Trade Analytics

About Sikkim State: Industries in Sikkim, Tourism, Economy Growth & Agriculture

Latest update: March, 2019

Economic Snapshot
Per capita Income

 

Factfile

  • Capital:Gangtok
  • Geographical Area (sq km):7,096
  • State Language:Nepali, Bhutia, Lepcha, Limboo, Magar, Rai, Hindi and English
  • Literacy Rate:81.42 per cent per cent
  • Key Industries:Tourism, agriculture, floriculture, agro-processing, hydroelectric power, tea, large cardamom, minerals, electronics and pharmaceuticals

Last Updated: March, 2019

SIKKIM State Report | March, 2019

Introduction

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 & 36 rhododendron species. This makes it one of the leading states in the Northeast region in terms of production & 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, flori–tourism and adventure tourism has given fillip to the tourism trade in the state. Further, the inauguration of the newly constructed Pakyong airport is expected to significantly boost tourism in the state. Passenger traffic at the airport stood at 2,771 in October 2018.

The Gross State Domestic Product (GSDP) of Sikkim expanded at a high Compound Annual Growth Rate (CAGR) of 12.18 per cent between 2011-12 and 2017-18

In 2017-18, the secondary sector contributed 59.38 per cent to the state’s GSVA at current prices. It was followed by the tertiary sector at 30.19 per cent and primary sector at 10.43 per cent. Moreover, at a CAGR of 16.04 per cent, the primary sector has been the fastest growing among the three sectors between 2011-12 and 2017-18.

Sikkim had a total installed power generation capacity of 962.15 megawatt as of February 2019.

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. 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.

Government of India has introduced North East Industrial Development Scheme 2017 under which all new industrial units located in eight north-eastern states in manufacturing and services sector of the state will be eligible for various incentives.

The state has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 5.38 billion during the period April 2000 to December 2018, according to data released by Department for Promotion of Industry and Internal Trade (DPIIT).

Key Sectors

  • As per budget 2018-19, allocation of Rs. 484.52 crore (US$ 67.42 million) is made for the development of the agriculture & allied services sector. Sikkim will become self-sufficient in terms of food grains production within next 5 years.
  • Sikkim's geographical and environmental conditions are quite conducive for development of floriculture at a higher altitude. The state is also considered to be the Kingdom of flowers and is an innovator in cultivating Gladiolus.
  • 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, flori–tourism and adventure tourism has given fillip to the tourism trade in the state where a large of number of people are engaged under different employment opportunities.
  • Sikkim is the only state which offers excise benefits and major players of the pharmaceutical industry have set up their manufacturing units in the state. Few of these are Cipla, Sun Pharma, Zydus Cadila, Alembic, IPCA, Alkem Lab, Intas Pharma, Torrent Pharmaceuticals, Unichem.

Factfile

  • Capital:Gangtok
  • Geographical Area (sq km):7,096
  • State Language:Nepali, Bhutia, Lepcha, Limboo, Magar, Rai, Hindi and English
  • Literacy Rate:81.42 per cent per cent
  • Key Industries:Tourism, agriculture, floriculture, agro-processing, hydroelectric power, tea, large cardamom, minerals, electronics and pharmaceuticals
Sikkim Map

Sikkim

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