Red Corridor - Economic Situation

Economic Situation

The districts that comprise the Red Corridor are among the poorest in the country. Areas such as Uttar Pradesh, Chattisgarh state and the Telengana region of Andhra Pradesh, are either impoverished or have significant economic inequality, or both.

A key characteristic of this region is non-diversified economies that are solely primary sector based. Agriculture, sometimes supplemented with mining or forestry, is the mainstay of the economy, which is often unable to support rapid increases in population. The region has significant natural resources, including mineral, forestry and potential hydroelectric generation capacity. Orissa, for example, "has 60 percent of India’s bauxite reserves, 25 percent of coal, 28 percent of iron ore, 92 percent of nickel and 28 percent of manganese reserves."

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