Unexploited natural

resources

• Nagaland has around 600 million metric tonnes (MT) of crude oil and more than 20 million

tonnes of hydrocarbon reserves, which are unexploited. Moreover, the state has 315

million tonnes of coal reserves and 1,038 million tonnes of limestone reserves.

Hydropower generation

potential

• Nagaland’s estimated hydropower generation potential is 1,574 MW, while the installed

capacity is 53.32 MW as of June 2014, presenting huge investment opportunities.

Bamboo and sericulture

• Bamboo is found extensively in Nagaland, with bamboo growing stock covering about 5.0

per cent of the total stock in the country. Nagaland also has enormous potential in raw silk

production, and it aims to increase silk production to 1,700 MT over the 12th Five-Year plan

period (2012-17) from the current ~400 MT.

Floriculture and

horticulture

• The agro-climatic conditions in Nagaland provide commercial opportunities for floriculture

and horticulture. The state has 650 indigenous species of medicinal and aromatic plants.

Honey production in the state stood at 380 MT during 2012 and is expected to reach 1,000

MT by the end of the 12th Five Year Plan period.

Source: Nagaland presentation to Planning Commission, 2013-14, Aranca Research

Ministry of Power, Central Electrical Authority, Indian Minerals Yearbook 2012, News articles

MT: Metric Tonnes

Growing demand Favourable location and

abundant resources

• Nagaland’s agro-climatic conditions favour agriculture, horticulture and forestry, offering immense potential in these areas.

• The state has considerable resources of natural minerals, petroleum and hydropower.

Institutional support

• 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.

Policy and infrastructure

• The state offers excellent policy and fiscal incentives for agro-based and forest-based industries, horticulture, food processing, mining, tourism, and the handlooms and handicrafts sectors.

• Transport and communication facilities are good. Industrial centres and special economic zones (SEZs) are being developed to enhance the marketability of products.

Availability of skilled labour

• Nagaland has a high literacy rate of 79.6 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.

2013-14

Hydro-

power

generation

capacity:

53.32 MW

Potential

The state’s

hydropower

potential is

1,574 MW

Advantage

Nagaland

Vision

2025

Facilitate

Aim

Participation

Potential

Increase

contribution of

agriculture

Guidance

Challenges

• The government would

facilitate and provide all

logistic support.

• Educated and unemployed

population should further seek

greener pastures in the

agriculture sector.

• Aim is to convert from a

consuming society to a

producing society.

• Envisaged food security to all

by 2025.

• Nagaland could increase its

annual agricultural production

by 7-8 folds by 2025.

• Agriculture will continue to be

the mainstay of the state

economy.

• Agri and allied sector

contribution to the GDP

stood at 20 per cent.

• About 71 per cent of the

state’s population is engaged

in farming.

• The government has asked

the ‘agri-graduates, horti-

graduates, veterinary-

graduates’ to take a lead and

promote farming in the state.

• Schemes and plans from the

Centre are not suited to reach

the rough terrains of the state.

• Reduce jhum cultivation and

replace it with more settled

and scientific forms of

cultivation.

Modernisation

• Plans to modernise and

mechanise farming to

improve the sector further.

Source: Aranca Research

Nagaland is located in the Northeast of India. The state is

surrounded by Myanmar in the east, Arunachal Pradesh in

the north, Assam in the west and Manipur in the south.

English is the official language and the medium of

education. Sixty different dialects of Sino-Tibetan language

are spoken in the state.

Kohima, Dimapur, Mokokchung, Tuensang, Wokha, Mon

and Zunheboto are some of the key cities in the state.

Nagaland has four soil types: Inceptisols (66 per cent),

Ultisols (23.8 per cent), Entisols (7.3 per cent) and Alfisols

(2.9 per cent). Paddy, maize, sugarcane, potato and tea are

grown on a large scale in the state.

Parameters Nagaland

Capital Kohima

Geographical area (sq km) 16,579

Administrative districts (No) 11

Population density (persons per sq

km)* 119

Total population (million) 1.98

Male population (million) 1.02

Female population (million) 0.95

Sex ratio (females per 1,000 males) 931

Literacy rate (%) 79.6

Source: Government of Nagaland, Census 2011

Parameter Nagaland All States Source

Economy (2012-13) (2012-13)

GSDP as a percentage of all states’ GSDP 0.2 100.0 Planning Commission Databook, June 2014,

current prices

Average GSDP growth rate (%)* 12.4 15.5 Planning Commission Databook, June 2014,

current prices

Per capita GSDP (US$) 1,315.5 1,414.4 Planning Commission Databook, June 2014,

current prices

Physical infrastructure

Installed power capacity (MW) 117.8 249,488.31 Central Electricity Authority, as of June 2014

Wireless subscribers (No) 9,541,874^ 910,157,975 Telecom Regulatory Authority of India,

as of May 2014

Broadband subscribers (No) 5,131 65,330,000 Ministry of Communications & Information

Technology, as of May 2014

National highway length (Km) 494 79,116 Ministry of Road Transport & Highways,

as of March 2013

Airports (No) 1 133 Airports Authority of India

*Calculated in Indian Rupee terms, **As of March 2013

^Combined figures for the Northeast states comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura

All figures converted at INR 60/US$

Parameter Nagaland All States Source

Social indicators

Literacy rate (%) 79.6 73.0 Census 2011

Birth rate (per 1,000 population) 16.3 21.6 SRS Bulletin (www.censusindia.gov.in),

September 2013

Investment

Outstanding investments (US$ billion) 1.6 2,414.2 CMIE (2013-14)

Industrial infrastructure

SEZs (No) 2 392 Notified as of July 2013, www.sezindia.nic.in

SRS: Sample Registration System, SEZ: Special Economic Zone

1.3

1.5 1.6

2.0 2.0

2.2

2.6

2.8 2.7

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

2011-1

2

2012-1

3

At current prices, the Gross State Domestic Product

(GSDP) of Nagaland was about US$ 2.7 billion in 2012-13.

Nagaland’s GSDP increased at a compound annual growth

rate (CAGR) of around 12.4* per cent between 2004-05 and

2012-13.

Source: Planning Commission Databook, June 2014

*In Indian Rupee terms

GSDP of Nagaland at current prices (in US$ billion)

CAGR

12.4%*

1.2

1.4 1.5

1.9 1.9 2.0

2.4

2.6 2.5

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

2011-1

2

2012-1

3

At current prices, the Net State Domestic Product (NSDP) of

Nagaland was about US$ 2.5 billion in 2012-13.

Nagaland’s NSDP increased at a CAGR of 12.3* per cent

between 2004-05 and 2012-13.

Source: Planning Commission Databook, June 2014

*In Indian Rupee terms

NSDP of Nagaland at current prices (in US$ billion)

CAGR

12.3%*

732

825 874

1,072 1,076

1,149

1,321 1,400

1,315

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

2011-1

2

2012-1

3

The state’s per capita GSDP in 2012-13 was US$ 1,315.5

compared to US$ 731.7 in 2004-05.

Per capita GSDP increased at a CAGR of 10.2* per cent

between 2004-05 and 2012-13.

Source: Planning Commission Databook, June 2014

*In Indian Rupee terms

GSDP per capita of Nagaland at current prices

(in US$)

CAGR

10.2%*

679

766 810

993 1,001

1,060

1,218

1,292

1,213

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

2011-1

2

2012-1

3

The state’s per capita NSDP in 2012-13 was US$ 1,213.5

compared to US$ 679.3 in 2004-05.

The per capita NSDP increased at a CAGR of 10.1* per

cent between 2004-05 and 2012-13.

Source: Planning Commission Databook, June 2014

*In Indian Rupee terms

NSDP per capita of Nagaland at current prices

(in US$)

CAGR

10.1%*

The secondary sector has been growing the fastest,

expanding at a CAGR of 15.0* per cent from 2004-05 to

2012-13. It was driven by construction, manufacturing and

electricity, gas & water supply.

The tertiary sector expanded at a CAGR of 12.2* per cent

from 2004-05 to 2012-13, driven by trade, real estate,

banking, insurance, transport, communications and other

services. The primary sector expanded at a CAGR of 6.5*

per cent from 2004-05 to 2012-13.

In 2012-13, the tertiary sector contributed 57.6 per cent to

the state’s GSDP at current prices. It was followed by the

primary sector at 25.3 per cent and the secondary sector at

17.1 per cent.

Source: CMIE

*In Indian Rupee terms

GSDP composition by sector (2012-13)

34.9% 25.3%

12.8% 17.1%

52.3% 57.6%

2004-05 2012-13

Primary sector Secondary sector Tertiary sector

CAGR*

6.5%

12.2%

15.0%

Source: National Horticulture Board, NEDFi Databank, Assam Tribune

^Third advanced estimates, *As of 2011-12

Crop Annual production^

2012-13 (Tonnes)

Banana 80,000

Pineapple 85,000

Coconut 10,400

Ginger 36,000

Potato 32,000

Total food grain 405,000

Total fruits 275,950

Total vegetables 207,740

Total pulses 36,460*

Agriculture contributes heavily to Nagaland’s economy. It

contributed 19.8 per cent to the state’s GSDP in 2012–13.

Around 70.0 per cent of the population is engaged in the

agricultural sector.

Maize, sugarcane, paddy, banana, pineapple, ginger and

potato are some of the key agricultural products of the state.

Nagaland Food Private Limited has been established in

Dimapur Industrial Estate, which specialises in bamboo

shoot processing, pineapple, passion fruit and orange juice

processing.

In 2012-13, the food grain production in the state stood at

405,000 tonnes.

In 2013-14, the central government has allocated Nagaland

an additional US$ 1.8 million as grant-in-aid for

implementation of the centrally sponsored pulse production

scheme.

The state expects to achieve a food grain production target

of 3.24 million MT by the end of the 12th Five-Year Plan, up

from 2.49 million MT during the 11th Five-Year Plan.

According to the Department of Industrial Policy &

Promotion (DIPP), the cumulative FDI inflows from April

2000 to May 2014 amounted to US$ 79 million*.

In 2013-14, total outstanding investments in the state were

around US$ 1.6 billion.

Investment in the services sector continued to increase

significantly, with its share in the total outstanding

investments rising from 53.0 per cent in 2011-12 to 81.2 per

cent in 2013-14.

The services sector was followed by the electricity sector,

which accounted for 11.8 per cent of the total outstanding

investments during 2013-14.

Source: CMIE

*FDI inflows for RBI’s (Reserve Bank of India’s) Guwahati-

region, which includes Assam, Arunachal Pradesh, Manipur,

Meghalaya, Mizoram, Nagaland and Tripura

Break up of outstanding investments by sector

(2013-14)

81.2%

11.8%

7.0%

Services

Electricity

Manufacturing

The Nagaland government stated that as per estimates, the

total receipts for the year 2014-15 were placed at US$

1,791.4 million.

Total expenditure for 2014-15 stood at US$ 1,761.9 million,

reflecting a positive balance of US$ 29.4 million in the

consolidated state fund.

Adding a deficit of US$ 31.7 million in public account, the

current transactions of the year are expected to result in a

deficit of US$ 2.3 million.

Since the opening deficit of the current year was estimated

at US$ 159 million, the current financial year is expected to

close with a deficit of US$ 161.3 million. Source: Government of Chhattisgarh, finance department

* Assumed exchange rate of 1 US$= 60.00 INR for 2014-15

Annual Budget

(Estimates in US$ million)

2013–14 2014–15

Total receipt 1,536.2 1,791.4

Total expenditure 1,441.1 1,761.9

Public account deficit 101.1 31.7

Fiscal surplus/deficit (5.9) (2.3)

Source: Ministry of Road Transport & Highways, Hindustan Times

*As of March 2013

Road type Road length (km) – as of

March 2011

National Highways 494*

State Highways 763

Rural roads 22,095

Total road length 34,146

As of March 2013, Nagaland had 494 km of national

highways.

The state had 763 km of state highways and 22,095 km of

rural roads, as of March 2011.

The state is well connected with Assam and Manipur

through National Highway (NH)-61, NH-39, NH-36, NH-150

and NH-155.

Agencies maintaining roads in the state include the Public

Works Department (PWD) and Sewak (a Border Roads

Organisation of the Government of India).

Nagaland State Transport provides road transport across

Nagaland, covering 112 routes and 21,300 km daily.

Under the Indian government’s Northeastern Region

Highway Development Program, 13 road improvement

projects costing around US$ 35.3 million were in progress in

the state as of December 2012.

In May 2013, the Indian government approved the four-

laning of the Dimapur-Kohima section of NH-39. The project

cost is estimated at US$ 200.7 million.

The Nagaland Foothill Road Coordination Committee has

been formed to review work progress of a 300 km road from

eastern Nagaland’s Mokokchung town to Dimapur, its

commercial hub.

The road entails a new 70 km alignment along the Assam-

Nagaland border and connects it to an existing road

network.

The railway station at Dimapur connects Nagaland with the

rest of the country via Assam.

Around 88 km of the Dimapur-Kohima railway project is in

the planning stage. The central government has envisaged

completing this US$ 156.5 million project by 2015.

In order to speed up the project, the Nagaland government

has constituted a committee for proper and effective

monitoring of the rail project.

Constituting the committee would allow close coordination

between the state government and the Northeast Frontier

Railway for execution of the Dhansiri (Assam) to Zubza-

Thizama (Nagaland) railway line project.

Nagaland has one operational airport at Dimapur. A second

airport is being planned for Kohima.

Airport, Dimapur Railway station, Dimapur

As of June 2014, Nagaland had a total installed power

generation capacity of 117.8 MW. It consisted of 86.2 MW

under central utilities and 31.7 MW under state utilities.

Of the total installed power generation capacity, 53.32 MW

was contributed by hydropower, 34.84 MW by thermal

power and renewable power accounted for 29.67 MW of

capacity.

The per capita power consumption stood at 257.2 kWh in

the state during 2011-12.

As of March 2014, 70.1 per cent villages in the state

received electric supply.

Recently, the World Bank has decided to provide a loan to

set up infrastructure in the power sector in six north eastern

states, including Nagaland.

The bank would fund a major share of the US$ 1.4 billion

project (North Eastern Region Power System Improvement

Project), and it would be executed by the state owned

Power Grid Corporation of India Ltd.

Source: Central Electricity Authority,

Ministry of Power, Nagaland Post

*Till June 2014

Installed power capacity (MW)

102.7 103.1 103.1 103.1

116.8 116.8 117.8

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15*

Telecom infrastructure (May 2014)

Wireless subscribers^ 9,541,874

Wire-line subscribers^ 136,892

BSNL subscribers 322,038*

Telephone exchanges 62*

Tele density^ 69.97

Post offices 330**

Source: Telecom Regulatory Authority of India, May 2014

India Post, Department of Telecommunications, Annual Report 2012-13,

^Combined figures for the Northeast states comprising Arunachal Pradesh,

Manipur, Meghalaya, Mizoram, Nagaland and Tripura

*As of December 2012, **As of May 2014

As of December 2012, Nagaland has 64 telephone

exchanges. The service is provided through the Northeast-II

circle of Bharat Sanchar Nigam Limited (BSNL).

As of December 2012, BSNL subscribers in the state

totalled 322,038.

Broadband service in the state is provided by Sify, BSNL,

Reliance, Tata Indicom and Airtel.

In January 2012, nearly 1,889 villages were provided

broadband access under universal service obligation fund in

the state.

The Department of Telecommunication has sought active

cooperation from the state governments of the North

Eastern states, including Nagaland, in a bid to boost

telecom and Internet services in the region.

Remittance has been sought from the state government in

order to expand 3G services from three to all 11 districts.

As of May 2014, the state had 330 post offices.

^SDHQ: Sub-District Headquarters,

DHQ: District Headquarter, OFC: Optical-Fibre Cable

Major telecom operators in Nagaland

Bharat Sanchar Nigam Limited (BSNL)

Bharti Airtel

Aircel Limited

Vodafone Essar

Reliance Communications

Tata Teleservices

Idea Cellular

Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), US$ 19.5 million have been allocated for roads/flyovers, parking lots and spaces, retaining walls along roads and drainage/storm water drains development in Kohima. As of January 2014, the roads and transportation project was completed, the integrated road and parking project at Kohima is half way through, while the storm water drainage development project is 90 per cent complete. The City Development Plan of Kohima city has been approved by the central government and development works are underway. The North Eastern Region Urban Development Programme (NERUDP) Phase-I is being implemented by the Ministry of Urban Development (MoUD), with financial assistance from Asian Development Bank (ADB). It covers Kohima city in the state. Infrastructure development of Kohima city is underway, with a funding of US$ 62.5 million from the Asian Development Bank. It is to be implemented during 2008–17 and would cover projects such as water supply, sewerage, solid waste management, drainage and landslip protection, transportation, slum and community up-gradation. The state earmarked a budgetary outlay of US$ 144.7 million for several urban development projects during the 12th Five-Year Plan. Solid waste segregation and disposal is diligently being adhered to across the state. In September 2013, Ministry of Development of North Eastern Region (DoNER) launched North East Rural Livelihood Project (NERLP) that would create 0.3 million jobs in Mizoram, Nagaland, Sikkim and Tripura. The US$ 115.1 million project would be implemented during the 12th Five-Year Plan and is financed by the World Bank. It would be implemented in 11 blocks of Peren and Tuensang districts of Nagaland. Kohima would become the first city in India to have fully decentralised waste management.

Source: JNNURM, Ministry of Urban Development, Government of India, Ministry of Development of North Eastern Region (DoNER)

Educational infrastructure (2012-13)

Universities 3

Colleges 58

Theological colleges 24

Industrial Training Institutes 8

Primary schools 2,350*

Upper primary schools 476*

Nagaland has a literacy rate of 79.6 per cent according to

the Census 2011; the male literacy rate is 82.8 per cent and

the female literacy rate is 76.1 per cent.

The Nagaland University (NU) offers bachelors, masters

and doctoral degrees in science, humanities & education,

social science, engineering & technology and management.

Directorate of Technical Education was established in July

2009 to focus on technical education.

Major activities of the Department of Higher Education

include awarding scholarships, construction of academic

and other buildings, employing quality manpower and

providing them regular training. The department’s budget for

2012-13 was US$ 15.11 million.

In May 2013, the state government signed an MoU with

Vision University, Republic of Korea, to upgrade the skills of

the youth and create new opportunities through student

exchange programmes. Source: Department of Higher Education Annual Administrative

Report 2012-13, Government of Nagaland, Census 2011 (provisional data)

University Grants Commission, District Information System for Education

(DISE) Analytical Tables 2010-11,

Planning Commission - Annual Report 2011-12, Government of India

*As of 2010-11, MoU: Memorandum of Understanding

Literacy rates (%)

Literacy rate 79.6

Male literacy 82.8

Female literacy 76.1

Source: Nagaland State Action Plan on Climate Change, Government

of Nagaland website, www.nagaland.nic.in

Department of AYUSH, Ministry of Health & Family Welfare,

Government of India

*As of August 2011

Health indicators (2012)

Birth rate* 15.6

Death rate* 3.2

Infant mortality rate** 18

As of March 2012, the state had 11 district hospitals, 126

primary health centres, 396 sub-centres, 21 community

health centres and 11 mobile medical units.

As of August 2011, the state had 204 ayurvedic and

homeopathic dispensaries and hospitals.

Community participation in healthcare services has led to

better maintenance and up-gradation of medical

infrastructure in the state.

During the 2013-14 budget, the government has allocated

US$ 0.83 million for setting up an ICU at District Hospital,

Mokokchung and completion of the District Hospital,

Kohima.

Source: Sample Registration System (SRS) Bulletin, September 2013

(www.censusindia.gov.in)

*Per thousand persons, **Per thousand live births

Health infrastructure (As of March 2012)

Sub-centres 396

Primary health centres 126

Community health centres 21

District hospitals 11

Ayurvedic and Homeopathic

Dispensaries and Hospitals 204*

Mobile medical units 11

Nagaland is home to 16 different tribes. Each tribe has its own weaving techniques, unique designs, colours, costumes and

accessories.

The tribal and war dances of the Naga people are unique to each clan and form an important part of their culture.

The customs and traditions of the Nagamese are intertwined with their agricultural cycle and festivals.

The annual Hornbill festival is a festive showcase of the rich culture and tradition and is celebrated for seven days in the first

week of December.

Other festivals include Sekrenyi, Moatsu, Sukhrunhye Tsukhenye, Naknyulem, Tsokum, Mimkut, Bushu, etc.

Tourist locations in Nagaland include Tizit, Chumukedima, Piphema, Zanibu Lake, Shilloi Lake, Dimapur, Kohima,

Mokokchung, Longleng, Mon, Peren, Phek, Tuensang, Kiphire, Wokha and Zunheboto.

The state government is building a multi-disciplinary sports complex at Dimapur at an estimated cost of US$ 21.2 million.

Furthermore, proposals to build tribal heritage centres in the state are also underway.

The Ministry of Youth Affairs and Sports is planning to implement the Urban Sports Infrastructure Scheme (USIS) with an

aim to develop sports infrastructure across the country. Under the scheme, the ministry has approved the construction of

multi-purpose halls at Dimapur and has decided to lay a synthetic turf football ground at Jalukier Town, Perun District,

Nagaland.

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.

The state government and Nagaland Industrial

Development Corporation Ltd planned investment of around

US$ 5.81 million in developing the SEZ.

Investors from South Korea have shown interest in

establishing a ginger processing unit in the SEZ.

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.

Industrial infrastructure

• Border Trading Centre with Myanmar

• Exhibition facilities for national and international fairs

on handloom products

• Infrastructural development schemes for districts in

the ‘No Industry’ category

Urban haats have been established in Dimapur, which

provide market outlets for various trades.

A mini tool room and training centre have been established

at Dimapur.

The state has established various MSME industrial clusters,

mainly in Kohima, Wokha and Mokokchung districts.

An integrated infrastructure development centre (IIDC) was

inaugurated at Kiruphema in Kohima. The Longnak valley in

the Mokochung district is being considered for a similar

project.

North Eastern Industrial Consultants Ltd (NECON) was

established by financial institutions and banks to provide

assistance and professional services to entrepreneurs in the

state. NECON assists in preparation of project and

feasibility reports, and surveys.

Avon Cycles Private Ltd has established an industrial unit to

manufacture and assemble e-bikes in the Dimapur district.

Industrial infrastructure Units

District Industries Centre (DIC) 11

Sub-DICs 6

International Border Trade Centres 5

SEZ (agro & food processing) 1

Old Industrial Estate, Dimapur 1

New Industrial Estate, Dimapur 1

Mini Industrial Estates 2

Growth centres 6

Industrial zones 12

Source: National Skill Development Corporation

SEZ: Special Economic Zone,

MSME: Micro, Small and Medium Enterprises

The Department of Industries and Commerce in Nagaland

has made several efforts to encourage setting up of various

small scale & cottage, medium sized and large scale

industries.

Even the state government has made several efforts to set

up small scale and medium sized industries, which include

setting up of the Industrial Growth Centre (Ganeshnagar)

and Export Promotional Industrial Park, Nagaland Mini Tool

Room & Training Centre (Dimapur), the Nagaland Bamboo

Policy under the Nagaland Bamboo Development Agency

(Dimapur) and establishment of Border Trade Centres at

five places in the international border areas.

The natural resources, climatic conditions and policy

incentives in Nagaland support investments in industries

related to bamboo, horticulture, sericulture, tourism and

agro-processing.

Other promising sectors in the state include paper and pulp

processing, minerals and mining, and petrochemicals.

The state adopted a cluster development approach,

developing the cluster areas in proximity to the resources.

Key industries in Nagaland

• Bamboo

• Agriculture and allied industries

• Horticulture

• Sericulture

• Minerals and mining

• Handloom and handicrafts

• Tourism

Nagaland Industrial Development Corporation (NIDC) is

responsible for the development of industrial infrastructure

in the state.

An export promotion industrial park is located in Dimapur

and it provides industrial plots as well as ready-to-build

standard design factories, a state-of-the-art convention

centre with hi-tech communication services and secretarial

services, besides other facilities.

Some of the noteworthy companies include Nagaland Pulp

& Paper Co Ltd (Tuli), Nagaland Forest Products (Tizit),

Nagaland Mechanised Bricks Co Ltd (Dimapur), etc.

Source: Ministry of Micro, Small & Medium Enterprises,

Government of India

MSME clusters in

Nagaland District Principal products Total units

Fabrication and general

engineering

Kohima

Grill, gate, shutter, welding

27

Mokokchung 25

Handloom cluster

Kohima Local loom, handloom 50

Longmisa, Mokokchung Cloths, cot, shawl, mekila 20

Bee-keeping Kohima Honey products 45

Cane & bamboo cluster Khar, Mokokchung Cane chair, table, bamboo mat,

basket, bag 25

Pottery cluster Changki, Mokokchung Pot, vase, decorative design items 15

Stone cluster Wokha Stone crushing, stone chips,

boulder 25

Nagaland’s bamboo growing stock, covering 448,000 hectares of land and comprising 22 species, is about 5.0 per cent of

the total stock in the country. During the 11th Five-Year Plan period, the state harvested 4.5 million tonnes of bamboo under

its mission mode programmes.

Nagaland promotes bamboo processing as an enterprise, covering various applications such as food-based, medicinal

usage, handicraft, art, tiles and flooring.

Nagaland Bamboo Development Agency (NBDA) is the nodal office that coordinates with other offices for all bamboo-

related research, development and business applications.

NBDA set up Nagaland Bamboo Resource Centre (NBRC) at Dimapur as a centre of excellence with the following

objectives:

Function as an information repository and facilitate technology and information transfer to enterprises.

Create awareness on the potential of bamboo.

Support bamboo farmers and entrepreneurs in building capacity.

In-house pilot bamboo processing units for training entrepreneurs.

The state has technology tie-ups with several national and international agencies in the area of bamboo research and

application.

As part of the enterprise development initiative, NBDA has recently organised a semi-intensive training on bamboo furniture

making. This is expected to generate interest and awareness on the necessity for skill upgradation and value addition of

various bamboo furniture products to meet the demands of the modern world.

Nagaland has a rich wealth of flora and fauna. Favourable climatic and geographical conditions in the state offer

tremendous scope for floriculture.

Based on accessibility and agro-climatic conditions, Kohima, Mokokchung, Wokha and Dimapur districts have commercial

potential for floriculture.

The Department of Under Developed Areas began promoting floriculture a few years back across four districts, which has

currently spread to other districts. This has promoted commercial cultivation of flowers by various educated Naga women

under the Horticulture Technology Mission (HTM).

The centrally sponsored project HTM for promotion of the horticulture sector in the North East, has helped to set up green

houses for any self-help group or women group who have 200 square metres of land.

The state harvested 1.5 million flowers in 2012–13, with roses accounting for more than one-fifth of the total harvest. Other

flowers cultivated in the state include gerbera, anthurium and orchids.

Several varieties of orchids are available in the state, offering significant investment potential.

Exotic and hybrid varieties of flowers are also being developed in Nagaland; the state is also home to the tallest

Rhododendron tree in the world.

The annual turnover of the floriculture business in the state is estimated at around US$ 2 million.

Floriculture projects in Nagaland

• As part of the Floriculture Project at Satsuphen, Wokha, the ground is being harvested for quality liliums;

it is among the successful projects in the state.

• A low-cost lilium project has also been undertaken at Mokokchung, Chuchuyimpang.

• The Model Floriculture Centre for Roses and Carnations at Yisemyong produces world-class roses and

carnations, which are spread over an area of about 38 acres. The centre cultivates eight varieties of

carnations – Accardi, Master, Schabert, Diena, Star, Varna and Dalila.

• Niathu Garden in Kohima is known for cultivating lilium throughout the year.

• The floriculture project at Chumukedima, Dimapur, which is spread over an area of 4000 sq m, grows

around 40,000 anthurium plants of 11 varieties.

• Akruzo Putstire, Sovima, is the biggest anthurium grower in Nagaland.

Source: National Skill Development Corporation

Nagaland has a suitable climate for agricultural and horticultural produce. It supports multiple crops viz., rice, maize, millet,

gram, mustard, bean, sugarcane, rubber, tea, banana, pineapple, orange, jackfruit, pear, plum, passion fruit, litchi, mango,

lemon, sweet lime, potato, sweet potato, tapioca, tomato, pea, chilly, ginger, garlic, cardamom, etc.

Jhum cultivation (or shifting cultivation) is widely practised in Nagaland; however, crop yields are low under such cultivation.

There is potential for increasing capacity utilisation by adopting modern techniques.

The food and meat processing sector also provides immense potential for investment in Nagaland.

Nagaland Industrial Development Corporation has received approval for developing an agro and food processing SEZ in

Dimapur.

Krishi Vigyan Kendra (KVK) has been established in Dimapur by the Indian Council of Agricultural Research (ICAR) in order

to provide training to enhance skill sets of farmers, farm women, rural youth and school dropouts as well as to conduct field

trials and front-line demonstrations.

The state aims to promote tea plantations. In November 2013, Echahaba Tea Estate and its factory at Merankong, near Tuli

town, were inaugurated. It is the first tea garden in the state to have its own factory.

Forest area occupies 52 per cent of the state’s total land area. Out of the total land area of 1.7 million hectares, an area of

93,231.4 hectares is irrigated. The state’s food grain production totalled 405,000 tonnes in 2012-13.

During 2011-12, the Ministry of Agriculture and Food Processing Industries has selected Nagaland for the Krishi Karman

Awards. The award was presented as Nagaland was ranked the best performing state in overall food grain production

among Category-III states (annual total food grain production less than one million tonnes).

The state government has proposed an outlay of around US$ 406.8 million for agriculture and allied sectors development

during the 12th Five-Year Plan.

NEDFI subsidises up to 25.0 per cent of the project cost (for project costs of up to US$ 54,861 for individuals and US$

109,721 for partnerships and companies) and arranges for soft loans to promote enterprises in the agri-business sector.

Source: Annual Plan 2013-14, Government of Nagaland,

Business Knowledge Resources, Government of India,

NEDFI: The North Eastern Development and Finance Corporation Ltd

Nagaland has immense potential to produce organic honey and pollen due to its rich biodiversity, traditional knowledge,

practice of beekeeping and numerous honeybee species.

The state is estimated to have potential of producing 15,000 MT of honey and 100 MT of wax, which together could

generate around US$ 100 million annually.

Nagaland Beekeeping and Honey Mission (NBHM) was established in 2007 to promote honey production in the state.

NBHM has set up a honey processing unit at Dimapur and established 17 common facility centres in the state. Moreover, it

has been involved in training, survey studies and marketing of honey.

The mission has developed 33,000 bee colonies, with honey production reaching 380 MT in 2012 from 120 MT in 2006–07.

The state aims to improve honey production to 1,000 MT by the end of the 12th Five-Year Plan and 5,000 MT by 2020.

NBHM plans to train 30,000 people and provide 400,000 bee hives to increase production in the state.

Source: Annual Plan 2013-14, Government of Nagaland,

Nagaland Beekeeping and Honey Mission

It is estimated that Nagaland has a potential for 1,574 MW of hydropower generation, but the installed hydropower

generation capacity in the state was 53.32 MW as of May 2014.

In order to capitalise on the immense potential; the state government is encouraging investments in this area.

Under the central government’s initiative of installing 50,000 MW hydropower in India, the Central Electricity Authority has

prepared a pre-feasibility report of three hydropower projects in Nagaland with a total capacity of 330 MW.

IL&FS Infrastructure Development Corporation has been mandated for setting up of two hydropower plants – Dikhu

Hydropower Project (120 MW) and Dzuza Hydropower Project (8 MW).

To exploit the huge potential of hydropower generation in the villages, the New and Renewable Energy Department of the

Government of Nagaland has identified 21 feasible sites for hydro projects at the micro and mini levels.

The state government aims to commission 50 MW of hydro projects at the MSME scale by 2022.

Under the 12th Five-Year Plan, the Ministry of Power has identified more than 90 new sites with an estimated potential of

196.98 MW to set up hydro electricity plants in the state.

Source: Government of Nagaland,

MSME: Micro, Small and Medium Enterprises

Pleasant climate, green hills, criss-crossing rivers,

interspersed lakes, vibrant culture, colourful handicrafts and

weavings, and numerous festivals make Nagaland a

tourist’s paradise.

About 38,942 domestic and foreign tourists visited the state

during 2013*.

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.

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.

The preferred tourist destinations in the state are Kohima,

Dimapur, Mokokchung, Longleng, Wokha, Kiphire,

Zunheboto, Phek, Peren, Mon and Tuensang.

Nagaland has been declared the ‘Falcon capital of the

world’ as around one million Amur Falcons roost in the state

during annual migration to South Africa.

Total tourist arrivals in Nagaland (in ‘000)

Source: Ministry of Tourism, Government of India

* Provisional

During 2012-13*, the number of tourists heading towards

the northeast has risen dramatically.

Manipur, Tripura and Nagaland have recorded 20-29 per

cent more foreign tourist arrivals, while Arunachal Pradesh

and Nagaland recorded 32.74 per cent increase in foreign

travellers during the year.

22.4 22.2

27.5

38.4 38.9

2009 2010 2011 2012 2013*

Nagaland’s IT policy aims to increase the use of IT in the industrial and government sectors.

With a high literacy rate, affordable cost, strong English-speaking population, improved telecommunications connectivity and

favourable climate, Nagaland is well poised to serve the IT industry.

In order to develop skilled manpower in IT, Department of Electronics Accreditation of Computer Courses (DOEACC) and

Indira Gandhi National Open University (IGNOU) provide full-time as well as certificate courses through Community

Information Centres (CICs).

The IT policy also provides various incentives and concessions for investments in IT.

The Department of Information Technology & Communications of the Nagaland Government promotes and manages

information technology in the state. The department is undertaking development, operation and maintenance of the

Nagaland IT park project through public-private partnership (PPP).

The Department of Sericulture of Nagaland is mandated to popularise sericulture in rural areas, generate employment

opportunities, introduce and impart latest technologies on sericulture, support marketing of sericulture products and promote

silk exports from Nagaland.

To facilitate operations at the district-level, the department has set up district sericulture offices in all 11 districts of the state.

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

are widely cultivated in Nagaland.

In 2013-14*, Nagaland produced around 606 MT of raw silk. The state aims to increase silk production to 1,700 MT over the

12th Five-Year plan period.

In 2012-13, total mulberry plantation area was around 555 hectares in the state.

Source: Ministry of Textiles, Government of India

*Provisional

The handicraft and handloom sector in Nagaland has enormous growth potential due to the abundant availability of skilled

labour and raw materials, coupled with rich cultural traditions that people follow. Handicraft and handloom products from the

state are renowned for their beauty and intricate design.

The varied ethnic handloom and crafts of Nagaland have a ready market in India and abroad.

Bamboo crafts are being promoted as a part of the state’s Bamboo Policy.

With modern weaving equipment being popularised in Nagaland, the handloom sector is poised for growth in production and

trade.

Nagaland Handloom & Handicrafts Development Corporation Limited was established in 1979. Its primary objectives are to

boost production and promote the handloom & handicrafts industry.

Coal, limestone, nickel, cobalt, chromium, magnetite,

copper, zinc, petroleum and natural gas are the major

minerals available in Nagaland.

The state has reserves/resources of coal in Borjan, Jhanzi-

Disai, Tiesang and Tiru Valley coalfields; iron ore

(magnetite), cobalt and nickeliferous chromite in Tuensang

district; and limestone in Phek and Tuensang districts.

Abundant coal reserves presents a huge untapped potential

in the minerals and petrochemicals industries.

Explorations are being carried out by the Geology & Mining

Department, Geological Survey of India, Oil and Natural

Gas Corporation Limited (ONGC), Atomic Minerals Division

and Central Ground Water Board.

The state has recently enforced Coal Policy and Nagaland

Coal Mining Rules; under which, the Department of Geology

and Mining has issued 17 coal mining leases and nine small

pocket deposit licences to individuals and coal companies.

The state government has increased coal royalty from US$

3.04 per tonne to US$ 5.34 per tonne, effective from

November 2012.

Reserves/resources of minerals in Nagaland

(as of March 2010)

Ore/mineral (Million tonnes)

Coal 315.4*

Cobalt ore 5

Chromite 3.2

Copper ore 2.0

Iron ore 5.2

Dunite 4.8

Limestone 1,037.8

Nickel ore 5

Source: Indian Bureau of Mines, *As of March 2011

The state has more than 1000 million tonnes of high chemical grade limestone reserves in the eastern region.

Around 600 million MT of crude oil and more than 20 million tonnes of hydrocarbon reserves underneath seven oil belts,

spread across five districts of Nagaland, are unexploited.

These reserves provide opportunities for establishing mineral resource-based industries in the state.

Recently, the Government of Nagaland was planning to issue licences to some companies after it floated expressions of

interest for oil exploration in the state.

The government has officially approved resumption of oil exploration in Champang and Tsori areas in July 2014.

Source: Indian Bureau of Mines

Nagaland has rich flora and fauna, which supports various

medicinal plants. The agro-climatic conditions of Dimapur

Mokokchung, Phek and Tuensang districts are suitable for

growth and cultivation of medicinal and aromatic plants.

The state has identified 650 indigenous medicinal plants

that could be cultivated and processed, including aconitum

ferox, lemon grass, aconitum heterophyllum, aquilaria

agallocha, artemiszia annua, dioscorea floribunda, gloriosa

superba, hedychium spicatum, lycopodium clavatum,

nardostachys jatamansi, panax-pseudoginseng, picrorhiza

kurron, piper longum, piper nigrum, podophyllum

hexunddrum, pogostemon cablin, smilax china, tagetes

minuta, taxuz bacata and valeriana wallichii.

The Department of Land Resources Development has

initiated the development of medicinal and aromatic plants

through Bio-Resources Mission, with a view to encourage

farmers to cultivate indigenous medicinal and aromatic

plants (MAP) on a commercial basis.

To conserve and promote medicinal plants in the state, the

government has set up herbal gardens at Dimapur, Wokha,

Mon, Mokokchung and Kohima. During the 11th Five-Year

Plan period, 4,230 hectares of medicinal and aromatic

plants were developed in the state.

Herbal garden at Dimapur, Nagaland

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration, Industrial Entrepreneurs Memorandum, Industrial licences Industries & Commerce Department

Permission for land use

Allotment of land Nagaland Industrial Development

Corporation Limited

Site environmental approval Nagaland Pollution Control Board

No-objection certificate and consent under Water and Pollution Control Act

Registration under States Sales Tax Act and Central and State Excise Act Excise Department

Commercial taxes

Sanction of power

Department of Power Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Public Health and Engineering

Department Water connection

Agency Contact information

Ministry for Development of North Eastern Region

258, 1st Floor, Vigyan Bhavan Annexe, New Delhi- 110011 Phone: 91-11-23022400/01

Fax: 91-11-2306 2754 Website: mdoner.gov.in

Department of Industries & Commerce

Director of Industries & Commerce Upper Chandmari,

Kohima-797001, Nagaland Phone: 91-370-228001

Fax: 91-370-221368 E-mail: doi@nagaind.com

Nagaland Industrial Development Corporation

IDC House Dimapur - 797112, Nagaland

Fax: 91-3862-26473 Email: nidc@nagaind.com

Nagaland Handloom & Handicrafts Development

Corporation

Post Box No 31, Dimapur Nagaland

Phone: 91-3862-224 591

Cost parameter Cost estimate Source

Cost of land (per acre) US$ 50,000 to US$ 200,000

(in Kohima and Dimapur) Industry sources

Hotel costs (per room per night) US$ 15 to US$ 100 State tourism website

Office space rent (2,000 sq ft) US$ 100 to US$ 800 per month Industry sources

Residential space rent (2,000 sq ft

house) US$ 75 to US$ 300 per month Industry sources

Labour costs (minimum wages per

day)

Unskilled: US$ 1.8

Skilled: US$ 2.2 to US$ 2.4

Ministry of Labour and Employment,

Government of India

Nagaland Bamboo Policy 2004

• To promote bamboo cultivation and bamboo-based industries in Nagaland.

• To promote ecological security and economic growth through development and utilisation of

bamboo resources in the state. Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

• To promote the North Eastern region as an attractive investment destination through

concessions and incentives.

Read more

Objective

IT Policy of Nagaland 2004

• To develop Nagaland as a preferred IT destination by creating an enabling environment.

• To facilitate and support the creation of sound IT infrastructure and skilled human resources in

the state. Read more

Objectives

Nagaland State Industrial Policy 2000

• To facilitate rapid and sustained industrial development of the state.

• To enable entrepreneurs to generate substantial income and employment for the people of

Nagaland. Read more

Objectives

Nagaland Coal Policy 2014 (Draft)

• To implement the revised system of revenue collection and control of coal mines.

• To collect coal royalty based on the actual quantity of coal being transported by the coal carrying

truck as per the government’s prescribed rate. Read more

Objectives

Year INR equivalent of one US$

2004-05 44.81

2005-06 44.14

2006-07 45.14

2007-08 40.27

2008-09 46.14

2009-10 47.42

2010-11 45.62

2011-12 46.88

2012-13 54.31

2013-14 60.28

Average exchange rates

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