The ethnic conflict in Manipur has hit the state's economy hard, according to a Naga People’s Front (NPF) member and MLA from Ukhrul. The unrest, which began in 2023, has disrupted crucial road infrastructure and stalled development projects in the hill districts, worsening the plight of local residents.
Muivah, a former Indian Administrative Service officer, pointed out the severe impact of poor connectivity and frequent blockades on major highways. In conflict-hit areas, the cost of an LPG cylinder has soared to ₹5,000, highlighting the economic pressure on ordinary people. The NPF, allied with the ruling Bharatiya Janata Party (BJP) in Manipur, has been pushing for a power-sharing agreement among the state's Meitei, Kuki-Zo, and Naga communities.
“In the hill districts, there isn’t a single Central institute. Everything is in the valley, ” Muivah said. He stressed that without compromise and real autonomy, tribal discontent will continue. Though the Nagas and Kukis have Scheduled Tribes status in Manipur, Muivah noted they lack the protections of the Sixth Schedule, fueling their demands for more autonomy.
Muivah said both Chief Minister Yumnam Khemchand Singh and his predecessor N. Biren Singh have suppressed tribal concerns. “We are told to raise the issues in private and not in the Assembly, ” he said. This has left many issues unresolved, worsening the situation.
He highlighted the suffering caused by highway blockades during the conflict. “Development works have stopped because construction materials cannot be transported. Water supply projects have halted because pipes cannot be moved, ” he said. He called blocking highways “illegal” and “counterproductive, ” saying it harms all communities.
In Ukhrul and other hill districts, road conditions have worsened dramatically. Muivah claimed no road repairs or upgrades have been made since the conflict began, stating, “There is not a single kilometre of smooth road in the entire district.” Poor roads now hinder economic activity and services.
Development spending has largely been limited to routine expenses like salaries, with major projects needed for economic recovery stalled. Manipur's GST growth has fallen and inflation has risen, complicating the economic situation.
Unlike other northeastern states such as Sikkim, which have attracted private investment, Manipur struggles with perceptions of instability and poor law and order. “How will investors come when there is violence?” Muivah asked, stressing that the state can't rely only on government jobs for economic growth.
The lack of peace and ongoing security issues have blocked Manipur's investment potential, despite its strategic location. Extortion is widespread, and Muivah acknowledged it as a fact of life in Manipur and Nagaland. “The law and order is not good in Manipur... We should be inviting private investors, without which the State cannot develop, ” he said, noting that government job creation is maxed out.
The state government has asked for a special economic package from the central government to help rebuild Manipur’s economy after years of disruption. But it's unclear when help might arrive. “The biggest priority is peace, ” Muivah said. “Without peace, there can be no development, no investment, and no future economic growth.”
