Journal of Economics, Management and Trade

Economic development in India is uneven, with regions like Nagaland lagging due to poor infrastructure and limited market access. The Act East Policy aims to boost growth through connectivity, culture, and trade, though progress is still gradual. This research explores the economic capabilities of Nagaland with reference to India's Act East Policy, especially by emphasizing culture, connectivity, and commerce. Nagaland, despite being strategically located and culturally endowed, is still registering quite low economic growth mainly due to poor infrastructure, hardly any industrial growth, and limitations in market access. The study employs a descriptive-analytical method and relies on secondary data such as the Nagaland Economic Survey, Directorate of Tourism, and Government of India trade reports. The results reveal that tertiary activities are the mainstay of the state's economy and cultural tourism is becoming a key engine of growth, which is reflected in the consistent rise in tourist arrivals from 2009 to 2019. The study also makes a case for infrastructure development as a means of enhancing regional connectivity and thereby, linking economically with Southeast Asia. Besides, given its location, Nagaland has abundant possibilities for trade across the border with Myanmar; however, poor border infrastructure remains a debacle.

The study concludes that a coordinated strategy integrating cultural tourism promotion, enhanced connectivity, and strengthened the trade linkages can significantly contribute to the economic development of Nagaland under the Act East Policy. The findings offers policy knowledge for improving regional development and strengthening the role of northeastern India in broader ASEAN economic integration.