Tripura is bounded on the north, west, south and southeast by Bangladesh; whereas in the east, it has a common boundary with Assam and Mizoram.
Tripura accounts for about 55-60 per cent of bamboo sticks required for making incense sticks. Around 21 of the 130 bamboo species known in India are grown in the state. It is the second largest natural rubber producer in the country, after Kerala. As of March 2013, around 61,231 hectares of area was under natural rubber cultivation.
Tripura has a large base of skilled labour, making it an ideal destination for knowledge sectors. At 87.8 per cent, its literacy rate is higher than the national average rate. The state has institutes such as National Institute of Technology (NIT) and Tripura Institute of Technology (TIT), which provide skilled manpower to various industries.
Tripura has a wide range of fiscal and policy incentives for businesses under the Tripura Industrial Investment Promotion Incentive Scheme, 2012. Development of infrastructure, improved rail & air connectivity, and establishment of trade routes have facilitated trade.
Tripura has several potential, but unexplored sectors, such as organic spices, biofuels and eco-tourism. The state has a wide variety of medical plants. It has 266 medicinal plants, with 68 species of trees, 71 herbs, 39 shrubs and 88 climbers.