If you are willing and obedient, you shall eat the good of the land

Isaiah 1:19 (KJ)

MIZORAM ECONOMIC SURVEY 2014 – 15

Government of Planning & Programme Implementation Department (Research & Development Branch)

CONTENTS

A. OVERVIEW, ISSUES AND PRIORITIES ...... i B. ACRONYMS...... vii I. OVERVIEW OF INDIAN ECONOMY ...... 1 II. OVERVIEW OF MIZORAM ECONOMY ...... 3 III. STATE FINANCE ...... 8 IV. STATE PLAN ...... 16 V. EMPLOYMENT & LABOUR WELFARE ...... 22 VI. PRICE AND PUBLIC DISTRIBUTION ...... 27 VII. POPULATION ...... 30 VIII. AGRICULTURE AND ALLIED ...... 32 AGRICULTURE ...... 32 MINOR IRRIGATION ...... 42 HORTICULTURE ...... 45 LIVESTOCK & VETERINARY ...... 53 FISHERIES ...... 57 FOREST ...... 61 SOIL & WATER CONSERVATION ...... 66 TRADE & COMMERCE ...... 69 IX. INFRASTRUCTURE ...... 72 POWER & ELECTRICITY ...... 72 ROADS ...... 77 ROAD TRANSPORT ...... 85 POSTAL SERVICE ...... 88 TELECOMMUNICATION ...... 89 X. FINANCIAL AND BANKING INSTITUTION ...... 90 XI. INDUSTRIES ...... 92 INDUSTRY ...... 92 SERICULTURE ...... 99 TOURISM ...... 102 XII. SOCIAL AND SERVICE SECTOR ...... 104 SCHOOL EDUCATION ...... 104 HEALTH & FAMILY WELFARE ...... 110 HOSPITAL & MEDICAL EDUCATION ...... 117 WATER SUPPLY AND SANITATION ...... 124 SOCIAL WELFARE ...... 126 COOPERATION ...... 132 SPORTS & YOUTH SERVICES ...... 139 XIII. RURAL AND URBAN DEVELOPMENT ...... 143 RURAL DEVELOPMENT ...... 143 URBAN DEVELOPMENT & POVERTY ALLEVIATION ...... 151 XIV. NEW LAND USE POLICY (NLUP) ...... 166 XV. LIST OF ANNEXURES ...... 172

……. i

A. OVERVIEW, ISSUES AND PRIORITIES

Growth Sectoral Performance

The State economy is poised to Services or Tertiary Sector growth at an impressive rate of 8.46 % dominates the economy in terms of during 2014-15 with base year 2004-05, contribution to the Gross State Domestic which is significantly higher than projected Product (GSDP) at 57.68% of the total national growth at 7.4% during 2014-15 GSDP (2013-14). Services Sector has been with base year 2011-12. growth drivers of the economy for the past years with contribution to the GSDP On January 30, the Central hovering between 57% to 63%. Statistics Office released a new GDP series that entailed shifting the base year from The Primary Sector comprising 2004-05 to 2011-12. New estimates for agriculture & allied activities contributed GDP have been provided for the years 16.26% (2013-2014) to the GSDP. With 2011-12 to 2014-15 at national level and livelihood of about 60% of the population State data with 2011-12 is not available. depending on agriculture and allied The State economic growth estimates is actitivities, faster growth in agriculture is expected to be even higher with revised both a necessary and sufficient condition base year. for stronger, sustainable and inclusive growth in the State. Provisional per capita income during 2012-2013 is Rs. 63413.00 as The Industry Sector contributed against previous year‘s estimate of 26.05% of GSDP during 2013-2014. The Rs.53624. Per capita income at the main driving force of the sector is national level is Rs. 71593.00 against the Construction Sector with a contribution of previous year‘s estimate of Rs. 64316.00. 21.91% to the GSDP in 2013-2014.

The growth performance of the Inflation State economy has been quite commendable as the economy has to go The Annual inflation rate through challenging times amidst partial (Provisional as of December 2014) on point policy paralysis at the Centre due to Lok to point basis (December 2014 over Sabha election and subsequent change in December 2013) in Mizoram is 3.82 % Government that has been severely against the all inflation rate of 5.00 hindering funds flow from the Centre to the %, significantly lower than the all India State. Moreover, the State Government has average. also been initiating slew of economic reform measures including Government‘s As compared to corresponding efforts to remain steadfast in the pursuit of period last year, the all India annual fiscal consolidation, downsizing of inflation rate significantly decreases from Government, other economy measures. the previous year‘s level at 9.87 %. In the case of Mizoram, the decline in inflation Evidently, continued hard work and rate is even higher from the previous year‘s sound economic management including rate of 11.67 %. Moderation in the rate of consistent efforts and persistent pro-growth inflation from double digit to about 4% rate initiatives of the stable Government in the is expected to bring about a more stable State has yielded such an impressive economy for inclusive growth in the State. growth outcomes.

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Demographic Dividend The State Government is expected to have the much needed policy and fiscal Another reason for optimism in the space in the coming years by way of State economy is demographic dividend – enhanced State shares of taxes in the the dependency ratio in the State, as Fourteenth Finance Commission (FFC) measured by the share of the young and the Award. FFC has also enlarged the scope of elderly as a fraction of the population. As development programme by sharing the per Union Economic Survey 2014-15, share onus between Centre and States, and re- of 60 and above age group in the Mizoram designing many of the centrally sponsored population as per 2011 census is only schemes. Moreover, the Central 6.25%. This means that share of 0-59 age Government had set in motion the group in the total population is as high as institutional changes necessary for 93.75% in the State. implementing co-operative federalism by way of replacing Planning Commission This implies high productive age with National Institute for Transforming groups in the State. More working age India (NITI). people will mean more workers, especially in the productive age groups, more NLUP incomes, more savings, more capital per worker, and more growth. Also, what is The State Government is continuing evident in the State is that the transition efforts for achieving the objective of period has been accompanied by greater inclusive growth through flagship female participation in the labour force. programme, the New Land Use Policy (NLUP), in a strategically planned manner. However, we would need to create The programme continues to create significant number of productive jobs in the sustainable and profitable livelihood and economy to properly reap the benefit of also positively impacting environmental demographic dividend in the State. sustainability, poverty reduction, gender balance and improving rural economy. Fiscal Condition As per the midterm assessment, The State Government continues to NLUP has contributed to the state‘s largely depend on devolution from the economy with the annual food grain Central Government, as such the State‘s production having been increased by 19.07 fiscal health depends on the terms of percent along with the continuously devolution of resources from the Central declining areas under Jhum cultivation by Government as recommended by the more than 10.36 percent per year (Project successive Finance Commission from time Progress Report: 2012) supplemented by a to time. At the same time, the revenue and remarkable expansion in the infrastructure expenditure policy of the State Government undertaken according to the project‘s also have substantial impact on the fiscal convergence plan with CSS. Commendable position of the State government, especially success has been achieved and some of the the expenditure policy. success stories are highlighted below:

It is estimated that the Gross Fiscal Agriculture: Under the NLUP, area Deficit during 2014-15 would be Rs.586.67 under Wet Rice Cultivation has been crore which is 5.98 per cent of the GSDP extended by 4040 Ha or 33% by March projected for the year, with public debt 2014. Rice production has increased by estimated at about 57.64 % (BE 2014-15). 27.43%. Moreover, due to switching over of alternative livelihood activities, Jhum

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iii area has been reduced significantly. Area gone up by 75% as compared to pre- under Oil Palm cultivation has gone up by commencement of NLUP. 2750 Ha or 15.60%. Farm mechanization has been taken up due to convergence of Sericulture: Production of RKVY & MMA with NLUP resulting in mulberry-based silkworm trade was taken busting up of rice production and up under Sericulture Department. 2208 productivity in Mizoram, and 625 Kms of families have been covered. In 2009-10, agriculture link road has been constructed. production of seed was below 5% of the demand. Self-sufficiency in seed Animal Husbandry & Veterinary: production has been achieve by 2013-14 Milk production has gone up by 22% in 4 i.e. 8 lakh dfls per year. Demand for about years time. Three milk processing units 3000 silkworm-rearers has also been met. have been set up and one existing milk Cocoon production has gone up by 40%. processing unit at Thuampui, was upgraded to increase production capacity Urban Development & Poverty by 25%. Production of animal feed has Alleviation: 10 trades including automobile gone up by 150% compared to 2010-11. repairing, beauty parlour, desktop Production of egg has gone up by 11.31 publishing, electronic repair, Video & lakh number or 3.2%. Meat production has Photography, etc. are implemented under gone up by 25.66%. UD & PA. 3108 beneficiaries have been covered so far. As per assessment of the Fisheries: About 1644.5 hectare of department, 28% beneficiaries have water has been benefiting 3289 jhumia increased their income 2 to 3 times. 67% of families. Productivity has gone up from beneficiaries have depended fully on their about 1500 Kg per hectare to 2500 Kg per income for their livelihood. Most of the hectare, leading to increase of fish beneficiaries who earn their livelihood as production in the state by 17%. Income of casual labour are promoted to self- the fish farmers have increased by 75% to supported family. 150% per annum. Per capita consumption of fish has gone up contributing to Issues and Priorities improvement in nutrition intake. The defining challenge in Mizoram Soil & Water Conservation: There today is that of generating productive was no functional rubber nursery in employment and inclusive growth. Mizoram till 2009-10. Under NLUP six numbers of Rubber seedling nurseries were As regards employment, created with annual production capacity of Government contributes much of the 2.5 lakh rubber seedlings and saplings. formal sector in the State. However, During the first two years of considering the already oversized public implementation of NLUP production of sector in the State, there would not be any Rubber seedlings/saplings was nil. future scope for creating more jobs in Production of planting materials in 2013-14 public sector. Creating an environment and 2014-15 is 24.30% and 77.92% of the conducive for private sector investment in demand respectively. Self-sufficiency is the State may be one of the top priorities of expected in 2015-16. Under Broom the Government. Stable Government in the cultivation value of broom stick production State coupled with demographic dividend has gone up from Rs. 37 lakhs in 2009-10 supported by favourable human to Rs. 14.26 crore by 2013-14. Increase in development condition in the economy the income of broom grass farmers have could appropriately provide impetus.

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Nearly three-quarters of families The demographic dividend in depend on agriculture and allied incomes. Mizoram could be properly exploited Agriculture and allied sector activities are through appropriate skills development heavily concentrated in rural areas, and mission and initiatives in the State. majority of the poor in Mizoram are found Government Skills Mission needs to be in rural areas. Moreover, our food security streamlined and should be undertaken by depends on producing foodgrains, as well Departments in a coordinated manner. The as increasing its production of fruits, Government may also take advantage of the vegetable and milk to meet the demands of newly launched National Skills raising middle income population. To do Qualification Framework to revamp so, a productive, competitive, diversified education and training in the State. In this and sustainable agricultural sector will need regard, appropriate policy or action plan for to be emerged at an accelerated pace. the State Government may be formulated Therefore, faster growth in agriculture and keeping in view the National Skills allied sector is both a necessary and Qualification Framework. sufficient condition for stronger and inclusive growth for poverty alleviation in The growth agenda of the State the State. In this regard, the State flagship Government has been tethered towards programme New Land Use Policy (NLUP) addressing the above challenges and which is aiming at reducing poverty priorities. through socially inclusive strategy for enhancing productivity of agriculture and A new ‗planning‘ and ‗monitoring‘ allied sector has seen to have been process ―Approach to Developing achieving commendable success even now Growth Strategies for Mizoram‖ and it is further expected to have larger developed by Mizoram State Planning favorable impact for stronger and inclusive Board under the Chairmanship of Hon‘ble growth of the economy in the medium to Chief Minister, has been discussed and longer period. approved by Council of Ministers in their meeting on 18th February 2015. Public finances need to be put on a sustainable path. The State needs a sharp The new approach will attempt to fiscal correction. The State Government develop ‗Comprehensive Growth Strategies may take advantage of expected fiscal for Mizoram‘ with a process that will be space to be provided by Fourteenth Finance anchored in a robust analytical framework Commission Award from 2015-16 financial based on gap analysis or growth diagnostic, year onward and undertake bold developed in accordance with levels of expenditure reforms comprising of three ambition that would guide the reform elements: (i) significantly reducing subsidy agenda and pro-growth policy for each spending and shifting the subsidy Departments, and based on enhanced programme to income support or providing collaboration among Departments in the incentives for productive activitites; (ii) State Government. Comprehensive Growth improving quality of expenditure with a Strategies will spell out concrete Action change in the focus of government Plans for key Departments with an aim to spending towards provision of critical address major drawbacks in the State public infrastructure or creating public Economy that is hindering the growth and value for inclusive growth; and (iii) development process. instituting accountability system through a focus on outcomes or impact on the economy.

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Sectoral Surveillance: To facilitate on economy, better outcomes and growth diagnostic process, Sectoral sustainability of projects. Surveillance mechanism has been instituted under the Chairmanship of Vice Chairman, Moreover, another important Mizoram State Planning Board. The main component of ―Approach to Developing aim of Sectoral Surveillance is to monitor Comprehensive Growth Stategies for sectoral performances in the economy to Mizoram‖ will bring about ‗data identify gaps that are hindering economic revolution‘ in the State with an aim to growth, and to review performance of each ensure production of reliable data and sectors and Departments vis-à-vis their accurate statistics to help Government track contribution to growth in the State progress, to make sure that policy decisions Economy. The Sectoral Surveillance will are informed and evidence based, and also render advice to align Departments policy to strengthen accountability. In this regard, and activities towards effective the Government (Economics and Statistics implementation of pro-Growth Strategies Department) is currently working on to and formulate Action Plans, and address develop data submission, data quality and coordination issues among various data dissemination standards for the State. Departments. Restructuring of Planning Monitoring and Surveillance: The Department: To support the new ‗planning‘ Government has also strengthened and ‗monitoring‘ process adopted by the Monitoring and Surveillance mechanism State Government, Research and with participation of all implementing Development Branch of the Planning and Departments. High Level Monitoring and Programme Implementation Department Surveillance Committee has been has been appropriately reconstructed into constituted to conduct quarterly review and four divisions: (i) Research and Analysis monitoring of implementation progress of Division (the Division will provide all Development projects, schemes and secretarial assistance to Sectoral programmes: (i) High Level Monitoring Surveillance); (ii) Project Monitoring and Surveillance Committee I under the Division (the Division will provide Chairmanship of Hon‘ble Chief Minister / secretarial assistance to High Level Alternate Chair Hon‘ble Minister Monitoring and Surveillance Committee I (planning) for projects, schemes and and II as well as Monitoring and prorames costing Rs 50 crore and above; Surveillance Committee); and (iv) (ii) High Level Monitoring and Establishment and Coordination Division. Surveillance Committee II under the Chairmanship of the Chief Secretary for projects, schemes and programmes below Rs 50 crore. Monitoring and Surveillance Committee to undertake monthly review and monitor implementation progress under the Chairmanship of Planning Secretary with experts members drawing from various Departments.

Approach to Developing Comprehensive Growth Strategies for Mizoram also includes broad guidelines for development projects, preparation and selection to ensure quality, size, and impact

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Major Recommendation of Fourteenth Centrally Sponsored Schemes (CSS) Finance Commission (FFC) The Union Budget 2015 -16 delinked 8 CSS FFC radically enhanced the share of the states from support of the Centre, 31 schemes will in the central divisible pool from the current now be fully sponsored by Union Government 32 percent (Thirteenth Finance Commission/ and 24 will be run with changed sharing TFC) to 42 percent. pattern.

FFC has applied a new horizontal formula for Delinked Schemes: (i) NEGAP; (ii) BRGF; (iii) determining states’ share with changes both Modernisation of Police Forces; (iv) RGPSA; (v) in the variables included/excluded as well as Export Infrastructure; (vi) 6000 model schools; the weights assigned to them: (i) Population – (vii) National Mission on Food processing; and 1971 with weight 17.5%; (ii) Population – (viii) Tourist Infrastructure 2011 with weight 10%; (iii) Fiscal Capacity / Income Distance with weight 50%; (iv) Area Fully Sponsored: (1) MGNREGA; (2) MSDP; (3) with weights 15%; Forest Cover with weight Scholarship schemes (SC,ST, OBC); (4) Pre-

7.5%. Matric Scho for children of unclean

occupation; (5) Machinery for PCRA and PAA;

Mizoram inter-se share of taxes increased (6) Programme for Person with Disabilities; (7) from 0.269% in TFC to 0.460% in FFC. Education for Minorities; (8) Umbrella

Accordingly, Mizoram share in services tax Schemes for education of ST children; (9) also increased to 0.464% in FFC from 0.273% IGMSY; (10) ICPS; (11) RGSEAG-SABLA; (12) in TFC. National Nutrition Mission; (13) Schems for Protection and Development of Women; (14) Professional tax ceiling raised to Rs 12000 per Proviso I to article 275 (1); (15) Tribal Sub- annum from the exisiting Rs 2500. Plan; (16) SSA (education cess); (17) Mid Day Meal; (18) NEC; (19) Bodoland Council; (20) Grants for Urban Local Bodies only (excluding NSAP; (21) NLCPR; (22) Unorganised Worker other local bodies) and State Disaster Scheme; (23) Teacher Training and Adult Response Fund provided. Education; (24) NADP; (25) MPLADS; (26) PMGSY; (27) Road and Brid