Manipur Today and Tomorrow When Maharashtra, Tamil Nadu and Gujarat are Economic Powerhouse, Manipur is a Classic Example of Underdevelopment
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Prof N Mohendro Singh (Chairman, Institute of Development Studies, Manipur)
In the development scenario of India when Maharashtra emerges as Economic Powerhouse, Tamil Nadu as Detroit of India, Karnataka as Silicon Valley of India, Gujarat as Industrial Powerhouse, UP as Demographic Giant, Manipur remains semi-stagnant in the traditional world of underdevelopment marked by the sleepy and hostile atmosphere. Has regional imbalance been closed or widened after 74 years of planning and development ? Promise and performance have, it seems, worked in different directions. Resources tend to move towards south-west India where absorption capacity is high with higher return.
In any positive attempt to transform the State economy of Manipur, the critical roles of two National Highways, 2 and 37, come into the centre stage of consideration. This is the crux of the regional issue. Although the National Highways are National properties meant for protecting and promoting the citizens of the State to take part in the National progress, Manipur has remained largely crippled by the disruptions of natural calamity of landslide during rainy season and the long chain of “improper payments” at different locations. The Economic Effect of extortion and long spell of Economic Blockade has raised the price level of all commodities by more than 10 to 20 per cent and today Manipur has the record of highest inflation in the country. The cost disabilities so created have told heavily upon savings and investment, technical change and market interactions. The extortion is some kind of Regressive Tax. The other side of the sad scenario is Human Effect. The National Highways are openly controlled by the highway heroes taking law into their hands, unknown to the tenets of humanity. The trucker has to spend Rs 6000 to 7000 as illegal payment on every trip. Why should the drivers suffer the inward disgrace and fear for no fault of theirs ? Is it not the responsibility of the Government to ensure free movement not escorted by paramilitary forces ? Now the Roads of Sorrow should be made the Roads of Peace and Bliss.
The standard of sectoral performance will tell us of the general health of the economy. Normally the strength of the economy is largely derived from the manufacturing sector while the Primary Sector stabilises the economy and the Tertiary Sector acts as catalyst to maintain the general level of economy. Mere expansion of activities does not mean development which is a planned transformation in the desired direction.
The State economy of Manipur records the semi-stagnant character of the structure marked by the sectoral share of agriculture ranging from 19 per cent in 2004-05 to 22 per cent in 2025, that of manufacturing from 4.10 per cent in 2004-05 to 10 per cent in 2025 and that of tertiary sector from 38.06 per cent in 2004-05 to 68 per cent in 2025. The Service sector consists largely of traditional services of general administration, teaching, retail trade, storage and transport which are considered less productive. In other words Manipur witnessed the semi-stagnant economy during the last 20 years.
The state economy is working just for survival; not for a big push for a breakthrough. It looks seized by the negative impacts of jobless growth and growthless jobs. Now the dismal scenario should not be allowed to escalate any further. This calls for the determined responsibility of the present government to prepare a New State Policy of Development and act on it relentlessly. The State Policy of Development should clearly define: Where do we stand now? Where to go? How to go? And How soon?
The State Policy should comply with the changing imperatives of the world. It is not going to be easy in view of the fact the future is going to be terribly tough, challenging and massive. The whole world now leaves no stone unturned in joining the endless race of development by all means. Destruction and Domination are considered essential part of the aggressive game.
The role of Honourable Chief Minister is of paramount importance. It is “He” who negotiates and manoeuvres the way to reach the destination. He derives full power from the Constitution. He is the captain of the ship ready to face the massive trouble of storming wave of the wind during the journey. He is Head of conviction, courage and capacity’ – not Headless Head.
In other words, no State can develop without a dynamic State policy. Well, what are the commendable contributions of former Chief Ministers of Manipur to the growth process of the State ? The present malaise being experienced today can be traced to the kind of service rendered during their tenure also, because development cannot be created overnight. It evolves and passes through difficult stages. We are not going back from the battle field. What Manipur needs is a sound State Policy of Development, – realistic and feasible under the present context of global wave. “You cannot escape the responsibility of tomorrow by evading it today” (Abraham Lincoln). Remember, modern Japan after the defeat in the Second World War could restore and rise with the article of policy;-- Quality First. In the country every November is designated as Quality Month across the Nation.
The development process all over the world begins with a strong foundation of food sector. Man needs good food both during war and peace. When the whole world including India celebrates the dramatic success of Green Revolution during 1960-1980, Manipur is struggling hard to face the challenge of food deficit to the extent of about 70,000 Mts a year. Food self sufficiency remains a far cry, when the classical theory of Diminishing Return in farm sector stands defeated by the Increasing Return; -- the rare contribution of Norman Borlaug, the American agronomist whose strong belief in the power of science and technology to increase yield could be the secret of success. His visit to India in 1963 became the inspiring source for transforming the agricultural sector led by MC Swaminathan, Father of Agricultural Revolution of India, with the transfer of technology from lab-to-land supported by the ingenuity of Indian farmers.
The inability of Manipuri farmers to maintain even constant return is clear with the low yield of rice of 2498 kg/ha in 2022-23 as against 4428 kg/ha of Punjab, 3600 kg/ha of Telangana, 2900 kg/ha of West Bengal and the National average of 2900 kg/ha.
The size handicap, the uncertainty of monsoon and the imperfections of market remain the age old challenge of agricultural sector of Manipur even after 74 years of planning and development. Added to this headache is the rising transfer of agri-land for other purposes while hardly 8 per cent of the total geographical area is agri-land.
The average holding is less than 1 ha. The production can hardly meet the domestic requirement with negligible margin of marketable surplus. The State is too much dependent on imports. Now, the Government should prepare a new Agricultural Policy with a strong focus on 1) productivity revolution of small farmers, 2) tackling the cost disabilities, 3) value-added cropping pattern, 4) up-gradation of technology and 5) improving market infrastructures. A sound Land Use Policy should be enforced to break all speed breakers.
Regarding industrialisation, the manufacturing sector is working with limitations of shortage of professional skill, outdated technology, limited connectivity, small working capital and underdeveloped marketing infrastructures. Fear of failure remains high and extensive. Today the enterprise with investment of Rs 1 crore and the turnover of Rs 5 crore annually is micro enterprise, while those whose investment is Rs 10 crore and turnover of Rs 50 crore are small enterprise. We can now think of boosting cottage and household industries and also start-ups with the objective of what Prime Minister says “local to vocal”. The State Government should prepare a new Industrial Policy with a defined focus on smart administration, institutional parenting and development coordination with professional discipline.
Another disturbing scenario is the huge backlog of unemployment. The job market in the State has been quite tough and challenging. The structural stagnation of the economy, rising population and quantitative expansion of education have created the uneasy situation. Prolonged unemployment creates disinterest in investment in education, mental distress and negative manifestation of citizenship. To them life is a big baggage. In fact, it is a crime when one is unable to look after oneself. Subsequently the negative reactions of the jobless masses become one of the root causes of social degeneration marked by reckless violence and deliberate contempt of personal discipline and social norms. “The first cause hunger and malnutrition is poverty. The first cause of poverty is lack of job” (UN). “Jobs are cornerstone of economic and social development. Development happens through jobs” (World Development Report, 2013). Poverty and joblessness normally go together and create alarming havoc at the cost of peace and prosperity.
According to the Annual Report of Periodic Labour Force Survey conducted by the National Statistics Office, Ministry of Statistics and Programme Implementation, Government of India, overall unemployment rate of Manipur is 5.25 per cent, much higher than the national average of 3.1 per cent in 2025.
The possible crisis of unemployment is heavily concentrated in the age-segment of 15-29, the prime period of life. The high rate of unemployment of the educated youth who is by nature active, sensitive, energetic and alert would have negative impact on the State Domestic Product. The unemployment rate of 23 per cent of the youth of Manipur as against the National average of 10 per cent is alarming with dismal future in all manifestations. The segment gradually becomes “spent force”, “the costless”, and “good for nothing fellow” and also the highway men who set up “extortion enterprise” in the society taking law into their hands. The present problem being faced by the Government of Manipur can be traced to the prolonged unemployment and acute deprivation. As such, the State needs a Job Plan to tackle the deep seated low employability, limited employment opportunity and mismatch between demand and supply. We must keep in mind that jobs are transformational in the sense that we can hopefully expect the rising standard of living, rising productivity and social cohesion. In the attempt private sector should be made strong partner in view of the fact that normally 9 out of 10 is created in the private sector. The preparation of State Manpower Plan could be the sufficient safeguard against the mismatch. No advanced nation ignores the Job Plan. Manipur needs a new Policy of Human Capital Development.
Equally uneasy, perhaps, much more debated is the functioning of Indo-Myan-mar Border Trade, 1994-95. It is the creation under National initiative operated jointly by the Central Government, State Government and local body. The National move was, perhaps, made to provide the third option for better livelihood and general development in the backdrop of industrial and agricultural weakness of the state. Secondly there is a good prospect of commercial connectivity between India and South-East Asia through Moreh (Manipur). The age old Border Trade was given a fresh life under the Agreement.
Availability of opportunity is one and utilisation is another thing. It is not automatic and cannot be taken for granted. Now, the change demands both trade knowledge, will power and patience. The deficit of understanding and lack of knowledge and information has become a hurdle. It is now an uphill task for public authority to produce a nice package of national ambition, regional aspiration and local imperative. The advent of rudimentary globalisation in the traditional setting of militant conservatism without necessary preparation and built-in safeguard becomes an emerging challenge. The unabated temptation for easy-rich culture by any means mainly through gun culture and extortion overrides the noble charm of trade dynamism. The opening of two gates for traditional, barter and normal trades has eventually turned out to be “a Happy Route” for multiplying illegal trades of guns and narcotics. Did we undertake a critical study on the rising influence of Golden Triangle on the border of Laos, Myanmar and Thailand as international centre of thriving Heroine Economy? Perhaps, the Act East Policy could not take note of nefarious hands of the hub. The natives with the dubious support of syndicates of smugglers took the loophole as “gold mine”. Borders should not be treated as empty frontiers, -- some kind of forgotten outpost. By now Manipur may need a Minister to handle the affairs of Act East Policy of India.
Manipur should not welcome both growthless jobs and jobless growth. Prolonged dependence upon agriculture is a sign of primitive economy. “Value added per hour worked of agriculture is only 1/7th of Service and 1/12th of Manufacturing” (WDR, 2013)
Secondly, Govt should insist on the preparation of both Outlay and Outcome Budget. The spirit of success is the seed of development.
Third, Manipur has witnessed a peculiar pheno- menon of construction today and destruction tomo- rrow. We may think of instituting Economic Intelligence Service. Ongoing correction is far better than post mortem analysis.
Now Manipur may look forward to the benefit of being enriched and stronger with the golden days of Vikshit Bharat. We have to reorganise both economic and intellectual resources with a vision of competitive Manipur.
In the development scenario of India when Maharashtra emerges as Economic Powerhouse, Tamil Nadu as Detroit of India, Karnataka as Silicon Valley of India, Gujarat as Industrial Powerhouse, UP as Demographic Giant, Manipur remains semi-stagnant in the traditional world of underdevelopment marked by the sleepy and hostile atmosphere. Has regional imbalance been closed or widened after 74 years of planning and development ? Promise and performance have, it seems, worked in different directions. Resources tend to move towards south-west India where absorption capacity is high with higher return.
In any positive attempt to transform the State economy of Manipur, the critical roles of two National Highways, 2 and 37, come into the centre stage of consideration. This is the crux of the regional issue. Although the National Highways are National properties meant for protecting and promoting the citizens of the State to take part in the National progress, Manipur has remained largely crippled by the disruptions of natural calamity of landslide during rainy season and the long chain of “improper payments” at different locations. The Economic Effect of extortion and long spell of Economic Blockade has raised the price level of all commodities by more than 10 to 20 per cent and today Manipur has the record of highest inflation in the country. The cost disabilities so created have told heavily upon savings and investment, technical change and market interactions. The extortion is some kind of Regressive Tax. The other side of the sad scenario is Human Effect. The National Highways are openly controlled by the highway heroes taking law into their hands, unknown to the tenets of humanity. The trucker has to spend Rs 6000 to 7000 as illegal payment on every trip. Why should the drivers suffer the inward disgrace and fear for no fault of theirs ? Is it not the responsibility of the Government to ensure free movement not escorted by paramilitary forces ? Now the Roads of Sorrow should be made the Roads of Peace and Bliss.
The standard of sectoral performance will tell us of the general health of the economy. Normally the strength of the economy is largely derived from the manufacturing sector while the Primary Sector stabilises the economy and the Tertiary Sector acts as catalyst to maintain the general level of economy. Mere expansion of activities does not mean development which is a planned transformation in the desired direction.
The State economy of Manipur records the semi-stagnant character of the structure marked by the sectoral share of agriculture ranging from 19 per cent in 2004-05 to 22 per cent in 2025, that of manufacturing from 4.10 per cent in 2004-05 to 10 per cent in 2025 and that of tertiary sector from 38.06 per cent in 2004-05 to 68 per cent in 2025. The Service sector consists largely of traditional services of general administration, teaching, retail trade, storage and transport which are considered less productive. In other words Manipur witnessed the semi-stagnant economy during the last 20 years.
The state economy is working just for survival; not for a big push for a breakthrough. It looks seized by the negative impacts of jobless growth and growthless jobs. Now the dismal scenario should not be allowed to escalate any further. This calls for the determined responsibility of the present government to prepare a New State Policy of Development and act on it relentlessly. The State Policy of Development should clearly define: Where do we stand now? Where to go? How to go? And How soon?
The State Policy should comply with the changing imperatives of the world. It is not going to be easy in view of the fact the future is going to be terribly tough, challenging and massive. The whole world now leaves no stone unturned in joining the endless race of development by all means. Destruction and Domination are considered essential part of the aggressive game.
The role of Honourable Chief Minister is of paramount importance. It is “He” who negotiates and manoeuvres the way to reach the destination. He derives full power from the Constitution. He is the captain of the ship ready to face the massive trouble of storming wave of the wind during the journey. He is Head of conviction, courage and capacity’ – not Headless Head.
In other words, no State can develop without a dynamic State policy. Well, what are the commendable contributions of former Chief Ministers of Manipur to the growth process of the State ? The present malaise being experienced today can be traced to the kind of service rendered during their tenure also, because development cannot be created overnight. It evolves and passes through difficult stages. We are not going back from the battle field. What Manipur needs is a sound State Policy of Development, – realistic and feasible under the present context of global wave. “You cannot escape the responsibility of tomorrow by evading it today” (Abraham Lincoln). Remember, modern Japan after the defeat in the Second World War could restore and rise with the article of policy;-- Quality First. In the country every November is designated as Quality Month across the Nation.
The development process all over the world begins with a strong foundation of food sector. Man needs good food both during war and peace. When the whole world including India celebrates the dramatic success of Green Revolution during 1960-1980, Manipur is struggling hard to face the challenge of food deficit to the extent of about 70,000 Mts a year. Food self sufficiency remains a far cry, when the classical theory of Diminishing Return in farm sector stands defeated by the Increasing Return; -- the rare contribution of Norman Borlaug, the American agronomist whose strong belief in the power of science and technology to increase yield could be the secret of success. His visit to India in 1963 became the inspiring source for transforming the agricultural sector led by MC Swaminathan, Father of Agricultural Revolution of India, with the transfer of technology from lab-to-land supported by the ingenuity of Indian farmers.
The inability of Manipuri farmers to maintain even constant return is clear with the low yield of rice of 2498 kg/ha in 2022-23 as against 4428 kg/ha of Punjab, 3600 kg/ha of Telangana, 2900 kg/ha of West Bengal and the National average of 2900 kg/ha.
The size handicap, the uncertainty of monsoon and the imperfections of market remain the age old challenge of agricultural sector of Manipur even after 74 years of planning and development. Added to this headache is the rising transfer of agri-land for other purposes while hardly 8 per cent of the total geographical area is agri-land.
The average holding is less than 1 ha. The production can hardly meet the domestic requirement with negligible margin of marketable surplus. The State is too much dependent on imports. Now, the Government should prepare a new Agricultural Policy with a strong focus on 1) productivity revolution of small farmers, 2) tackling the cost disabilities, 3) value-added cropping pattern, 4) up-gradation of technology and 5) improving market infrastructures. A sound Land Use Policy should be enforced to break all speed breakers.
Regarding industrialisation, the manufacturing sector is working with limitations of shortage of professional skill, outdated technology, limited connectivity, small working capital and underdeveloped marketing infrastructures. Fear of failure remains high and extensive. Today the enterprise with investment of Rs 1 crore and the turnover of Rs 5 crore annually is micro enterprise, while those whose investment is Rs 10 crore and turnover of Rs 50 crore are small enterprise. We can now think of boosting cottage and household industries and also start-ups with the objective of what Prime Minister says “local to vocal”. The State Government should prepare a new Industrial Policy with a defined focus on smart administration, institutional parenting and development coordination with professional discipline.
Another disturbing scenario is the huge backlog of unemployment. The job market in the State has been quite tough and challenging. The structural stagnation of the economy, rising population and quantitative expansion of education have created the uneasy situation. Prolonged unemployment creates disinterest in investment in education, mental distress and negative manifestation of citizenship. To them life is a big baggage. In fact, it is a crime when one is unable to look after oneself. Subsequently the negative reactions of the jobless masses become one of the root causes of social degeneration marked by reckless violence and deliberate contempt of personal discipline and social norms. “The first cause hunger and malnutrition is poverty. The first cause of poverty is lack of job” (UN). “Jobs are cornerstone of economic and social development. Development happens through jobs” (World Development Report, 2013). Poverty and joblessness normally go together and create alarming havoc at the cost of peace and prosperity.
According to the Annual Report of Periodic Labour Force Survey conducted by the National Statistics Office, Ministry of Statistics and Programme Implementation, Government of India, overall unemployment rate of Manipur is 5.25 per cent, much higher than the national average of 3.1 per cent in 2025.
The possible crisis of unemployment is heavily concentrated in the age-segment of 15-29, the prime period of life. The high rate of unemployment of the educated youth who is by nature active, sensitive, energetic and alert would have negative impact on the State Domestic Product. The unemployment rate of 23 per cent of the youth of Manipur as against the National average of 10 per cent is alarming with dismal future in all manifestations. The segment gradually becomes “spent force”, “the costless”, and “good for nothing fellow” and also the highway men who set up “extortion enterprise” in the society taking law into their hands. The present problem being faced by the Government of Manipur can be traced to the prolonged unemployment and acute deprivation. As such, the State needs a Job Plan to tackle the deep seated low employability, limited employment opportunity and mismatch between demand and supply. We must keep in mind that jobs are transformational in the sense that we can hopefully expect the rising standard of living, rising productivity and social cohesion. In the attempt private sector should be made strong partner in view of the fact that normally 9 out of 10 is created in the private sector. The preparation of State Manpower Plan could be the sufficient safeguard against the mismatch. No advanced nation ignores the Job Plan. Manipur needs a new Policy of Human Capital Development.
Equally uneasy, perhaps, much more debated is the functioning of Indo-Myan-mar Border Trade, 1994-95. It is the creation under National initiative operated jointly by the Central Government, State Government and local body. The National move was, perhaps, made to provide the third option for better livelihood and general development in the backdrop of industrial and agricultural weakness of the state. Secondly there is a good prospect of commercial connectivity between India and South-East Asia through Moreh (Manipur). The age old Border Trade was given a fresh life under the Agreement.
Availability of opportunity is one and utilisation is another thing. It is not automatic and cannot be taken for granted. Now, the change demands both trade knowledge, will power and patience. The deficit of understanding and lack of knowledge and information has become a hurdle. It is now an uphill task for public authority to produce a nice package of national ambition, regional aspiration and local imperative. The advent of rudimentary globalisation in the traditional setting of militant conservatism without necessary preparation and built-in safeguard becomes an emerging challenge. The unabated temptation for easy-rich culture by any means mainly through gun culture and extortion overrides the noble charm of trade dynamism. The opening of two gates for traditional, barter and normal trades has eventually turned out to be “a Happy Route” for multiplying illegal trades of guns and narcotics. Did we undertake a critical study on the rising influence of Golden Triangle on the border of Laos, Myanmar and Thailand as international centre of thriving Heroine Economy? Perhaps, the Act East Policy could not take note of nefarious hands of the hub. The natives with the dubious support of syndicates of smugglers took the loophole as “gold mine”. Borders should not be treated as empty frontiers, -- some kind of forgotten outpost. By now Manipur may need a Minister to handle the affairs of Act East Policy of India.
Manipur should not welcome both growthless jobs and jobless growth. Prolonged dependence upon agriculture is a sign of primitive economy. “Value added per hour worked of agriculture is only 1/7th of Service and 1/12th of Manufacturing” (WDR, 2013)
Secondly, Govt should insist on the preparation of both Outlay and Outcome Budget. The spirit of success is the seed of development.
Third, Manipur has witnessed a peculiar pheno- menon of construction today and destruction tomo- rrow. We may think of instituting Economic Intelligence Service. Ongoing correction is far better than post mortem analysis.
Now Manipur may look forward to the benefit of being enriched and stronger with the golden days of Vikshit Bharat. We have to reorganise both economic and intellectual resources with a vision of competitive Manipur.