The picturesque Imphal Valley in Manipur, long known for its vibrant culture and entrepreneurial spirit, is witnessing a significant shift as many businesspeople are relocating to the bustling city of Guwahati in neighboring Assam. This migration, driven by a combination of economic challenges, ethnic violence, and the search for stability, reflects broader socio-economic trends in Northeast India. As Manipur grapples with its internal struggles, Guwahati emerges as a beacon of opportunity, offering a safer and more conducive environment for business growth. This article delves into the reasons behind this movement, its implications for both regions, and the broader context of economic migration in the Northeast.
The Backdrop: Manipur’s Economic and Social Challenges
Manipur, a landlocked state in Northeast India, has historically been a hub of small-scale businesses, particularly in sectors like handloom, handicrafts, and food processing. The state’s capital, Imphal, located in the Imphal Valley, is home to the Meitei community, which dominates the valley’s economic landscape. Ima Keithel, the largest all-women market in Asia, stands as a testament to the entrepreneurial spirit of Manipuri women, with 50% of the state’s Micro, Small, and Medium Enterprises (MSMEs) owned by women, as highlighted by Chief Minister N. Biren Singh in January 2025. However, recent years have brought unprecedented challenges that are pushing businesspeople out of the valley.
The ethnic violence that erupted in May 2023 between the Meitei and Kuki-Zo communities has left a deep scar on Manipur’s social and economic fabric. According to data from Manipur Police, as of September 2023, the conflict resulted in 175 deaths, over 1,100 injuries, and the displacement of 60,000 people. The violence has also led to a surge in extortion and abductions by armed groups, particularly in the valley areas. On January 26, 2025, the Manipur government established an Integrated Anti-Extortion Cell to address this growing threat, with billboards displaying helpline numbers across the state. However, the fear of extortion remains a significant concern for business owners.
Ch Priyoranjan Singh, a professor at Manipur University’s economics department, notes that the combination of the COVID-19 pandemic and the ongoing violence has set back the state’s economy by several years. “Many businesspeople from the valley are moving to neighboring Guwahati in Assam,” Singh observes, citing the closure of businesses like a mineral water bottling plant due to rampant extortion calls. The economic downturn does not discriminate, affecting all communities, as Haorokcham, a local resident, points out: “There are many Kuki women married to Meitei men. When they want to have a family gathering, they go to Guwahati or Delhi.”
Why Guwahati?
Guwahati, the largest city in Assam and a major commercial hub in Northeast India, offers a stark contrast to the instability in Manipur. Located just 490 km from Imphal, Guwahati is well-connected by road, rail, and air, with the Lokpriya Gopinath Bordoloi International Airport facilitating easy access to major Indian cities. The city’s infrastructure, including a 2,435-km rail network and navigable waterways like the Brahmaputra (designated as National Waterway-2), makes it a logistical powerhouse. Assam’s forward-thinking policies, such as “One District One Product” and “District as Export Hubs,” further enhance its appeal as a business destination.
For Manipuri businesspeople, Guwahati provides a safer environment to operate. The city has not been immune to its own challenges, such as demographic shifts and population influx, as noted by Assam Chief Minister Himanta Biswa Sarma in August 2024. However, it has largely avoided the scale of ethnic violence seen in Manipur. Guwahati’s urban population has grown significantly, with the city becoming a magnet for migrants from across the Northeast, including those from Manipur. A 2022 report from the Times of India highlighted that many Manipuri families in Guwahati’s Manipuri Basti, who migrated over the past century, have permanently settled and integrated into Assam’s socio-political fabric, with only 7% returning to Manipur to vote in elections.
The economic opportunities in Guwahati are another draw. Assam’s economy, while still largely agriculture-based (69% of the population is engaged in agriculture), has seen growth in industries like petroleum, tea, and tourism. In 2023-24, Assam recorded over one crore tourist footfalls, a milestone that underscores its growing appeal. For businesspeople from Manipur, Guwahati offers access to larger markets, better infrastructure, and a more stable environment to rebuild their enterprises.
The Human Stories Behind the Migration
The migration of businesspeople from Manipur to Guwahati is not just a statistic—it’s a story of resilience and adaptation. Devi, a Nepali-origin clothes shop owner in Imphal, exemplifies the personal toll of the violence. Having moved to Imphal 12 years ago after her marriage, Devi is now considering returning to Nepal with her family. “We came to India for better education, but my son recently spoke about guns and bombs. Last year, he heard gunshots outside his school,” she shares. While Devi’s family is contemplating a move to Nepal, many others are choosing Guwahati as a more practical alternative, given its proximity and economic prospects.
Similarly, small business owners in the valley, particularly those in the MSME sector, are finding it increasingly difficult to operate. The rise in extortion has forced many to shut down or relocate. A mineral water bottling plant, for instance, closed two of its units after receiving threats, a stark reminder of the hostile environment for businesses in Manipur. For these entrepreneurs, Guwahati offers a fresh start, albeit with the challenges of adapting to a new city and competing in a larger market.
Implications for Manipur and Guwahati
The exodus of businesspeople from Manipur has significant implications for the state’s economy. The MSME sector, a cornerstone of Manipur’s economic growth, is losing talent and investment. While the state leads the Northeast in MSME growth, with women entrepreneurs driving sectors like handloom and handicrafts, the ongoing violence threatens to reverse these gains. The departure of businesses also exacerbates the brain drain, as skilled individuals and families seek opportunities elsewhere.
For Guwahati, the influx of Manipuri businesspeople brings both opportunities and challenges. On the positive side, it contributes to the city’s economic diversity, with Manipuri entrepreneurs bringing their expertise in handloom, handicrafts, and food processing. However, the rapid population growth in Guwahati, driven by migration from across the Northeast, strains the city’s infrastructure. A 2022 study on Academia.edu noted that rural-urban migration in Assam creates problems for city dwellers and planners, with issues like housing, sanitation, and traffic becoming more pronounced. The study also highlighted the imbalance in regional development, with Guwahati growing rapidly while smaller towns in Assam lag behind.
A Broader Context: Migration in the Northeast
The movement of businesspeople from Manipur to Guwahati is part of a larger trend of migration in Northeast India. The region has long been a melting pot of cultures, with historical migrations shaping its demographic landscape. The Ahom people, who arrived in Assam from Yunnan, China, in the 13th century, and the Manipuri diaspora in Assam’s Manipuri Basti, which dates back over a century, are examples of this fluidity. However, recent migrations are driven more by necessity than choice, with ethnic conflicts, economic stagnation, and political instability pushing people to seek better prospects.
Manipur’s challenges are not unique. Assam itself has grappled with demographic changes due to immigration from Bangladesh, Nepal, and West Bengal, as Sarma noted in 2024. The state’s urban population growth, particularly in Guwahati, reflects not only economic opportunities but also the pressures of migration. Meanwhile, Manipur’s ethnic violence has parallels in other Northeastern states, where tensions between communities often disrupt economic activity. Political consultant Mutum Yoiremba argues for a dialogue-based approach to resolve these conflicts, suggesting that the government must “enable, encourage, and protect” those willing to engage in peace talks, as military solutions have failed in the past.
Looking Ahead: Can Manipur Stem the Tide?
For Manipur to retain its business community, addressing the root causes of the exodus is crucial. The establishment of the Anti-Extortion Cell is a step in the right direction, but more comprehensive measures are needed to restore confidence. Improving law and order, fostering inter-community dialogue, and investing in infrastructure could help create a more stable environment for businesses. The reopening of National Highways 2 and 37 in March 2025, which connect the valley to Assam and Nagaland, is a positive development, but the violence in Kangpokpi that followed underscores the fragility of the situation.
Guwahati, meanwhile, must balance its growth with sustainable development. The city’s infrastructure, while robust compared to Manipur’s, is under strain, and policymakers must address issues like housing and transportation to accommodate the growing migrant population. Assam’s focus on sustainable development goals (SDGs), as noted in the NITI Aayog’s SDG India Index 2024, where Assam and Tripura were among the fastest-moving states, could provide a framework for inclusive growth that benefits both locals and migrants.
Conclusion
The migration of businesspeople from the Imphal Valley to Guwahati is a poignant reflection of the challenges facing Manipur and the opportunities offered by Assam. While Guwahati provides a lifeline for those fleeing violence and economic hardship, the exodus underscores the urgent need for peace and stability in Manipur. For the Northeast as a whole, this trend highlights the interconnectedness of the region’s economies and the importance of addressing systemic issues like ethnic conflict and uneven development. As businesspeople from Manipur rebuild their lives in Guwahati, their stories serve as a reminder of the resilience of the human spirit—and the need for a more inclusive and peaceful future in the Northeast.
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