Agriculture is the primary driver of the economy. Jhum, the local word for shifting cultivation, which was widely practised among the tribal groups has come to be less practiced. Arunachal Pradesh has close to 61,000 square kilometers of forests, and the forest-products are the next most significant sector of the economy. Among the crops grown here are rice, maize, millet, wheat, pulses, sugarcane, ginger and oilseeds. Arunachal is also ideal for horticulture and fruit orchards. Its major industries are sawmills, plywood (these two trades however have been stopped by law), rice mills, fruit preservation units and handloom handicrafts.
The shifting cultivation which has come to be known as Jhuming which means collective farming occupies the central position in Arunachal Pradesh in the field of agriculture. This is the form of cultivation that sustains majority of the people in the area which is been practiced from earlier days.
Jhuming consist of clearing of a patch of jungle by cutting and burning after a particular number of years called the jhum cycle, dribbling seeds into the cleared patch by the help of a poker. Weeding at least four times, watching and protecting the growing plants from the wild animals and birds and finally harvesting a meager mixed crop, normally just enough to feed the workers - men, woman and children who had put in about 5 to 6 months of hard labour into the patch.
Paddy, millet and maize are the major crops. The indigenous vegetables are sweet potatoes, brinjal, ginger, chillies, pumpkin, cucumber, and local cowpea. Pine apple, oranges, lemon, lichi, papaya, banana and peach walnut, almond etc are also grown in Arunachal.
The state has several medium industries based on its forest products. Plants to produce cement and fruit processing units have also come up in the state. There are a number of craft training centres and the states handloom industry has made good progress. The people are experts in cane and bamboo basketry work. Wood carving and black smithy are found in certain villages. Iron scrapers, spear head, and Daos required for day-to-day use are made in several villages.
Mineral resources found in the state are clay, marble, lime stone, graphite, pyrite. Arunachal Pradesh Mineral Developmemt and Trading Corporation Limited was set up in 1991 and Namchik-Namphuk coal fields are under APMDTCL. The small scale cottage industry consist weaving, cane and bamboo work and silver smithy etc. To provide training to craftsmen there are two industrial training institutes at Roing and Daporijo.
About 61,000 square kilometers of Arunachal Pradesh are covered with forests.Forest-products are the next most significant economy of the state. The place has an ideal climate for horticulture and fruit orchards. The crops that contribute to the economy of the state are rice, maize, millet, wheat, pulses, sugarcane, ginger and oilseeds. The major industries of the state are rice mills, fruit preservation units and handloom handicrafts. Tourism also forms an important mode of economy to the state. The places of tourist attractions include the Namdapha tiger project in Changlang district, Sela lake near to Bomdila, the bamboo bridges hanging over the river. The historical attractions of the state are Malinithan in Lekhabali and Rukhmininagar near Roing.