Introduction
Nagaland is one of the seven northeast states and is located on India’s farthest east side. The state is flanked by Myanmar in the east, Arunachal Pradesh in the north, Assam in the west, and Manipur in the south.
The state has considerable resources of natural minerals, petroleum, and hydropower. It has unexploited reserves of around 600 million metric tonnes (MT) of crude oil and more than 20 MT of hydrocarbons. Moreover, the state has 315 MT of coal reserves and 1,038 MT of limestone reserves.
The agro-climatic conditions in Nagaland provide multiple commercial opportunities for floriculture and horticulture. The state has 650 indigenous species of medicinal and aromatic plants. Bamboo is found extensively in Nagaland, with bamboo growing stock covering nearly 5% of the total stock in the country. As of 2019, Nagaland had 46 species of bamboo. Raw silk production in the state stood at 264 MT in 2020-21, 273 MT in 2021-22 and 304 MT in 2022-23.
As of August 2024, Nagaland has a total installed power generation capacity of 208.20 MW, of which 172.36 MW was under the central sector, 32.67 GW under state utilities, and 3.17 GW under the private sector.
Out of the total installed power generation capacity, 106.03 MW was contributed by thermal, 66.33 MW by hydro, and 35.84 MW by renewable energy.
In March 2022, the Nagaland Government signed a Power Purchase Agreement (PPA) with Hyderabad-based Halo Energie Pvt Ltd to develop Nagaland’s first greenfield solar power project in Dimapur. The 20 MW power project is estimated to cost around Rs. 120 crore (US$ 15.7 million) and generate 28 million units per year.
The State Government has given the clearance for a 21 MW hydropower project at Hakchang village in Tuensang district and a 27 MW thermal project at Tuli, both of which are expected to be operational during 2022-23.
Total exports from the state stood at US$ 1.13 million in in FY25 (Until August). Major items exported from Nagaland are Minerals, engineering products, handloom products, and tobacco manufactured.
The state provides institutional support through various central and state government agencies viz., the North East Council, the Ministry of Development of North Eastern Region and the Nagaland Industrial Development Council.
The state offers excellent policy and fiscal incentives for agro-based and forest-based industries, horticulture, food processing, mining, tourism, and the handloom and handicraft sectors. Industrial centres and special economic zones (SEZs) are being developed to enhance the marketability of products.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflows to Nagaland totalled US$ 0.01 million between October 2019-June 2024.
Recent Developments in Key Sectors
- On October 14, 2023, Union Minister of Health and Family Welfare Dr. Mansukh Mandaviya inaugurated Nagaland's first medical college, NIMSR, in Kohima, offering 100 MBBS seats with 85 reserved for state students and 15 for students nationwide, emphasizing research, international opportunities, and healthcare accessibility initiatives.
- On March 19 2024, Construction activities have commenced at Portal 1 of Tunnel number 7 of the Dimapur-Kohima new rail line project in Tsiepama village, marking the beginning of the construction of the longest tunnel in the entire rail line.
- In June 2023, IIM Shillong signed a Memorandum of Understanding (MoU) with the Government of Nagaland for providing accessible and quality education to the students of Nagaland.
- In June 2023, 250 farmers in Nagaland received user authorization for two agricultural products, Naga tree tomato and Naga cucumber, allowing them to use Geographical Indication (GI) for these items.
- In March 2023, Union Minister for Roads, Transport and Highways, Mr. Nitin Gadkari informed that the government is constructing a 14.71 kilometre-long four-lane highway from Dimapur to Kohima (Package-II) in Nagaland, costing Rs. 339.55 crore (US$ 41.1 million).
- In January 2023, Google Cloud and non-government organisation eGovernment Foundation, along with the government of Nagaland unveiled the TeleICU Hub at the Naga Hospital Authority, Kohima. The facility was aimed to transform secondary care management and bridge gaps in critical health services.
- In a recent development in August 2022, Nagaland got its second railway station after a gap of more than 100 years with the commissioning of a new facility at Shokhuvi. Dimapur Railway Station, which is situated in the heart of the commercial hub of the state.
- The Central government allocated Rs. 145 crore (US$ 17.5 million) to Nagaland for the construction of a Unity Mall in Dimapur. This funding is part of the Union Budget 2023-24, which has set aside Rs. 5,000 crore (US$ 605.2 million) for the establishment of Unity Malls across the country. The mall in Nagaland aims to promote and showcase the state’s One District One Product (ODOP) offerings, highlighting the unique products and industries of the region.
- In October 2022, the Carl Rogers Institute of Mental Health and School Counselling (CRIMHSC) was inaugurated to encourage counselling in schools and mental health benefits.
- In September 2022, the North Eastern Development Finance Corporation Ltd (NEDFi) welcomed six Nagaland startups to its Guwahati headquarters to present their business plans and apply for finance.
- In September 2022, Advisor to the Power Department, Mr. Tovihoto Ayemi, launched the Unified Rooftop Solar (RTS) web portal in Nagaland.
- In September 2022, the first School of Excellence in Skill Development in Nagaland was opened. This was a collaboration between the Department of School Education (DoSE) and the National Institute of Electronics & Information Technology (NIELIT).
- Nagaland Tourism has launched a groundbreaking programme to promote off-road-based tourism and has enlisted Wander Beyond Boundaries (WBB), the leaders in extreme terrain travel, to create and implement "Nagaland Off-Road".
- In the State Budget 2022-23, Rs. 33.23 crore (US$ 4.34 million) was allocated for the agriculture & allied sector.
- In December 2021, Nagaland's Department of Agriculture launched the State Agriculture Portal (SAP), nagafarmer.nagaland.gov.in, to provide responsive and effective administration and a user-friendly platform for the welfare of the farmers and the farming community.
Note: MW - Megawatt
FACTFILE
Capital
KohimaGeographical Area (sq km)
16,579State Language
English and Sino-TibetanLiteracy Rate
79.55 per centKey Industries:
Bamboo
Sericulture
Horticulture
Minerals
Agriculture and Allied industries
Tourism
Mining
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