Last updated on Jun, 26 2020
SIKKIM State Report | June, 2020
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 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. Of the 6,000 medicinal plants in India, over 424 plants (including the famous Artemisia vulgaris that is used as an antiseptic) are grown in Sikkim.
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. 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, flora–tourism and adventure tourism has given fillip to the tourism trade in the state.
In September 2018, Prime Minister of India, Mr Narendra Modi inaugurated Pakyong airport in Sikkim, the state’s first airport, which is expected to significantly boost the state’s connectivity. In 2019-20, passenger and aircraft movements reached 3,749 and 60, respectively.
The Gross State Domestic Product (GSDP) of Sikkim expanded at a high Compound Annual Growth Rate (CAGR) of 11.72 per cent between 2015-16 and 2018-19.
In 2018-19, the secondary sector contributed 61.56 per cent to the state’s GSVA at current prices. It was followed by the tertiary sector at 26.82 per cent and primary sector at 11.62 per cent. Moreover, at a CAGR of 21.48 per cent, the primary sector has been the fastest growing among the three sectors between 2011-12 and 2018-19.
As of March 2020, Sikkim had a total installed power generation capacity of 674.43 megawatt (MW), of which 166.25 MW was under central utilities, 96.07 MW was under private utilities and 412.11 MW was under state utilities. Of the overall installed power generation capacity in the state, thermal power contributed 102.25 MW, while hydropower and renewable power contributed 520 MW and 52.18 MW, respectively.
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. In August 2019, Sikkim was declared as world’s first 100 per cent organic state by UN Food and Agriculture (FAO).
Government of India introduced North East Industrial Development Scheme 2017, under which, all new industrial units located in eight northeast states in manufacturing and services sector of the state were be eligible for various incentives.
The state attracted Foreign Direct Investment (FDI) equity inflow worth US$ 5.85 billion during April 2000 and September 2019 according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).