With government employment increasingly unable to absorb the growing number of educated youth in Nagaland, members of the Nagaland Legislative Assembly on Monday called for stronger support to micro, small and medium enterprises (MSMEs), describing the sector as a key pathway for employment generation and long-term economic growth in the state.
During a discussion on the “Critical role of MSMEs (Micro, Small and Medium Enterprises) in improving Nagaland’s economy,” members said that while government jobs have traditionally been the most sought-after avenue of employment in the state, Nagaland must now encourage entrepreneurship, skill development and private enterprise to address rising unemployment.
Presenting an overview of the sector, Chief Minister Neiphiu Rio informed the House that Nagaland currently has 48,655 registered MSMEs on the Udyam portal. Of these, 48,464 are micro enterprises, 175 fall under the small category and only 16 are classified as medium enterprises – figures that highlight the predominantly small-scale nature of the state’s business ecosystem.
According to the available data, the state currently has 267 registered start-ups, including 92 private limited companies. These ventures have generated a revenue of around Rs 74 crore and created more than 1,500 jobs during the 2024–25 period.
Advisor for Industries and Commerce Hekani Jakhalu described MSMEs as the “silent growth engine” of Nagaland’s economy, noting that the sector plays a crucial role in empowering entrepreneurs, artisans and youth while contributing to inclusive development.
Jakhalu said that a significant portion of businesses in Nagaland operate at the micro and nano level, often requiring only modest capital to sustain their activities but facing considerable challenges in accessing formal financial support, markets and infrastructure.
In this regard, she called for the government to revisit existing financial schemes such as the Chief Minister’s Micro Finance Initiative (CMMFI) and consider provisions specifically designed for nano-entrepreneurs.
Small loans ranging from Rs 10,000 to Rs 50,000, and in some cases up to Rs 1 lakh, she suggested, could help entrepreneurs meet immediate needs such as raw materials, equipment, inventory and working capital.
With targeted interventions and stronger policy support, Jakhalu said MSMEs, entrepreneurs and the youth of Nagaland could play a vital role in building a self-reliant economy and achieving the broader goal of Viksit Bharat.
Advisor for New & Renewable Energy and NSDMA Z Nyusietho Nyuthe, who also participated in the discussion, highlighted the importance of the MSME sector in strengthening the state’s economy and generating employment.
Nyuthe said that with the advent of modern education and increasing interaction with the outside world, the need for greater inter-dependence and economic opportunities has grown.
Referring to the Survey Report on Employment, Unemployment, Skill and Migration in Nagaland 2025 released by the Directorate of Economics and Statistics (DES), he said the state’s employment rate stands at 83.92%, while the unemployment rate is 16.07%, which is higher than the national unemployment rate.
He emphasised the importance of promoting MSMEs to drive economic growth, noting that the sector has significant potential in areas such as home-based production, food processing, handloom and handicrafts, which can create employment opportunities, especially for the youth.
To address unemployment, Nyuthe suggested training youths in vocational skills such as masonry, plumbing, tiling, electrical works and mechanical services at district headquarters so they can find opportunities in the construction sector.
He also proposed introducing one manual job-oriented subject in the school curriculum from Class 5 to Class 12 to encourage skill development from an early stage.
Advisor for Civil Administration Works Division and Taxes Kudecho Khamo, speaking during the discussion, said MSMEs help create jobs at lower capital cost, particularly in rural and semi-urban areas, while also encouraging balanced regional development and reducing migration.
Khamo said that in Nagaland, MSMEs are increasingly contributing to employment generation and economic development. According to available reports, over 48,000 units in the state have registered under UDYAM, including manufacturing and service enterprises, providing employment opportunities to many youths.
However, he pointed out that the sector still faces challenges such as financial constraints, inadequate infrastructure and limited digital adoption.
He stressed that improving access to finance, strengthening skill development and introducing effective policy interventions are necessary to sustain MSME growth in the state.
The Advisor expressed appreciation to Chief Minister Neiphiu Rio for initiating several programmes to support entrepreneurship and MSME development in Nagaland. He mentioned initiatives such as Raising and Accelerating MSME Performance (RAMP), Nagaland Entrepreneurship Impact Forward (NEIF) 2035, the Nagaland Skill Entrepreneurship Development Mission (NSEDM) 2025 and the Chief Minister’s Micro Finance Initiative (CMMFI).
Khamo said that with such policies and initiatives in place, the youth of Nagaland should look beyond government jobs and explore entrepreneurship and business opportunities that can generate employment and income.
He further urged banks and financial institutions operating in the state to play a more proactive role in supporting entrepreneurs by providing credit and financial assistance to MSMEs.
MLA Jwenga Seb, while participating in the discussion, said MSMEs recognised under the Micro, Small and Medium Enterprises Development Act, 2006 are the backbone of grassroots economic activity and can help convert Nagaland’s resources into productive industries.
According to him, the sector can transform agricultural produce into packaged organic foods, develop herbal and wellness products, promote bamboo-based manufacturing and expand the state’s handicraft and handloom industries.
However, he pointed out several challenges hindering MSME growth in the state, including misuse of subsidy-linked schemes, limited access to credit due to landholding practices protected under Article 371A of the Constitution of India, and inadequate infrastructure, connectivity and market access.
Seb suggested creating innovative credit mechanisms in collaboration with institutions such as National Bank for Agriculture and Rural Development and Small Industries Development Bank of India.
He also called for the establishment of MSME and agro-processing clusters with plug-and-play infrastructure and the promotion of a strong “Made in Nagaland” branding campaign to expand market access for local products.
Seb said strengthening MSMEs is essential for transforming Nagaland from a consumer state into a producer economy while generating employment for youth and promoting long-term economic self-reliance.
Advisor for Social Welfare Wangpang Konyak said that in the absence of large industries and corporate investments, MSMEs remain the most viable source of employment for the youth and play a key role in strengthening the rural economy.
He said value addition through food processing, bamboo furniture manufacturing, weaving, spice grinding and branding can significantly enhance farmers’ income and make rural areas economically sustainable.
In his closing remark on the Matter of Urgent Public Importance in the House, Speaker Sharingain Longkumer noted that around 48,000 MSMEs are currently registered in the state.
He said that if the data is evenly distributed, each assembly constituency could have around 800 registered enterprises, and encouraged legislators to examine how many of these are nano and micro enterprises and assess their contribution to the local economy.