Foreign Direct Investment, FDI in Nagaland

Why Invest in Nagaland

• Strategic Location: With an international border adjacent to Myanmar, Nagaland offers unique potential for cross-border trade and regional connectivity.
• Rich Cultural & Ecotourism Assets: The state’s diverse tribal cultures, festivals (e.g., the Hornbill Festival), and abundant natural beauty create significant opportunities in eco- and cultural tourism.
• Sectoral Diversification: Beyond agriculture, the state is making strides in promoting horticulture and small-scale industries, with policies supporting organic farming and value addition.
• Policy & Fiscal Reforms: Recent fiscal reforms have resulted in a revenue surplus and a targeted fiscal deficit, while programs such as the North East Industrial Development Scheme (NEIDS) support investment.

Incentives & Schemes

• North East Industrial Development Scheme (NEIDS): Offers fiscal incentives and soft loans for industrial and agro-based investments.
• Agriculture & Horticulture Support: State initiatives promote organic farming, improved market linkages, and value addition to traditional produc
• Tourism Promotion: Specific programs to enhance eco- and cultural tourism through infrastructure upgrades and promotional campaigns.

Key Economic Data: Nagaland

Category	Details
Capital	Kohima
GSDP (2024–25, Current Prices)	Rs 48,375 crore (projected for 2024–25)
Growth Rate	6.5% (projected growth rate for 2024–25 over advance estimates for 2023–24)
Per Capita Income	Rs 1,75,616 (2023–24 estimate; based on recent projections from Nagaland Budget Analysis 2024–25)
Top Sectors	Agriculture (25%), Manufacturing (12%), and Services (63%) (2022–23 estimates at current prices)
FDI Share in India	Minimal; expected to rise with focused policy reforms
Top FDI Sources	Predominantly domestic investors; potential future inflows from international sources (e.g., UAE, Singapore)*
Cumulative FDI (FY2024–25)	Data not specifically disclosed; state policy focuses on gradually increasing FDI through enhanced incentives
Policy Impact	Recent fiscal reforms and improved central transfers have helped generate a revenue surplus (2.4% of GSDP) and control the fiscal deficit (targeted at 3% of GSDP)
Other Notable Features	Strong emphasis on promoting eco-tourism and traditional agriculture through modern practices

Latest Insights

• Infrastructure & Connectivity: Recent investments are enhancing road and digital connectivity, further linking Nagaland with regional markets.
• Fiscal Management: The state achieved a revenue surplus of 2.4% of GSDP in 2024–25 projections, and the fiscal deficit is now targeted at 3% of GSDP—improvements driven by better revenue mobilization and disciplined expenditure.
• Sectoral Shifts: While agriculture remains vital, the state is actively promoting horticulture and tourism to diversify its economic base.
• Policy Focus: Continued emphasis on incentivizing agro-based industries, eco-tourism, and small-scale manufacturing is expected to boost overall growth and attract new investment over time.