NE states lagging amid national gains
Source: Chronicle News Service

Imphal, February 01 2025: The Economic Survey Report 2024-25 has revealed stark disparities in industrial growth across Indian states, with Manipur and other north-eastern states (excluding Assam and Sikkim) contributing only 0.7 per cent to the national industrial Gross Value Added (GVA) .

In contrast, states like Gujarat, Maharashtra, Karnataka, and Tamil Nadu alone account for 43 per-cent of the industrial GVA.

While India's overall manufacturing and industrial sector has shown strong positive trends, the Northeast continues to struggle due to limited industrialisation, connectivity gaps, and lower capital investment.

According to the report, Manipur has one of the lowest contributions to India s industrial GVA, with absence of large-scale manufacturing units and limited infrastructure development.

Similarly, other Northeast states excluding Assam and Sikkim contribute less than 1 per cent to India's total industrial output.

Experts highlight logistical challenges, weak supply chains, and limited market access as key barriers to industrial growth in the region.

The Business Reform Action Plan (BRAP) has identified critical gaps in ease of doing business, affecting investment flow to the Northeast.

India's industrial sector contributes 33.2 per cent to the national GVA, with the manufacturing sector alone accounting for 19 per cent.

However, the Northeast's industrial sector falls significantly below the national average, making it one of the least industrialised regions.

In contrast, leading states like Gujarat, Tamil Nadu, and Maharashtra have well-developed industrial ecosystems, benefiting from strong infrastructure, skilled workforce, and business-friendly policies.

The steel, cement, and electronics sectors have seen strong growth nationwide, driven by public infrastructure projects and government incentives.

Despite regional disparities, India's industrial sector continues to expand, with several positive trends driving national growth.

The country has increased its global share in manufacturing, with opportunities to scale further.

Infrastructure projects have fuelled steady demand for core industries like steel and cement.

Domestic electronics production has risen significantly, reducing import dependency.

The Udyam Registration Portal has facilitated the formalisation of micro and small enterprises, benefiting states across the country.

India ranks 6th globally in patent filings, reflecting increased investment in research-driven industries.

While India's overall industrial sector is progressing, the Northeast requires urgent policy interventions to attract investment and boost industrial growth.

The report suggests improving connectivity, enhancing ease of doing business, and fostering local entrepreneurship to unlock the region's economic potential.

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