State's economy on deathbed: Prof Chinglen
Source: Chronicle News Service

Imphal, September 07 2023: Disturbances like bandh, blockade, curfew and cease work strike are known to have cost to the tune of Rs 100 crore a day in the state's economy.

Besides, the present conflict between Kuki and Meetei has brought the economy to the deathbed, said Manipur University Economics Professor Dr Chinglen Maisnam.

Talking to The Peoplee's Chronicle in an exclusive interview, Dr Chinglen Maisnam observed that the present humanitarian crisis in the state that has crossed four months has severely affected the economy of the state.

Above the impact on the economy by the crisis itself , the curfew imposed by the government to quell violence as well as bandh, blockade or public curfew orchestrated by the public as part of their movement are also contributing in ailing the economy.

During the Covid-19 lockdown, the estimate impact to the state's GSDP was Rs 13,000 crore.

The state is hardly recovering from the impact of Covid-19 and the present crisis is exacerbating the economy to the tune of Rs 100 crore, especially when there is shutdown either by the government or the agitating public.

Recovering these losses will not be an easy task as several sections of the public, not only the displaced people, are facing severe hardships in making both ends meet.

On top of this, a famine-like situation is in the offing as no agricultural activities could be taken up du to the present unrest situation, he said.

Dr Chinglen further said that with the crisis affecting investment and consumers, it will adversely affect the target to increase the state's GSDP with fiscal liability rising up to 80 per cent approximately.

Without any solution in sight, the state's economy is walking towards total collapse in the absence of a large fiscal or monetary package from the Central government further leading to more chaos.

Considering the impending doom, a high level committee needs to assess the situation and make some recommendations to alleviate the situation.

The economics professor also talked about the risk being faced by e-commerce, digital transaction, education, health, information, tourism, hospitality, travel and financial sector due to prolong internet ban, while quoting a report of Internet Society that mentions financial loss of around 2 billion USD due to internet ban in Punjab and Manipur.

MGNREGS, which covers the entire rural areas of the state, is one of the hardest-hit centrally sponsored schemes either directly or indirectly by the internet ban.

The total loss the state suffers during the four months of crisis is estimated to be around Rs 10,000 crore.

Considering reports that suggest loss of Rs 2.5 crore per hour by internet ban, the actual loss the state suffers would be much larger, he contended.

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