Nagaland, the ‘Land of Festivals’ 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. 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. The state has considerable resources of natural minerals, petroleum and hydropower.

Between 2011-12 and 2018-19, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 12.05 per cent to Rs 0.27 trillion (US$ 3.81 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 27.47 per cent to the state’s total GSDP during 2018-19. Around 60 per cent of the population is engaged in the agriculture sector.Agriculture sector contribution to the economic output stood at 27.47 per cent to the state’s total GSDP during 2018-19. Around 60 per cent of the population is engaged in the agriculture sector.

Total exports from the state stood at US$ 2.78 million during 2018-19 and US$ 2.40 million in FY20. According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflows to the Northeast states total to US$ 116 million from April 2000 to March 2019 and for Q1 FY20 FDI inflow stood at US$ 6 million.