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Business
Manipur ethnic clashes cost state ₹1,200 crore in GST revenue, says CM
✍️ The Hindu
🗓 17 Sep 2026, 08:16 AM
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Chief Minister N. Biren Singh said the recent ethnic violence in Manipur has reduced GST collections by about ₹1,200 crore.
Manipur’s Chief Minister N. Biren Singh told reporters that the ongoing ethnic violence has severely disrupted commercial activity across the state, leading to an estimated loss of ₹1,200 crore in Goods and Services Tax (GST) revenue. The figure reflects the shortfall in collections since the clashes began, according to the state’s finance department.
The unrest, which has seen sporadic clashes between rival ethnic groups, has forced many businesses to shut down or operate at reduced capacity. As a result, sales of goods and services that normally contribute to the GST pool have dropped sharply.
State officials said the loss will affect funding for public services and development projects, prompting the government to seek ways to restore normalcy and revive the economy. The Chief Minister emphasized that restoring peace is essential to recover the fiscal shortfall and resume regular economic activity.
No further details on compensation or remedial measures were provided at the time of the statement.
The unrest, which has seen sporadic clashes between rival ethnic groups, has forced many businesses to shut down or operate at reduced capacity. As a result, sales of goods and services that normally contribute to the GST pool have dropped sharply.
State officials said the loss will affect funding for public services and development projects, prompting the government to seek ways to restore normalcy and revive the economy. The Chief Minister emphasized that restoring peace is essential to recover the fiscal shortfall and resume regular economic activity.
No further details on compensation or remedial measures were provided at the time of the statement.