Economy - Economy


The Gross State Domestic Product (GSDP) of Nagaland was about ?12,065 crore (US$1.7 billion) in 2011-12. Nagaland's GSDP grew at 9.9% compounded annually for a decade, thus more than doubling the per capita income. Nagaland has a high literacy rate of 80.1 percent. The majority of the population in the state speaks English, which is the official language of the state. The state offers technical and medical education. Nevertheless, agriculture and forestry contribute a majority of Nagaland's Gross Domestic Product. The state is rich in mineral resources such as coal, limestone, iron, nickel, cobalt, chromium, and marble. Nagaland has a recoverable reserve of limestone of 1,000 million tonnes plus a largely untapped resource of marble and handicraft stone. Most of the state's population, about 68 percent, depends on rural cultivation. The main crops are rice, millet, maize, and pulses. Cash crops, like sugarcane and potato, are also grown in some parts. Plantation crops such as premium coffee, cardamom, and tea are grown in hilly areas in small quantities with large growth potential. Most people cultivate rice as it is the main staple diet of the people. About 80% of the cropped area is dedicated to rice. Oilseeds is another, higher income crop gaining ground in Nagaland. The farm productivity for all crops is low, compared to other Indian states, suggesting a significant opportunity for farmer income increase. Currently, the Jhum to Terraced cultivation ratio is 4:3; where Jhum is the local name for cut-and-burn shift farming. Jhum farming is ancient, causes a lot of pollution and soil damage, yet accounts for the majority of the farmed area. The state does not produce enough food and depends on the trade of food from other states of India. Forestry is also an important source of income. Cottage industries such as weaving, woodwork, and pottery are an important source of revenue. Tourism has a lot of potentials but was largely limited due to insurgency and concern of violence over the last five decades. More recently, a number of Small Medium Enterprises and private sector companies have actively promoted Nagaland tourism, helping initiate a growing tourism market. Tourism experts contend that the state's uniqueness and strategic location in northeast India give Nagaland an advantage in tapping into the tourism sector for economic growth. Nagaland's gross state domestic product for 2004 is estimated at $1.4 billion in current prices. The state generates 87.98 MU compared to a demand for 242.88 MU. This deficit requires Nagaland to buy power. The state has significant hydroelectric potential, which if realised could make the state a power surplus state. In terms of power distribution, every village and town, and almost every household has an electricity connection; but, this infrastructure is not effective given the power shortage in the state