Mizoram is a notified backward area and is categorized under “No Industry State”. The state is one of the most industrially backward state in the country. As on March 2000, the total number of large and medium industries was only one. This reflects the sick position of Mizoram’s industrial sector.

The Mizoram Khadi and Village Industries Board were formed in March 1986 as a non-profit making body. The board provides financial assistance to registered individuals, institutions, co-operatives and departmental units. The total number of units that registered up until 31 st March, 2001 reached 5772. It also provides technical guidance and training.

The degree of economic growth is correlated with the generation and consumption of electricity. Although Mizoram possesses a vast hydel potential, the progress in this sector is minimal. In Mizoram only two types of power is generated - Hydel and diesel.