Kohima: Nagaland has officially replaced its two-decade-old industrial policy. The Nagaland Trade, Investment and Industrial Policy, known as NTIIP 2025, took effect on May 8, 2025. It aims to overhaul the state economy through entrepreneurship and infrastructure development. The government intends to create a business-friendly environment with simplified procedures and improved infrastructures so as to encourage innovative entrepreneurial skills fostering competitive industrial growth and investment, thereby creating employment opportunities and enhancing the State’s economic status resulting in better living standards.
The policy targets manufacturing sectors like agro-processing, textiles, and electronics. Tourism, hospitality, and renewable energy are also priorities. Firms can access significant financial backing. The Union government’s UNNATI 2024 scheme provides 50 percent capital investment incentives, capped at 7.5 crore or 10 crore depending on GST status. Additionally, the State Capital Investment Incentive offers a 30 percent subsidy up to 10 crore.
Soft loans are available at 6 percent interest for technology upgrades. Tiny and micro units can borrow up to 10 lakh, while small enterprises qualify for 50 lakh. The state reserved 25 percent of these loans for women entrepreneurs and 5 percent for persons with disabilities. Business owners can also seek a 5 percent interest subvention or 100 percent reimbursement of net State GST payments for five years. Other perks include power tariff reimbursements, transport subsidies, and stamp duty exemptions.
Eligibility rules remain strict. Units must maintain a workforce of at least five people. They must hire 50 percent indigenous inhabitants of Nagaland. Public sector undertakings do not qualify. All applicants must register through the Ministry of MSME Udyam portal. The process involves scrutiny by district committees followed by state-level approval. An Industrial Investment Promotion and Development Cell will manage investor relations. The policy will remain in force for five years.
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