Tripura - Economy

Economy

Tripura's gross state domestic product for 2010–11 was Rs. 12,947 crore (US$ 2.36 billion) at constant (2004–05) price, recording 5.71% growth over the previous year. In the same period, the GDP of India was Rs. 4,877,842 crore (US$ 887.77 billion), with a growth rate of 8.55%. Annual per capita income at current price of the state was Rs. 38,493 (US$ 700.57), compared to the national per capita income Rs. 44,345 (US$ 807.08). In 2009, the tertiary sector of the economy (service industries) was the largest contributor to the gross domestic product of the state, contributing 53.98% of the state's economy compared to 23.07% from primary sector (agriculture, forestry, mining) and 22.95% from secondary sector (industrial and manufacturing).

Tripura is an agrarian state with more than 50% of the population dependent on agriculture and allied activities. However, due to hilly terrain and forest cover, only 27% of land is available for cultivation. Rice, the major crop of the state, is sown in 91% of the cropped area. 2009–10 statistics reveal that potato, sugarcane, mesta, pulses and jute are other major crops. Jackfruit and pineapple top the list of horticultural products. Traditionally, most of the tribal population of the state practised jhum method (a type of slash-and-burn) cultivation. The number of people dependent on jhum has declined over the years since Tripura joined the union of India.

Pisciculture has made significant progress, as the per capita consumption of fish in the state is high. Rubber and tea are the important cash crops of the state. Tripura, known as the second rubber capital of India, ranks second only to Kerala in the production of natural rubber. The state is known for its handicraft, particularly hand-woven cotton fabric, wood carvings, and bamboo products. High quality timber including sal, garjan, teak and gamar are found abundantly in the forests of Tripura.

According to the Economic Census 2005 report, after agriculture, the maximum number of workers were engaged in retail trade (28.21% of total non-agricultural workforce), followed by manufacturing (18.60%), public administration (14.54%), and education (14.40%). Government-sponsored organised sector remains the primary avenue of employment in organised sector in the state, as private presence in organised sector is minimal, except some brick fields and tea industry. Tripura has poor mineral resources, with meagre deposits of different types of clay minerals, glass sand, lignite, and limestone but it has considerable amount of natural gas. According to the estimates by Oil and Natural Gas Corporation (ONGC), the state has a reserve of 400 billion cubic meter natural gas, out of which 16 billion cubic meter is recoverable. ONGC produced 480 million cubic meter natural gas in the state in 2006–07. The industrial sector of the state continues to be highly underdeveloped. ONGC has its natural gas gathering station and Gas Authority of India Limited has marketing terminals of natural gas in north, west and south part of Tripura. Heavy industries are conspicuous by their absence in the state. Tourism industry has shown an increasing trend—the revenue earned in tourism sector crossed Rs. 1 crore (US$ 182,000) for the first time in 2009–10, and surpassed Rs. 1.5 crore (US$ 273,000) in 2010–11.

The Planning Commission estimates the poverty rate of all northeast Indian states based on head count ratio in the state of Assam (the largest state in north east India). According to 2001 Planning Commission assessment, 22% of Tripura's rural residents were below the poverty line. However, Tripura government's independent assessment based on consumption distribution data reports that 55% of the rural population was below the poverty line, as of 2001. Geographic isolation and communication bottleneck coupled with insufficient infrastructure have restricted economic growth of the state. High rate of poverty and unemployment continues to be prevalent.