Nagaland is mainly an agricultural state. 60% of the people in the state are engaged in different types of agricultural work. Agriculture, Animal husbandry and Poultry are the main occupation of Nagaland people. The secondary occupation is small village industries based on traditional local forest products. A huge natural oil reserves is located in state yet to be explored. Lack of proper industrial, infrastructural, transportation, minerals and market are some reasons of hindrance of industrial growth in the state. The process of industrialization in the state is in infancy and the need to have more industries has been recognized.

Nature has endowed the State richly in the form of rainfall and fertile soil and a salubrious climate, through which the agro/forest resources are abundant. Nagaland has been the major exporter of round logs, veneers, plywood and sawn timber to the rest of the country till the ban imposed by the Supreme Court. ‘Tree farming‘ has been taken up on a massive scale by the last 10 to 15 years and it is expected to be a major resource for industrial activity in the near future. Nagaland has also been identified as a potential region for promotion of Horticulture. At present, 40000 hectares of land is covered under horticulture crops. Food Processing Industries based on organic horticulture produce, have tremendous potential. The State has a comparative advantage in the availability of fruits such as pineapple, plum, bananas, passion fruit and citrus fruits, bamboo shoot and other exotic spices. Medicinal Herbs and Plants are abundantly available in the hilly regions of the State. Citronella, Eucalyptus oil production in the State is presently under demonstration units run by the State Government. One of the most valuable medicinal plants commonly known as Ginseng is also available in Nagaland. The agro-climatic condition is very favorable for the development of Sericulture in the State. There are 34 Sericulture farms which provide technical and other supports like training of farmers, distribution of improved varieties of saplings, seedlings, supply of disease free laying (DFLs) etc. Floriculture can be taken up as a very viable industry in the State. The wide variety of orchids available in the State can be exported to earn valuable foreign exchange. Many species of orchids are available in Nagaland, which has tremendous commercial potential. There is scope to grow exotic and new varieties of orchids through tissue.

The State has high potential for diary and allied products as well as for processing of hides and skins for leather Industry. At present, scientific processing of Poultry, Piggery and other meat products is lacking in the State. Therefore, there is potential for setting up modern abattoir and other meat processing units in the State. There is huge scope for production and marketing of other value added diary products. Rearing of Angora rabbits for "Angora wool" is also a potential which can be exploited.

Nagaland is rich in minerals resources. Mineral reserves such as petroleum and natural gas, nickel cobalt-chromium bearing Magnetite, marble, dimensional,/decorative stones, coal etc has been found. The huge reserves of more than 1000 million tones of high chemical grade limestone in the eastern Nagaland is a major prospect for setting up of industries.

The picturesque landscape of the hilly state of Nagaland and its manifold cultures and customs offer vast potential for development of Tourism Industry in the State. Each of the 16 major tribe have their own distinctive colorful costumes, festivals, dances and music. The rich art and culture of the people is a major tourist attraction. The State is blessed with salubrious climate throughout the year and one can visit it anytime. The Government of India‘s decision to release the RAP will open new opportunities of development of tourism industry. Such opportunities exist in eco-tourism, adventure tourism, anthropological tourism, and ethnic cultural tourism.