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. In 2021-22, the total production of horticulture crops in the state stood at 834.89 thousand metric tonnes and the area under production was 88.1 thousand hectares. In the same year, the total production of vegetables and fruits stood at 455.89 thousand MT and 319.93 thousand MT, respectively.

As of May 2023, Nagaland has a total installed power generation capacity of 208.07 MW, of which 172.36 MW was under the central sector, 32.67 GW under state utilities, and 3.04 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 35.71 MW by renewable energy.

Total exports from the state stood at US$ 1.14 million in 2021-22 and in FY23, it stood stood at Rs. 10.89 crore (US$ 1.3 million). Major items exported from Nagaland are human hair and products, plywood and allied products, handloom products, and electrical instruments.

In July 2021, Nagaland's first agriculture crop to have a GI (Geographical Indicator) registration, Naga King Chilli (also known as Raja Mircha) was exported to international markets.

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. As of July 2021, the state has two formally approved SEZs.

In March 2022, NagaEd, a leading digital education company, acquired FDI from Australia and Singapore, thus becoming the first company to bring in FDI into Nagaland.

In September 2022, Mr. Mansukh Mandaviya, Minister of Health and Family Welfare, and Chemicals and Fertilizers, has pledged to provide the Nagaland administration complete help in enhancing the healthcare system in the northeastern state. The Nagaland government has been striving to introduce the Chief Minister's Health Insurance Scheme (CMHIS) this year in an effort to give the state's residents better healthcare.

Nagaland promotes bamboo processing as an enterprise, covering various applications such as food-based, medicinal usage, handicraft, art, tiles, and flooring. The Nagaland Bamboo Development Agency (NBDA) is the nodal office that coordinates with other offices for all bamboo-related research, development, and business applications. In FY21, the annual allocation for implementing the ‘National Bamboo Mission’ in Nagaland stood at Rs. 60 million (US$ 820,000).

Nagaland has a suitable climate for agricultural and horticultural produce. It supports multiple crops like rice, maize, millet, gram, mustard, bean, sugarcane, rubber, tea, banana, etc. In the State Budget 2023-24, Rs. 958.76 crore (US$ 116 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.

Agro-climatic conditions in the state are conducive for the development of sericulture. Mulberry, muga, eri, oak-tussar and silk are widely cultivated in Nagaland.

Pleasant climate, green hills, criss-crossing rivers, interspersed lakes, a vibrant culture, colourful handicrafts and weavings, and numerous festivals make Nagaland a tourist’s paradise. Creation of tourist complexes, eco-tourism, adventure tourism, ethnic culture tourism, health farms, hotels, convention centres, tourist travel services, etc. are various avenues for investment in the sector. In 2022, domestic tourist arrivals in the state were 97,431 and foreign tourist arrivals were 2,923.  Under the State Budget 2023-24, the Department of Tourism has been provided with an allocation of Rs. 21.01 crore (US$ 2.5 million).

Note: MW - Megawatt