Economy of Manipur

Manipur, once a princely state became a part of India on the 15th of October 1949. Agriculture and allied activities provide the backbone to the economy in both the hills and the valley of Manipur. While weaving and pisciculture are other important and traditional means of livelihood in the valley, logging, cultivation of a few cash crops, handloom and handicrafts are the traditional sources of additional income in the hills. In terms of infrastructure Manipur is quite backward with an index of infrastructure of 81 (as per CMIE index in 1992-93). The reference point is 100, the national average. Moreh has become an important business centre because of border trade with Myanmar. In 1997-98, the contribution of the tertiary sector to SDP was the highest. It comprised almost half of the SDP of Manipur. Over the years, there has been a shift in the sectoral contribution from the primary to the tertiary sector and the secondary sector indicates a fluctuating trend. The annual compound growth rate of NSDP during the period 1980-81 to 1997-98 has been worked out at 13.63% at current prices and 4.78% at constant prices. It has been observed that between 1980-81 to 1997-98, agriculture exhibited an annual compound growth rate of 11.4% at current prices and 2.04% at constant prices. Similarly the manufacturing sector showed an annual growth rate of 11.25% at current prices and 3.5% at constant prices over the same period. Manipur is lagging much behind the national average in case of per capita income and in the recent few years the gap between the per capita income of the state and the nation has widen further. The state is heavily dependent on imports from outside for almost all items of everyday need.