Economy of Nagaland

Economy of Nagaland presents a host of sectors that collectively generate revenue for this northeastern state of India. Agriculture is the mainstay of Nagaland. As much as 70% of the total population of Nagaland is engaged in farming activities. Terrace and jhum cultivation are the two methods by which crops are grown in the state of Nagaland.

The water supply industry of Nagaland is another major segment of the state which contributes significantly towards the growth of the economy. Facilitating the supply of water to various agricultural and industrial corners of Nagaland, the water supply department plays a vital role in enhancing the economic stability of the state.

Livestock is another key economic factor of Nagaland which includes fishery, animal husbandry, cattle farming, piggery and poultry. There are many industrial units in Nagaland that provide a major boost to the economic development of the state. The medium scale industries of Nagaland that generate huge amount of revenue are located in various parts of the state.

The state of Nagaland boasts of a huge stock of minerals too like that of coal, natural gas, decorative stones, petroleum, marble, nickel, cobalt-chromium bearing magnetite and so on. The banks located in Nagaland are also known to be a major facilitator in the economic progress of the state. The tourism industry of Nagaland is counted as one of the prime contributors of economic enhancement of the place. This is because with its rich natural treasure Nagaland attracts thousands of tourists within its premises round the year.

There is no denying the fact that economy of Nagaland is the symbol of the progressive and rapidly growing phase of the state.


Agriculture in Nagaland is considered a prime source of revenue for the state. Economy of Nagaland gets a major boost through the agricultural activities of the state. Terrace and jhum cultivation are widely practiced by the tribal communities of Nagaland. The crops that have a high yield in the state of Nagaland include rice, tobacco, oilseeds, pulses, fibers, potato and sugarcane. The local people of Nagaland earn their living by growing a number of crops in their fields.

One of the major reasons behind the flourishing agricultural economy of Nagaland is the developed state of irrigation in the place. The water channels that are controlled by bamboo sticks provide unhindered irrigation facilities to the crop fields of Nagaland. Apart from major crops the farmers of Nagaland also produce plantation crops like coffee, tea and cardamom.

Potato and sugarcane are the two prime cash crops that generate revenue for the Nagaland economy. Then there are many vegetables that are grown by the peasants of Nagaland like that of carrots, chillies, onion, melon, spinach leaf, cucumber, brinjal, tomatoes and mustard. Sugarcane, maize, yams, potato, millet and arums are considered as the principal crops of Nagaland state. The farmers of Nagaland grow their crops on the basis of the rain conditions in the place. Having an agri-climatic condition Nagaland is known to have high yield.

Since agriculture contributes significantly towards the economy of Nagaland hence the government of the state is taking major initiatives to develop this particular field. From seed farms to irrigation projects the government is leaving no stones unturned to encourage the Nagaland agriculture.


The development industry in Nagaland has provided an impetus to the economic growth of this north eastern state of India. The proliferation of large scale and medium scale industries has helped to raise the standard of living of the local inhabitants of Nagaland.

Endowed with ideal infrastructure, Nagaland supports several industries. Some of the well known industries of the north eastern state of Nagaland are:
  • Bamboo related industries like paper mills, plywood factories etc.
  • Cottage industries like spinning, weaving, cane works etc.
  • Sugar mills
  • Oil factories
Some of the leading industrial organizations, processing and manufacturing plants in Nagaland are:
  • Nagaland Plywood Factory- Located in the district of Mon, the Nagaland Plywood Factory produces good quality plywood
  • Nagaland Pulp and Paper Company Limited- The Nagaland Pulp and Paper Company Limited was founded in the year of 1971. Located in the Mokokchung district of Nagaland, the company is famous for rolling out excellent quality paper
  • Pineapple Fibre Plant- Situated in the Baghty village of Wokha district of Nagaland, the Pineapple Fibre Plant is known for producing pineapple fibers
  • Citronella Oil Industries- The Citronella Oil Industries is situated in the Mongsuyuyumi village of Mokokchung district of Nagaland. The industry is famous for producing Citronella oil
  • Nagaland Sugar Mill Company Limited- Nagaland Sugar Mill Company Limited was founded in the year of 1973. Situated in Dimapur of the district of Kohima, Nagaland Sugar Mill Company Limited is a well known Public Sector of the state that produces good quality sugar
  • Fruit and Vegetable Processing Plant- The Fruit and Vegetable Processing Plant is equipped with all the modern machineries for processing food
  • Mechanized Brick Plant- Situated in the Tolumi village of Dimapur in Nagaland, the Mechanized Brick Plant is known for manufacturing burnt bricks
The economy of Nagaland has received a boost from the development of several industries.


Livestock in Nagaland is considered to be a major sector which contributes significantly towards the rapid economic growth of this state. Animal husbandry is a prime occupation of the local people of Nagaland. Poultry, fishery, piggery, dairy and cattle farming are the areas which are taken care of under the animal husbandry department of Nagaland.

The livestock in Nagaland has huge possibilities of further growth. In fact the livestock of the state plays an important role in enhancing the economy of Nagaland. The local people of Nagaland include a lot of meat items in their daily diet. Hence, it is but natural that the meat products are in high demand in Nagaland. Also, there is a ready market for dairy, poultry and fish products in Nagaland.

The government of Nagaland is planning to widen the scientific scopes in the field of livestock rearing and breeding in the state. Since the angora wool has a high economic value hence the rearing of angora rabbits is another important field where the Nagaland government is taking initiatives. In order to make Nagaland livestock a prime facilitator in the economic progress of the state there is a need for proper infrastructural system. The poultry farms and fishery departments of the state of Nagaland are required to be equipped with all modern-day facilities that can help in the efficient functioning of the same.

There are enough opportunities of transforming the livestock in Nagaland into flourishing a economic field of the state through continuous developmental efforts both by the government and the local inhabitants of the place.


The vast reserve of minerals in Nagaland has led to the sudden proliferation of industrial establishments within the north eastern state of India. Nagaland has large stock of mineral resources of coal, nickel, cobalt, magnetite, marble, petroleum, stones, natural gas and limestone. The state government of Nagaland has laid down strict rules for extraction of minerals according to the guidelines issued by the Nagaland Ownership and Transfer of Land and its Resources Act. The mining industry of Nagaland has absorbed vast population of the state. The mineral resources led to the establishment of many important industries that has added to the economic strength of the state.

Some of the industries of Nagaland that are based on the vast amount of mineral reserves of the north eastern state are:
  • Extraction of petroleum and natural gas industries
  • Extraction of molybdenum, copper, gold and silver metals
  • Limestone industries
Nagaland supports various other allied industries that are again dependent on the mineral reserves of the state. Some of the allied industries are:
  • Clay Tiles Industries
  • Mortar Lime Industries
  • Bricks
  • Ceramic Tiles
  • Pottery
The extraction of minerals has helped in the development of the economy of Nagaland.

Tourism Industry

The tourism industry in Nagaland has immensely contributed to the economic strengthening of the north eastern state of India. Blessed with natural scenic beauty and unique cultural ancestry, Nagaland draws several tourists from far and wide. The tourism industry of Nagaland helps the state to earn huge revenues.

Nagaland has many places of tourist interests that attract visitors through out the year. Some of the notable tourist destinations of Nagaland are:
  • Japfu Peak- Situated at an altitude of 130 ft, Japfu Peak offers the tourists with a wonderful opportunity to enjoy the natural splendor of the region

  • World War II Cemetery- The World War II Cemetery of Nagaland reminds one of the valiant Indian and British soldier who fought with the Japanese troops during the Second World War

  • Kohima Village- Kohima Village offers the tourist with a unique scope to experience the rich traditional legacy of the state of Nagaland
The different tribal cultural traditions of Nagaland make the north eastern state of India more colorful and attractive to tourists. The unique social customs and religious ceremonies of the aboriginal tribes of Nagaland attract several tourists who are thrilled with the unique traditional heritage of the region that has percolated to the modern era from the ancient times.

Nagaland is easily accessible by well developed roads, good network of railway tracks and by airways. The state has several categories of hotels that provide world class accommodation to tourists of different economic backgrounds. An integral part of the economy of Nagaland, the tourism industry is endowed with immense potentialities that have helped in raising the general standard of living among the common masses of the state.

Water Supply

Water Supply in Nagaland plays a pivotal role in encouraging its economic state by providing regularized services to every part of the place. The Department of Public Health & Engineering is one of the prime functionaries which is working steadily to improve the water supply scenario in the state.