MasteryExams
Economics • Indian EconomyHard

How do external economic corridors and trans-border trade agreements with neighboring countries potentially transform the land-linked economy of Arunachal Pradesh within the broader framework of India's Act East Policy?

A. By integrating regional markets into transnational supply chains and reviving historical trade routes through strategic mountain passes✓ Correct Answer
B. By replacing domestic currency with foreign fiat money across all districts
C. By converting all agricultural land into industrial export processing zones overnight
D. By centralizing all economic planning in coastal maritime ports

💡 Solution & Explanation

India's Act East Policy seeks to leverage Arunachal Pradesh's strategic geographic location as a land bridge to Southeast Asia by upgrading border trade infrastructure and reviving historical trade routes, potentially transforming the state from a remote periphery into an active hub for cross-border commerce and tourism. Economic integration requires concurrent development of transport networks, customs posts, and banking facilities. Such geopolitical shifts hold immense long-term potential for regional GDP growth and employment diversification.

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