Nagaland’s estimated hydropower generation potential stood at 1,452 MW and the overall installed hydro capacity stood at 66.33 MW in May 2024, presenting huge investment opportunities in the state.



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, 399 MT in 2023-24.
As of September 2025, 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.
Total exports from Nagaland in FY25 stood at Rs. 14 crore (US$ 1.60 million).
Major items exported from Nagaland in FY25 are Minerals, cotton yarns and handicrafts.
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 Rs. 0.52 crore (US$ 0.06 million) between October 2019-June 2025.
Nagaland, located in India’s far eastern Northeast, borders Myanmar, Arunachal Pradesh, Assam and Manipur, and is rich in natural resources including crude oil, hydrocarbons, coal, limestone and hydropower. The state has strong agro-climatic advantages for horticulture, floriculture and medicinal plants, with extensive bamboo resources and a steadily growing sericulture sector. As of September 2025, Nagaland’s installed power capacity stood at over 200 MW, led by thermal, hydro and renewable sources. Exports remain modest, led by minerals, cotton yarn and handicrafts. The state offers attractive policy and fiscal incentives for agro-based, forest-based, mining, tourism, handloom and handicraft industries, supported by agencies such as the Northeast Council and IDAN. Recent developments include new freight rail operations, healthcare partnerships, education and skilling initiatives, renewable energy projects, and expanding road and rail connectivity, strengthening Nagaland’s investment and growth potential.
Note: MW - Megawatt




