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Industrial Development & Economic Growth in Manipur

February, 2018

Manipur is one of India’s largest bamboo producing states and a major contributor to the country’s bamboo industry. Handlooms are the largest cottage industry in Manipur and the state ranks among the top five in terms of the number of looms in the country. Due to its wealth of flora and fauna, Manipur is described as a ‘flower on lofty heights’, ‘a jewel of India’ and ‘Switzerland of the East’. Its breathtaking scenic beauty makes it a tourist’s paradise.

Between 2011-12 and 2017-18, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 10.21 per cent to US$ 3.59 billion. The Net State Domestic Product (NSDP) expanded at a CAGR of 10.94 per cent between 2011-12 and 2016-17 to US$ 3.00 billion.

Manipur holds significant cultivation potential for various horticultural crops due to varied agro-climatic conditions. Entrepreneurs get easy access to process and market a wide variety of rare and exotic medicinal and aromatic plants grown in the state. Manipur also has large quantity of natural resources that offer potential for the development of infrastructure and industrial sectors.

The total production of horticulture crops in the state stood at 781.78 thousand tonnes in 2016-17 over 104.15 thousand hectares of area.

The following are some of the major initiatives taken by the government to promote Manipur as an investment destination:

  • The Central Government has allocated US$ 37.07 million under National under Highway (Original works) and Special Accelerated Development Programme for North East (SARDP-NE) in 2017-18 for road construction in the state.
  • The government has drafted a new Industrial and Investment Policy, 2017 foreseeing setting up of a “Single Window Agency” for approvals.
  • The Airports Authority of India (AAI) is going to construct a cargo terminal at Imphal airport at a total cost of US$ 2.52 million. The terminal will provide a boost to the export of handicrafts items and perishable cargo and generate employment opportunities in the state.
  • For a period of 2007 to 2017, 72 projects have been sanctioned under Technology Upgradation/ Establishment/ Modernization of Food Processing Industries Scheme, 37 projects under National Mission for Food Processing Scheme and 1 project, each, under the Food Testing Laboratory Scheme and Integrated Cold Chain, Value Addition & preservation Infrastructure Scheme.
  • The Government of India has a trilateral agreement with Thailand and Myanmar to construct a trans-Asian highway connecting India (through Manipur) to the two countries. The project is in construction phase.
  • To provide welfare measures and better working conditions to handloom weavers, schemes such as group insurance, health packages, work-shed cum-housing scheme, project package scheme, integrated handloom village development project and the Deen Dayal Hathkargha Protsahan Yojana are being implemented in the handloom sector.
  • The Government of India has sanctioned several projects for Manipur such as
  • Integrated Infrastructural Development Project (IID) project at Moreh with a total project cost of US$ 1.19 million
  • Export Promotion Industrial Park (EPIP)project at KhunutaChingjin in the Kakching sub-division of Thoubal district at a project cost of US$ 3.1 million.
  • Trade centres, one at Moreh and another at Imphal at total cost US$ 0.4 million.
  • Industrial growth centre project at Lamlai-Napet with a total project cost of US$ 6.2 million.
  • Four new handloom production centres (HPCs) have been planned.
  • Establishment of a food park at Nilakuthi with a project cost of US$ 5.3 million (revised) to provide common facilities like cold storage, warehouse, quality control laboratories, packaging, tool room, power & water supply and sewerage treatment.

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