Why Manipur Needs More Than Token Northeast Mentions in Budget 2026

While the Budget 2026 scores high on ambition, sectoral focus, and national growth drivers, its failure to address Manipur’s acute crisis exposes cracks in the commitment to sabka vikas.

Presented by Finance Minister Nirmala Sitharaman on February 1, 2026, it aims to propel India toward Viksit Bharat @2047.

For Northeast Region, development of Buddhist Circuits across states including Manipur, enhanced DoNER allocations (up to ₹6,812 crore), Purvodaya initiatives for connectivity and tourism, and broader pushes for infrastructure and cultural preservation.

These mentions are welcome in principle—they acknowledge the region’s civilizational richness, tourism potential, and strategic importance.

However, for Manipur, still reeling from nearly three years of ethnic violence since May 2023, they amount to little more than token gestures in a time of profound crisis.

The conflict between Meitei and Kuki communities has claimed over 300 lives, displaced tens of thousands (with many still in relief camps facing their third winter), destroyed homes, schools, religious sites, and livelihoods, and triggered a near-total economic collapse.

Highways function as de facto borders, trade remains disrupted, agriculture and tourism have plummeted, and security zones harden divisions rather than heal them.

Instead, Manipur is subsumed under region-wide announcements that offer incremental benefits at best, cultural tourism boosts or general connectivity enhancements while ignoring the scale of humanitarian and developmental emergency.

In this context, Manipur urgently requires a special, dedicated package for rebuilding and recovery. Funds for reconstructing destroyed homes, schools, health centers, and religious sites; restoring livelihoods through targeted employment and skill programs; repairing economic infrastructure like roads and markets; and supporting peace-building initiatives.

A ‘special crisis-affected’ designation could unlock accelerated central assistance, similar to packages for natural disasters or major conflicts elsewhere. Yet the budget offers no such targeted allocation. Manipur is merely included in broader Northeast schemes like the Buddhist Circuit (which may benefit cultural sites but does little for immediate humanitarian or economic repair) and general Purvodaya/DoNER enhancements.

These are incremental and region-wide, not crisis-specific. The absence of a bespoke Manipur-focused intervention highlights a glaring oversight.

Development rhetoric for the Northeast rings hollow when one state remains mired in humanitarian crisis, ethnic division, and economic paralysis.This neglect is not isolated; it reflects historical under-prioritization of the Northeast in national budgets, where big announcements often translate to diluted funds (DoNER’s share remains tiny in the overall ₹53+ lakh crore budget).

For Manipur, three years of collapse demand more than symbolic inclusion—real resources for healing, reconciliation, and bounce-back. Without it, aspirations of Viksit Bharat risk leaving entire communities behind, undermining the inclusive vision the budget claims to champion.

Framed around three core kartavyas—sustaining economic growth and enhancing productivity, fulfilling people’s aspirations, and ensuring inclusive access to resources under sabka saath, sabka vikas—this Yuva Shakti-driven budget emphasizes macroeconomic stability, fiscal discipline, and ambitious investments in infrastructure, manufacturing, healthcare, and education.

With a record capital expenditure of ₹12.2 lakh crore, it seeks to maintain momentum in a high-growth trajectory while positioning India as the world’s fastest-growing major economy.

Budget’s postive aspects are numerous and forward-looking. The focus on scaling manufacturing in seven strategic and frontier sectors stands out, including the launch of India Semiconductor Mission 2.0 with industry-led research and training centers, and an increased outlay of ₹40,000 crore for electronic components manufacturing.

A dedicated Rare Earth Mineral Corridor targets mineral-rich states like Odisha, Kerala, Andhra Pradesh, and Tamil Nadu, complemented by basic customs duty exemptions on goods for processing critical minerals, raw materials for defence aircraft parts, and nuclear power imports until 2035.

These measures signal a strong push toward self-reliance in high-value sectors.

Infrastructure receives a major boost with seven high-speed rail corridors announced—Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Bengaluru-Chennai, Delhi-Varanasi, and Varanasi-Siliguri—intended as key growth connectors.

Healthcare and education see targeted support with ₹10,000 crore under ‘Biopharma Shakti’ to build India as a bio-pharma hub addressing rising diseases like diabetes, cancer, and auto-immune disorders; strong funding under PMSSY for medical college upgrades and hospital strengthening; establishment of three new All India Institutes of Ayurveda; and plans for five regional medical hubs in public-private partnership to promote medical tourism.

Women empowerment features prominently through transforming Self-Help Groups (SHGs) into “SHE Enterprises,” while MSMEs benefit from a ₹10,000 crore SME growth support fund plus ₹2,000 crore for micro enterprises, alongside modular ‘Corporate Mitras’ courses for regulatory compliance.

Rural employment gets a revamp with ₹95,692 crore for the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G), modernizing the former MGNREGA with a ₹30,000 crore core component, extending wage employment to 125 days, and prioritizing durable assets and climate resilience.

GST collections remain robust, exemplified by ₹1,93,384 crore in January 2026 (6.2% growth), underscoring fiscal health.

For the Northeast, a 47% hike in the Ministry of Development of North Eastern Region (DoNER) allocation to around ₹5,915-6,812 crore, a new scheme for Buddhist Circuits covering states including Manipur, Assam, Arunachal Pradesh, Sikkim, Mizoram, and Tripura (focusing on temples, monasteries, connectivity, and pilgrimage amenities), Purvodaya initiatives like the East Coast Industrial Corridor extension, five tourism destinations, and 4,000 e-buses, plus upgrades to mental health institutions (e.g., NIMHANS-2 and Tezpur), are welcomed by regional industry bodies as balanced and growth-oriented.

Despite these strengths, the budget has notable shortcomings. It leans heavily on capital expenditure and manufacturing incentives but offers limited direct relief for consumption-driven sectors or immediate inflationary pressures on the common citizen. Tax reliefs remain modest, and while fiscal deficit targets (around 4.3% of GDP) show discipline, critics argue it prioritizes long-term.

Naorem Mohen

Naorem Mohen is the Editor of Signpost News. Explore his views and opinion on X: @laimacha.