The economy of Tripura is mainly dominated by agriculture and allied activities. In fact, agricultural activities provide employment to about 64% of the state's workforce. Earlier, the state development hindered for long due to its remote location, lack of power facilities, undeveloped transport and communication network. At present, Tripura is doing well with numerous small scale industries cropped up, together with production of handicrafts & handloom products, jute, and tea. In fact, natural gas and fruit processing units have also been commenced.
Tripura lacks in mineral resources; it has poor deposits of kaolin, iron ore, limestone, coal, and natural gas. Some quality timber, found copiously in the forests, is of Sal, Garjan, Teak and Gamar. Tripura is also a depository of glass sand, clay, lignite, and building material. Recently, the hydro electric potential of the state has been considered to contribute to its industrial development. Dharmanagar, Kumarghat, Arundhutinagar, Dhwajanagar, Dhukli, Agartala, Udaipur, and Kailashahar, are some of the major industrial centers in Tripura.
In Tripura, there is a prevalence of food crop cultivation over cash crop cultivation. Out of the total sown area, about 62% is under food crop cultivation. The principal crop of paddy is followed by oilseeds, jute, wheat, coconut, turmeric, pulses, potato, and sugarcane. The important cash crops are tea and rubber. The Indian Rubber Board has declared Tripura as the second rubber capital of India after Kerala. The State Government is making efforts to improve the agricultural infrastructure. New and recent technology, fertilizers, improved seeds and protective chemicals are now utilized to keep the state's agriculture in good shape.
Handloom weaving is said to be the largest industry in Tripura. The majority of tribal households in the state are involved in this industry. Handicrafts like Hand-woven cotton fabric, wood carvings and bamboo products, are particularly popular. The Tripura Handloom and Handicraft Development Corporation Ltd. is utilizing a range of marketing schemes to promote the local handicraft items. About 5000 people are working in the handicraft sector of Tripura.
Amidst picturesque locale, Tripura is apparent in the valley surrounded by undulating hills. Undoubtedly, nature appears at its best in the state. And owing to such remarkable vistas, it has potential of being an exciting tourist destination in India. The state's tourism industry is on the rise; however, lack of infrastructural facilities is debarring eco-tourism. The Government is making substantial efforts to encourage tourism in this beautiful county.