Battleground 2024: Ahead of Lok Sabha polls, Manipur counts its losses

GST mop-up falls 24% to Rs 1,095 crore in FY24

The ethnic conflict in Manipur has taken a heavy toll on its economy with goods and services tax (GST) collections in FY24 contracting 24 per cent to Rs 1,095 crore at a time the country’s overall GST mop-up rose in double digits.

The violence in Manipur bordering Myanmar first erupted on May 3 when the Kuki tribal group who inhabit the hills clashed with the non-tribal ethnic majority Meitei living on the plains over sharing economic benefits and quotas given to the tribes. In September, the Manipur Police said 175 people have died with at least 5,172 cases of arson reported. 

“The situation is better in Manipur but it is nothing close to normal. If you look at the history of the state, these episodes of conflict last for a long time. There will be periods of calm and there will be suddenly an incident. This will go on for years and it doesn’t end quickly,” an official of a trade body residing in north-east India said, requesting anonymity.  

The retail inflation in Manipur remained one of the highest in the country at 10.96 per cent in February.

“Consumption in many cases have shifted outwards since the young people have moved out of the state. Because of frequent shutdowns, a lot of people are also making their purchases outside the state. Hotel business has also been badly impacted because business travellers are still avoiding the state,” he added.

Primarily an agriculture-based economy with 77 per cent of Manipur under forest cover, sectors like handloom, handicraft, and sericulture-based industries contribute significantly to the state’s income.

Voting for the general elections will be held in Manipur in two phases for the two constituencies on April 19 and April 26, with the Outer Manipur constituency voting in both the phases.

“The Commission has reviewed the ground situation of Manipur and has noted that a large number of electors registered in different constituencies of Manipur were displaced from their native places during recent conflicts. They are now residing in relief camps in various districts of Manipur. The Commission, after due consultation with various stakeholders, has decided that special polling stations shall be set up at/near the camps where such electors, who opt for such facility, will be able to register their votes in EVMs,” the Election Commission of India said in a statement while notifying the general election schedule on 19 March.