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.