The characteristic of the condition of northern reindeer breeding in the eastern sector of the Arctic, the number of deers on farms, around administrative and geographical areas of the territory is given. The factors which affect the economic efficiency of the industry, production, the main reasons for the unproductive waste of deers are noted. In modern conditions, reindeer husbandry performs a number of important economic and social functions. There are three different points of view on the development of reindeer husbandry. In the first economic aspect, reindeer husbandry is considered as a commodity business in the northern economy. In the second aspect, reindeer husbandry is considered as an ethno-saving industry, the way of life associated with the traditional economic activities of the native population of the North, which provides its employment. The third approach means the ethnocultural development of reindeer husbandry, which creates opportunities for the tourism business development - ethnocultural tourism. The main directions of improving the productive and social infrastructure of the industry, ways of innovative development, and solving the personnel problem are proposed.