Inflation in Nagaland has steadily decreased over the past four years, dropping to 2.79 percent during the period from April to December 2025-26. This decline occurs as India anticipates strong macroeconomic growth, with a projected real GDP increase of 7.4 percent for Fiscal Year 2026, according to the recent Economic Survey. The findings, presented in Parliament on January 29 by Union Finance and Corporate Affairs Minister Nirmala Sitharaman, illustrate a clear moderation in Nagaland’s inflation trajectory over the medium term.
Inflation in the state was recorded at 6.06 percent for 2022-23. It saw a sharp decline to 3.36 percent in 2023-24, a slight increase to 3.99 percent in 2024-25, and further eased to 2.79 percent in the current financial year. This trend aligns broadly with national patterns, where all-India inflation decreased from 6.66 percent in 2022-23 to 1.72 percent by April-December 2025-26.
Nagaland’s inflation rate remains the highest among North-Eastern states, where most have managed to keep their inflation below the national average. Manipur reported mild deflation at -0.15 percent, while Assam, Tripura, and Meghalaya displayed marginal inflation rates. Sikkim and Mizoram are also above the national average with inflation rates of 2.45 percent and 2.47 percent, respectively.
The Economic Survey also spotlighted the advancement of Inland Water Transport (IWT) projects, revealing that as of November 2025, 32 National Waterways (NWs) are operational, covering approximately 5,155 km. Cargo operations occur on 29 of these waterways, cruise operations on 15, and passenger services on 23. The North-East region is currently experiencing IWT projects on NW-2 and NW-16, with Detailed Project Reports for Nagaland and Mizoram nearing completion.
Tripura is progressing with a ₹24.53 crore project aimed at linking the Gumti River with the India-Meghna river system, enhancing connectivity with Bangladesh. Following discussions at the 3rd Inland Waterways Development Council meeting on January 23 in Kochi, K G Kenye, Nagaland’s Minister for Power and Parliamentary Affairs, announced that the Tizu-Zungki river has been designated as National Waterway-101. He emphasized the project’s importance, noting its strategic position along the India-Myanmar border and potential to boost trade with Southeast Asia.
Moreover, the Economic Survey highlighted ongoing issues with grassroots-level finances in various states and Union Territories. Panchayati Raj Institutions (PRIs) continue to rely heavily on grants from the Central and State Finance Commissions, hindering their capacity to fulfill public expectations. Though many states have enacted rules allowing Panchayats to impose taxes, Nagaland has yet to establish such provisions. This situation underlines the necessity for enhancing Own Sources of Revenue (OSR) for better efficiency and accountability.
It is crucial to mention that Nagaland operates without PRIs as stipulated by the 73rd Constitutional Amendment. Governance at the village level is conducted through Village Councils, which adhere to customary practices, placing the state’s structure outside the national PRI framework.
Original Source: https://www.morungexpress.com/inflation-eases-sharply-in-nagaland-eco-survey
Category: Morung Exclusive , Nagaland
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Publish Date: 2026-01-30 23:35:00
