Guwahati, Nov 12: The Manipur ethnic conflict has badly affected its economy and the goods and service tax (GST) collections during the April-October period contracting 19 per cent at a time the country’s overall GST mop-up rose in double digits.

The violence in Manipur bordering Myanmar first erupted on May 3 when the Kuki tribal group who inhabit the hills clashed with the non-tribal ethnic majority Meitei living on the plains over sharing economic benefits and quotas given to the tribes.

In September, the Manipur Police said 175 people have died with at least 5,172 cases of arson reported.

The retail inflation in Manipur remained one of the highest in the country at 9.7 per cent in September. Ruling Bharatiya Janata Party’s Manipur unit had written to the party president J P Nadda in September demanding immediate restoration of free flow of traffic along the two national highways connecting Dimapur with Imphal (NH2) and Manipur with Assam (NH37).

Primarily an agriculture-based economy with 77 per cent of Manipur under forecast cover, sectors like handloom, handicraft, and sericulture-based industries contribute significantly to the state’s income.

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