Economy of Meghalaya

The Meghalaya is quite rich in natural resources like coal, uranium and is the only state with surplus power generation. It is also known for the tourism potential. Agriculture is the main stay of the people of Meghalaya and playing a predominant role in the state’s economy. Its climate is not only ideal for the development of tourist and health resorts but also for the growth of a large number of horticultural crops like fruits, spices and mushroom.

Apart from such potential for agro based industries the state also posses rich deposits of limestone, coal and granite. Most of these natural resources are extracted and sent outside the state only in raw form. There are little value addition activities in the state. CMIE index for infrastructure development for Meghalaya is 65 (in 1992-93), the reference point being 100 which is the national average.

The annual compound growth rate of NSDP during the period from 1980-81 to 1996-97 has been worked out at 14.38% at current prices and 4.45% at constant (1980-81) prices. So far as the sectorwise contribution is concerned, it has been observed that between 1980-81 and 1996-97, agriculture exhibited an annual compound growth rate of 11.41% at current prices and 1.68% at constant prices. Similarly the manufacturing sector showed an annual growth rate of 14.53% at current prices and 6.14% at constant (1980-81) prices over the same period. In 1996-97, the contribution of the tertiary sector to the SDP is highest, comprised of more than half of the states SDP.