The local economy is predominantly driven by government administration, alongside agriculture, retail, and a growing tourism sector.
* **Government Sector:** As the state capital, the Government of Nagaland is the single largest employer, with the Civil Secretariat and various departmental directorates headquartered here. * **Retail & Commerce:** The city's business life revolves around bustling commercial hubs like the High School Junction, Phoolbari, and the BOC area, featuring independent shops, local markets, and handicraft boutiques. * **Handlooms & Handicrafts:** Local enterprises heavily feature traditional Naga textiles, wood carving, and cane/bamboo products, supporting artisanal livelihoods. * **Startups:** A rising wave of youth-led startups is focusing on eco-tourism, organic agricultural exports, local coffee roasteries, and digital media.