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Industrial Development & Economic Growth in Mizoram

March, 2018

Mizoram is one of the seven states in the North-East. Industries in the state enjoy a unique location-specific advantage. Bordering Myanmar and Bangladesh, Mizoram offers a gateway for engaging in international trade with Southeast Asian countries. With improving road, rail and air connectivity and the establishment of trade routes with neighbouring countries, trade facilitation has improved over the last decade.

Between 2004-05 and 2015-16, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 11.04 per cent to US$ 1.91 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 10.51 per cent to US$ 1.63 billion. The tertiary sector, the largest contributor to Mizoram’s economy, witnessed growth at a rate of 16.24 per cent during 2004-05 to 2015-16; driven by trade, hotels, real estate, finance, insurance, transport, communications and other services.

The state has the potential to harness 4,500 MW of hydro power. As of January 2018, Mizoram has an installed capacity to produce 94.19 MW of hydro power. More PPP participation is expected to enhance the production. The state has a large forest area and contributes 14 per cent to the country’s bamboo production. The climatic conditions in the state provide a breeding ground for commercial exploitation of all kinds of silkworm.

Zoram Industrial Development Corporation (ZIDCO) is responsible for the overall development of industrial infrastructure in the state. Mizoram has eight industrial estates, of which five are operational and the remaining are yet to be developed.

ZIDCO has established an integrated infrastructure development centre (IIDC) at Lunglei district with an investment of around US$ 1.0 million. The centre offers power, water, telecommunication and other amenities for the industrial units.

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

  • Out of the 704 villages in Mizoram, only 11 villages remain un-electrified till December 2017. 
  • In May 2016, for the improvement of rail connectivity in land locked region of North-East, Prime Minister Narendra Modi inaugurated the passenger trains from the state. Moreover, the railway project of Bhairabi-Sairang route is estimated to be commissioned by 2018-19.
  • A border trade centre has been established for trade with Bangladesh.
  • Mizoram is setting up a special economic zone (SEZ) in the Northeast with assistance from the North East Council. The SEZ will be located at Khawnuam village in Champhai. Bamboo-based industries would play a major role in the proposed SEZ.
  • The National Bamboo Mission (NBM), a centrally sponsored scheme, envisages increase in the coverage area under bamboo plantation and consequently improvement in yield to 18-20 tonnes per hectare from current 3 tonnes.
  • The state government is working towards bringing maximum families under sericulture farming and silkworm rearing. The government of Mizoram has opened one research & training institute at Aizawl (Zemabawk) which provides training and certification courses in Sericulture.
  • Mizoram's Government has signed memorandum of understanding (MOU) with national companies for oil palm development.

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