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Industrial Development & Economic Growth in Mizoram

July, 2019

Mizoram is one of the seven states in the northeast. Mizoram shares its borders with other northeast states like Manipur, Tripura, and Assam as well as with neighbouring countries of Bangladesh and Myanmar.

At current prices, the Gross State Domestic Product (GSDP) of Mizoram reached Rs. 265.03 billion (US$ 3.61 billion) in 2019-20. At current prices, Net State Domestic Product (NSDP) of Mizoram reached Rs. 237.56 billion (US$ 3.37 billion) in 2019-20.

In FY21 (April 2020-February 2021), the total merchandise export from the state stood at US$ 0.45 million. the total exports from hand tool, cutting tool of metals stood at US$ 0.19 million (62.9%).

As of April 2021, Mizoram had a total installed power-generation capacity of 207.45 MW, comprising hydro (97.94 MW), thermal (71.51 MW) and renewable energy sources (38.00 MW).

The state has a large forest area and contributes 14% to the country’s bamboo production. The climatic conditions in the state provide a breeding ground for commercial exploitation of all kinds of silkworm.

According to Department for Promotion of Industry and Internal Trade (DPIIT), Foreign Direct Investment (FDI) inflows to Mizoram** totalled US$ 122 million between April 2000 and September 2019.

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.

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

  • Total horticulture production in Mizoram was 638.95 thousand metric tonnes as per 3rd advance estimates 2019-20. In FY20, the state produced 344.91 thousand tonnes of fruits under an area of 63.77 thousand hectares. Similarly, 101.49 thousand tonnes of spices were produced in the state under an area of 28.22 thousand hectares in FY20.
  • By 2021, Mizoram Government plans to construct four solar plants and a solar park to generate 80 MW solar power.
  • In State Budget 2021-22, the government has proposed to allocate Rs. 46,664.90 lakh (US$ 63.64 million) for the development of roads and bridges.
  • The railway project of Bhairabi-Sairang route is estimated to be completed by the end of March 2023. Mizoram will get connected with the main rail lines through 52 kms Sairang - Bhairabi rail line, crossing through 23 tunnels, 36 major and 147 minor bridges.
  • The union government in its FY22 budget has allocated Rs. 1, 000 crore (US$ 137.10 million) for the Bairabi – Sairang project in Mizoram.
  • In FY21, the Lengpui (Aizawl) Airport in Mizoram recorded 364 metric tonnes in freight, along with movement of 79,104 passengers and 1,206 aircraft.
  • 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 the current 3 tonnes. In FY21, the annual allocation in Mizoram to implement the ‘National Bamboo Mission’ stood at Rs. 70 million (US$ 0.95 million).
  • Aizawl was selected under Atal Mission for Rejuvenation and Urban Transformation (AMRUT) for which Rs. 140.25 crore (US$ 19.44 million) was allocated to Mizoram in January 2019. It was also selected under the smart cities mission of the Government of India.
  • Under the State Budget 2021-22, the government has allocated Rs. 182,790.91 lakh (US$ 249.16 million) to the education, sports and art & culture sectors, Rs. 59,597.36 lakh (US$ 81.23 million) for health & family welfare, Rs. 9,019.55 lakh (US$ 12.29 million) to the industry and minerals sectors, Rs. 86,550.07 lakh (US$ 117.95 million) for agriculture & allied activities and Rs. 1,089.78 lakh (US$ 1.48 million) to the tourism sector.

Note: MW - Megawatt, **- includes Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura

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