The Planning Commission, New Delhi in 10^th Five Year Plan envisigages that instead of achieving more arithmetical economic growth or per capita income, the larger objective of the Plan period is to improve level of consumption of food and other consumer goods, better access to basic social services e.g. education, health, drinking water, sanitation, expansion of economic and social opportunities and better participation of the people in the decision making process.

Keeping the objectives and strategies of the 10^th Five Year Plan in mind the following thrust areas have been identified by the State Planning Board for accelerated growth and over coming the obstacles of the state;

=      Infrastructure (power, road network, communication)

=      Agricultural and allied services (including dairy, pisciculture and irrigation)

=      Services (IT, tourism, health care)

=      Human Resource Development (education, skill development and management)

=      Industrial Development (emphasis on information technology, trade & commerce, handloom and handicrafts, agro-industry and forest based industries)

It is needless to say that the state achieved significant progress in general education and overall literacy with low birth rate, death rate as well as infant mortality rate. The present literacy level in the state is 73.66%, which is higher, then all India level of 65.38% as revealed from the report of Census-2001. Despite its better performances, the state faces problem of poverty and un-employment due to poor employment opportunities particularly in private sector as well as scarcity of cultivable land and potential utilization of the irrigation facilities.

Overall inflation in the country during 2004-05 based on WPI witnessed an increasing trends due to hardening of international prices for petroleum products, coal, iron ore comparing to 2003-04 particularly in 1^st phase and deficient in south-west monsoon, thereafter, remained stable due to favorable supply of agricultural commodities including the vegetables. The real GDP remained for 6.9% in 2004-05 at all India level.

The performance of the state’s economy has been remained impressive despite its geographical isolation, poor infrastructural facilities, low capital formation, stagnant agricultural activities, almost non-existence of industries, poverty and unemployment. The annual average growth rate of Net State Domestic Product at constant prices or in term was 7.21% in 2002-03(provisional), which is impressive.

The state is mostly dependent on the Union Government for drawing its resources. Own tax and non-tax revenues of the state constitute only 15 percent of the total revenue receipts of the state, with the balance devolving as share of central taxes, central grants-in-aid and other grants, central plan assistance, borrowings from the centre, open market, borrowings from the public account.

The liberalisation and reforms of the Indian economy with proclaimed objective to accelerate industrial growth in the country has not given much-needed boost for any industrial growth in this backward state. Infect, the State Government is the main facilitator for any investments in the state. These can be explained from the fact that the state is yet to get any state specific Externally Aided Project (EAP) despite submission of number of projects and repeated persuasion which includes agriculture, forestry, pisiculture, road, education, health, ST welfare, village industries etc.

NSDP

The contribution of manufacturing sector (both organised & un-organised) is only 2.43%of the total NSDP at current prices in 2002-03 (P) which clearly indicates poor industrial scenario in the state. The Industrial Sector is not a major contributor to the state’s economy in terms of production, creation of sizeable additional employment, export etc. On the other hand, the contribution of manufacturing sector (both organized & un-organized) is 13.7% of Net Domestic Product (NDP) at current prices in 2002-03(Q) at all India Level.

Although the over-all trend in the Indian economy was witnessed an increasing trends due to hardening of international prices for petroleum etc. products and deficient in rainfall but performances of industry and service sectors were well and impressive in 2004-05. In 2004-05, performances of the state’s economy has been also remained impressive despite unfavorable weather condition due to heavy rain in June, 2004 damaging the Kharif crops as well as its geographical isolation, poor infrastructural facilities, low capital formation and stagnant agricultural activities, almost non-existence of industrial activity, poverty and un-employment. 

5^th Economic Census

The Quick manual result of 5^th Economic Census conducted by the State Directorate of Economics & Statistics in May-June, 2005 as a part of all India programme shows that there are 1,88,284 enterprises (excluding crop production and plantation) with total estimated employment of 3,79,321 in the state, which was 1,04,427 in 1998. It shows an increase of these enterprises by 80.30% in 2005 over 1998, which is quite impressive.

The Gross State Domestic Product (GSDP) at Current Prices increased from Rs. 1777.23 crore in 1993-94 to Rs. 6004.60 crore in 2001-02 and further to Rs. 6601.07crore in 2002-03 (P). The Net State Domestic Product (NSDP) commonly known as State Income increased from Rs. 1619.27 crore in 1993-94 to Rs. 5558.95 crore in 2001-02 and further to Rs. 6084.80 crore in 2002-03 (R).

The primary sector contributes to 30.83%, secondary sector 17.74% & tertiary sector 51.53% of Net State Domestic Product at current prices as per provitional estimate of 2002-03 (P).

The per capita income at current prices of the state was Rs. 5534/- in 1993-94, which rose to Rs. 17383/- in 2001-2002 and further rose to Rs. 18676/- in 2002-03 (P). On the other hand, per capita national income at current prices in 1993-94 was Rs. 7690/-, which rose to Rs. 17947/- in 2001-2002 and father to Rs. 18912/- 2002-03

The 10^th Five Year Plan of the state is being formulated by providing desired emphasis on seven identified priority sectors of the State Planning Board, which includes agriculture and irrigation, drinking water, housing, road connectivity, education, health care and rural electrification..  The outlay projected by the Planning Commission, New Delhi for the state in 10^th Five Year Plan, 2002-07 is Rs.4500 crores. An amount of Rs. 1730.63 crores was spent during first three years of 10^th Five Year Plan.

The State Budget for 2004-05 envisages expenditure of Rs. 3182.93 crores comprising Rs.2215.70 crores of revenue expenditure and Rs. 967.23 crores of capital expenditure. Expenditure during the year 2004-05 is expected to go up by 12.61% over 2003-04 (AC). The revised estimates for 2004-05 has been fixed at Rs. 725.37 crore against this outlay, the actual plan expenditure has been made Rs.579.11 in 2004-05.

 Economic Development and Opportunities in Tripura

Low availability of infrastructure, as indicated above, has made the process of economic development extremely difficult. The state has the strengthens, which required to be exploited for ensuring sustained economic development. The Northeastern part of the country is close to the South East Asian Region, which has seen rapid economic growth in the last decade in the global economic environment. Development of infrastructure and creation of conditions conducive for economic development are essential for tapping this potential. The promising sectors of the state’s economy are presented below.

a) Land: High rainfall and good soil offer considerable scope for land-based economic activities. Creation of irrigation sources and intensive land utilisation can give a big boost to development of agriculture and allied activities in the state.

Significant area of the state is under fruit and plantation crops. The major crops grown in plantations are tea, cashew, orange, and pineapple. Jackfruit, banana, lemon, coconut and areca nut are largely grown on the homestead. Fruits grow very well in Tripura the quality of jackfruit, orange and pineapple is widely recognised. Favorable agro-climatic conditions hold considerable potentiality for development of agriculture, horticulture, floriculture and other land based activities.

Tripura grows large quantities of vegetables with potato as the major field crop. Yield of potato in Tripura is the highest in the Northeastern region (19665 Kg/hec) and higher than all India average of 18280 Kg/hec. level. Infect, all vegetables grow well in the state.

b) Rubber and tea: Tripura is the second largest producer of natural rubber followed by Kerala. At present, about 23,000 hectares is under natural rubber and it is estimated that about 1,00,000 hectares can be brought under the rubber plantations in the state. Infect, this sector holds considerable potentiality for the development of the state.

Suitable land and climate conditions offer good potential for development of tea industry in the state. Tripura, a traditional tea growing area, has 55 tea gardens covering an area of 6430 hectares with an annual production of 5,500 MT per annum. Tea produces in the state has good blending qualities. Production of bio-tea, which does not have any chemical residue, has been taken up as special venture.

The rubber and tea plantation activities have a special socio-economic significance in rehabilitation of shifting cultivators, i.e Jhum cultivation for the tribals of the state.

c) Natural gas: The estimate of the ONGC reveals that out of a prognosticated reserve of 400 Billions Cubic Meters (BCM), approximately 16 BCM natural gas is recoverable from the state. This gas is available in non-toxic form, with about 94% methane. Availability of natural gas provides scope for setting up units for producing power, chemicals and fertiliser industries in particular.

d) Export: Tripura has 84% of its border common with the neibouring Bangladesh. Promotion of trade with the Bangladesh for exporting of agricultural produces, medicines, cycle parts etc from the across the border. Besides, the trade with the Southeast Asian countries can also boost the economic development of the state.

e) Tourism: Tourism based on wildlife, forest and Hindu/Buddhist religious places have good potential in the state. Presently, promotion of tourist has been affected by inadequate infrastructure. The development of tourism related infrastructure facilities are essential and prerequisite for promotion of tourism in the state.

The state is endowed with vast green forest and scores well in terms of literacy, birth rate and death rate. It can be evident from the fact that the birth rate and death rate as well as literacy rate is well above the national standard. Despite poor financial resources of its own, the state could ensure providing its state share liabilities of almost all the Centrally Sponsored Schemes.

The state’s economy is characterized by high rate of poverty, low per-capita income, low capital formation, in-adequate infrastructure facilities, geographical isolation & communication bottleneck, inadequate exploitation and use of forest & mineral resources, low progress in industrial field and high un-employment problem. 

The industrialisation in the state is yet to take off and industry sector is not able to open employment opportunities despite government’s effort for comprehensive base for industrialization. On the other hand, agriculture sector has become stagnant and not ready to absorb growing demand for employment.

Further, development within the state is also not balanced. The Dhalai district is still remaining the most backward area among the other districts of the state and covered under the Rashtriya Sama Vikas Yojana (RSVY) during 10^th Five Year Plan.