Economic and Financial Developments in the North-Eastern States - Speech delivered by Deepak Mohanty, ED, RBI

posted 30 Mar 2011, 00:45 by CA Naresh Shah

I thank Gauhati University for inviting me to address this distinguished gathering. The North-Eastern States (NES)1, also known as land of seven sisters, are very richly endowed. The North-Eastern region covers 5.5 per cent of the total geographical area of the country and accounts for 3.9 per cent of the national population and 2.7 per cent of all-India net domestic product (NDP). The lushness of its landscape, geographical and ecological diversity and range of communities residing make NES one of the most ethnically and linguistically diverse regions in Asia. Each state in the region has its own distinct culture and tradition. I am indeed very delighted to be here amidst you this morning.

A well-functioning financial system is the key to sustainable economic development of a country. Although the Reserve Bank has been actively engaged in the development of the financial sector in the country for a long time, it has stepped up its efforts in recent years to enhance the penetration of the formal financial sector and promote financial inclusion with a view to improving the well-being of our society. Given the special difficulties faced by the North-Eastern region, the Reserve Bank has been undertaking special initiatives for extending the outreach of banking facilities in the region. Against this background, I propose to briefly delineate the economic and financial structure of the region. I shall then highlight various financial inclusion initiatives taken by the Reserve Bank, especially for NES. In conclusion, I shall present some thoughts on policy challenges

CA Naresh Shah,
30 Mar 2011, 00:48