World Bank grants $46 million to Manipur for digital skills development and government transformation

The World Bank confirmed its commitment to provide $46 million for the Manipur Infotech eNabled Development Project. This project aims to leverage digital technologies comprehensively, driving economic transformation and enhancing e-service delivery within the state. The total cost of the initiative is estimated at $67.50 million, reported EastMojo.

Sources reveal that the Manipur government, in its 2017 Industrial and Investment Policy, has already identified information technology (IT) and IT-enabled services (ITeS) as key sectors for development. Moreover, the Manipur Vision 2030 has prioritized inclusive access to digital technology for education, agriculture, and trade facilitation.

Given the challenges posed by climate change, limitations in traditional growth-supporting sectors, and physical connectivity constraints in the medium term, the government is particularly enthusiastic about fostering digital economy development. This approach is seen as a viable means to generate employment opportunities and drive economic growth in the region.

"The state of Manipur has faced constraints in employment generation and entrepreneurial activity, mainly due to limited private investment, geographical isolation resulting from weak physical and digital connectivity, and relatively low industrialization in the past decades," stated the World Bank in its report.

The unemployment rate in 2021 stood at 9.5 percent, the second highest in the Northeast Region (NER). Data from 2012 indicated that a mere 0.1 percent of the total population, equivalent to three thousand people, were employed in the private organized sector, while over 60,000 students were enrolled in graduate and higher education programs within the state.

Employment opportunities primarily arose from the public sector and unorganized sectors. These limited economic prospects have led Manipur to witness the highest ratio of outflows to inflows of migrants in Northeast India, with nearly four individuals leaving the state for every individual coming in.

The Bank's report highlighted that the Indian government's "Act East" policies have resulted in various infrastructure development initiatives in the Northeast Region, aimed at attracting investments and creating job opportunities.

Specifically, efforts have been made to position Manipur as India's "Gateway to the East," with ongoing projects to enhance railway and telecommunications connectivity with the rest of the country.

The report further emphasized that the Manipur government aspires to achieve digital transformation within the state, fostering economic growth, inclusivity, and improved service delivery.

The state aims to develop its digital economy in line with the broader Digital India program and the Indian government's Digital North East Vision 2022. This endeavor has garnered support and recognition from the central government, with hopes that Manipur will emerge as the IT hub of Northeast India.