In a significant step toward promoting equitable development and recognizing the unique needs of India’s northeastern region, the 16th Finance Commission of India recently visited Ziro Valley in Arunachal Pradesh. The visit highlighted the Commission’s commitment to understanding the diverse challenges faced by remote and strategically sensitive states like Arunachal, as it prepares recommendations for the financial devolution framework for 2026–31.
A Delegation Amid the Hills
The delegation, led by Annie George Matthew, Member of the 16th Finance Commission, arrived in Ziro Valley as part of a wider consultation process with northeastern states. Her leadership during the visit emphasized the importance the Commission places on field-level engagement and grassroots feedback. The scenic but remote valley in the Lower Subansiri district provided an ideal setting to witness firsthand the developmental constraints and opportunities unique to this part of the country.
Ground Realities and Grassroots Voices
During the visit, the Commission held discussions with senior state officials, local government representatives, and community leaders. The agenda covered a range of pressing issues: infrastructural challenges, education, health services, climate resilience, and livelihood development, particularly in tribal and rural areas.
Local officials shared the difficulties of implementing development projects due to Arunachal’s hilly terrain, scattered population, and poor connectivity. They stressed the high costs associated with infrastructure development and requested greater flexibility and sensitivity in the allocation of central funds. Annie George Matthew assured the gathering that the Commission was actively looking into region-specific criteria that reflect such geographical and logistical challenges.
Tribal leaders, including members of the Apatani community — the indigenous people of Ziro — shared insights on cultural preservation and sustainable livelihoods. They underscored the potential of eco-tourism and traditional agriculture as avenues for economic development, provided they are supported with infrastructure and policy backing.
Strategic and Environmental Importance
Arunachal Pradesh’s strategic location, sharing borders with Bhutan, China, and Myanmar, adds national security dimensions to development planning. Ziro Valley, while serene, lies within a broader region that requires careful balancing of defense priorities and civilian development.
The ecological fragility of the region was also a key topic during the Commission’s visit. As one of the richest biodiversity zones in India, Arunachal’s forests and ecosystems require protection. Environmental advocates called for a dedicated climate adaptation and conservation fund for northeastern states, especially those prone to landslides, floods, and other climate-related vulnerabilities.
Fiscal Equity and Federal Inclusion
The Finance Commission is tasked with recommending how tax revenues should be distributed between the Union and the states — a process that deeply impacts how resources flow to underserved areas. For a resource-constrained state like Arunachal Pradesh, which depends heavily on central assistance, the outcomes of the 16th Finance Commission’s work are crucial.
Annie George Matthew and her team listened closely to appeals for a fiscal formula that goes beyond population and income metrics, incorporating terrain difficulty, cost disabilities, and strategic imperatives. There was also a call to support capacity-building and administrative strengthening in remote districts, where government presence is sparse but essential.
Looking Ahead: A More Inclusive Financial Future
As the 16th Finance Commission continues its consultations across India, the stop in Ziro Valley stood out as a meaningful effort to include marginalized regions in the national fiscal discourse. The visit was not just symbolic; it represented a tangible step toward deeper inclusion of remote voices in the shaping of India’s fiscal future.
Annie George Matthew’s leadership during the visit, and her emphasis on understanding on-ground realities, has set a hopeful tone for the Commission’s final report. For the people of Ziro and the broader Arunachal region, the visit offered visibility, validation, and a sense that their concerns are being heard at the highest levels.
In the shadow of the Himalayas, where rivers cut through mist-covered forests and traditions run deep, the Finance Commission’s presence served as a reminder: true development is not just about numbers — it’s about listening, including, and building from the grassroots up.