The process of development had been rather slow in the North Eastern region for many reasons. The traditional system of self-governance and social customs of livelihood in the NER had remained virtually untouched during the British rule. Creation of rail network for tea growing areas for commercial interests was, perhaps, the only major economic activity in the region. This was coupled with extraction of Petroleum and some Coal Mining in the Assam, Meghalaya and Nagaland belt.

Partition of the country in 1947 which carved out Bangladesh, hitherto East Bengal, completely isolated the North Eastern region save a slender chicken’s neck leading to severe distortion in the socio-economic situation. In effect, the market and the centres of production got separated by a political dividing line which had severe economic repercussion on the livelihood of people along the entire Bangladesh border. All the produce from Agriculture, Horticulture and Mines had, hitherto ready-made markets in Bangladesh, which got cut-off.