"The opening of the road can transform the economy of Arunachal Pradesh by making it a production hub for feeding the Myanmarese and western Chinese markets," Singh said.
"In the absence of land connectivity with China and South-East Asia, the much-hyped Look East Policy has not brought much tangible benefit to the North-Eastern region," he said.
Singh said that Arunachal Pradesh, with its bountiful flora and fauna, varying altitudes, abundant flowing rivers and diverse ethnic groups was a rich experience for tourists.
He was speaking after inaugurating the fifth edition of the Pangsau Pass Winter Festival at Nampong in Changlang district yesterday.
"The Pangsau Pass Winter Festival has been providing a platform to showcase the tourism potential at national and international level. It also provides glimpses of the vibrant cultural identity of the different tribes of Arunachal Pradesh," he said.
He said that Arunachal Pradesh has been chosen as the fourth best region amongst the top ten tourist destinations in the world for 2012 by one of the leading travelogues, Lonely Planet.
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It was ranked after Coastal Wales, La Ruta Maya, Central America and Northern Kenya.
Arunachal has also been voted the 'favourite upcoming destination' by a travel magazine, Outlook Traveller.
The governor said "Moving forward with modernization and development should remain the mantra, but at the same time we must inculcate pride amongst the younger generations in their very own age-old customs and traditions.
"Make the younger generation learn the importance of the cultural ethos," he said.
The three-day festival organized by the departments of Art & Culture, Tourism and Trade & Commerce, was aimed at highlighting the potential of tourism, biodiversity, cultural heritage, flora and fauna and Myanmarese culture as a mark of Indo-Myanmar friendship.
A large number of cultural troupes from different parts of the state and country, besides those from neighbouring Myanmar took part in the cultural presentation.
Dancers gave performances amidst the beating of drums and gongs showcasing the best of ethnicity of tribal culture of the state.