Manipur Business: Exploring the ‘Switzerland of the East’—Challenges and Opportunities for Tourism and Commerce

New Delhi: Manipur, a picturesque state in northeast India, is often referred to as the “Switzerland of the East“ for its natural beauty and cultural richness. However, the region has been grappling with ethnic violence for several months, which has had a devastating impact on its economy, particularly on agriculture, trade, and tourism. Once a thriving hub for visitors and local businesses, Manipur’s streets now tell a tale of deserted markets, struggling farmers, and dwindling hope.

Tourism at a Halt

Manipur, known for its vibrant landscapes and rich biodiversity, was once a sought-after destination for tourists. However, the ongoing ethnic violence has brought tourism to a near standstill. Hotels, guest houses, and other accommodations, which used to be bustling with travelers, are now largely vacant. Despite offering up to 50% discounts to attract visitors, the fear of unrest keeps tourists away.

The tourism sector’s decline has had a domino effect on employment. Staff in hotels, guest houses, and associated businesses such as travel agencies and local guides have seen massive layoffs. Many establishments operate with minimal staff, while others have shut their doors entirely. For workers, the fear of losing their jobs has become a harsh reality as the industry struggles to stay afloat.

Impact on Agriculture and Trade

Manipur is often called the “Orchid Basket of India,” and it is famous for its exotic blooms and vibrant horticulture. However, the violence has severely disrupted the cultivation and trade of orchids. Farmers face challenges in accessing their fields, and with limited markets to sell their produce, the once-thriving orchid trade is now in jeopardy.

Beyond horticulture, the state’s primary agricultural sector—paddy farming—has also suffered. Paddy is the backbone of Manipur’s agriculture, with some tea gardens also contributing to the economy. However, the unrest has left farmers unable to work their fields, transport goods, or secure fair prices for their crops. The ongoing conflict between the Meitei and Kuki communities, which escalated in May of last year, has further exacerbated the crisis, leaving fields abandoned and livelihoods at risk.

The General Secretary of the Manipur Chamber of Commerce and Industry (MCCI), Heorokchaim Anil, highlights the violence’s cascading impact on all sectors. “Every industry in Manipur is affected,” he says. Whether it is agriculture, manufacturing, or trade, the instability has created a pervasive sense of uncertainty.

Livelihood Crisis

The economic downturn has left Manipur’s residents grappling with a severe livelihood crisis. In Imphal, the state capital, large showrooms, retail shops, and even small businesses have started laying off employees to cut costs. Burdened by reduced footfall and mounting expenses, business owners have no choice but to downsize operations. For employees, the looming threat of unemployment adds to the stress of living in a conflict zone.

The situation worsened after the latest outbreak of violence on November 11. Many businesses that had managed to stay afloat during the initial phases of the conflict are now struggling to survive. As operations slow down and investments dry up, fears of an economic collapse grow.

Central Forces Deployed for Stability

To restore peace and order, the Union Home Ministry has deployed additional central armed police forces (CAPFs) to Manipur. Seventy new companies, including 50 from the CRPF and 20 from the BSF, have been sent to bolster the 218 companies already stationed in the state. The CRPF has mobilized troops from Assam, Odisha, West Bengal, and Jharkhand to reinforce its presence in Manipur. Similarly, BSF companies are being deployed from West Bengal to stabilize the region.

While the increased deployment brings hope for improved security, the road to economic recovery remains uncertain. The violence has deeply affected the people’s morale and the business environment. Local entrepreneurs, farmers, and workers now face the dual challenge of navigating a volatile situation while trying to rebuild their lives.

The Road Ahead

Manipur’s unique cultural and natural heritage remains its greatest strength, but unlocking its potential requires stability and sustained effort. Addressing the root causes of the ethnic violence, fostering dialogue between communities, and ensuring the safety of residents and businesses are critical steps toward recovery.

Tourism must revive when the government and local stakeholders restore travelers’ confidence. If safety concerns persist, more than incentives alone will be required. Similarly, agriculture and trade require support through subsidies, transportation assistance, and access to secure markets.

Manipur’s resilience will be tested in the coming months. Its people, known for their indomitable spirit, must find ways to adapt and overcome the challenges brought on by this crisis. With the proper support and interventions, the “Switzerland of the East” can once again thrive as a beacon of beauty, culture, and prosperity.

Further Reading: The Kejriwal Government Will Provide ₹40 Crores In Seed Funding To Schoolchildren For The Third Edition Of Business Blasters In Delhi