Arunachal Pradesh is the eastern most state on India's north-east frontier. Although entirely administered by India, it is claimed by China. Arunachal Pradesh borders the state of Assam to the south and Nagaland to the south east. Myanmar lies to the east of the state, Bhutan to the west, while the Line of Actual Control separates it from China to the north. Itanagar is the capital of the state.

Economy
Macro-economic trend
This is a chart of trend of gross state domestic product of Arunachal Pradesh at market prices estimated by Ministry of Statistics and Programme Implementation with figures in millions of Indian Rupees.
Year Gross State Domestic Product :
1980 1,070
1985 2,690
1990 5,080
1995 11,840
2000 17,830

Arunachal Pradesh's gross state domestic product for 2004 is estimated at $706 million in current prices. 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.


Sub-divisions
Arunachal Pradesh is divided into Sixteen districts, each administered by a district collector, who sees to the needs of the local people. Especially along the Tibetan border, the Indian army has considerable presence due to the concern about Chinese intentions. Special permits called Inner Line Permits (ILP) are required to enter Arunachal Pradesh through any of it checkgates on its border with Assam.
Districts of Arunachal Pradesh:
Anjaw District
Changlang District
East Kameng
East Siang
Kurung Kumey
Lohit District
Lower Dibang Valley
Lower Subansiri
Papumpare
Tawang District
Tirap District
Upper Dibang Valley
Upper Subansiri
Upper Siang
West Kameng
West Siang