Nagaland — Chief Minister Neiphiu Rio has submitted a proposal to the 16th Finance Commission requesting over Rs 40,000 crore in grants, as the commission conducts a three-day assessment of Nagaland’s financial and developmental needs.
The proposed grant aims to address the state’s capital deficit and foster sustainable economic growth.
During a recent meeting with commission members, CM Rio stressed the need for a robust financial structure to ensure Nagaland’s long-term economic stability, positioning the state as an essential contributor to national progress. Among the proposed projects, Rio highlighted the need for Rs 9,000 crore to construct a 364 km border highway with Assam, and Rs 865 crore for the development of an airport at Ciethu.
CM Rio outlined an ambitious vision for Nagaland’s economy, emphasizing the need for Rs 40,386.5 crore in grants to address the state’s capital deficit. This financial backing, he argued, would create a foundation for development, allowing Nagaland to reduce its dependence on Revenue Deficit Grants over time.
In a bid to diversify Nagaland’s economic base, Rio noted significant growth in the agriculture and allied sectors, with an increasing shift towards commercial crops such as coffee, rubber, palm oil, and areca nuts. To support farmers, he stressed the need for investment in value-addition processes like sorting, grading, and processing, as well as stronger market linkages.
Rio highlighted Nagaland’s advantage in organic farming, which he noted has the potential to command premium prices in niche markets. With the right support, organic farming could help sustain growth and establish agriculture as a viable economic driver at the grassroots level.
The Chief Minister also acknowledged the state’s limited development in the secondary sector, largely due to prolonged financial constraints. Consequently, Nagaland’s economy has shifted toward the tertiary sector, which now constitutes 63.57% of the state’s GDP, fueled by growth in hospitality and tourism, supported by a predominantly young population.
In response to the dilapidated state of Nagaland’s public infrastructure, including schools, hospitals, and government offices, Rio requested Rs 7,884.80 crore to refurbish and modernize these essential facilities, many of which are over 50 years old.
Sources indicate that, alongside CM Rio’s proposals, the state’s Finance Department has submitted a comprehensive memorandum to the Finance Commission, seeking nearly Rs 1 lakh crore in grants to support state-specific projects and development initiatives.
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