1. An overview of the State

1.1 For purposes of development planning, the State has to be divided into two geographical units i.e. the hills and the valley. The traditional district-wise approach will not be feasible as the districts have been formed more out of political and ethnic considerations rather than their economic viability or particularity. Besides, the area covered by a district in Manipur is very small.

1.2 The valley constitutes about one-tenth of the total geographical area. But more than two-thirds of the population lives here. The Meiteis who settle predominantly in the valley, have a long cultural and political tradition. They form a fairly homogenous people; there is no caste system among them even though a majority of them profess Vaishnavism. They also constitute the majority in the State. Another community in the valley, small in number but economically significant, is the Muslims, known locally as the Meitei Pangals.

1.3 About two dozen tribes are settled in the hills. Anthropologists have broadly classified them under two categories, namely, the Nagas and the Kukis. However, many of the tribes themselves often do not want to be known or classified as such. Unfortunately, in recent times, friendly relations among the tribes is far from the minds of some of the tribal people.

1.4 Agriculture and allied activities provide the backbone to the economy in both the hills and the valley. 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 traditional sources of additional income in the hills.

1.5 The State's share from the power generated by the Loktak Hydel Project is not sufficient to meet even the domestic requirements. Combined with the government apathy, the transport bottleneck and the absence of an indigenous entrepreneur class, it is not surprising that there are no manufacturing and processing industries worth the name in the State.

1.6 The State is heavily dependent on imports from outside for almost all items of everyday need. As such, the reins of the economy are in the hands of the 'outsiders' who have an inherent advantage over the local businessmen in supplying these items. Thus the Manipuri people get little economic benefit out of the Central assistance to the State. The per capita income is much lower than the national average.

1.7 There is a growing army of the educated unemployed, as government jobs are perhaps the only avenue for employment. Seasonal unemployment and underemployment in the rural and hill areas are no less serious. The resultant frustration among the youth is at the root of the massive drug abuse among them and also of the climate of increasing political violence in the State. The breakdown in the maintenance of law and order has now become the biggest disincentive to economic development.

1.8 The State Government is yet to demonstrate the foresight, the ability and perhaps even the sincere willingness to tackle the manifold problems arising out of economic backwardness and bring about rapid economic development in the State. Corruption is almost endemic at all strata of the government apparatus.

2. Problems and Peculiarities

2.1 Any development plan for Manipur has to take into account the crucial role played by women in the economic life in both the hills and the valley. The biggest market in Manipur, the Khwairamband Keithel in Imphal, is entirely a women's market. The phenomenon is more or less the same in countless markets, big and small, which lie scattered in Manipur. A strategy for development which does not address their specific needs and aspirations is bound to fail.

2.2 The average land holding in the valley is very small as the population density is high. The establishment of major industrial units in the valley is more or less ruled out by these factors. On the other hand, there is no effective and proper land-use policy even in the urban centers. Unplanned industrial growth in the future will do more harm than good.

2.3 Except in urban centers where municipal laws are in force, there is generally community ownership of land in the hills. The population density is very low and vast tracts of vacant land are available for development. There are also rich mineral deposits in the hills, particularly along the geological fault line near the Indo-Myanmar border. But community ownership of land creates legal and practical hurdles in exploiting the resources. Moreover, non-tribal people like
the Meiteis are legally barred from owning land in the hills.

2.4 In view of the facts mentioned in paras 2.2 and 2.3, a development strategy for Manipur has to take into consideration this anomalous situation of rich human resources in the valley but without adequate space for development, and vice versa in the hills.

2.5 It is indeed very unusual for anyone in Manipur to get loans from the government or the financial institutions without greasing the palms of some functionaries concerned. And more often than not, the beneficiaries are persons who do not deserve to get the loans in the first place. Of course, the loans usually do not get the intended results. Consequently, the record of loan recovery is extremely poor which, in turn, tarnishes the image of the entire Manipuri people.
Genuine and would-be entrepreneurs are trapped in a vicious circle as the financial institutions are naturally very reluctant to advance further loans.

2.6 It is generally difficult to find a market for local products, except in handloom and food items. This is mainly due to the stranglehold on trade by the 'outsiders'.

3. The prospects

3.1 The creative genius of the people are reflected in their daily life. It may be the clothes, the jewelry, the arts, the music or the dances - one can easily notice in them a collective mind which appreciates beauty and innovation. The most unfortunate aspect of the second-hand development model pursued in Manipur so far is that this talent has been completely ignored. The key to economic development in Manipur lies in finding out the appropriate technology and the appropriate economic activities where this talent can be usefully applied.

3.2 Despite the widespread drug abuse and the consequent notoriety in having the highest per capita concentration of HIV positive cases, the average standard of physical fitness in Manipur is comparatively high. This is reflected in the prowess of the youth in games and sports. This asset has not been adequately tapped for economic development.

3.3 The percentage of literacy in Manipur is higher than the national average. There is sufficient reservoir of trained and skilled manpower for many manufacturing, processing and service industries. Given the right incentives, they can be self-employed in gainful activities.

3.4 The hills are rich not only in mineral deposits but also in a large variety of flora, of which many are rare or have medicinal properties. Almost nothing has been done for their commercial exploitation.

3.5 The opening of the border trade between India and Myanmar and the effect of Myanmar as an ASEAN member, give both a challenge and an opportunity to Manipur. Officially, the border trade does not allow third-country products. However, unofficially, the bulk of the transactions is in those items. At the moment, Manipur is flooded with cheap, and often sub-standard, electronic, electrical and other consumer goods from East and Southeast Asian countries. Such imported items may be replaced without much difficulty by local products provided the quality and the price are reasonable. On the other hand, a few local
produce which are not used or consumed by the people find a profitable
market in Myanmar. Many raw materials required in Manipur may also be
procured from or through Myanmar.

4. Suggested approach

4.1 Very few people in Manipur have heard of the name NEDFi, not to speak of an awareness about its activities and objectives. The first obvious thing to do is popularize NEDFi among the people as an institution which is different in its functioning from other apparently similar institutions. Media professionals may be hired for the purpose.

4.2 In the meanwhile, there is need for the NEDFi to modify its lending and other norms to suit the local conditions. For example, the rate of interest and the minimum loan amount may be lowered.

4.3 Following the publicity campaign, it is suggested that the NEDFi prepare a database on the number and categories of trained manpower available in Manipur. It may begin with data readily available with government and academic institutions. But, to satisfy itself about the actual and current position, the NEDFi may organize one-day workshops at Imphal from time to time for information and motivation to each category of qualified and interested persons. A separate workshop for women may be conducted to ascertain their specific needs.

4.4 The preparation of project reports is daunting even for otherwise qualified persons. When, after the workshops, specific project ideas have been identified according to their feasibility and priority, the NEDFi has to engage the services of qualified NGOs or individuals at Imphal for assistance in the preparation. Alternatively, it may open a branch office.

4.5 Successful implementation of the projects is essential at any time for the entrepreneurs concerned. But the success of the first few projects is perhaps more crucial for the NEDFi in order to establish its bonafides among the people. Hence, the need for extra care in identification, implementation and monitoring in the initial stage.

5.Suggested project ideas

5.1 After a preliminary but wide-ranging survey, the following project ideas are suggested for implementation in the initial stage:

a) Upgradation of technology/modernization in production of traditional handloom items for improvement and standardization in quality

Reason: Weaving is the traditional occupation of women in Manipur and some of the handloom products are exported and earn foreign exchange.

b) Cold storage facility with captive power supply

Reason: Local producers of perishable goods like fish and vegetables are at present compelled to sell at considerable loss in the absence of cold storage facilities in Manipur while, at the same time, government power supply is unreliable

c) Food processing

Reason: Due to favorable climatic and soil conditions, many fruits and a few cash crops grow in abundance. They have not yet been commercially exploited to their full potential. Food processing units using modern technology can function profitably.

d) Readymade garments

Reason: The Manipuris have a general weakness for fashionable dresses and even the neighborhood tailors are adept in designing clothes. Though readymade garments will be new as an industry, there is reasonable chance that, with modern equipment and methods, their natural aptitude can make it a successful venture.

e) Hostels/facilities for overnight stay by women

Reason: Thousands of women go from place to place in Manipur everyday for business. These facilities at suitable locations will go a long way in meeting a pressing social need.

5.2 The following project ideas are suggested for implementation at a
later stage:

a) Assembly of electronic and electrical goods

b) Upgradation of technology in production and marketing assistance for traditional handicrafts

c) Healthcare and medical research facilities

d) Hotels and other tourist facilities

e) Creation of knowledge based employees (IT)

6. Abstract from Business Today “the Best States to Invest in, MANIPUR"

INVESTMENT PROFILE
TOTAL INVESTMENT: Rs. 851 crore
Under implementation: Rs. 254 crore

10 LARGEST PROJECTS
1. NE Frontier Railways; Railway lines - Rs. 800.00 crore
2. National Hydro Power Corp; Hydro-power - Rs. 426.00 crore
3. Government of Manipur; Irrigation - Rs. 150.00 crore
4. State Electricity Deptt.; Thermal Power - Rs. 126.00 crore
5. Government of Manipur; Medical Research - Rs. 90.00 crore
6. Government of Manipur; Irrigation - Rs. 72.95 crore
7. Reliance Telecom; Cellular Phones - Rs. 50.00
8. Government of Manipur; Irrigation - Rs 42.53 crore
9. Government of Manipur; Irrigation - Rs. 18.86 crore
10. Ministry of Transport; Roadways - Rs. 15.00 crore

A Field Report submitted by Oinam Somorendro Meetei for North Eastern
Development Financial Corporation Limited (NEDFi), Guwahati, Assam, India.

*** The author is based in Guwahati, Assam, India.

*** The author can be reached at osmeetei@hotmail.com

*** Permission for republication of this article is awaited. Due to the importance of the said article, ManipurOnline has taken the liberty to republish this article.

*** You may visit http://themanipurpage.tripod.com for further readings.

(Courtesy: The ManipurPage)