Dimapur faces a dire and uncertain economic future

Dimapur, once known as Nagaland’s commercial hub, is facing an uncertain economic crisis. The city, which for decades thrived as the state’s trading powerhouse, is now struggling under the weight of extortion, illegal taxation, and collections that have infiltrated nearly every sector.
Observers say Dimapur is turning into a “collection centre,” where trade is no longer driven by business but by coercion. More than 30 parallel authorities and over a hundred unions and associations operate, enforcing what is described as an “unwritten law”. Shops, government offices, and even residential colonies are not spared for relentless demands.
At check gates, warehouses, and shops, goods are taxed multiple times-by government agencies and by self-appointed groups.
The government’s effort to enforce the ban on collections still has a long way to go before becoming effective. What began as arbitrary collections has evolved into a complex system of welfare committees, syndicates, and associations, each claiming to protect traders while in reality perpetuating monopolies and illegal collection.
The problem extends beyond the 30 Naga Political Groups (NPGs) including those under ceasefire agreements. Over 100 unions and organizations have taken advantage of the difficulty faced by the government to act , despite repeated notifications in 2009 and 2012 and even a Gauhati High Court directive in 2014 banning illegal taxation.
Public anger led to the formation of ACAUT (Action Committee Against Unabated Taxation) in 2010, which organized a landmark protest in October 2013. Thousands demanded an end to multiple taxations, prompting the government to set up a High Power Committee in 2014. Its report, submitted in 2015, remains shelved.
Efforts by groups like the Public Action Committee (PAC) in 2019 also failed to bring decisive government action. Traders, including non-local businessmen who sustained Dimapur’s growth for decades, have been compelled to shut down operations. Many have relocated to Guwahati, Siliguri, and Karbi Anglong, leaving once-bustling markets like Hazi Park and Hongkong Market with rows of empty stalls. Buyers from Karbi Anglong, Jorhat, and Arunachal Pradesh-once the backbone of Dimapur’s retail economy-now avoid the city, citing harassment by “collectors.”
These entities prey on the public to fund vested interests.
“This is no longer business; it’s survival,” one trader said, describing how collections are carried out under the guise of public interest or territorial rights.
Another quipped “ There are over 20 groups active. How can we pay when there is no sale these days? Sometimes, they come –take away expensive items without paying and promising to adjust the cost with the next year’s tax amount.”
The consequence is that economic activity is bleeding, confidence has collapsed, and entrepreneurs are fleeing. Residents say that the hue and cry by many against illegal collections and taxations appear to be mere “lip service” as sincere action on the ground is not visible. Dimapur’s transformation from a thriving hub into a hollowed-out “collection centre” has left residents fearing the city could soon resemble a ghost town.
Political observers say tackling this crisis requires a two-pronged approach- a political will to ensure strict enforcement by police and district authorities, and a sincere effort to urgently effect a larger Naga political solution from two agreements signed after more than 25 years of negotiations . Without urgent action, Dimapur risks losing its place as Nagaland’s economic heart.