Q.Explain the major challenges to Manipur's economic development.
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Start your 14-day free trial to unlock the full solution →Manipur's development effort faces several deep-seated challenges that explain both why progress has been slower than hoped and why special central support continues:
1. Landlocked and hilly terrain. With no sea access and much of the area hilly, building roads, power lines and other infrastructure is costly, and many hill areas are hard to reach.
2. Poor connectivity. The state depends on a few surface routes to the rest of India; goods and inputs travel long distances, which raises prices and discourages industry.
3. Limited industrialisation and a narrow revenue base. Little large industry means limited employment outside agriculture, government and crafts, and limited own-tax revenue — deepening dependence on the Centre.
4. Insurgency and law-and-order problems. Parts of the state have been affected by insurgency and unrest over many years, disrupting development work, discouraging private investment and diverting resources.
5. Dependence on central transfers. Because own-revenue is small, a large part of plan and non-plan spending is financed from the Centre — which is why Manipur, as a North Eastern state, receives special assistance. …
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