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 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 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 a huge cardamom epicentre of the world, producing around 80% of large cardamom in the country.  According to the Global Childhood Report 2019, Sikkim was the best state under Protective Contexts.

At current prices, Sikkim’s Gross State Domestic Product (GSDP) is estimated at Rs. 0.47 trillion (US$ 5.73 billion) in 2023-24. Sikkim’s GSDP is estimated to increase at a CAGR of 10.75% between 2018-19 and 2023-24.

As of August 2022, Sikkim had a total installed power generation capacity of 704.72 MW, of which 75.92 MW was under central utilities, 415.11 MW was under state utilities and 213.69 MW was under the private sector. Of the total installed power generation capacity, 11.92 MW was contributed by thermal and 692.80 MW by renewable energy.

According to the 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-September 2020.

Total merchandise exports from Sikkim stood at US$ 7.92 billion in FY23 (Until August 2022) and US$ 18.91 billion in FY22. 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 FY22, total exports of drug formulation products from Sikkim stood at US$ 11.27 million (~67%).

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

• In September 2021, the Cabinet Committee of Economic Affairs approved a comprehensive scheme for strengthening the transmission and distribution system in Arunachal Pradesh and Sikkim.
• In August 2021, the Department of Telecom, under the Government of India, through the Bharat Sanchar Nigam Limited (BSNL) officially declared Sikkim as an independent telecom circle. The newly formed Sikkim Telecom Circle started functioning from Gangtok w.e.f. September 01, 2021. This will allow the state to control its telecom policies and implement telecom projects faster; therefore, increasing funding for the telecom sector in Sikkim, resulting in wider network coverage.
• 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 crores) 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 a ~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 the implementation of the ‘Approved Resolution Plan’ for the takeover of the 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.