Economy of Sikkim
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{{Infobox economy
| country = Sikkim
| image = Step farming in sikkim (6052932505).jpg
| image_size = 300px
| caption = Terrace farming in Sikkim
| organs =
| gdp = {{increase}} $6.7 billion (nominal, 2025-26 est.) {{increase}} $28.2 billion (ppp, 2025-26 est.) https://prsindia.org/budgets/states/sikkim-budget-analysis-2025-26
| gdp rank = 23rd
| per capita = {{increase}} $10,000 (nominal, 2025 est.) {{increase}} $42,200 (ppp, 2025 est.) https://prsindia.org/budgets/states/sikkim-budget-analysis-2025-26
| per capita rank = 3rd
| hdi = {{increase}} 0.795 (2023) 3rd
}}
The economy of Sikkim, a state in northeastern India, has a significantly agricultural economy. Although having mountainous terrain, Sikkim has managed to sustain its agricultural economy through organic farming. The state of Sikkim was declared as the only 100 per cent organic state in 2016.{{Cite news |title=Sikkim declared 100 per cent organic by UN Food and Agriculture |work=The Times of India |url=https://timesofindia.indiatimes.com/travel/destinations/sikkim-declared-100-per-cent-organic-by-un-food-and-agriculture/articleshow/70535486.cms |access-date=2023-02-20 |issn=0971-8257}} Sikkim's industrial sector is also mostly agriculture based. Besides agriculture, other large industries include pharmaceuticals,{{Cite news |last=Mukherjee |first=Writankar |date=2009-11-03 |title=Sikkim turns into a pharma hub |work=The Economic Times |url=https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/sikkim-turns-into-a-pharma-hub/articleshow/5192355.cms?from=mdr |access-date=2023-02-20 |issn=0013-0389}} ecotourism,{{Cite web |title=Sikkim Ecotourism |url=http://www.sikkimforest.gov.in/reports |access-date=2023-02-20 |website=Sikkim Forest Department}} and carpet weaving.{{Cite web |title=DHH - Carpet weaving |url=https://sikkimcrafts.gov.in/carpetweaving.html |access-date=2023-02-20 |website=sikkimcrafts.gov.in}}
Economy
In 2016, Sikkim became the world's first organic state, implementing 100% organic policy.{{Cite web |date=2022-06-16 |title=Explained: How Sikkim Became World's First Organic State |url=https://www.indiatimes.com/explainers/news/how-sikkim-became-worlds-first-organic-state-572280.html |access-date=2023-02-20 |website=Indiatimes |language=en-IN}} A majority of Sikkim's population is employed in agriculture, forestry, and fishing,{{Cite web |title=Sikkim Employment, Sikkim Employment Statistics, Employment level in Sikkim |url=https://www.thisismyindia.com/sikkim/sikkim-employment.html |access-date=2023-02-20 |website=www.thisismyindia.com}} with 80% of the rural population employed in this sector.{{Cite web |title=Agriculture |url=http://www.sikenvis.nic.in/Database/Agriculture_777.aspx |access-date=2023-02-20 |website=www.sikenvis.nic.in}}
In 2003, Sikkim implemented 100% Organic farming and banned chemical fertilizers and pesticides, becoming the first Indian state to do so.{{Cite news |title=Sikkim declared 100 per cent organic by UN Food and Agriculture |work=The Times of India |url=https://timesofindia.indiatimes.com/travel/destinations/sikkim-declared-100-per-cent-organic-by-un-food-and-agriculture/articleshow/70535486.cms |access-date=2023-02-20 |issn=0971-8257}} In January 2016, Sikkim was awarded with the Future Policy Gold Award by UN Food and Agriculture Organisation (FAO).{{Cite web |title=Sikkim, India's first 'fully organic' state wins FAO'S Future Policy Gold Award {{!}} FAO in India {{!}} Food and Agriculture Organization of the United Nations |url=http://www.fao.org/india/news/detail-events/en/c/1157760/ |access-date=2023-02-20 |website=www.fao.org}}{{Cite news |title=Sikkim declared 100 per cent organic by UN Food and Agriculture |work=The Times of India |url=https://timesofindia.indiatimes.com/travel/destinations/sikkim-declared-100-per-cent-organic-by-un-food-and-agriculture/articleshow/70535486.cms |access-date=2023-02-20 |issn=0971-8257}}{{Cite web |title=Sikkim is 100% organic! Take a second look |url=https://www.downtoearth.org.in/news/agriculture/organic-trial-57517 |access-date=2023-02-20 |website=www.downtoearth.org.in |language=en}}
Sikkim is the major producer of Black cardamom in India, accounting for 88% of all cardamom produced in the country.{{Cite web |title=Sikkim world's leading cardamom producer |url=http://theprint.in/opinion/tiny-sikkim-district-worlds-leading-producer-black-cardamom/858387/ |access-date=2023-02-20 |website=The Print}} Other major crops of the state include paddy, buckwheat, maize, barley, tea, and potatoes.{{Cite web |title=Sikkim Agriculture |url=https://www.mapsofindia.com/sikkim/geography/agriculture.html |access-date=2023-02-21 |website=www.mapsofindia.com}} Sikkim is known for its unique Temi Tea, something which the Tea Board of India is considering for a geographical indication tag.{{Cite web |last=Rakshit |first=Avishek |date=2018-09-21 |title=After Darjeeling and Assam, Tea board plans GI for Sikkim tea |url=https://www.business-standard.com/article/companies/after-darjeeling-and-assam-tea-board-plans-gi-for-sikkim-tea-118092100726_1.html |access-date=2023-02-21 |website=www.business-standard.com |language=en}}
2. Tourism: Tourism remains a pillar of Sikkim's economy. Adventure tourism, ecotourism, and cultural tourism have drawn both domestic and international visitors. In 2023-24, the state focuses on sustainable tourism to preserve its fragile ecology, while promoting its serene landscapes, Buddhist monasteries, and trekking routes.
3. Hydropower: Sikkim has abundant water resources, and hydropower projects continue to drive its economy. With significant potential for power generation, the state sells surplus electricity to other regions in India. These projects generate revenue, employment, and infrastructure development.
4.Pharmaceuticals: The pharmaceutical sector has emerged as a key player in Sikkim’s industrial growth. Global companies, attracted by the state's investor-friendly policies and tax incentives, have set up plants in the region. This sector contributes substantially to state GDP and provides employment opportunities.
Challenges and Outlook:
Despite its positive growth trajectory, Sikkim faces challenges, including environmental degradation, climate change impacts, and limited infrastructural connectivity. However, with ongoing efforts to improve connectivity through road, rail, and air networks, and a strong focus on sustainable development, Sikkim’s economy in 2023-24 looks promising.