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. 0.57 trillion (US$ 9.10 billion) in FY26. GSDP is estimated to expand at a CAGR of 9.10% between FY19 and FY26.

As of March 2025, Sikkim had a total installed power generation capacity of 782.48 MW, of which 150.81 MW was under central utilities, 415.11 MW was under state utilities and 216.56 MW was under the private sector. Of the total installed power generation capacity, 76.54 MW was contributed by thermal and 62.67 MW by renewable energy.

Total merchandise exports from Sikkim stood at Rs. 147 crore (US$ 17.24 million) in FY25 (Until Feb).

Drug formulations, Cereal Preparations and Miscellaneous Processed Item, Engineering Goods and Organic and Inorganic Chemicals accounted for a majority share in the overall exports from the state.

In the state Budget FY26, the government allocated funds worth Rs. 331 crore (US$ 38.7 million) for Urban development.

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

Under state budget FY26:

• Rs. 1,063 crore (US$ 124.4 million) for development of Roads and Bridges.
• Rs. 331 crore (US$ 38.7 million) for Urban development.
• Rs. 2,256 crore (US$ 264.1 million) for Education, Sports, Arts, and Culture.
• Rs. 778 crore (US$ 91.1 million) for Health and Family Welfare.
• Rs. 1,094 crore (US$ 128.1 million) for Agriculture and Allied Activities.