The Sixteenth Finance Commission study recommends strengthening Tripura’s industrial and service sectors to boost revenue productivity. The findings support Destination Tripura’s investment promotion initiative, highlighting industrialisation, private investment, manufacturing, tourism and entrepreneurship as key drivers of sustainable economic growth and fiscal development.
A research study conducted under the Sixteenth Finance Commission, Government of India, has highlighted that Tripura must strengthen its secondary (industrial) and tertiary (service) sectors to enhance the state’s revenue productivity. The study assumes greater significance as the state prepares to organise the flagship investment promotion programme ‘Destination Tripura’, aimed at attracting investors, industries and entrepreneurs from across the country.
The report, titled “Evaluation of Finances of State of Tripura” , was prepared under the leadership of Prof. Subhrabaran Das, Professor and Head, Department of Economics, Tripura University. The research team included Kiran Bhowmik as Research Associate, Srijan Debnath as Research Assistant, and supporting research assistants Sekharan Das, Sama Das and Alimpiya Das.
According to the recommendations of the study, enhancing revenue productivity requires focused attention on the secondary and tertiary sectors, with the industrial sector having a comparatively greater impact on revenue generation. The report suggests that expanding manufacturing, agro-processing, food processing, bamboo and rubber-based industries, logistics, tourism and other service activities can substantially improve the state’s fiscal capacity.
Experts believe these findings are closely aligned with the objectives of Destination Tripura, which seeks to position the state as an attractive investment destination by showcasing its strategic location, improving infrastructure, skilled workforce and investor-friendly policies. Increased private investment in industries would not only broaden the state’s tax base but also create employment opportunities, promote entrepreneurship and reduce dependence on government transfers.
| Also Read: Heavy Rain Triggers Landslides, Damages 300 Houses Across Tripura |
The study indicates that a strong industrial ecosystem, supported by an efficient service sector, can accelerate sustainable economic growth and strengthen Tripura’s public finances. As the state gears up for Destination Tripura, the Finance Commission-backed recommendations provide an evidence-based roadmap for policymakers to prioritise industrialisation and investment-led development, paving the way for higher revenue generation and long-term economic prosperity.
| Also Read: Tripura Tea Sector Awaits Rs 726 Crore Investment Boost |
