Mizoram's Economic Shift: Primary Sector Share Declines as Services Sector Expands
According to the Economic Survey of Mizoram for 2025-2026, presented by Chief Minister Lalduhoma in the state legislative assembly, the primary sector's contribution to the Gross State Value Added (GSVA) has seen a notable decrease. The share fell to 16.72% in the fiscal year 2024-25, down from 20.45% in 2023-24. This decline marks a significant shift from earlier projections, which had anticipated a marginal increase to 20.55% for the same period, as outlined in the previous year's Economic Survey laid on March 5.
Understanding the Primary Sector and Its Impact
The primary sector, which encompasses crops, livestock, forestry and logging, and fishing and aquaculture, engages more than 50% of Mizoram's population. Despite this high level of involvement, its reduced share in the GSVA has raised concerns among local economists. They argue that a lower primary-sector contribution may signal an unhealthy economic structure, as it often reflects underlying issues in agricultural and natural resource-based activities.
The survey attributes this decline primarily to a sharp rise in the tertiary sector, which includes public administration, trade, hotels and restaurants, and other services. The tertiary sector's share of GSVA increased to 50.37% in 2024-25, up from 46.87% in the previous year, highlighting a growing reliance on service-oriented industries.
Secondary Sector Performance and Economic Growth
Meanwhile, the secondary sector, comprising industrial activities, was estimated at 32.91% of GSVA in 2024-25. This figure fell slightly below the projected 34.21%, though the survey noted significant contributions from key areas such as electricity, cooking gas, water supply and other utility services, and construction. These sectors have played a crucial role in supporting the state's economic infrastructure.
The Economic Survey projects Mizoram's economy to grow by 13.1%, driven by volume expansion and price effects. The Gross State Domestic Product (GSDP) at current prices has shown substantial growth, increasing from Rs. 7,25,869 lakh in 2011-12 to Rs. 36,03,066 lakh in 2024-25. This growth underscores the state's transition from an agriculture-centric framework to a more diversified economy, increasingly driven by industry and tertiary sectors.
Structural Transformation and Income Trends
The report emphasizes that Mizoram's economy has undergone remarkable structural transformation over the past decade. This evolution is supported by robust economic reforms, infrastructure development, and strategic policy initiatives aimed at promoting sustainable growth and economic resilience. The state's commitment to inclusive development and fiscal discipline has facilitated this transition, positioning it for continued progress.
In terms of per capita income, the survey reveals a dip to Rs. 1,73,521 in 2020-21 due to the pandemic. However, recovery has been strong, with provisional figures showing an increase to Rs. 2,34,996 in 2023-24 and advance estimates rising to Rs. 2,51,593 in 2024-25. This upward trend reflects the overall economic improvements and the positive impact of policy measures.
As Mizoram continues to navigate its economic landscape, the shift towards a service-dominated economy presents both opportunities and challenges. Stakeholders will need to monitor these trends closely to ensure balanced growth and address any disparities arising from the changing sectoral contributions.
