Chief Minister Neiphiu Rio appealed to the visiting 16th Finance Commission on Tuesday for a substantial grant of over Rs 40,000 crore, aiming to address the capital deficit that has constrained the state’s development. In his address to the Commission members, Rio emphasized the need for a financial framework that would stabilize Nagaland’s economy and allow it to play a pivotal role in India’s progress.
Highlighting key infrastructural requirements, Rio underscored the urgent need for Rs 9,000 crore to build a 364-kilometer highway along Nagaland’s border with Assam (Foothill Road), which he noted as essential for connectivity and regional security. He further requested Rs 865 crore to develop an airport at Ciethu, near Kohima, to improve accessibility and stimulate economic activities within the state. He noted that the state government has already secured over 1,000 acres for the airport, which could eventually handle Airbus A320-class aircraft.
Rio also briefed the Commission on advancements in several key sectors, particularly agriculture. He noted a shift in the agri and allied sector from traditional subsistence farming to commercial crops, with notable expansion in plantation crops such as coffee, rubber, palm oil, and areca nut. To maximize farmers’ earnings, he called for funds to support value addition in agriculture through sorting, grading, processing, and developing market linkages. Such efforts, he stressed, would allow farmers to capture maximum value for their produce.
The chief minister highlighted the advantage Nagaland holds in organic farming, which could command premium prices and cater to niche markets with strong demand emphasizing that organic farming could become a viable economic alternative and an engine of growth at the grassroots level.
Rio also addressed the state’s economic challenges, pointing out that Nagaland has struggled to develop its secondary sector due to financial constraints. As a result, the state’s growth has been primarily concentrated in the Tertiary Sector, which now constitutes the largest share of its economy at 63.57%. This growth, Rio explained, has occurred with minimal government intervention, driven largely by the ex pansion of hospitality, tourism, and the state’s youthful population.
With most of the state’s public service buildings, including schools, hospitals, and government offices, being over 50 years old and in poor condition, Rio proposed Rs 7,884.8 crore to maintain and upgrade these facilities.