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Industrial Development & Economic Growth in Sikkim

Last updated on Aug, 31 2021

Economic Snapshot
Per capita Income


Sikkim is one of the fastest growing states in India. The state has favourable agro-climatic conditions, which support agriculture, horticulture, and forestry. 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 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% of large cardamom in the country.  According to Global Childhood Report 2019, Sikkim was the best state under Protective Contexts.


The Gross State Domestic Product (GSDP) of Sikkim expanded at a CAGR of 15.86% between 2015-16 and 2019-20.


As of April 2021, Sikkim had a total installed power generation capacity of 677.83 MW, of which 169.65 MW was under the central sector, state utilities (412.11 MW) and private sector (96.07 MW). Of the total installed power generation capacity, 105.65 MW was contributed by thermal, 520.00 MW by hydro and 52.18 MW by renewable energy.


According to Department for Promotion of Industry and Internal Trade (DPIIT), Foreign Direct Investment (FDI) inflow in Sikkim (Including West Bengal and Andaman & Nicobar Islands) totalled
US$ 6.35 billion between April 2000 and September 2020.


Total merchandise exports from Sikkim stood at US$ 9.88 billion in FY20 and US$ 9.36 billion in FY21.  Drug formulations, biologicals, medical and scientific instruments, cereal preparations and miscellaneous processed items accounted for a majority share in the overall exports from the state. In FY21, total exports of drug formulation products from Sikkim stood at US$ 4.56 million (~49%).


Some of the major initiatives taken by the Government to promote Sikkim as an investment destination are:

  • The Union Budget 2021, allocated funds worth Rs. 581 crore (US$ 80.14 million) to the central pool of resources for the north eastern region and Sikkim.
  • In June 2021, the Indian government and Asian Development Bank signed a US$ 2.5 million (~Rs. 18 crore) project readiness financing (PRF) loan to upgrade key district roads in Sikkim.
  • In March 2021, the cabinet approved an estimated cost of Rs. 9,129.32 crore (US$ 1.26 billion) to strengthen transmission and distribution in Arunachal Pradesh and Sikkim.
  • In the Union Budget 2021, the government allocated funds worth Rs. 1,100 crore (US$ 151.73 million) to the Sivok – Rangpo project (length: 44.96 kms) in Sikkim.
  • In March 2021, CCI (Competition Commission of India) approved the acquisition of ~35% equity stake in Teesta Urja Ltd. by Greenko Mauritius. Teesta Urja is a special purpose vehicle established to carry out a 1,200 MW hydropower project in North Sikkim.
  • On January 13, 2021, NHPC Limited signed an agreement for implementation of the ‘Approved Resolution Plan’ for the takeover of 120 MW Rangit-IV HE Project of Jalpower Corporation Limited (JPCL) in Sikkim.
  • In 2019-20, the total production of horticulture crops in the state was expected to be 409.57 thousand metric tonnes and the area under production was 102.71 thousand hectares. In 2019-20, the total production of vegetables and fruits was estimated at 231.40 thousand metric tonnes and 55.45 thousand metric tonnes, respectively.
Sikkim State Presentation

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