State-O-Nomics: Poll-bound Mizoram’s economy is hinged on infra-growth

Land of hill people: Mizos started tring with world much before colonial rule in India. History states, that Mizos, even before British arrived used to collect rubber and tre for salt. Today Mizoram’s ecomy is counted among fastest ones among Indian states. Mizoram is one of seven states in rast India. It shares borders with Manipur, Tripura, and Assam as well as with neighbouring countries of Banglesh and Myanmar.

Mizoram was a part of Assam until 1972 when it was carved out as a Union Territory. In 1987, state of Mizoram was constituted under 53rd Amendment of Indian Constitution. Mizoram has come a long way since n. landlocked state is today second highest literate state in India. On ecomic front, agriculture, public ministration, and construction work are biggest contributors to state's GSDP.

state of Mizoram will go to elections on vember 17, 2023, and results will be anunced on December 3, 2023, to elect all 40 members of state's Legislative Assembly

Snapshot of Mizo ecomy

More than 70 per cent of working population in Mizoram is engd in agricultural activities. Gross State Domestic Product (GSDP) of Mizoram for 2023-24 (at current prices) is projected to be Rs 35,904 crore, amounting to a growth of over 19 per cent in 2022-23, according to PRS India.

state has a per capita income of Rs 1,75,896, in 2021-22 as per Invest India. In 2023-24, government's expenditure excluding is estimated to be Rs 12,767 crore, a decrease of 12 per cent from revised estimates for 2022-23.

Fiscal deficit for 2023-24 is estimated at 3.5 per cent of GSDP (Rs 1,247 crore).  In 2022-23, as per revised estimates, fiscal deficit is expected to be 7 per cent of GSDP, almost twice budget estimate of 3.1 per cent.

Under State Budget 2023-24, government has allocated Rs 187,213.68 lakh to education, sports and art and culture sectors, Rs 63,456.54 lakh for health and family welfare, Rs 7,214.66 lakh to industry and minerals sectors, Rs 79,301.33 lakh for agriculture and allied activities, and Rs 1,134.16 lakh to tourism sector.

Challenges of an agri-based ecomy

Despite being heavily dependent on agriculture, Mizoram's ecomy faces challenges due to limited arable land, affecting overall productivity of sector. state relies heavily on rain-fed agriculture, making ecomy vulnerable to climatic variations and affecting crop yields.

Infrastructure gaps

Mizoram faces infrastructural challenges, including limited ro connectivity and inequate power supply, hindering industrial development and ecomic growth. state has a relatively low level of industrialisation, which limits job opportunities and diversification of ecomy beyond agriculture. Mizoram is dependent on central government grants which directly impact its infrastructure projects. 

Geographical isolation

Mizoram's geographical isolation poses multiple challenges for tre and commerce, impacting state's ability to tap into markets and attract investments.

Limited resource base

state has limited natural resources, which constrains its ability to generate revenue from sectors like mining and minerals.

Educational challenges

Educational challenges, including a high dropout rate and limited access to quality education, can hinder development of a skilled workforce needed for ecomic diversification.

Untapped potential of tourism

Despite its scenic beauty, Mizoram's tourism sector is underdeveloped. Insufficient infrastructure and promotion affect potential ecomic benefits of tourism.

Demographic factors

Mizoram faces demographic challenges such as a growing population and high dependency ratio, impacting labour market and posing challenges to sustained ecomic growth.
While considered among fastest growing states of India, ecomic growth of Mizoram is chained to its infrastructure development and future of state is hinged on amount of ro, power, and transport development.