Nagaland

AUGUST
2012
THE LAND OF FESTIVALS

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Nagaland
AUGUST
2012
THE LAND OF FESTIVALS

Contents
 Nagaland – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Nagaland

 State Acts & Policies

For updated information, please visit www.ibef.org

2
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Nagaland Factfile → 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). The major crops of the state are
paddy, maize, sugarcane, potato and tea.

Parameters Nagaland
Capital Kohima
Geographical area (sq km) 1 6,579
Administrative districts (No) 11
Population density (persons per sq
119
km)*
Total population (million)* 1 .9
Male population (million)* 1 .0
→ Nagaland is located in the Northeast of India. The state
is surrounded by Myanmar in the East, Arunachal Female population (million)* 0.9
Pradesh in the North, Assam in the West, and Manipur
Sex ratio (females per 1 ,000 males)* 931
in the South.
Literacy rate (%)* 80.1
Sources: Government of Nagaland Website,
→ English is the official language and the medium of http://nagaland.nic.in,
education. Sixty different dialects of Sino-Tibetan *Provisional Data – Census 2011
language are spoken in the state.

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Nagaland
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2012
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Nagaland in Figures … (1/2)

Parameter Nagaland All-States Source

Economy
GSDP as a percentage of all states’ GSDP 0.1 6 1 00 CMIE, 201 0-1 1 , current prices
Average GSDP growth rate (%)* 1 1 .3 1 5.9 CMIE, 2004-05 to 201 0-1 1 , current prices
Per capita GSDP (US$) 1 ,243.2 1 ,324.3 CMIE, 201 0-1 1 , current prices

Physical Infrastructure
Central Electricity Authority, as of March
Installed power capacity (MW) 1 03.1 1 99,627.0 201 2
Telecom Regulatory Authority of India, as
Wireless subscribers (No) 8,247,01 0^ 903,727,208 of January 201 2
Ministry of Communications & Information
Broadband subscribers (No) 53,399^ 1 3,350,938
Technology, as of December 201 1
Ministry of Road Transport & Highways,
National Highway length (km) 494 71 ,772 Annual Report 201 1 -1 2
Airports (No) 1 1 33 Airport Authority of India
*Calculated in Indian Rupee Terms
^Combined figures for the Northeast states comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and
Tripura

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Nagaland
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2012
THE LAND OF FESTIVALS

Nagaland in Figures … (2/2)

Parameter Nagaland All-States Source

Social Indicators
Literacy rate (%) 80.1 74.0 Provisional Data – Census 201 1
Birth rate (per 1 ,000 population) 1 6.8 22.1 SRS Bulletin (www.censusindia.gov.in), 201 1

Investment
Outstanding investments (US$ billion) 3.1 1 1 ,31 8.3 CMIE (201 1 -1 2)

SRS: Sample Registration System

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Nagaland
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Advantage Nagaland … (1/2)

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 Fiscal Incentives

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 sector.

Availability of Skilled Labour

Nagaland has a high literacy rate of 80.1 per cent. Majority of the population in the state speaks English, which is the official language
of the state. The state has strong focus on technical and medical education.

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Nagaland
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2012
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Advantage Nagaland … (2/2)

Conducive Agro-Climatic Conditions

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

Abundant Natural Resources

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

Facilitating Infrastructure

Transport and communication connectivity is good. Industrial Centres and Special Economic Zones (SEZs) are being developed to
enhance the marketability of products.

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Nagaland
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Economic Snapshot – GSDP

→ At current prices, the Gross State Domestic Product Nagaland’s GSDP

(GSDP) of Nagaland was about US$ 2,516.5 million in
2011-12. 2011-12 2,516.5
2010-11 2,440.4
→ Nagaland’s GSDP grew at a Compound Annual Growth
2009-10
Rate (CAGR) of 9.9 per cent between 2004-05 and 2,166.8
2011-12. 2008-09 2,055.3
2007-08 2,006.7
2006-07 1,602.6
2005-06 1,487.7 CAGR
9.9%
2004-05 1,298.9

0 400 800 1,200 1,600 2,000 2,400 2,800

US$ million
Source: CMIE

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Nagaland
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Economic Snapshot – NSDP

→ At current prices, the Net State Domestic Product Nagaland’s NSDP

(NSDP) of Nagaland was about US$ 2,335.2 million in
2011-12. 2011-12 2,335.2
2010-11 2,267.7
→ Nagaland’s NSDP grew at a CAGR of 9.9 per cent
2009-10
between 2004-05 and 2011-12. 2,015.7
2008-09 1,913.2
2007-08 1,858.1
2006-07 1,485.9
2005-06 1,381.2 CAGR
9.9%
2004-05 1,206.1

0 400 800 1,200 1,600 2,000 2,400 2,800

US$ million
Source: CMIE

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Economic Snapshot – Per Capita GSDP

→ The state’s per capita GSDP in 2011-12 was US$ 1,261.4 Per Capita GSDP
as compared to US$ 729.3 in 2004-05.
1,400
CAGR 1,243.2 1,261.4
→ Per capita GSDP increased at a CAGR of 8.1 per cent 1,200 8.1% 1,121.5
1,073.1 1,081.1
between 2004-05 and 2011-12. 1,000
821.9 870.9
800 729.3

US$
600

400

200

Source: CMIE

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Economic Snapshot – Per Capita NSDP

→ The state’s per capita NSDP in 2011-12 was US$ 1,170.5 Per Capita NSDP
as compared to US$ 677.2 in 2004-05.
1,400
CAGR 1,155.2 1,170.5
→ The per capita NSDP increased at an average rate of 8.1 1,200 8.1% 1,043.3
993.6 1,006.4
per cent between 2004-05 and 2011-12. 1,000
763.1 807.6
800 677.2

US$
600

400

200

Source: CMIE

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Economic Snapshot – Percentage Distribution

of GSDP

→ The secondary sector has been the fastest growing Percentage Distribution of GSDP
sector, at a CAGR of 18.3 per cent from 2004-05 to
100 CAGR
2011-12. It was driven by construction, manufacturing
90
and electricity, gas & water supply.
80
70 52.3 56.0 11.9%
→ The tertiary sector grew at a CAGR of 11.9 per cent 60
from 2004-05 to 2011-12, driven by trade, real estate, 50
banking, insurance, transport, communications and 40 12.8
other services. 20.1 18.3%
30
20 34.9
→ In 2011-12, the tertiary sector contributed 56.0 per cent 10 23.9 5.1%
to the state’s GSDP at current prices. It was followed by 0
the primary sector at 23.9 per cent and secondary 2004-05 2011-12
sector at 20.1 per cent. Primary Sector Secondary Sector Tertiary Sector

Source: CMIE

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 Nagaland
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Economic Snapshot – Agriculture Production

→ Agriculture is a key contributor to Nagaland’s

Annual Production –
economy. It contributed around 18.1 per cent to the Crop
2010-11 (Tonnes)
GSDP of Nagaland in 2011-12. Around 70 per cent of
the population is engaged in agriculture sector. Banana 59,000
Pineapple 57,500
→ Maize, sugarcane, paddy, banana, pineapple, ginger
Ginger 30,000*
and potato are some of the key agricultural products
of the state. Chillies 23,000*
Colocasia 20,000*
→ In 2008-09, the total food grain production in the state
Potato 10,000
was 514,200 tonnes.
Total Cereals 319,500^
→ Horticultural produce, agro-processing produce and Total Fruits 151,300
bamboo have high export potential. Bamboo
Total Vegetable 79,400
cultivation is now being commercialised.
Total Pulses 34,700^
→ Nagaland Food Private Limited has been established
Sources: Indian Horticulture Database 2011,
in Dimapur Industrial Estate, which specialises in National Horticulture Board, NEDFi Databank
bamboo shoot processing, pineapple, passion fruit *In 2008-09
and orange juice processing. ^In 2009-10

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 Nagaland
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THE LAND OF FESTIVALS

Economic Snapshot – Investments and FDI

Inflows

→ According to the Department of Industrial Policy & Break up of Outstanding Investments by Sector (2011-12)
Promotion, the cumulative FDI inflows from April 2000
to January 2012 amounted to US$ 73 million*. 1.9%

Services
→ In 2011-12, the total outstanding investments in the 14.6%
state were US$ 3,146.7 million.
Electricity
→ Of the total outstanding investments, the services
sector accounted for around 53.0 per cent followed by 53.0%
electricity sector 30.5 per cent. 30.5% Manufacturing

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

which includes Assam, Arunachal Pradesh, Manipur, Meghalaya, Mining
Mizoram, Nagaland and Tripura.

Source: CMIE

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Nagaland
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2012
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Contents
 Nagaland – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Nagaland

 State Acts & Policies

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15
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Physical Infrastructure – Roads, Railways and

Airports → 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.

→ The railway station at Dimapur connects Nagaland to

rest of the country via Assam.

→ Nagaland has one operational airport at Dimapur. A

second airport is being planned for Kohima.

Airport, Railway Station, Dimapur

Dimapur Road Type Road Length (km)
National Highways 494
→ Nagaland has 494 km of National Highways and
State Highways 2,386.6
around 2,386.6 km of State Highways.
Sources: Ministry of Road Transport & Highways, Annual
→ The state is well connected with Assam and Manipur Report 2011 -1 2, Department of Planning & Co-ordination,
through National Highway (NH)-61, NH-39, NH-36, Nagaland
NH-150 and NH-155.

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Physical Infrastructure – Power

→ As of March 2012, Nagaland had a total power Installed Power Capacity (MW)
generation installed capacity of 103.18 MW. It
consisted of 72.51 MW under central utilities and 30.67 120
103.1 103.1
MW under state utilities. 102.7 102.7 103.1
100

→ Of the total power generation installed capacity, 53.32 80

MW was contributed by hydro power, 28.67 MW was
contributed by renewable power and thermal power 60
contributed 21.19 MW of capacity.
40

→ The per capita power consumption was 218.0 kWh in 20

the state in 2009-10.
0
2007-08 2008-09 2009-10 2010-11 2011-12
→ As of February 2012, the state had achieved 70.4 per
cent of village electrification.
Source: Central Electricity Authority

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Physical Infrastructure – Telecom

Telecom Infrastructure (January 201 2)

→ As of December 2011, Nagaland has 62 telephone Wireless Subscribers^ 8,247,01 0
exchanges. The service is provided through the
Northeast-II circle of Bharat Sanchar Nigam Limited Wire-line Subscribers^ 253,1 89
(BSNL). BSNL Subscribers 337,643*
Telephone Exchanges 62*
→ As of December, 2011, total subscribers of BSNL in the
state was 337,643. Tele-Density of BSNL Subscribers (per
1 4.99*
cent)
Sources: Telecom Regulatory Authority of India,
→ Broadband service in the state is provided by Sify, Department of Telecommunications, Annual Report 201 1 -1 2,
^Combined figures for the Northeast states comprising
BSNL, Reliance, Tata Indicom and Airtel. Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland
and Tripura
→ Department of Telecommunications is implementing *As December 2011
the scheme for augmentation, creation and Some of the Major Telecom Operators in Nagaland
management of intra-district SDHQ-DHQ OFC^ Bharat Sanchar Nigam Limited (BSNL)
network in the state.
Bharti Airtel
^SDHQ: Sub-District Headquarters, DHQ: District Headquarter, Aircel Limited
OFC: Optical-Fibre Cable Vodafone Essar
Reliance Communications
Tata Teleservices
Idea Cellular
Source: Telecom Regulatory Authority of India

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Development Projects: Urban Infrastructure

→ Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), US$ 25.3 million has been allocated for
roads/flyovers, parking lots and spaces and drainage/storm water drains development in Kohima.

→ 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 the 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 the period 2008-2017 and will cover projects such as water
supply, sewerage, solid waste management, drainage and landslip protection, transportation, slum and community
up-gradation.

→ Solid waste segregation and disposal is diligently being adhered to across the state.

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Social Infrastructure – Education

→ Nagaland has a literacy rate of 80.1 per cent according Educational Infrastructure (March 2011)
to the provisional data of Census 2011; the male literacy Universities 3
rate is 83.3 per cent and the female literacy rate is 76.7
per cent. Secular Colleges 52
Theological Colleges 24
→ The Nagaland University (NU) offers bachelors, masters Industrial Training Institutes 3^
and doctoral degrees in science, humanities &
education, social science, engineering & technology Higher Secondary Schools 69^
and management. High Schools 337^
Middle Schools 465^
→ Directorate of Technical Education was established in
July 2009 to focus on technical education. Primary Schools 1,662^

Sources: Department of Higher Education Annual

→ Major activities of the Department of Higher Education Administrative
Report 2010-11, Government of Nagaland, NEDFi Databank
include awarding scholarships, construction of
^As of March 2008
academic and other buildings, employing quality
manpower and providing them regular training. Budget Literacy Rates (%)
of the department for 2011-12 was US$ 13.85 million. Literacy Rate 80.1
Male Literacy 83.3
Female Literacy 76.7
Source: Census 2011 (provisional data)

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Social Infrastructure – Health

→ As of May 2011, the state had 11 District Hospitals, Health Infrastructure (As of May 2011)
126 Primary Health Centres, 396 Sub-Centres and 21
Community Health Centres. Sub-Centres 396
Primary Health Centres 126
→ As of May 2011, the state had 201 Ayurvedic and Community Health Centres 21
Homeopathic Dispensaries and Hospitals and 11
Mobile Medical Units. District Hospitals 11
Ayurvedic and Homeopathic
201
→ Community participation in healthcare services has led Dispensaries and Hospitals
to better maintenance and up-gradation of medical Mobile Medical Units 11
infrastructure in the state.
Sources: Nagaland Action Plan on Climate Change,
Government of Nagaland Website,
www.nagaland.nic.in
Health Indicators (2010)
Birth Rate* 16.8
Death Rate* 3.6

Infant Mortality Rate** 23

Sources: Sample Registration System (SRS) Bulletin 2011

(www.censusindia.gov.in)
*Per thousand persons
**Per thousand live births

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Cultural Infrastructure

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

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

→ The customs and traditions of 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 a period of
seven days in the first week of December.

→ The other festivals include Sekrenyi, Moatsu, Sukhrunhye Tsukhenye, Naknyulem, Tsokum, Mimkut, Bushu, etc.

→ Tourist locations in Nagaland include, Tizit, Chmukedima, Piphema, Zanibu Lake, Shilloi Lake, Dimapur, Kohima,
Mokokchung, Longleng, Mon, Peren, Phek, Tuensang, Kiphire, Wokha and Zunheboto.

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Industrial Infrastructure → Urban haats have been set up in Dimapur, which

provides market outlets for various trades.

→ A mini tool-room and training centre has been set up

→ Nagaland Industrial Development Corporation (NIDC) at Dimapur.
is responsible for the development of industrial
infrastructure in the state.
Industrial Infrastructure
→ Promoted by NIDC, the Export Promotion Industrial
• Border Trading Centre with Myanmar
Park (EPIP) at Dimapur has received formal approval
• Exhibition facilities for national and international
as a Special Economic Zone (SEZ) for agro and food
fairs on handloom products
processing.
• Infrastructural Development Schemes for
districts in the “No Industry” category
→ A proposed multi-product SEZ spread across 400
hectares in Dimapur has received formal approval.

→ An Industrial Growth Centre (IGC) has been developed

in Ganeshnagar near Dimapur. It has supporting
infrastructure such as water supply system, bank, post
office, police station, etc.

→ An Integrated Infrastructure Development Centre

(IIDC) has been inaugurated at Kiruphema in Kohima.
The Longnak valley in the Mokochung district is being
considered for similar development.

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Nagaland
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Contents
 Nagaland – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Nagaland

 State Acts & Policies

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24
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Key Industries

→ The natural resources, climatic conditions and policy

Key Industries in Nagaland
incentives in Nagaland support investments in
industries related to bamboo, horticulture, sericulture, • Bamboo
tourism and agro-processing. • Agriculture and Allied Industries
• Horticulture
→ Other promising sectors in the state include paper and • Sericulture
pulp processing, minerals and mining, and • Minerals and Mining
petrochemicals. • 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 built Standard Design Factories, state of the
art Convention Centre with hi-tech communication
services, secretarial services, besides other facilities.

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Key Industries – Bamboo

→ Nagaland’s bamboo growing stock, covering 448,000 ha of land and comprising 22 species, is about 5 per cent of the
total stock in the country.

→ 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 information repository and facilitate technology and information transfer to enterprises.

→ Create awareness on the potentials 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.
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Key Industries – Floriculture

→ 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.

→ 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.

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Key Industries – Agriculture, Horticulture

and Food Processing

→ 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.

→ NEDFI provides subsidy of upto 25 per cent of the project cost (for project cost upto US$ 54,861 for individuals and
US$ 109,721 for partnerships and companies) and arranges for soft loan to promote enterprises in the agri-business
sector.

→ Krishi Vigyan Kendra (KVK) has been established in Dimapur by Indian Council of Agricultural Research (ICAR) in
order to provide trainings to enhance skill sets of farmers, farm women, rural youth and school drop outs and to
conduct field trials and front-line demonstrations.

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Key Industries – Hydro Power

→ It is estimated that Nagaland has a potential for 1,000 MW of hydro power generation, while the hydro power
generation installed capacity in the state as of March 2012 was only 53.32 MW.

→ This provides an immense potential; investments are being invited by the State Government in this area.

→ Under Central Government’s initiative of installing 50,000 MW hydro power in India, Central Electricity Authority has
prepared 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 hydro power plants – Dikhu
Hydropower Project (120 MW) and Dzuza Hydropower Project (8 MW).

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Key Industries – Tourism Sector

→ Salubrious climate, green hills, criss-crossing rivers, interspersed lakes, vibrant culture, colourful handicrafts and
weavings, and numerous festivals make Nagaland a tourist’s paradise.

→ About 22,226 tourists visited the state during 2010.

→ 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 rural tourism scheme in order
to promote traditional rural art, craft, textile and culture.

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Key Industries – IT Sector

→ 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, education and certifications from Department of Electronics
Accreditation of Computer Courses (DOEACC), Indira Gandhi National Open University (IGNOU) are provided
through Community Information Centres (CICs).

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

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Key Industries – Sericulture

→ 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 exports of silk from Nagaland.

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

→ Agro-climatic condition in the state is conducive for development of sericulture. Mulberry, muga, eri, oak-tussar, and silk
are widely cultivated in Nagaland.

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Key Industries – Handloom and

Handicrafts

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

→ Bamboo crafts is being promoted as a part of the Bamboo Policy of the state.

→ With the modern weaving equipments are 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 production development and promotion of handloom & handicrafts.

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Key Industries – Minerals and

Petrochemicals

→ Nagaland has vast, untapped natural resource reserves of limestone and marble (1,000 million tonnes), petroleum
and natural gas (600 million tonnes), coal (50 million tonnes) and substantial reserves of slate, sandstones, basalt,
chert, dunite, gabbro, granodiorite, serpentine, spilite pyroxenite and quartzite.

→ This presents a huge untapped potential in the minerals and petrochemicals industries.

→ Explorations are being carried out by Geology & Mining Department, Geological Survey of India, Oil and Natural Gas
Corporation Limited (ONGC), Atomic Minerals Division and Central Ground Water Board.

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Key Industries – Medicinal Plants

→ Nagaland has rich flora and fauna, which support various medicinal plants.

→ The state has identified specific medicinal plants, which could be cultivated and processed, viz., 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.

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Contents
 Nagaland – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Nagaland

 State Acts & Policies

For updated information, please visit www.ibef.org

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Key Approvals Required

List of Approvals and Clearances Required Department

Incorporation of Company Registrar of Companies
Registration, Industrial Entrepreneurs Memorandum, Industrial Licenses
Industries & Commerce Department
Permission for Land Use
Nagaland Industrial Development Corporation
Allotment of Land
Limited
Site Environmental Approval
No-Objection Certificate and consent under Water and Pollution Nagaland Pollution Control Board
Control Act
Registration under States Sales Tax Act and Central and State Excise Act
Excise Department
Commercial Taxes
Sanction of Power
Power Feasibility Department of Power
Power Connection
Approval for Construction Activity and Building Plan Public Works Department
Water and Sewerage Clearance
Public Health and Engineering Department
Water Connection

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Contact List

Agency Contact Information

258, 1 st Floor, Vigyan Bhavan Annexe, New Delhi- 1 1 001 1
Ministry for Development of North Eastern Phone: 91 -1 1 -23022400/01
Region Fax: 91 -1 1 -2306 2754
Website: mdoner.gov.in
Director of Industries & Commerce
Upper Chandmari,
Kohima-797001 , Nagaland
Department of Industries & Commerce Phone: 91 -370-228001
Fax: 91 -370-221 368
E-mail: doi@nagaind.com
IDC House
Dimapur - 7971 1 2, Nagaland
Nagaland Industrial Development Corporation Fax: 91 -3862-26473
Email: nidc@nagaind.com
Post Box No 31 , Dimapur
Nagaland Handloom & Handicrafts Development
Nagaland
Corporation Phone: 91 -3862-224 591

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Cost of Doing Business in Nagaland

Cost Parameter Cost Estimate Source

US$ 50,000 to US$ 200,000 (in Kohima

Cost of Land (per acre) Industry Sources
and Dimapur)

Hotel Costs (per room per night) US$ 1 5 to US$ 1 00 State Tourism Website

Office Space Rent (2,000 sq ft) US$ 1 00 to US$ 800 per month Industry Sources

Residential Space Rent (2,000 sq ft

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

Labour Cost (minimum wages per Unskilled: US$ 1 .8 Ministry of Labour and Employment,
day) Skilled: US$ 2.2 to US$ 2.4 Government of India

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Contents
 Nagaland – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Nagaland

 State Acts & Policies

For updated information, please visit www.ibef.org

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State Acts & Policies … (1/2)

North East Industrial and Investment Promotion Policy (NEIIPP)

2007
Objective • To promote the Northeastern region as an attractive investment destination through
concessions and incentives.

Read more

Nagaland Bamboo Policy 2004

To promote bamboo cultivation and bamboo-based industries in Nagaland.
Objectives
•
• To promote ecological security and economic growth through development and
utilization of the bamboo resources in the state.
Read more

IT Policy of Nagaland 2004

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

Objectives •
• To facilitate and support the creation of sound IT infrastructure and skilled human
resource in the state.

Read more

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State Acts & Policies … (2/2)

Nagaland State Industrial Policy

2000
Objectives • To facilitate rapid and sustained industrial development of the state.
• To enable the entrepreneurs to generate substantial income and employment for the
people of Nagaland. Read more

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Annexure

Exchange Rates

Year INR equivalent of one US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-1 0 47.41

201 0-1 1 45.57

201 1 -1 2 47.94

Average for the year

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