Union Minister for Development of North Eastern Region Mani Shankar Aiyar said after the elections in Bangladesh, the northeast states would be actively involved in formulating a fresh foreign policy with that country aiming to pursue the economic prospects of the region.

He said, "The political top brass of the northeast has impressed upon the country's foreign policy establishment that the 'Look East Policy' has yielded zero dividends to the region and instead benefited other parts of the country."

"The government has recognised that economic development in the region has been constrained due to lack of links with the 'natural' economic hinterland in Bangladesh. That is the reason why the Centre has lifted the ban on FDI from the neighbouring country," Aiyar told at a seminar in Shillong on Sunday.

Proposing to invite the Bangladesh Chambers of Commerce and also to tour the neighbouring country with the chief ministers of the northeast, he said factors such as globalisation and liberalisation are replacing protectionist policies of yore.

Calling upon the NE states to adopt proactive policies to develop the border trade with Bangladesh and Myanmar, he said moulding the relationship with the neighbouring countries would also improve the national security of India.

"The internal security in the region should be fitted into a larger scheme. Once Bangladesh realises the benefits of trade links with India, the internal security concerns of northeast vis-a-vis the neighbouring country, would automatically be addressed," he said.

"The year 2009 should be a Year of India and Bangladesh," the minister said.