The geographic location of the state provides immense opportunities for international trade with South Asian countries. Major industries of the state include agriculture, art and crafts, weaving, cane and bamboo, horticulture, power and mineral-based industry. The state has one of the highest potentials for generating hydro-power in India. It is divided into five river valleys having immense hydropower potential, currently estimated at 50,328 MW, or approximately 22%of India's current power generating capacity.

The state is endowed with an evergreen forest cover of nearly 80%. Rich flora and fauna of the state are characterized by 601 species of orchids and over 500 species of medicinal plants.