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The North-East Frontier Agency, a political division of British India and later of republic India , is constituted of hills, valleys and fertile plains. The region is one of the richest bio-diversity zone with distinct flora & fauna and bountiful natural resources. It has always been self sufficient in terms of food and other basic needs. The British made inroads into the territory, post Yandaboo treaty (1826) with Burmese invaders, and annexed a major part of current Assam and surrounding states. They constructed Roads, bridges, railways, established oil refinery and tea plants for their commercial interest. Tea plantation, poppy cultivation, coal mining, oil and gas, timber etc. were some of the business activities they were interested. Economic development was apparent in the region which trickled down to different strata of the society. However, in the post independence era, illegal immigration, communal tension, ethnic conflicts, separatist movement and several socio-political problems have led to a lagging behind of the economy in this region, as compared to ‘mainland’ India. The current developmental activities focus mostly on the Small and Micro enterprises that comprises of handloom, bamboo work, woodcraft, traditional weaving etc.
This paper is an attempt to study commercial activities and economic development of the region through different angles. The purpose is to understand how the socio-economic development of Assam and the North Eastern states have consistently been a victim of ethnic conflicts, separatist movements, politics and identity crisis.