Nagaland is a state in North East India. It borders the state of Assam to the west, Arunachal Pradesh and part of Assam to the north, Burma to the east and Manipur to the south. The state capital is Kohima, and the largest city is Dimapur. It has an area of 16,579 square kilometers (6,401 sq mi) with a population of 1,980,602 per the 2011 Census of India, making it one of the smallest states of India.

ECONOMY

Literacy rate in Nagaland has seen upward trend and is 79.55 percent as per 2011 population census. Of that, male literacy stands at 82.75 percent while female literacy is at 70.01 percent. Total literates in Nagaland stands at 1,342,434 of which males were 723,957 and females were 618,477.

Nagaland has basically an agricultural economy. A great ambition of the villager is to have a bumper harvest. The economy of the state is predominantly based on agriculture. The major land use pattern is slashed and burn cultivation locally known as jhum. About 1, 01,400 hectare of land is under jhum cultivation. Rice is the dominant crop and also the staple diet of the people. Of the gross cropped area under food grains, rice accounts for about 84.4%. Oil seeds are also an important crop. It includes Rapeseed, mustard etc. Coffee cardamom and tea are grown as plantation crops in Nagaland.

INDUSTRY

The age old industry of the state is cottage industry which plays a vital role in the village's economy. Cottage industries which deserve emphasis are -

1.       Weaving and dyeing

2.       Work in cane

3.       Work in wood, black smithy, pottery and excavation of salt, pulp and paper mill.

Spinning and weaving were the only significant industry in the Naga Hills until independence. Mill made yarn, by virtue of its easy availability and cheapness is steadily substituting the thread, spun locally. In course of time, indigenous spinning would probably become extinct unless the Nagas switched over to modern techniques. Weaving, however, continues to be popular. The state is trying to encourage small-scale and cottage industries. This will reduce the pressure on land, ensure a larger employment potential and lead to a balanced regional development. Weaving training-cum-production centres have been set up at Mokokchung and Dimapur, a Cottage industry training-cum-production centre has come up at Mon, and a cottage industries training centre at Aghunato. Three medium-level industries have been established by the government for the development of Industrial Sector. The Nagaland sugar mill at Dimapur has an installed capacity of 1,000 tonnes of cane per day.

MINERAL BASED INDUSTRY

Nagaland is rich in mineral resources. The exploration carried out by the State Geology and Mining Department as well as by other Central Agencies such as Geological Survey of India, Oil and Natural Gas Corporation Ltd., etc. have established several mineral reserves. There is urgent need for enhancing the pace of exploration especially for untapped potential for hydro-carbon deposits and metallic deposits, by infusing both the latest technology and required funds from domestic and foreign investors. the huge reserves of more than 1000 million tonnes of high chemical grade limestone in the Eastern Nagaland is a major prospect for setting up of mineral resource based industries.

Atomic Minerals Division and Central Ground Water Board have established the following mineral reserves which can be exploited for commercially purposes:

•        Petroleum & Natural Gas

•        High grade limestone

•        Marble and dimensional/decorative stones

•        Coal

•        Nickel-Cobalt-Chromium bearing ore

The policy is to facilitate rapid and sustained industrial development in the state through enhanced investment, an investor friendly environment, provision of infrastructure and institutional support, attractive incentive package and optimum utilization of existing resources in order to gainfully exploit emerging opportunities in the national and international markets and generate substantial income and employment avenues for the people of Nagaland.

 OBJECTIVES OF THE POLICY

•        Create gainful employment opportunities for local population.

•        Develop human resources and bring about improvement in the quality of life by promoting industrial ventures in sectors in which the State has a comparative advantage.

•        Develop marketing facilities for industrial products.

•        Encourage large and medium scale mother industries in the public, private, joint and assisted sectors to create an industrial base making use of the available resource base of the State in selective categories compatible with the local environment and ecology.

•        Develop marketing facilities for industrial products.

•        Encourage large and medium scale mother industries in the public, private, joint and assisted sectors to create an industrial base making use of the available resource base of the State in selective categories compatible with the local environment and ecology.

The salient features of the Nagaland State Industrial Policy among others are the areas of:

•        Food processing industries

•        Tourism industries

•        Agro forest based industries

•        Handloom and handicraft

AGRO-BASED INDUSTRIES

Policy on Agro-Allied Sectors shall be formulated by the state Government with long terms Projections on targets, area coverage, production levels and areas of emphasis in terms of farming, Processing and marketing activities. The Government shall also take concrete steps for improvement of Bio-technology and modernization of agriculture in the state with a view to enhance quantitative and Qualitative targets in these core Sectors.

HANDLOOM AND HANDICRAFTS

Handicrafts and handloom sector in Nagaland have vast potential for growth due to the availability of abundant skilled labor and raw materials, as well as due to rich cultural traditions of its people. Nagas are inherently skilled people and their handicrafts and handloom products are well known for the beauty and intricacies of work. These products have widespread appeal and demand in the domestic as well as offshore markets. The natural skills of Nagas lie in basketry, pottery, cultivation, spinning and weaving, carving, dyeing metal work, etc. The colorful shawls, bags and jackets woven by Nagas are extremely popular.

The Nagaland Handloom & Handicrafts Development Corporation and the Nagaland Khadi& Village industries

•        As a promotional agency to extend assistance to entrepreneur and also to market the                          products of the artisan and cottage industry. 

•        As institution to fund projects of entrepreneurs in cottage and tiny sector.

The Nagaland Industrial Development Corporation Limited (NIDC) is a Government of Nagaland undertaking,  with the objective to promote, develop, establish and assist industries in the State. NIDC had set up a Sugar Mill Project and its ancillary Distillery Project at Dimapur. NIDC manages and maintains two Industrial Estates at Dimapur, which were taken over from the State Government in 1976. The Industrial Estates covering a total area of 40 acres has 25 ready built Standard Factory Sheds, which are rented out to industrial units at concessional rates. In the hospitality industry, NIDC’s wholly owned subsidiary, Nagaland Hotels Limited, has established the only two hotels with Three Star facilities, at Kohima and Dimapur. Through its thrust in the transport sector, has created a genre of private transport operators and today there are private taxis and buses servicing every remote reach of the State thereby alleviating the transport and communication bottlenecks, a crucial infrastructure for development.

FINANCIAL RESOURCES

The possible financial sources for industrial growth in the state are identified as under: 

•        State budget 

•        Central assistance 

•        Institutional financing 

•        Foreign assistance 

•        Private sector investments, from within and outside. 

•        Internal and outside resources mobilization through shares, debentures, securities and bonds etc. 

The important natural resources of the state of Nagaland are in the form of its rivers, forests and its mineral resources.

Rivers 

There are four main rivers flowing through Nagaland, these are Dhansiri, Doyang, Dikhu and Jhanji. Some of the tributaries of the mighty Brahmaputra also flow through this state before finally merging.

Forests

Nagaland is endowed with rich forest resources including various types of flora and fauna. About 20% of the total geographical area is under the cover of tropical and sub-tropical evergreen forests - including palms, bamboo and rattan as well as timber and mahogany forests.

Minerals

Nagaland is rich in mineral resources including coal, limestone, iron, nickel, cobalt, chromium, and marble. But these are yet to be explored.

SCOPE OF INVESTMENT

•        Office Complexes

•        Multiplexes

•        IT Parks

•        Commercial Infrastructure

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