About 82% of the total Geographical area of the State is under forest cover. The Government endeavour is to maintain the ecological balance and conserve biodiversity. But vast area is still available outside protected area network for gainful investment. Tree farming could be one such commercially viable field.

There are tested varieties of trees with high market value both in and outside the country. Arunachal Pradesh is a treasure house of medicinal plants. Out of the 4,500 flowering plants more than 450 are catalogued as medicine plants. Many of them are potential raw material for drug manufacturing. The availability of varied agro-climatic locations has favoured the growth of warm loving tropical plants to chilling cold tolerant plants. 57 medicinal plants are short-listed which have commercial importance and 15 of them are very promising for cultivation. Multi-tier cropping and intercropping is also possible. Further, there is short gestation period in many cases and value addition is possible.

Arunachal Pradesh has more than 600 species of orchids, which is more than 50% of the total species of orchids known to be occurring in India.

This is an indication of the suitability of growing many varieties of orchids in varying agro-climatic conditions/regions of the State and, thus, offering an ideal opportunity for the development of export oriented agro-based industry for private investments. The Govt. of India has identified North-Eastern Region as one of the potential areas for promoting Orchid industry and willing to invest substantially in the floriculture sector through various national agencies.

The viability of tea cultivation in the State is now a question settled beyond doubt. A number of large and medium size tea gardens are already doing business and a number of small gardens under private entrepreneurship are coming up. But there is no processing unit in the State. Thus, there is abundant scope for investment both in raising tea gardens and establishing processing units at selected places. The State Govt. is also promoting tea plantation and cultivation through small and marginal farmers. Therefore, green leaves in abundance will be available for a large processing unit. Along side, packaging unit for processed tea could also be set up for marketing.