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About Sikkim State: Industries in Sikkim, Tourism, Economy Growth & Agriculture

November, 2017

Sikkim is surrounded by vast stretches of Tibetan Plateaus in the north, the Chumbi Valley of Tibet and the Kingdom of Bhutan in the east, the Kingdom of Nepal in the west and Darjeeling district of West Bengal in the south.

The state is richly endowed with rare and exotic flora and fauna, which includes 4,500 different flowering plants, 550 types of orchids, 36 varieties of rhodendrons, 28 bamboo species, over 144 mammals, 552 species of birds and 600 different butterflies. This makes it one of the leading states in the Northeast region in terms of production and supply of cut flowers to mainland consumer markets.

Sikkim has several snow-capped peaks including Kanchenjunga, the world's third highest peak that attracts a large number of tourists from across the globe. The state has been able to bag seven out of 25 central government’s national projects to promote India as destination for adventure tourism globally.

The gross state domestic product (GSDP) of Sikkim expanded at a high compound annual growth rate (CAGR) of 19.44 per cent between 2004-05 and 2015-16. 

There has been a drastic shift in the sectoral contribution from primary and tertiary to the secondary sector. In 2015-16, the secondary sector contributed 67.73 per cent to the state’s GSDP at current prices. It was followed by the tertiary sector at 23.65 per cent and primary sector at 8.62 per cent. Moreover, at a CAGR of 33.91 per cent, the secondary sector has been the fastest growing among the three sectors from 2004-05 to 2015-16. It was driven by manufacturing, construction and electricity, gas & water supply.

Sikkim had a total installed power generation capacity of 414.48 megawatt as of June 2016.

Sikkim has a suitable climate for agricultural and horticultural products. It supports multiple crops; viz., rice, wheat, maize, millet, barley, urad, pea, soya bean, mustard and large cardamom. Sikkim is the top producer of large cardamom, contributing over 80 per cent to India’s total production. As per the state budget 2016-17, Sikkim got certified as first fully organic state in India by the Central Ministry of Agriculture and Farmers’ Welfare as well as other recognized agencies of the country.

The state follows the North East Industrial Investment Promotion Policy, 2007, which provides several incentives and concessions for investment. Institutional support is provided through various central and state government agencies viz., North East Council, Ministry of Development of North Eastern Region and Commerce and Industries Department.

The state has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 3.93 billion during the period April 2000 to March 2016, according to data released by Department of Industrial Policy and Promotion (DIPP).

Key Sectors:

  • Allocated budget for the industry and minerals sector in Sikkim is estimated to be US$ 9.46 million during 2016-17. Out of this total allocation, villages and small industries would be allocated US$ 5.97 million and large industries would be allocated US$ 2.75 million. The remaining US$ 0.73 million would be allocated to the non-ferrous mining and metallurgical industries of the state.
  • Sikkim's geographical and environmental conditions are quite conducive for development of floriculture at a higher altitude. The state is also considered to be the Kingdom of flowers and is an innovator in cultivating Gladiolus.
  • The state government is also laying emphasis on improving organic farming in the state. During 2015-16, the state government recognised the existing MPCS in the state to promote and enhance organic farming in the state. As a result of these initiatives, the state was certified as the first fully organic state in India, by the Central Ministry of Agriculture and Farmers’ Welfare as well as other recognized agencies of the country.
  • It is estimated that Sikkim has a peak potential capacity of 8,000 MW and a steady 3,000 MW of hydroelectric power. About 28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode.
  • Tourism in Sikkim has emerged as the new profession of the Sikkimese people with its vast natural potential. Promotion of village tourism, homestay, cultural tourism, trekking tourism, ecotourism, wellness tourism, flori–tourism and adventure tourism has given fillip to the tourism trade in the state where a large of number of people are engaged under different employment opportunities.

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