MIZORAM April 2010 MIZORAM April 2010
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MIZORAM April 2010 MIZORAM April 2010 Investment climate of a state is determined by a mix of factors • Skilled and cost-effective labour • Procedures for entry and exit of firms • Labour market flexibility • Industrial regulation, labour regulation, other • Labour relations government regulations • Availability of raw materials and natural • Certainty about rules and regulations resources • Security, law and order situation Regulatory framework Resources/Inputs Investment climate of a state Incentives to industry Physical and social infrastructure • Condition of physical infrastructure such as • Tax incentives and exemptions power, water, roads, etc. • Investment subsidies and other incentives • Information infrastructure such as • Availability of finance at cost-effective terms telecom, IT, etc. • Incentives for foreign direct investment (FDI) • Social infrastructure such as educational and • Profitability of the industry medical facilities 2 MIZORAM April 2010 Contents Advantage Mizoram State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Mizoram 3 ADVANTAGE MIZORAM Mizoram April 2010 Mizoram – State profile • Covering an area of 21,081 sq km, Mizoram is a green and hilly state at an average altitude of 1,000 m in the Northeast of India. • Mizoram has eight administrative districts. It shares borders with other Northeastern states of Manipur and Tripura, and international borders with Bangladesh and Myanmar. • The major rivers flowing through Mizoram are Chhimtuipui, Tlawng, Tut, Tuirial, and Tu i w v a l , the major lakes are Palakdil, Tamdil, Rungdil, and Rengdil. • Mizoram has primarily sand-loamy and clay-loamy soil with deposits of shell limestone, coloured hard stone, clay mineral, coal seam and some oil and gas. • Aizawl is the state capital. Kolasib, Vairengte, Bairabi, Saiha, Champai and Sairang are the other key cities in the state. • The most commonly spoken language of the state are Mizo and English, apart from the various local dialects. Source: Maps of India 4 ADVANTAGE MIZORAM Mizoram April 2010 Advantage Mizoram … (1/2) Abundant natural resources Mizoram contributes14 per cent to the country’s bamboo production, the climate is ideal for setting up agricultural and forestry produce based industries. It offers immense potential for commercial exploitation of the natural resources for export oriented industries. International trade opportunities Bordering Myanmar and Bangladesh, Mizoram offers a gateway for engaging in international trade with the Southeast Asian countries Policies and incentives Central and State Government provide incentives and concessions for establishing industries in the area. Special incentives for promotion of export oriented industries and other thrust sectors are also provided. Source: Maps of India 5 ADVANTAGE MIZORAM Mizoram April 2010 Advantage Mizoram … (2/2) Availability of skilled labour With a literacy rate of 88.8 per cent, Mizoram offers a highly literate workforce. Knowledge of English is an added advantage of the Mizo workforce. Improving infrastructure and connectivity With improving road, rail and air connectivity and the establishment of trade routes with neighbouring countries, trade facilitation has improved significantly over the last decade. Source: Maps of India 6 ADVANTAGE MIZORAM Mizoram April 2010 Mizoram in figures Parameter Mizoram All-states Source Economy GSDP as percentage of all states’ 0.1 100.0 CMIE, as of 2006-07 GSDP Average GSDP growth rate (%) 10.0 7.5 CMIE, 1999-2000 to 2007-08 Per capita GSDP (US$) 739.5 998.1 CMIE, 2007-08 Physical Infrastructure Central Electricity Authority, as of March Installed power capacity (MW) 69.3 98,996.4 2009 2007-08, National highway length (km) 927 70,548.0 Ministry of Road Transport & Highways Airports (No) 1 133 Industry sources Social Indicators Literacy rate (census 2001) 88.49 65.38 Statistical Handbook, 2008 Mizoram figures from Statistical Handbook, 2008 Birth Rate 21.6* 23.1 All states figure from National Health Profile, 2008 *Per thousand persons 7 ADVANTAGE MIZORAM Mizoram April 2010 Industries in Mizoram with policy thrust and factor advantages Industry attractiveness matrix High Bamboo Agriculture Tourism and IT horticulture Medium Food processing Energy Sericulture Policy thrust Policy Handloom Low Medium High Factor advantage *Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital 8 MIZORAM April 2010 Contents Advantage Mizoram State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Mizoram 9 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Mizoram April 2010 Socio-economic snapshot of Mizoram Parameters Mizoram Capital Aizawl Geographical area (sq km) 21,081 Administrative districts (No) 8 Population density (persons per sq km) 42 Total population (million) 0.87 Male population (million) 0.45 Female population (million) 0.42 Population growth rate 1991-2001 (%) 28.8 Sex ratio (females per 1,000 males) 935 Literacy rate (%) 88.8 Male (%) 90.7 Female (%) 86.7 Sources: Economic Survey of Mizoram, 2007-08, Directorate of Economics and Statistics, Government of India 10 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Mizoram April 2010 Mizoram’s GSDP • At current prices, the Gross State Domestic Mizoram’s GSDP Product (GSDP) of Mizoram was about US$ (US$ million) 796.2 million in 2008-09. 2008-09 796.2 2007-08 822.1 • Mizoram’s GSDP grew at a CAGR of 10 per 2006-07 663.3 cent between 1999-2000 and 2008-09. 2005-06 613.7 2004-05 547.1 `2003-04 506.3 CAGR 2002-03 447.9 10% 2001-02 408.1 2000-01 379.7 1999-00 357.7 0.0 200.0 400.0 600.0 800.0 1000.0 Source: CMIE 11 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Mizoram April 2010 Mizoram’s NSDP • At current prices, the Net State Domestic Mizoram’s NSDP Product (NSDP) of Mizoram was about US$ (US$ million) 692.3 million in 2008-09. 2008-09 692.3 2007-08 718.1 • Mizoram’s NSDP grew at a CAGR of 9.5 per 2006-07 582.0 cent between 1999-2000 and 2008-09. 2005-06 540.8 2004-05 486.2 `2003-04 453.7 CAGR 2002-03 399.7 9.5% 2001-02 367.3 2000-01 342.5 1999-00 325.3 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 Source: CMIE 12 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Mizoram April 2010 Mizoram’s economy is driven by the secondary and tertiary sectors • At a nine-year CAGR of 7.9 per cent, the Percentage distribution of GSDP secondary sector is the fastest growing among all 100 sectors, driven by manufacturing and electricity. CAGR 80 • The tertiary sector, the largest contributor to 5.8% 71.4 Mizoram’s economy, has grown at a rate of 5.8 per 60 78.2 cent per annum during 1999-2000 and 2008- 09, driven by trade, hotels, real estate, transport 40 7.9% and communications. 1.8 20 2.4 26.8 1% • The primary sector’s share in the GSDP shows 19.4 growth of one per cent per annum during 1999- 0 2000 to 2008-09. 1999-00 2008-09 Primary Sector Secondary Sector Tertiary Sector Source: CMIE 13 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Mizoram April 2010 Per capita GSDP • In 2008-09, the state’s per capita GSDP Per capita GSDP 900.0 was US$ 739.5. 783.1 800.0 739.5 700.0 648.1 • Per capita GSDP increased by a CAGR of 615.0 600.0 533.7 562.3 6.5 per cent between 1999-2000 and 2008- 452.6 484.2 09. 500.0 417.3 431.9 400.0 300.0 (US$) • Aizawl, Kolasib, Champai and Lungei are 200.0 the most economically developed districts 100.0 in the state. 0.0 • Trade , tourism, communications and agriculture are the key drivers of the increase in per capita GSDP. Source: CMIE 14 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Mizoram April 2010 Key industries in Mizoram • The natural resources, climatic conditions, policy Key industries in Mizoram incentives in the state support investments in bamboo, sericulture, tourism, and agro-products Bamboo and processing sectors. Sericulture Agriculture and horticulture • Zoram Industrial Development Corporation is responsible for the development of industrial Tourism infrastructure in the state. Food processing Khadi and handloom • Mizoram is setting up an SEZ in the Northeast with assistance from the North East Council. The SEZ Minerals and stones will be located at Khawnaum village in Champai bordering Myanmar. Bamboo-based industries would play a major role in the proposed SEZ. • Mizoram has two industrial estates at Zuagtui and Kolasib. Food processing, handloom, wood based and metal products constitute more than 60 per cent of the small scale units in the industrial estates. 15 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Mizoram April 2010 Orange, banana, passion fruit, anthurium and rose are the key horticultural products • Mizoram accounts for 12 per cent of the total fruits Horticultural crop Annual production produced in the Northeast. (million tonnes) Orange 41,567 • The horticultural crop yields have consistently increased over the years. Banana 151,519 Passion Fruit 44,720 • Bamboo cultivation is an area that is now being Arecanut 4,451 commercialised. Ginger 57,010 Bideye chilies 200 • Horticultural, agro-processed and bamboo products Turmeric 83,500 have high export potential. Chowchow 26,418 Anthurium* 7,194,000 • With only 38,000 hectares (ha) of the 631,000 ha under horticulture, the state offers immense potential Rose* 2,014,560 for development and investment in the sector. * Production in numbers Source: Mizoram Economic Review, 2007-08 16 MIZORAM April 2010 Mizoram April 2010 Contents Advantage Mizoram State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Mizoram 17 INFRASTRUCTURE STATUS Mizoram April 2010 Roads, railways and airports • Mizoram has a total road length of 7,591.9 km with Road type Length (km) a road density of 36 km per100 sq km.