Sikkim is one of the fastest growing states in India. The state has favourable agro-climatic conditions, which support agriculture, horticulture and forestry. 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. It is home to around 5,000 species of flowering plants, 515 rare orchids, 60 primula species and 36 rhododendron species. 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. The state is also considered as a huge cardamom epicentre of the world, producing around 80 per cent of large cardamom in the country.
Between 2011-12 and 2017-18, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 12.18 per cent to Rs 0.22 trillion (US$ 3.45 billion) whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 12.21 per cent to Rs 0.19 trillion (US$ 3.02 billion).
According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflows in Sikkim* totalled US$ 5.38 billion between April 2000 and December 2018. Merchandise exports from Sikkim have increased from US$ 3.91 million in 2014-15 to US$ 13.96 million in 2017-18. During 2018-19**, the exports stood at US$ 6.13 million from the state.
The state's economy is largely agrarian, based on the terraced farming of rice and the cultivation of crops such as maize, millet, wheat, oil seeds, pulses, spices, cereals barley, oranges, tea and cardamom.
Brewing, distilling, tanning and watchmaking are the main industries located in the southern regions of Sikkim. A small mining industry exists in the state, extracting minerals such as copper, dolomite, talc, graphite, quartzite, coal, zinc and lead.
Some of the major initiatives taken by the government to promote Sikkim as an investment destination are:
Note: * - Including West Bengal and Andaman & Nicobar Islands, ** -Upto December 2018