Chief Minister Neiphiu Rio stated in Kohima on Tuesday that micro, small, and medium enterprises (MSMEs) play a crucial role in employment generation and economic growth in Nagaland.
He mentioned that over 48,600 enterprises have been registered under the 'Udyam' portal in the state.
Participating in a discussion on the "critical role of MSMEs in improving Nagaland's economy" in the assembly during the ongoing budget session, Rio said that 48,655 enterprises were registered in the state as of March 9, 2026.
Of these, 48,464 are micro enterprises, mostly nano enterprises with turnover below Rs 25 lakh, while 175 are small enterprises and 16 are medium enterprises.
Highlighting government initiatives, Rio said that the Chief Minister's Micro Finance Initiative (CMMFI) has so far helped establish 777 MSME units with a total project investment of Rs 65.31 crore, supported by a government subsidy of Rs 19.37 crore.
These enterprises have the potential to generate over 1,500 direct employment opportunities, mainly in transportation, retail, hospitality, and small manufacturing.
Rio explained that the scheme demonstrates how public funds can leverage private investment and bank financing, creating a fiscal multiplier of around 3.3 times, while also encouraging youth entrepreneurship and rural economic activity.
Rio informed the assembly that 13 MSME development projects are currently being implemented in the state, while another 15 projects have been submitted to the Centre's MSME Ministry for approval to strengthen industrial infrastructure and promote cluster-based development.
Under the Prime Minister's Employment Generation Programme (PMEGP), he said the target for the 2025-26 fiscal is 454 projects, of which 66 projects have already been sanctioned by banks, with margin money assistance of about Rs 21.78 crore claimed.
Over the past five years, 3,715 beneficiaries in Nagaland have been supported under the scheme.
The chief minister said the state is also implementing the Raising and Accelerating MSME Performance (RAMP) program to enhance competitiveness through capacity building, registration drives, and buyer-seller meets.
Also, more than 25,000 applications have been received from artisans under the PM Vishwakarma scheme, under which training and financial assistance are provided to traditional artisans.
Rio added that the government is promoting cluster-based development and value addition in sectors such as food processing, handloom, handicrafts, and agro-based industries, which have strong potential in Nagaland.
The state is also planning to establish a yarn bank to support weavers and artisans by ensuring a steady supply of quality yarn at affordable rates.
The chief minister said he would announce enhancements in the Local Area Development Fund of the legislators to provide skill-based training to the local youth and promote employment generation activities.
Earlier, NPF MLA and Advisor for Industries and Commerce, Hekani Jakhalu, described MSMEs as the "silent growth engine" of the state, noting that entrepreneurs quietly create jobs and contribute to the economy without depending on government salaries.
She said the sector had long remained largely unorganized but was now seeing increasing formalization through Udyam registration, which grew from about 27,000 in mid-2024 to 48,655 within one-and-a-half years after the launch of the RAMP programme.
Jakhalu also highlighted the growth of the startup ecosystem, stating that Nagaland currently has 267 registered startups, including 92 private limited companies, which generated about Rs 72 crore in revenue and created around 1,500 jobs during the 2024-25 fiscal.
However, she pointed out challenges such as limited access to finance, inconsistent power supply, poor road connectivity, and multiple taxation, which affect the growth of enterprises.
Advisor Z Nyusietho Nyuthe said MSMEs are vital for addressing unemployment in the state, noting that Nagaland's unemployment rate stands at 16.07 per cent, significantly higher than the national average of around 5 per cent.
JD(U) MLA Jwenga Seb said MSMEs offer the most viable path for Nagaland to move from economic dependency to self-reliance, while NPF advisors Wangpang Konyak and Kudecho Khamo stressed the sector's role in strengthening the rural economy and promoting value addition in agriculture, handloom, and handicrafts.
Meanwhile, Speaker Sharingain Longkumer observed that with over 48,000 MSMEs registered in the state, each of the 60 assembly constituencies would roughly have around 800 enterprises, underlining their significant role in employment generation and economic activity.
He urged legislators and officials to study the distribution and contribution of these enterprises to better understand their impact on employment and economic growth in the state.