<P> Forestry is also an important source of income . Cottage industries such as weaving, woodwork, and pottery are important sourcesof revenue . </P> <P> Tourism has a lot of potential, but was largely limited due to insurgency and concern of violence over the last five decades . More recently, a number of Small Medium Enterprises and private sector companies have actively promoted Nagaland tourism, helping initiate a growing tourism market . Tourism experts contend that the state's uniqueness and strategic location in northeast India give Nagaland an advantage in tapping into the tourism sector for economic growth . </P> <P> Nagaland's gross state domestic product for 2004 is estimated at $1.4 billion in current prices . </P> <P> The state generates 87.98 MU compared to a demand for 242.88 MU . This deficit requires Nagaland to buy power . The state has significant hydroelectric potential, which if realised could make the state a power surplus state . In terms of power distribution, every village and town, and almost every household has an electricity connection; but, this infrastructure is not effective given the power shortage in the state . </P>

What was nagaland known as before its statehood