Agriculture is the mainstay of Nagaland. As much as 70% of the total population of Nagaland is engaged in farming activities. Terrace and jhum cultivation are the two methods by which crops are grown in the state of Nagaland. The economy's remarkable feature is that there are no landless peasants in the state. The various kinds of crops cultivated in Nagaland are corn, pulses, oilseeds, fibers, sugarcane, potatoes, tobacco, millets, and rice.

Livestock is another key economic factor of Nagaland which includes fishery, animal husbandry, cattle farming, piggery and poultry. There are many industrial units in Nagaland that provide a major boost to the economic development of the state. The medium scale industries of Nagaland that generate huge amount of revenue are located in various parts of the state.

The state of Nagaland boasts of a huge stock of minerals too like that of coal, natural gas, decorative stones, petroleum, marble, nickel, cobalt-chromium bearing magnetite and so on. The banks located in Nagaland are also known to be a major facilitator in the economic progress of the state.

The tourism industry of Nagaland is counted as one of the prime contributors of economic enhancement of the place. This is because with its rich natural treasure Nagaland attracts thousands of tourists within its premises round the year.