Nagaland, the 16th state of the Indian Union, was established on December 1, 1963. It is divided into eleven districts: Kohima, Phek, Mokokchung, Wokha, Zunheboto, Tuensang, Mon, Dimapur, Kiphire, Longleng and Peren. It is a largely mountainous state. Agriculture is the most important economic activity in Nagaland. Principal crops include rice, corn, millets, pulses, tobacco, oilseeds, sugarcane, potatoes and fibres. Other significant economic activity includes forestry, tourism, insurance, real estate, and miscellaneous cottage industries.

Agriculture is the most important economic activity in Nagaland, with more than 90% of the population employed in agriculture. Crops include rice, corn, millets, pulses, tobacco, oilseeds, sugarcane, potatoes, and threads. However, Nagaland still depends on the import of food supplies from other states. The widespread practice of jhum, tilling, has led to soil erosion and loss of fertility, particularly in the eastern districts. Only the Angami and Chakesang tribes in the Kohima and Phek districts use terracing techniques. And most of the Aos, Lothas, and Zeliangs in Mokokchung, Wokha, and Peren districts respectively till in the many valleys of the district. Forestry is also an important source of income. Cottage industries such as weaving, woodwork, and pottery are also an important source of revenue. Tourism is important, but largely limited due to insurgency since the last five decades. Nagaland's gross state domestic product for 2004 is estimated at $1.4 billion in current prices.

The Great Indian Hornbill is one of the most famous birds found in the state. Blyth’s Tragopan, a vulnerable species of pheasant, is also found in the state and is the State Bird of Nagaland. It is sighted in mount Japfü and Dzükou valley of Kohima district, Satoi Range in Zunheboto district and Pfütsero in Phek district. Of the mere 2500 tragopans sighted in the World, Dzükou valley is the natural habitat of more than 1,000.

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