Industrial Development & Economic Growth in Nagaland

Latest update: October, 2018

Economic Snapshot
Per capita Income


October, 2018

Nagaland is one of the seven states in the north-east. The state is flanked by Myanmar in the east, Arunachal Pradesh in the north, Assam in the west and Manipur in the south. Nagaland’s agro-climatic conditions favour agriculture, horticulture and forestry, offering immense potential in these areas.

State has a high literacy rate of 80.11 per cent. A majority of the population in the state speaks English, which is the official language of the state. The state strongly focuses on technical and medical education.

Between 2011-12 and 2016-17, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 12.03 per cent to Rs 0.21 trillion (US$ 3.20 billion) whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 15.72 per cent to Rs 0.19 crore (US$ 2.82 billion) between 2011-12 and 2015-16. Agriculture accounts for a significant share in Nagaland’s economy. It contributed 28.42 per cent to the state’s total GSDP during 2016-17. Around 72 per cent of the population is engaged in the agriculture sector.

As of September 2018, Nagaland had total installed power generation capacity of 160.60 MW, of which 128.93 MW was under central sector, 30.67 MW was under state utilities and private sector contributed 1.00 MW. Of the total installed power generation capacity, 70.33 MW was contributed by thermal, 58.60 MW by hydro and 31.67 MW by renewable energy. Nagaland's estimated hydropower generation potential is 1,574 megawatt (MW) as of August 2018.

The state has considerable resources of natural minerals, petroleum and hydropower. Nagaland has around 600 million metric tonnes (MT) of crude oil and more than 20 million tonnes (MT) of hydrocarbon reserves, which are unexploited. Moreover, the state has 315 MT of coal reserves and 1,038 MT of limestone reserves.

Nagaland Industrial Development Corporation (NIDC) is responsible for the development of industrial infrastructure in the state.

Promoted by NIDC, the Export Promotion Industrial Park (EPIP) at Dimapur has received formal approval as a special economic zone (SEZ) for agro and food processing. A proposed multi-product SEZ spread across 400 hectares in Dimapur has received formal approval.

According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows into the state, during April 2000 to June 2018, reached US$ 110 million.

The following are some of the major initiatives taken by the government to promote Nagaland as an investment destination:

  • The Government of India had approved allocation of about Rs 3,000 crores (US$ 463.39 million) up to March 2020 in North East Industrial Development Scheme (NEIDS) 2017. Before March 2020, the government will provide necessary allocations for its remaining period after assessment.
  • The state provides institutional support through various central and state government agencies viz., North East Council, Ministry of Development of North Eastern Region and Nagaland Industrial Development Council.
  • Ministry of Tourism, Government of India, has included 12 villages in Nagaland under the rural tourism scheme in order to promote traditional rural art, craft, textile and culture.
  • In 2018-19, International Fund for Agriculture Development (IFAD), financial wing of Food and Agriculture Organisation (FAO) plans to provide Rs 612.42 crore (US$ 95.02 million) to improve agricultural sector in eight districts of Nagaland which would cover about 650 villages in the first phase.
  • In May 2018, Indian Railways plans to construct several rail projects costing almost Rs 90,000 crore (US$ 13.96 billion) to improve connectivity in the North East by 2020. These projects will help to connect Nagaland with rest of neighbouring states.
  • An Industrial Growth Centre (IGC) has been developed in Ganeshnagar near Dimapur. It has supporting infrastructure such as water supply systems, banks, post offices, police stations, etc.
Nagaland State Presentation

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Nagaland Map