Nagaland remains predominantly rural, with 71.14% of its population residing in villages as of the 2011 Census. Until 1951, Kohima, the state capital, was the only town listed in census records. By 1961, Dimapur and Mokokchung were also classified as towns. The number of urban settlements grew further in 1981, with Tuensang, Wokha, Mon, and Zünheboto gaining town status.
The slow pace of urbanization in Nagaland, particularly in the 1980s, was attributed to two key factors. First, most towns had administrative functions, with Dimapur being the only exception, as it had a more diversified economy. Second, the low level of mobility among the Naga tribes contributed to limited urban migration, with scheduled tribes making up nearly 90% of the state’s population. Despite this, urbanization has been gradually increasing, with Dimapur emerging as Nagaland’s commercial hub.