abode of clouds

Introduction to Meghalaya Economy

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Introduction to Meghalaya Economy

About Meghalaya:

Meghalaya, the Abode of Clouds, is a state in the Northeast region of India. The state has a total area of 22,429 sq km and about one third of the state is under mountain forest cover. Meghalaya has a total population of 29,66,889, as per the 2011 census. Shillong is the capital of Meghalaya. The state is surrounded by Assam to its north and Bangladesh to its south.

Meghalaya lies in the Northeastern part of India. The fact remains that a major part of the border of the state is situated on the north and eastern part of Assam. The south and west part are with Bangladesh. It is possible to consider Meghalaya as the wettest state in the country, experiencing an annual rainfall of 1,200 cm. There are numerous rivers including Ganol, Umiam, Umngot, Umkhem and Damring. Apart from the aforementioned rivers, you can also find a number of other rivers such as Umiam Mawphlang and Khri.

Economy of Meghalaya

The economy of Meghalaya is predominantly agrarian. About two-third of the total population of the state is engaged in allied and agriculture. Although the majority of the population is involved in agriculture as profession, this sector has very low contribution in the GDP of the state. The climatic conditions of the state encourage the cultivation of variety of horticulture crops which includes vegetables, fruits, spices, flowers etc. The state is rich in natural resources and plenty of minerals such as sillimanite, limestone, coal, granite etc. are available in abundance.

Meghalaya, with an average annual rainfall of 1,150 cm, receives the highest amount of rainfall in the country. The diverse range of soil types, including red-loamy and laterite, support various agricultural crops like rice, maize, pulses, oilseeds, cotton, jute and mesta. Meghalaya has a strong floriculture sector and is one of the leading states in the Northeast in terms of production and supply of cut flowers to mainland consumer markets. About 14 per cent (3,108 square kilometres) of Meghalaya is covered by bamboo forests, and the state is one of the leading bamboo producers in the country. The state has achieved success in the cultivation of non-traditional crops like tea, cashew nut, oilseeds, tomato, mushroom, wheat, etc. During 2015-16, the state produced 409.25 thousand tonnes of fruits under an area of 37.14 thousand hectares. Similarly, 88.20 thousand tonnes of spices were produced in the state under an area of 18.20 thousand hectares during 2015-16.

Of the 6,000 medicinal plants in India, 834 plants, including the famous Himalayan Yew, are in Meghalaya. Moreover, the state has eight of the top 20 medicinal plants that are traded in the country and are in high demand.

Meghalaya had an installed hydroelectric power capacity of 356.58 MW as of June 2016, comprising 313.03 MW from state utilities and 197.42 MW from central utilities. Of the total installed power generation capacity, 356.58 MW was contributed by hydropower, 122.84 MW by thermal power, and 31.03 MW by renewable power. The potential for hydropower in the state is estimated to be around 3,000 MW.

Meghalaya, with abundant deposits of coal, limestone, kaolin feldspar, quartz, granite, industrial clay and uranium and a small deposit base of sillimanite, bauxite, base metals and apatite has great industrial potential.

Meghalaya, one of the most picturesque states in the country, has two National Parks and three wildlife sanctuaries. It offers many adventure tourism opportunities like mountaineering, rock climbing, hiking & trekking, water sports, etc.

Agro-processing, horticulture, minerals, tourism, electronics and IT have been identified as thrust sectors for development and promotion. The state provides excellent institutional support through various central and state government agencies, namely North East Council, Ministry of Development of North Eastern Region, and Meghalaya Industrial Development Corporation.

The natural resources, policy incentives and infrastructure in the state favour investments in the tourism, hydroelectric power, manufacturing and mining sectors. Mineral, horticulture, electronics, IT, agro-processing and tourism have been identified as the thrust sectors for industrial development. The state has abundant natural resources, which offer significant avenues for investment. About 14 per cent (3,108 square kilometres) of Meghalaya is covered by bamboo forests and the state is one of the leading bamboo producers in the country.

Key Sectors:

  • Meghalaya is one of the leading north-eastern states in terms of production and supply of cut flowers to mainland consumer markets. The state’s climate, particularly the areas near Shillong in East Khasi hills district, is well suited for cut flower production.
  • Meghalaya is one of the leading producers of bamboo in the country. Bamboo enterprises can be developed from the bamboo reserves and forest cultivations. Natural bamboo forests cover 3,108 square kilometers (14 per cent) of Meghalaya’s total geographical area.
  • Meghalaya has a climate that supports agricultural and horticultural activities. The state offers potential for investment in these areas.
  • As of June 2016, the state had an installed hydroelectric power capacity of 356.58 MW. The state utilities accounted for a share of 79 per cent in total installed capacity and the remaining is contributed by the central sector. Hydroelectric power projects with a total capacity of 687 MW have been proposed to be set up in Meghalaya. All these projects are projected to be operational by 2016-17.
  • Meghalaya is richly endowed with flora, fauna, thick forests, ancient forest groves, large rivers and grass fields – making it an attractive tourism destination.
  • Meghalaya has an established tradition of high-quality weaving. Around 15,900 families are involved in handloom activities in the state. There are eight handloom production centres, 24 handloom demonstration-cum-production centres, 24 weaving training centres and a state-level handloom training institute (Mendipathar, East Garo Hills) in the state.

Geographical location of Meghalaya

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Geographical location of Meghalaya

The state of Meghalaya (the abode of clouds) is geographically known as the “Meghalaya Plateau” or the “Shillong Plateau”. The area is made of the oldest rock-formations. Meghalaya consists of the Garo, Khasi and Jaintia hills along with their outliers formed by the Assam ranges. It is the detached north-eastern extension of the Peninsular India. Part of it lies buried under the alluvium deposited by the Ganga-Brahmaputra system of rivers. This gap is known as Malda gap (between Raj Mahal hills/Chhota Nagpur and the Shillong Plateau).

Meghalaya Plateau’s elevation varies between 150 meters to 1961 meters above sea level. The Plateau is highly dissected and has irregular terrain in the western and northern side. The southern side is marked by a continuous escarpment with steep slopes. The broken hills and ranges in the north are not of a well defined boundary.

The western part of the plateau or the Garo hills has an elevation of 600m above sea level. The most important relief feature of this part of the plateau is the Tura range with its highest point at Nokrek 1515 meters above sea level. The central and the eastern part of the plateau or the Khasi and the Jaintia hills district play prominent senile topography. This part of the plateau is characterised by the presence of many peneplained surfaces, flat-topped hills and numerous river valleys. The central upland zone is the most important relief feature of the area and covers more than one-third of the area, east of the Garo hills. The highest point of this part of this plateau and that of the entire state is the Shillong peak whose elevation is about 1965m above sea level.Geographical location of Meghalaya

In the Garo hills, the important rivers of the northern system from west to east are the Kalu, Ringgi, Chagua, Ajagar, Didram, Krishnai and Dudnai. Of these only the Krishnai and Kalu are navigable. The important rivers of the southern system are Daring, Sanda, Bandra, Bhogai, Dareng and Simsang. Simsang is the largest river in the Garo hills and navigable only for about 30 Km. other navigable rivers are Nitai and the Bhupai.

In the central and eastern section of the plateau the important northward flowing rivers are Umkhri, Digaru and Umiam and the south-flowing rivers are Kynchiang (Jadukata), Mawpa, Umiew or Barapani, Myngot and Myntdu.

 

Meghalaya Planned Development

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Meghalaya Planned Development

Planned Development: Meaning and Necessity

When Independence came, India had a slender industrial base. Millions of her rural people suffered under the weight of a traditional agrarian structure. A long period of economic stagnation, against the background of increasing pressure of population, followed by the burdens of the Second World War, had weakened the Indian economy, so the states. There was widespread poverty. The partition of the country had uprooted millions of people and dislocated economic life. Productivity in agriculture and industry stood at a low level. In relation to needs the available domestic savings were altogether meagre. The promise of freedom could only be redeemed if the economic foundations were greatly strengthened. The Constitution established equal rights of citizenship, and these had now to be expressed through rising levels of living and greater opportunities for the bulk of the people. It was essential to rebuild the rural economy, to lay the foundation of industrial and scientific progress, and to expand education and other social services. These called for planning on a national scale, encompassing all aspects of economic and social life, for efforts to mobilise resources, to determine priorities and goals and to create a widespread outlook of change and technological progress. Thus, planned development was the means for securing with the utmost speed possible, a high rate of growth, reconstructing the institutions of economic and social life and harnessing the energies of the people to the tasks of national development.

To provide the good life to the four hundred million people of India and more is a vast undertaking, and the achievement of this goal is far off. But no lesser goal can be kept in view, because each present step has to be conditioned by the final objective. Behind the plans that are drawn up is the vision of the future, even as the Indian people had a vision of freedom and independence during the long years of their national struggle, and there is faith and confidence in that future. Fully conscious of existing difficulties the people have also the conviction that these difficulties will be overcome. The experience of the last ten years of planning and the large social and economic changes that have already taken place have brought a conviction that India/State can look forward with assurance to sustained economic progress. Even in this ancient land, for so long governed by tradition, the winds of change are blowing and affecting not only the dweller in the city but also the peasant in his field. At each stage, new conflicts and new challenges arise. They have to be met with courage and confidence. There is an excitement in this changing face of India as the drama of India’s development plans unfolds itself.

The more immediate problem is to combat the curse of poverty, with all the ills that it produces, and it is recognised that this can only be done by social and economic advancement, so as to build up a technologically mature society and a social order which offers equal opportunities to all citizens. This involves basic social and economic changes and the replacing of the old traditional order by a dynamic society. It involves not only the acceptance of the temper and application of science and modern technology, but also far-reaching changes in social customs and institutions. To some extent, recognition of this twofold aspect of change has been present in the Indian mind for generations past. Gradually it has taken more concrete shape and has become the basis for planning.

In the Constitution the basic objectives were set forth as “The Directive Principles of State Policy”. Among those ‘Directive Principles’ were those

“The State shall strive to promote the welfare of the people by securing and protecting, as effectively as it may, a social order in which justice, social, economic and political, shall inform all the institutions of national life”.

Further that—

“The State shall, in particular, direct its policy towards securing—

  • that the citizens, men and women equally, have the right to an adequate means of livelihood;
  • that the ownership and control of the material resources of the community are so distributed as best to sub serve the common good;
  • that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment.”

These general principles were given a more precise direction in December, 1954, when Parliament adopted the ‘socialist pattern of society’ as the objective of social and economic policy. This concept, which embodies the values of socialism and democracy and the approach of planned development, involved no sudden change, and had its roots deep in India’s struggle for freedom.

The leading features of the pattern of development envisaged in the Five Year Plans may be briefly stated. The basic objective is to provide sound foundations for sustained economic growth, for increasing opportunities for gainful employment and improving living standards and working conditions for the masses. In the scheme of development, the first priority necessarily belongs to agriculture; and agricultural production has to be increased to the highest levels feasible. The Five Year Plans provide for a comprehensive and many-sided effort to transform the peasant’s outlook and environment. The growth of agriculture and the development of human resources alike hinge upon the advance made by industry. Not only does industry provide the new tools, but it begins to change the mental outlook of the peasant. There can be no doubt that vast numbers of the peasantry today in India are undergoing this change of outlook as they use new tools and experiment with new methods of agriculture. Even the coming of the bicycle in large numbers to the villages of India is not only a sign of higher standards, but is a symbol of new and changing attitudes. Agriculture and industry must be regarded as integral parts of the same process of development. Through planned development, therefore, the growth of industry has to be speeded and economic progress accelerated. In particular, heavy industries and machine-making industries have to be developed, the public sector expanded and a large and growing cooperative sector built up. The public sector is expected to provide specially for the further development of industries of basic and strategic importance or in the nature of public utility services, other industries being also taken up by Government to the extent necessary. State trading has also to be undertaken on an increasing scale according to the needs of the economy. In brief, in the scheme of development, while making full use of all available agencies, the public sector is expected to grow both absolutely and in comparison and at a faster rate than the private sector.

The meaning of the term Meghalaya refers to ‘abode of clouds’. Meghalaya is one of the seven sister states of India and with Arunachal Pradesh, Assam, Manipur, Mizoram, Nagaland and Tripura, for the north-eastern India. Meghalaya is also known as Meghalaya Plateau.

Listed below are some incredible facts about the fastest growing state, Meghalaya:

  • Meghalaya was created as an autonomous State by virtue of Assam Reorganisation (Meghalaya) Act, 1969 and North East Areas (Reorganisation) Act, 1971
  • Meghalaya has rich deposits of limestone, coal, uranium, etc and has an area spread of 22,429 square kilometres
  • Meghalaya has seen some of the largest downfalls in poverty in India. In Meghalaya, the percentage of population below the poverty line was 17.1 percent in 2009-10 which fell to 11.9 percent in 2011-12
  • Meghalaya has the second-lowest unemployment rate in India, after Gujarat, with 0.4 percent in rural areas and 2.8 percent in urban areas as per the record of 2011-12
  • Mawlynnong in Meghalaya is the cleanest village in India
  • The eight north-eastern states, seven sister states and the eighth being Sikkim, are the fastest growing states in India. According to a research by IndiaSpend, by reducing their dependence on agriculture and allied activities, and increasing the rate of education, the state has been prospering for years

 

 

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