MSMEs key to jobs, economic growth: Rio

Nagaland chief minister Neiphiu Rio on Tuesday underscored the critical role of Micro, Small and Medium Enterprises (MSMEs) in generating employment and strengthening Nagaland’s economy, while acknowledging challenges faced by entrepreneurs in accessing credit and markets.
Replying to a discussion under Rule-50 on the urgent matter “Critical Role of MSMEs in Improving Nagaland’s Economy,” raised by advisor for Industries & Commerce Hekani Jakhalu on the fourth day of the eighth session of the Assembly, Neiphiu Rio said MSMEs held immense potential for employment generation and entrepreneurship.
He informed the House that 48,655 enterprises were registered under the Udyam Registration Portal as of March 9, 2026, including 48,464 micro enterprises—most of them nano units with annual turnover below Rs.25 lakh—175 small enterprises and 16 medium enterprises.
Rio noted that nano entrepreneurs seeking small capital of Rs.10,000–50,000 often faced difficulty obtaining bank support. He highlighted the Chief Minister’s Micro Finance Initiative, which had helped establish 777 MSMEs with total project investment of Rs.65.31 crore, including Rs.19.37 crore in government subsidy, creating over 1,500 direct jobs.
He informed that 13 MSME development projects were under implementation in the state, while another 15 projects had been submitted to the Ministry of Micro, Small and Medium Enterprises for approval to strengthen industrial infrastructure and promote cluster-based development.
Under the Prime Minister’s Employment Generation Programme (PMEGP), 66 projects had been sanctioned against a target of 454 for 2025–26 and Rs.178.98 lakh margin money had been claimed. Over the past five years, 3,715 beneficiaries had been supported under the scheme.
Rio also highlighted initiatives aimed at strengthening the MSME ecosystem, including the Raising and Accelerating MSME Performance programme, which focuses on improving competitiveness through capacity building, registration drives and buyer–seller meets.
In addition, he said more than 25,000 artisan applications had been received under the PM Vishwakarma Scheme, through which training and financial assistance were being facilitated.
The state government was also promoting cluster-based development and value addition in sectors such as food processing, handicrafts, handloom and agro-based industries, which have strong potential in Nagaland.
On the handloom and handicrafts sector, Rio said the government was in the process of establishing a Yarn Bank in the state to support weavers and ensure steady availability of quality yarn at affordable rates. The initiative would help reduce production costs and enable weaving communities to maintain consistent output.
He added that the Yarn Bank could also serve as a platform to document and standardise traditional Naga designs and motifs for commercial applications while preserving their cultural authenticity.
Through collaboration with local weavers, designers and institutions, these designs could be adapted for contemporary markets such as fashion, home décor and handicrafts, thereby generating sustainable livelihoods and promoting Naga identity in national and international markets.
Rio also highlighted skill development initiatives under the Nagaland Skill and Entrepreneurship Development Mission (NSEDM). As of February 2026, 3,091 candidates had enrolled in various training programmes, with 2,365 completing training and 495 currently undergoing courses.
Preparations were also underway to implement additional courses under the second and third phases of the mission, with 1,102 training seats planned in the upcoming phase.
The chief minister informed that the Drone School and Drone Centre of Excellence were inaugurated on January 26, 2026 under the Nagaland GIS and Remote Sensing Centre of the Planning and Transformation Department, making Nagaland the second state in the Northeast to establish a drone school.
He said the state had also been among the first in the region to adopt drone technology for mapping, surveying, geospatial data acquisition and disaster management.
Rio added that Droneverse Aviation Pvt Ltd had been onboarded as the industry partner to provide technical assistance, design specialised courses and facilitate job placements.
Highlighting developments in agri and allied sectors, Rio said Nagaland ranked third among small states in the Export Preparedness Index 2024 released by NITI Aayog.
He informed that Nagaland coffee was currently being exported to the United Arab Emirates, with growing demand from Bahrain, Europe, South Korea, Singapore and Japan. Pineapple from the state was also being exported to the UAE, while processed Naga King Chilli was being exported to several European countries.
While acknowledging progress, Rio said the government remained aware of challenges faced by MSMEs, particularly in access to credit, bank approvals and market linkages. He assured that the government would continue to improve ease of doing business, strengthen financial support mechanisms and promote local enterprises.
Earlier, initiating the discussion advisor for Industries & Commerce Hekani Jakhalu highlighted the importance of Micro, Small and Medium Enterprises (MSMEs) in Nagaland. She said the sector acts as a “silent growth engine” by generating employment and sustaining livelihoods without heavy dependence on government jobs.
She noted that MSMEs were earlier categorised under the unorganised sector, making it difficult to assess their economic contribution. However, with increasing registrations under the Udyam Registration Portal, the situation has improved.
According to Hekani, Nagaland recorded 27,083 MSMEs under Udyam registration in 2023–24, and after the launch of the Raising and Accelerating MSME Performance (RAMP) scheme by chief minister Neiphiu Rio in August 2024, the number of registrations increased to over 48,000.
She said formalisation through Udyam registration enables entrepreneurs to access government schemes, credit facilities and procurement opportunities.
Hekani also highlighted the growth of the state’s start-up ecosystem, stating that Nagaland currently has 267 registered start-ups, including 92 private limited companies, generating about Rs.74 crore in revenue and creating over 1,500 jobs in 2024–25.
However, she pointed out that MSMEs continue to face challenges such as limited access to finance, strict collateral requirements, inadequate banking infrastructure, inconsistent power supply, poor road connectivity and multiple taxation.
Emphasising the need for long-term planning, Hekani said the state should align its development strategy with the national vision of Viksit Bharat 2047. She also stressed the need to support nano-enterprises, which constitute nearly 95% of businesses in the state but often struggle to access formal credit and are compelled to rely on informal lenders.
Speaker Sharingain Longkumer noted that with around 48,000 MSMEs registered in the state, each constituency could potentially have about 800 enterprises. He urged legislators to analyse the proportion of nano and micro enterprises and their contribution to local economies to help address unemployment and strengthen policy interventions.
Others who took part in the discussion included– advisors Z. Nyusietho Nyuthe, Kudecho Khamo, Wangpang Konyak and JD(U) member Jwenga Seb.