Trade Analytics

Industrial Development & Economic Growth in Meghalaya

Latest update: October, 2016

Economic Snapshot: GSDP of Meghalaya

Meghalaya's gross state domestic product (GSDP) was US$ 4.20 billion over 2014-15.

Economic Snapshot: GSDP of Meghalaya

Economic Snapshot: NSDP of Meghalaya

Meghalaya's net state domestic product (NSDP) was US$ 3.74 billion over 2014-15.

Break up of outstanding investments in Meghalaya

October, 2016

Meghalaya is located in the Northeast of India. The state shares its border on the north and east with Assam and on the south and west with Bangladesh.

Between 2004-05 and 2015-16, Gross State Domestic Product (GSDP) expanded at a compound annual growth rate (CAGR) of 9.74 per cent to US$ 4.17 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 9.17 per cent to US$ 3.41 billion. At a CAGR of 16.13 per cent, the secondary sector was the fastest growing among the three sectors during 2004-05 to 2015-16. Growth has been driven by manufacturing, construction, electricity, gas & water supply.

Meghalaya, with an average annual rainfall of 1,150 cm, receives the highest amount of rainfall in the country. The diverse range of soil types, including red-loamy and laterite, support various agricultural crops like rice, maize, pulses, oilseeds, cotton, jute and mesta.

Meghalaya has an installed capacity of 356.58 MW for hydroelectric power. The potential for hydropower in the state is estimated to be around 3,000 MW.

The natural resources, policy incentives and infrastructure in the state favour investments in the tourism, hydroelectric power, manufacturing and mining sectors. Mineral, horticulture, electronics, IT, agro-processing and tourism have been identified as the thrust sectors for industrial development. The state has abundant natural resources, which offer significant avenues for investment. About 14 per cent (3,108 square kilometres) of Meghalaya is covered by bamboo forests and the state is one of the leading bamboo producers in the country.

Some of the major initiatives taken by the government to promote Meghalaya as an investment destination are:

  • Under budget 2016-17, the state government proposed allocation of US$ 1.98 million for various art and cultural programs for the development, augmentation and preservation of cultural heritage of the state.
  • Under budget 2016-17, the state government proposed an allocation of US$ 103.42 million for development of education sector in the state. 
  • Under the annual budget 2015-16, an investment of US$ 0.29 million has been approved by the Meghalaya State Medicinal Plants Board to increase the production of medicinal plants.
  • The state government has also proposed an outlay of US$ 32.13 million to improve power supply in the state and associated services, power losses in urban areas, etc., under the Restructured Accelerated Power Development and Reforms Programme.
  • Under the 12th Five Year Plan (2012-2017), the state has been assigned with afforestation on clan/community land through Joint Forest Management Committees with a major push in the medicinal plants sector.
  • An investment of US$ 3.98 million was proposed to be invested for the development of roads and bridges in the state and US$ 54.66 million was proposed for the improvement of the agriculture sector of the state under the 12th Five Year Plan (2012-2017).
  • The state is focusing on developing water harvesting and distribution infrastructure to increase the level of mechanisation in the horticulture sector.
  • Hydroelectric power projects with a total capacity of 687 MW have been proposed to be set up in Meghalaya. All these projects are projected to be operational by 2016-17.
  • The state government is inviting investments in this area through the PPP mode. Independent power producers (IPPs) are also being invited to develop hydro projects in Meghalaya; this provides immense potential for investment.

 

Meghalaya State Presentation

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Meghalaya Map

Meghalaya