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Mizoram - Economy

The growth story of Mizoram economy recently has been strong and sustained one, and its growth rate was one of the highest among all the Indian states. The State economy (GSDP) was estimated to grow at about 9.2 percent during 2014-15 while the national economy (GDP) was projected to grow at 7.5 percent during 2014-15. GSDP growth for 2015-16 was expected to remain in the range of 8 to 9.5 percent with the launch of New Economic Development Policy – Comprehensive growth Strategy for Mizoram by the State Government which provides the policy priorities that constitute the basic economic focus to forge ahead to promote a more inclusive and stronger economy.

The Per Capita Income (at current prices) witnessed an increase of 14.12 percent as it increased to Rs.85,356 in 2014-15 from Rs.74,846 in 2013-14 while the National Per capita income for the corresponding period was estimated at Rs.88,533/- and Rs.80,388 respectively, indicating that the State still have a gaps to bridge in order to reach the level of national average. However, considering the faster growth rate recorded by the State economy as compared to the national economy, per capita income gap between the national average and the State’s is expected to be bridged within a year or so.

Sectoral performances in the Mizoram economy indicated that Mizoram has been witnessing services sector led growth. This is true for most of the States as well during the last decade, undergoing a significant structural shift. The share of agriculture in total value added has significantly declined in most States and correspondingly, the share of manufacturing and services sector has increased. In the case of Mizoram, most of the decline in the agricultural sector has been picked up by the services sector and by 2016 accounted for about 57 per cent of the GSDP. Given the growing significance of the services sector, the State Government has to put emphasis on the critical issues in the economy’s services sector led growth and provides appropriate policy impetus for the sector’s sustainability.

Roughly about 30 percent of the State’s population is between 0 and 14 years old, and more than 64 per cent of the population is in the working age group (i.e. 15-59). The aspirations and achievements of these young people will shape the future of Mizoram. At the same time, fertility rates in many parts of the State are falling. An economy with both increasing numbers of young people and declining fertility has the potential to reap a ‘demographic dividend’ – a boost in economic productivity that occurs when there are growing numbers of people in the workforce relative to the number of dependents. However, Mizoram is still a skill-deficit State, and the Government would need to develop credible Skills Development Policy and implement Education Reform in line with National Skills Qualification Framework in the State.

The State’s flagship program of New Land Use Policy (NLUP) has changed the method of cultivation and the eking out livelihood for a large number of people, not only contributes to economic development of the people, but has actually helped in ameliorating the problem of environmental threats to a considerable level.

Paddy continues to remain the principal food crop and the staple food of the Mizoram people. Whereas the minimum Rice requirements of the state per year is estimated to be about 1,80,000 MT, the present Rice production is only 60,679 MT per year which could meet only 33.71% of its rice requirement. The remaining 66.29% has to be imported from outside the State. Increasing Rice production and diversification of agriculture farming would therefore enhance rural livelihood and reduce poverty in villages and is imperative for food security of the State.

During 2014-15, area under Wet Rice Cultivation has been records as 16866 Ha or 32.80%. Rice production has increased by 28.55%. The area under Jhum cultivation has decreased from 44,947 hectare at the beginning of 11th Plan to 20,064 hectare during 2014-15 which account for above 55.36% reduction. The significant reduction in Jhum area is mainly due to the implementation of Oil Palm development program, Sugarcane cultivation programme, RKVY, NLUP & RAD. Area under Oil Palm cultivation is 23358 Ha. out of total potential area of 1,01,000 hectare which accounts for 23.13% coverage.

The practice of Jhuming [slash and burn] is still prevalent among many farmers. During 2014-15, more than 38 % of the total Rice production comes from Jhumming. As such, it is proposed to incentivize the farmers through Improved cultivation of Rice on Hill slopes/Improved Jhum cultivation wherein subsidy assistance on critical inputs like improved seed, fertilizers, PP chemicals, Herbicides etc. will be provided which will result in higher production and productivity.

The productivity of Rice under WRC has been raised to 2.20 MT/ hectare from the level of 2.10 MT/hectare during 2014-15. Increase in productivity per hectare may be attributed to adoption of SRI and increase in availability of Farm Power through the heavy subsidy of Power Tillers and Tractors. Low consumption of fertilizers, low seed replacement, low availability of farm power, dearth of potential area connectivity, marginal land holding, poor market linkage and lack of assured irrigation are the major constraints to agriculture development.

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Page last modified: 20-02-2018 18:42:49 ZULU