India-Pakistan tensions burden western border districts

• Western border districts of India are experiencing minimal and stagnant exports, with slower poverty reductions.

• India-Pakistan tensions and cross-border shelling along the Line of Control (LoC) threaten economic activity in the region.

• Districts along the western border in Gujarat, Rajasthan, Punjab, and J&K U.T. are identified as border districts.

• The proportion of the population living below the poverty line declined more slowly in many western border districts compared to the respective State averages.

• Eastern border districts are facing more severe challenges, with 75% of Assam, Meghayala, Manipur, Tripura, Nagaland, and over 50% in Arunachal Pradesh and West Bengal experiencing slower poverty reductions.

• Exports from western border districts have stagnated at a minuscule 0.3% between FY22 and FY25, except in Gujarat.

• Eastern border districts perform significantly worse than their western counterparts, contributing only 3% of India’s exports in FY24.

• The decline in exports in the north-eastern States could be due to landlocked states and land port restrictions imposed by Bangladesh.

• Government programs targeting infrastructural and economic development in border areas have seen a significant decline post-pandemic, especially in the western border States.