Manipur's Ethnic Strife Plunges State into Rs 1,200 Crore GST Revenue Crisis

Manipur Chief Minister Yumnam Khemchand Singh just revealed a staggering financial blow: the state has lost over Rs 1,200 crore in Goods and Services Tax (GST) revenue between 2023 and 2026, all thanks to its persistent ethnic conflict. Speaking at the 52nd Foundation Day of the All Manipur Working Journalists' Union (AMWJU) in Imphal on Wednesday, the Chief Minister underscored how this drastic decline has put immense pressure on Manipur economy. This colossal revenue shortfall stems directly from the prolonged and escalating ethnic conflict, which initially erupted in May 2023 between the Meitei and Kuki-Zo communities, and sadly expanded to include the Naga community in February 2026. The violence, marked by deadly clashes, extensive displacement, and disruptive 'bandhs and blockades' that halt economic activity, has claimed over 306 lives and left thousands displaced since its onset. Chief Minister Khemchand Singh, who took office in February 2026 after a period of President's Rule, highlighted that these disruptions have severely affected the state's overall fiscal health, with outstanding liabilities and interest payments sharply rising. Looking ahead, CM Khemchand Singh has made an earnest appeal to Civil Society Organisations (CSOs) to reconsider using bandhs and blockades as protest tools, emphasizing their detrimental economic impact and calling for collective efforts to foster recovery and development. The state government is actively engaging in dialogues and working towards reopening crucial transportation routes, but the path to full economic recovery and lasting peace remains challenging amidst ongoing communal tensions and protests around issues like the National Register of Citizens (NRC).