market exuber-
were made on the part of the It could shape India’s future in fundamental and even
ance bears semblance to past bubbles, it falls short of the Central government to subvert irreversible ways. The way I see it, it will decide whether India
euphoric mania characteristic of speculative frenzies. Yet, the equilibrium between these stays secular and pluralist or descends or transitions into a
complacency is a luxury investors can scarce afford. Vigi- institutions. Hindu Rashtra.
lance, tempered with prudence, remains the bulwark Yours, etc., Yours, etc.,
against the allure of irrational exuberance. For, in the Yousuf Iqbal, G David Milton,
tumultuous arena of finance, the line between exuber- Kolkata, 20 March. Maruthancode, Tamil Nadu, 17 March.
ance and folly is often perilously thin.