Arunachal Pradesh's economy has been primarily agrarian and forest-based. The state has rich mineral deposits of Limestone, Dolomite, Graphite, Coal, Marble, Oil and Natural Gas besides many more untapped Mineral Resources.


About 60% of the State is covered with rich forests and is known the world over for its rich biodiversity. There is abundance of Bamboo, Cane, Orchids besides various economically important tree species. The forests are rich in medicinal plants also.


The state with its many rivers and their tributaries provides immense potential for generation of hydro-power. The hydro-power potential of the state is estimated at over 30,000 MW. The five major river basins namely, Kameng, Subansiri, Siang, Dibang and Lohit are supplemented by many smaller rivers flowing independently into the river Brahmaputra or into the neighboring country of Bhutan. All these rivers having large catchment areas and flowing through deep gorges and narrow valleys, receive heavy annual rainfall (average 350cms) and snow melt in the upper reaches. A few peaks at higher altitude remain snow covered for most of the year.