A majority of state’s population is dependent on the agrarian economy. Industrial development has also been picked up over the past few years.
Although the state is one of the less developed states, according to a recent study of the Planning Commission, the overall compound growth rate of GDP of Tripura during the period from 1993-94 to 1999-2000 (7 years) was 7.25%, against the national average of 6.68%.
The growth rate of Industries Sector in Tripura during the same period was 15.5%, which is more than double the national average of 7.13%, the highest in the North-eastern Region and 2nd highest in the country. During this period, the share of secondary sector in the GDP of the State has gone up from 7% to about 14%.