IV.

Economy

The economy is predominantly agricultural and, in many areas, based on shifting cultivation (jhum). The principal crop is rice. Maize, millet, wheat, pulses, potatoes, sugar cane, fruit, and oilseeds are also important. Industry is small scale and includes timber, rice, and oil mills; soap and candle making; sericulture; and handicrafts. The economic potential of Arunachal Pradesh’s forests and rivers, and of its coal, oil, and other mineral deposits (including limestone, dolomite, graphite, and quartzite) remains largely unrealized. Hydroelectric plants are in operation on the Brahmaputra. The terrain makes modern transport difficult and the state has no airport or railway system, although there is a strong trading tradition within the region. In 1992 Arunachal Pradesh was opened up to limited tourism; by early 2003, the tourist industry, in particular ecotourism, was steadily developing and had become a valuable source of revenue for the state’s economy. Popular visitor attractions include the state’s natural resources and wildlife sanctuaries—rare and endangered species, including tigers, snow leopards, binturongs, and slow lorises, can be seen at Namdapha National Park.