Strong floriculture sector

Sikkim 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 region in terms of production and supply of cut flowers to mainland consumer markets.

Strong potential of medicinal plants industry

Of the 6,000 medicinal plants in India, 420 plants (including the famous Artemisia vulgaris that is used as an antiseptic) are grown in Sikkim. Moreover, it is all set to be recognised and certified by the Government of India under National Medicinal Plant Board (NMPB) proposed under the 12th Five Year Plan.

Largest producer of large cardamom

The state is considered as a huge cardamom epicentre of the world, producing around 80 per cent of large cardamom in the country. Additionally, India is the world leader of the crop, producing over 50 per cent of the global yield.

Presence of worlds third highest peak

Sikkim has mighty snow-capped peaks including Kanchenjunga, the worlds third highest peak, which attracts a large number of tourists from across the globe.

Source: Sikkim Annual Plan Discussion 2012-13; International Flower Show, Sikkim 2013; Economic Times, November 2012; Aranca Research

2012-13
Hydro power generation capacity: 174.3 MW

High Growing economic growth and demand improving infrastructure

Sikkims GSDP expanded at a compound annual growth rate (CAGR) of 25.2 per cent between 2004-05 and 2011-12. Large production of cardamom and flowers has opened up immense possibilities for the state economy. Rail and air connectivity as well as optical-fibre networks are being developed in the state.

Conducive agro-climatic conditions

Sikkim has favourable agro-climatic conditions, which support agriculture, horticulture and forestry; there is potential for development in related areas. The state has abundant natural resources, which offer significant avenues for investment.

Potential
Estimated hydropower potential: 8,000 MW

Advantage: Sikkim

Rich labour pool

Sikkim has a high literacy rate of 82.2 per cent. The state has a skilled and educated labour force. With the establishment of Sikkim Manipal University and the Sikkim University, the quality and quantity of employable graduates in the state has steadily improved.

The engineering sector is delicensed; support 100 per cent FDI is allowed in the The state follows the North East sector

Policy and institutional

Industrial Investment Promotion Policy, 2007, which provides incentives Due to policy support,several there was and concessions for investment. cumulative FDI of USD14.0 billion into Institutional support is provided through the sector over April 2000 February various central and state government 2012, making up 8.6East per cent of total agencies viz., North Council, FDI into the country in that period Ministry of Development of North Eastern Region and Commerce and Industries Department.

Source: Planning Commission Databook 2012-13, www.sikkim.gov.in GSDP: Gross State Domestic Product

Gyalshing, Namchi, Mangan, Jorethang, Singtam, Rangpo, Pakyong, Rhenock, Meli, Chungthang and Soreng are some of the key cities and towns in the state. Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes making it an ideal tourist location. The Teesta and the Rangeet are the two major rivers with nearly hundred tributaries.

Parameters
Capital Geographical area (sq km) Administrative districts (No) Population density (persons per sq km)*

Sikkim
Gangtok 7,096 4 86 0.61 0.32 0.29 889 82.2
Sources: Planning Commission Databook 2013 *Provisional Data Census 2011

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. Nepali, Bhutia, Lepcha, Limboo, Magar, Rai, Gurung, Sherpa, Tamang, Newari and Sunuwar (Mukhia) are the commonly spoken languages. Hindi and English are also widely spoken.

Total population (million)* Male population (million)* Female population (million)* Sex ratio (females per 1,000 males)* Literacy rate (%)*

Parameter Economy
GSDP as a percentage of all states GSDP Average GSDP growth rate (%)* Per capita GSDP (US$)

Sikkim 2011-12
0.10 25.3 2844.4

All-States 2011-12
100 15.9 1,434.8

Source

2012-13
100 15.6 1,414.2 Planning Commission Databook, current prices Planning Commission Databook, 2004-05 to 2011-12, current prices Planning Commission Databook, current prices

Physical Infrastructure
Installed power capacity (MW) Wireless subscribers (No) Broadband subscribers (No) National Highway length (km) 305.5 41,159,859^ 4,316 149 225,133.1 867,803,583 15,050,000** 79,116 Central Electricity Authority, as of May 2013 Telecom Regulatory Authority of India, as of March 2013 Ministry of Communications & Information Technology, as of December 2012 Ministry of Road Transport & Highways, as of March 2013

Social Indicators
Literacy rate (%) Birth rate (per 1,000 population) 87.4 13.3 74.0 21.8 Provisional data Census 2011 SRS Bulletin (www.censusindia.gov.in), 2012

SRS: Sample Registration System, *Calculated in Indian rupee terms, ^West Bengal (Including Andaman & Nicobar, Sikkim and Excluding Kolkata), **As of March 2013

Parameter Investment
FDI equity inflows (US$ billion) Outstanding investments (US$ billion)

Sikkim

All-States

Source

2.3* 20.5

193.3 10,499.2

Department of Industrial Policy & Promotion, April 2000 to March 2013 CMIE (2012-13)

Industrial Infrastructure
PPP projects (No) 31 881 www.pppindiadatabase.com

Note: PPP: Public-Private Partnership *Including West Bengal and Andaman & Nicobar Islands

At current prices, Sikkims total gross state domestic product (GSDP) was US$ 1.8 billion in 2011-12. GSDP expanded at a CAGR of 25.2 per cent* between 2004-05 and 2011-12.

GSDP of Sikkim at current prices (in US$ billion)

1.8 1.6

CAGR 25.2%*
0.6 0.4 0.5 0.5 0.7

1.3

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

Source: Planning Commission Databook, 2012-13, Current prices CAGR: Compound Annual Growth Rate *In Indian rupee terms

2011-2012

At current prices, Sikkims total net state domestic product (NSDP) was US$ 1.6 billion during 2011-12. NSDP expanded at a CAGR of 25.7 per cent* between 2004-05 and 2011-12.

NSDP of Sikkim at current prices (in US$ billion)

1.6 1.4

CAGR 25.7%*
0.5
0.3 0.4 0.4 0.6

1.2

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

Source: Planning Commission Databook, 2012-13, current prices CAGR: Compound Annual Growth Rate *In Indian rupee terms

2011-2012

The states per capita GSDP was US$ 2,844.4 in 2011-12 compared to US$ 683.4 during 2004-05. Per capita GSDP increased at a CAGR of 23.7 per cent* between 2004-05 and 2011-12.

GSDP per capita of Sikkim at current prices (US$)

2,844 2,575

CAGR 23.7%*
1,061 1,182

2,149

786 683

821

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

Source: Planning Commission Databook, 2012-13, current prices CAGR: Compound Annual Growth Rate *In Indian rupee terms

2011-2012

Sikkims per capita NSDP was US$ 2,533.1 in 2011-12 compared to US$ 593.8 during 2004-05. Per capita NSDP increased at CAGR of 24.2 per cent* between 2004-05 and 2011-12.

NSDP per capita of Sikkim at current prices (US$)

2,293 2,533

CAGR 24.2%*
906 1,023

1,914

594

683

711

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

Source: Planning Commission Databook, 2012-13, current prices CAGR: Compound Annual Growth Rate *In Indian rupee terms

2011-2012

At a CAGR of 37.3 per cent, the secondary sector has been the fastest growing among the three sectors from 2004-05 to 2011-12. It was driven by manufacturing, construction and electricity, gas & water supply. In 2011-12, the secondary sector contributed 54.8 per cent to the states GSDP at current prices. It was followed by the tertiary sector at 37.0 per cent and primary sector at 8.2 per cent. The tertiary sector grew at a CAGR of 19.0 per cent between 2004-05 and 2011-12. The growth has been driven by trade, hotels, real estate, finance, insurance, transport, communications and other services.

Percentage distribution of GSDP

CAGR*
37.0% 52.6% 19.0%

28.7% 18.7% 2004-05 Primary sector

37.3% 11.3%

54.8%

8.2% 2011-12

Secondary sector

Tertiary sector

The primary sector grew at a CAGR of 11.3 per cent between 2004-05 and 2011-12.

Source: CMIE CAGR: Compound Annual Growth Rate *In Indian rupee terms

The agriculture sector contributed around 8.1 per cent to Sikkims GSDP in 2011-12. Maize, rice, orange, oil seeds, pulses, wheat, tea and spices, cereals, millet are the key agricultural products of Sikkim. During 2010-11, total food grain production in the state was 103,410 tonnes.

Annual production of key crops

Crop
Maize
Rice Small millets Oil-seeds Pulses

Annual production in 2010-11 (000 metric tonnes)

66.2
21 2.9 8 6

Sikkim is one of the top producers of large cardamom, contributing over 85.0 per cent to Indias total production.
Sikkim aims to make the states farming fully organic by 2015. Organic farming demonstrations have been made in over 3,000 hectares (ha) of land, and bio-fertilisers have been introduced in 5,340 ha. A bio-fertiliser manufacturing unit has also been set up. The Sikkim AGRISNET is an internet-based agriculture information centre to promote scientific agricultural methods and convert research into practice in the agricultural sector.

Buck wheat
Large cardamom

4.1
3.2*

Source: Annual Progress Report 2010-11; Sikkim Agrisnet; Spices Board Ha: hectare; * As of 2011-2012

FDI inflows reached US$ 2.3 billion* from April 2000 to March 2013. In 2012-13, the states outstanding investments reached US$ 20.5 billion. The electricity sector accounted for 91.8 per cent of total outstanding investments, followed by services (7.1 per cent) and manufacturing (1.1 per cent).

Break up of outstanding investments by sector (2012-13)

1.1% 7.1% Manufacturing

Electricity

Services 91.8%

Source: CMIE 2012-13 Department of Industrial Policy and Promotion *Including West Bengal and Andaman & Nicobar Islands

Sikkim has a total road length of 2,947.9 km. The state is connected to West Bengal and the rest of India through National Highway (NH)-31A. The state Public Works Department (PWD) and the Border Roads Organisation (BRO) maintain the roads. The Sikkim Nationalised Transport (SNT) operates 114 buses (covering 43 routes), 64 trucks and 33 tankers across the state.

Road type
National highways (NH) State highways District roads Border roads (Including NH)

Length (km)
149
203 1,871.5 873.4

Source: Public Works Roads and Bridges Department Government of Sikkim, mhupa.gov.in Ministry of Road Transport & Highways

The state government has proposed a vision for the development of roads and bridges until 2020. Some of the objectives are: To provide safe, comfortable and stable roads, with the capacity to handle high loading All places of tourist or economic importance to be connected with major district standard roads All national highways to be four-laned All state highways to be double-laned

Physical targets for different activities (in kms) Type of work

Other district roads connectivity

2010-15
180

2015-20
233

Upgradation from intermediate lane to 4 Lane roads

20

Upgradation from single lane to 2 lane (SH) a. PWD b. BRO 32 68 103 -

Upgradation from single lane to intermediate lane (MDR) a. PWD b. BRO Improvement of ODR Replacement of bridges (No) 200 190 180 9 200 201 240 8

Source: http://sikkim-roadsandbridges.gov.in/vision.pdf PWD: Public Works Department; BRO: Border Roads Organisation; MDR: Major District Roads, SH: State Highway, ODR: Other District Roads

Indian Railway Construction Company has started the construction of rail connectivity between Savor and Rangoon. Total length of rail track between Savor and Rangoon would be 52.7 km. The proposal of Rangpo-Gangtok rail connectivity has been sent to the Planning Commission. Construction of an airport in Pakyong would be completed by the end of December 2013. Helicopter services are available from Bagdogra (West Bengal) to Gangtok.

Status of rail project

Cost Outlay for 2012-13 Overall progress Target of completion US$ 622.4 million US$ 7 million 0.1 percent December 2015

Source: North-East Region Rail Infrastructure presentation; Ministry of Railways, Sikkim Times, June 2013

As of May 2013, Sikkim had a total installed power generation capacity of 305.5 MW. It consisted of 149.4 MW under central utilities, 99.0 MW under private utilities and 57.1 MW under state utilities. Thermal power contributed 79.1 MW to total installed power generation capacity, while hydropower and renewable power contributed 174.3 MW and 52.1 MW respectively. About 28 hydroelectric power plants (HEPs) are being set up under the public-private partnership (PPP) mode. Sikkim has a peak hydroelectric capacity of 8,000 MW with a firm base of 3,000 MW; providing a huge potential for development. Some power projects, such as Teesta Stage III Hydel Power having a capacity of 1200 MW and Teesta VI Hydro Power with a capacity of 510 MW; are scheduled for completion in the next 36 months. During 2013-14, the state would commission the 99 MW Chuzachen hydro electric power project, which is slated to fetch about US$ 9.3 million on an annual basis.

Annual turnover from the sale of power is estimated at US$ 165.7 million by the end of the 12th Five Year Plan.

Installed power capacity (MW)

305.5 305.5

193.1

195.5

201.4

206.4

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14*

Source: Central Electricity Authority, April 2013, Sikkim Budget 2013-14, CMIE, * As of May 2013, MW: Mega watt

Sikkim is among the states with the highest tele-density in the country. As of December 2011, the state had 47 telephone exchanges with 542,345^ Bharat Sanchar Nigam Limited (BSNL) telephone connections. Virtual private network (VPN) and 3G-services are available in the state. Forty five common service centres have been constructed across the state. The centres provide an internet-based interface for implementing various government programmes and schemes. Postal services are available through India Post and other private courier services. As of January 2013, the state had 209 post offices.

Telecom infrastructure (March 2013)

Wireless subscribers Wire-line subscribers Broadband subscribers BSNL telephone connections 41,159,859^ 548,248^ 4,316* 542,345^

Telephone exchanges
Post offices

47*
209**

Sources: Telecom Regulatory Authority of India; India Post; Department of Telecommunications, Annual Report 2012-13 ^West Bengal (including Andaman & Nicobar, Sikkim and excluding Kolkata) *As of December 2012, **As of January 2013

Major telecom operators in Sikkim

Bharat Sanchar Nigam Limited (BSNL) Reliance Communications Bharti Airtel Tata Teleservices Vodafone Essar IDEA Cellular
Sources: Telecom Regulatory Authority of India

Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), the rehabilitation of sewerage systems of Gangtok is being undertaken at a cost of US$ 5.9 million. Water treatment and distribution system upgradation are also being undertaken at a cost of US$ 15.3 million. Under the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), US$ 8.7 million has been allocated for development of water supply systems and sewerage in Mangan, Namchi, Jorethang, Melli and Rangpo. The Sikkim Water Security & Public Health Engineering Department (WS & PHED) provides water supply to Gangtok, six major notified towns, 41 other urban towns and 92 notified rural marketing centres. Gangtok has a requirement of 30 million litres per day and the WS & PHED has a storage and distribution capacity of 45.5 million litres.. The Union Ministry of Science and Technology has sanctioned a US$ 0.9 million biotechnology park at Pakyong in June 2012. The park would have all facilities including a research centre at the regional level for Northeast states.

Ongoing JNNURM works in Sikkim Cost (US$ million)

Name of works
Integrated housing and slum development of Old Slaughter House Gangtok (Phase 1) Integrated housing and slum development of Old Slaughter House Rangpo Integrated housing and slum development of Old Slaughter House Gangtok (Phase II)

0.6

4.6

0.9

Sources: JNNURM, Ministry of Urban Development, Government of India, Building Material and Technology Promotion Council, Ministry of Development of North Eastern Region, Ministry of Science and Technology

Project Name
Bermelee Khola HEP Bhasmey Hydro Power Plant Chujachen Hydro Power Plant Dikchu Hydro Power Plant Hee Khola HEP Power Plant Infrastructures for evacuation of power from IPP projects Jorathang Loop Power Project Kalez Khola HEP Power Plant

Sector
Energy Energy Energy Energy Energy Energy Energy Energy

PPP Type
BOOT BOOT BOT BOOT BOOT BOOT BOOT BOOT

Project Cost (US$ million)

4.7 32.1 98.8 110.7 5.3 22.1 59.8 10.6

Stage
Construction Construction Construction Construction Construction EOI Construction Construction

Kissim Khola HEP Power Plant

Panan Hydro Power Project Rangit - II Power Plant

Energy
Energy Energy

BOOT

3.3
199.3 59.24

Construction
Construction Construction

Source: pppindiadatabase.com BOOT: Build-Own-Operate-Transfer; BOT: Build-Operate-Transfer; EOI: Expression of Interest; IPP: Independent Power Producers

Project Name
Rangit-IV Hydro Power Plant Rongnichu Stroage Hydro Power Plant Rorathang Power Plant

Sector
Energy Energy Energy Energy Energy Energy Energy Energy

PPP Type
BOOT BOOT BOOT BOOT BOOT BOOT BOOT

Project Cost (US$ million)

161.7 94.8 33.2 151.5 36.1 664.3 267.3 289

Stage
Construction Construction Construction Construction Under bidding Construction Construction Construction

Talem HEP Power Plant

Taramchu Hydro Power Plant Teesta - VI Power Plant Teesta -1 Hydro Power Plant Teesta -II Power Project Teesta -III Hydro Power Project Upper Rimbi HEP

Energy
Energy

BOOT

1,306.5
13.1

Construction
Construction

Source: pppindiadatabase.com BOOT: Build-Own-Operate-Transfer; HEP: Hydroelectric Power Plant

Sikkim has a literacy rate of 82.2 per cent; the male and female literacy rates were 87.3 per cent and 76.4 per cent, respectively. Sikkim has become the first state in India to allocate 20 per cent of its budget for 2012-13 to the education sector. The Sikkim Manipal University (SMU), a partnership between the Government of Sikkim and Manipal Education and Medical Group (MEMG), provides technical, healthcare and science education. It is rated as one of the top universities in the country. Distance education is available for students via SMU and Indira Gandhi National Open University (IGNOU). The state plans to launch Sikkim Human Resource Development Mission 2013, Sikkim Youth Empowerment and Self Reliant Mission 2013, and Sikkim Gram Swaraj Abhiyan in the current year to enhance the quality of education.

Educational infrastructure (2010-11)

Universities Colleges Primary schools Middle schools High schools 5 18 749 244 126

Source: Planning Commission Databook 2013; Human Resource Development Department, Government of Sikkim; University Grants Commission

Primary education statistics (%)

Gross enrollment ratio (2010-11) Class I-V: 161.6 Class VI-VIII: 78.8 Class I-V: 18.6 Class I-X: 80.7

Dropout ratio ( 2009-10)

Source: Planning Commission Databook, 2013

Literacy rates (%)

Literacy rate Male literacy Female literacy 82.2 87.3 76.4

Source: Census 2011 (provisional data)

Sikkim has an impressive health infrastructure, one of the best in the country.
Sub-centres

Health infrastructure (2011-12)

147 24 4 4 1* 1* 33

The state fares better than the national average in almost all health indicators. Health tourism is being promoted in the state to utilise its medical infrastructure and boost the economy. The state had 24 primary health centres, 147 sub-centres, four community health centres, four district hospitals and 33 government hospitals as of March 2011. The Department of Health and Family Welfare is instrumental and responsible for implementation of various national programs in the areas of health and family welfare as well as prevention and control of communicable diseases in the state.

Primary health centres Community health centres District hospitals Central referral hospital (STNM Hospital, Gangtok) District Tuberculosis Centre Government hospitals

Sources: Ministry of Health & Family Welfare, Government of Sikkim; NEDFi Databank; www.sikkimhealth.gov.in; *As of May 2010

Health indicators (2011)

Population served per government hospital Population served per government hospital bed Birth rate (per thousand persons) Death rate (Per thousand persons) Infant mortality rate* 18,424^ 390^ 17.6 5.6 26

Sources: Central Bureau of Health Intelligence, Government of India, Sample Registration System (SRS) Bulletin 2012 (www.censusindia.gov.in) *Per thousand live births, ^As of January 2012

There are three ethnic communities in Sikkim: Lepcha, Bhutia and Nepali. Buddhism and Hinduism are the two main religions followed in the state. It has nearly 200 monasteries, of which the most well known Buddhist circuits are the Pemayangste, Tashiding, Rumtek, Enchey, Phensang, Ralong, Phodang and Tolung. Important festivals in the state are Bumchu, Dasain, Losar, Losoong, Maghe Sankranti, Namsoong, Pang-Labhsol, Saga Dawa, Sakewa, Sonam Lochar, Tamu Lochar, Tendong Lho Rum Faat, Tihar and Trungkar Teschu. Sikkim has the steepest rise in altitude over the shortest distance; its temperature varies from tropical and temperate in the southern districts to alpine and tundra in the northern peaks. The state is richly endowed with rare and exotic flora and fauna, which includes 4,500 different flowering plants, 550 types of orchids, 36 varieties of rhodendrons, 28 bamboo species, over 144 mammals, 550 species of birds and 600 different butterflies making it a nature lovers paradise.

Major parks and monastery in Sikkim

Name
Central Park Maney Chokerling Monastery Library cum museum Pemayangtse Monastery Enchey Monastery Phodong Monastery

Place
Namchi Ravang Namchi Pelling Gangtok Gangtok

Sources: State Portal of Sikkim, Government of Sikkim, Urban Development and Housing Department, South Division, Namchi

Sikkim has identified Rangpo-Gangtok, Melli-Jorethang, Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with provision for giving land to investors on a lease basis. Sikkim is a leading north-eastern state in hydroelectric power development with 28 different projects identified under PPP mode. The units that are engaged in the manufacturing sector are mainly dealing with pharmaceuticals, chemicals, liquors, foam mattresses, food products, iron rods, etc. Sikkim has identified agro-based industries, horticulture and floriculture, minor forest-based industries, animal husbandry and dairy products, tourism-related industries, IT including knowledge-based industries, precision oriented high value-low volume products, hydro-power, tea, education and hospitality as thrust sectors. The Information Technology Department, Government of Sikkim is in the process of setting up a state-of-the-art IT Park and National Institute of Electronics and Information Technology (NIELIT) at Pakyong.

The Commerce and Industries Department of Sikkim is involved in promoting trade and industry in Sikkim.

Key industries in Sikkim

The Sikkim Industrial Development & Investment Corporation Limited (SIDICO) is the state-level institution engaged in promoting, financing and developing the tiny and small scale industries (SSI) sector in the state. Ecotourism, handicrafts and handlooms, silk reeling and processing, precision engineering, electronics, IT, medicinal plants, floriculture, tea, spices, honey and biotechnology are key areas identified by Sikkim. Being a potentially eco-fragile location, the people of Sikkim support the promotion of pollution-free industries. Sikkim has large opportunities for tourism, hospitality, horticulture, floriculture, organic farming and infrastructure development due to a rich resource base and enormous untapped potential. The Sikkim Business Summit was organised by the state in May, 2013, to showcase investment opportunities in Sikkim.

Tourism Agriculture Floriculture Agro-processing Handlooms and handicrafts Hydroelectric power Tea Large cardamom Minerals Sericulture Horticulture Electronics Pharmaceuticals

Sikkim is home to around 5,000 species of flowering plants, 515 rare orchids, 60 primula species and 36 rhododendron species, presenting avenues for investment in floriculture. The existing industry is at a nascent stage and has the potential to be developed and promoted towards an exportoriented business.

Production of cut flowers (in million units)

CAGR 37.0%
20.0 23.0 21.0

23.3

The Sikkim government has announced a technical collaboration with floriculturists from the Netherlands and Thailand to develop the states potential in floriculture and market cut flowers from the state globally.
Sikkims most important commercial flowers are Cymbidium Orchids, Gladiolus, Carnation, Gerbera, Asiatic and oriental Lilies, and Anthurium, among others, that can be grown for domestic and export markets. The Government of Sikkim organised the 2nd International Flower Show in February 2013, aimed at promoting the floriculture industry in the state. Cut flower production increased at a CAGR of 37.0 per cent between 2008-09 and 2012-13.

6.6

2008-09

2009-10

2010-11

2011-12

2012-13*

Source: International Flower Show Sikkim 2013; National Horticulture Board Report 2011-12; *First advanced estimates CAGR: Compound Annual Growth Rate

The agro-climatic conditions in the state support a wide variety of exotic flora and fauna that have utility in the medicine sector. Around 22 different medicinal and aromatic plants are cultivated under contract farming for the National Medicinal Plants Board.

Important medicinal plants and their medical use Name of the plant
Nardostachys grandiflora (Jatamasi) Aconites

Medicinal value
Tonic, antispasmodic, diuretic, laxative Rheumatism and fever Antiseptic Anti-venom and antiasthmatic value Effective against malaria

The state is rich in biodiversity and over 420 species of medicinal plants and herbs are found throughout the state.
The state has identified medicinal plants and bamboo as among the priority sectors for investment. Sikkim has 28 varieties of bamboo, offering potential for developing the handicrafts, construction, medicine, packaging and food processing industries.

Artemisia vulgaris Piper Longum Picrorhiza kurrooa

Source: Department of Ayurveda and the Ministry of Health and Family Welfare, Government of India

Agriculture is vital to the progress of Sikkim as more than 64 per cent of the population depends on it for their livelihoods. The Sikkim AGRISNET is an internet-based agriculture information centre to promote scientific agricultural methods and convert research into practice in the agricultural sector.
98.0

Production of vegetables (in 000 MT)

147.7 121.0 127.7 143.0

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. The surveyed arable land in Sikkim is 109,000 ha, of which only 9.5 per cent is used; this provides a vast untapped potential for development. The Sikkim government is working on an ambitious plan to achieve 100 per cent organic farming by 2015. A ginger processing unit has been set up at Birdang in west Sikkim for processing and value addition of organic ginger for marketing. Production of vegetables and fruits increased at a CAGR of 9.9 per cent and 11.2 per cent, respectively, between 200809 and 2012-13.

2008-09

2009-10

2010-11

2011-12

2012-13*

Production of fruits (in 000 MT)

25.8 18.5 15.7 22.5

24.0

2008-09

2009-10

2010-11

2011-12

2012-13*

Source: National Horticulture Board *First advanced estimates; MT: Metric tonnes

It is estimated that Sikkim has a peak potential capacity of 8,000 MW and a steady 3,000 MW of hydroelectric power. About 28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode. As of April 2013, Sikkim had a total installed power generation capacity of 305.5 MW, of which hydropower generation accounted for 174.3 MW. The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries. The Teesta descends from an elevation of about 3600 m to about 300 m over a distance of 175 km. It can be harnessed for power generation in six stages. The 1,200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014.
Source: Load Generation Balance Report 2012-13, Central Electricity Authority

The waterfalls of Sikkim that fall from high altitudes and are perennial in nature are conducive for setting up hydroelectric power plants. NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim, with a generation capacity of 5,295 MW. A total of 11 hydro electric power projects with a capacity of 2,455 MW (of which the private sector contributed 1,935 MW) have been identified for benefits during the 12th Five Year Plan in the state.

Hydroelectric power projects under construction Developer

Teesta Urja Ltd
Lanco Dans Energy Gati Infrastructure Shiga Energy

Prospective hydroelectric power projects Developer

Himalayan Green Energy
Him Urja Pvt Ltd NHPC Himagiri Hydro Gati Infrastructure

Installed capacity (MW)

1,200
500 96 51 97

Installed capacity (MW)

280
330 520 300 71

Sneha Kinetic Energy

Sikkim Hydro Power

96
66

Lachung Power Pvt Ltd

TT Energy

99
99

Source: Load Generation Balance Report 2012-13; Hydro Development Plan for 12th Five Year Plan; Central Electricity Authority; Livemint, September 2011; Projects Monitor; NHPC: National Hydroelectric Power Corporation

Tourism is one of the important sectors of the state. Sikkim is one of the best hill destinations at the global level. Sikkim has the perfect blend of natural wealth and topography, which ranges from tropical to temperate to alpine. The state is richly endowed with thick forests, flora and fauna, lakes, glaciers and mountain peaks, which makes it a tourist paradise. The state is well known for nature and trekking tourism, ecotourism, village and home stay tourism, adventure tourism, wellness tourism, floritourism, culture and heritage tourism, etc. Creation of tourist complexes, ecotourism, adventure tourism, ethnic-culture tourism, health farms, hotels, convention centres, tourist travel services, etc., are various avenues for investment in the tourism sector. Cho-Lhamu lake situated in Sikkim is the highest lake in the country and sixth highest in the world. It is expected that recognition of this lake would boost tourism in the state. The state has mighty scenic snow-capped peaks including Kanchenjunga, the worlds third highest peak that attracts a large number of tourists from across the globe.

Sikkim Tourism has won national awards including Best State in Tourism-related Programs & Development of Infrastructure 2010; Best State for Adventure Tourism 2010; Best State for Comprehensive Development of Tourism 2010-11; and Most Innovative and Unique Tourism Project 2010-11.
Source: Planning Commission Sikkim Presentation 2012-13 Union Budget 2012-13

The state received 421,260 domestic and 18,420 foreign tourists in 2012 (until September 2012). Sikkim is setting up a fossil park in Mamley (south Sikkim), where rare one billion-year-old Stromatolite fossils occur. GSI plans to set up a geological museum in Sikkim, displaying fossils, rock samples, etc., from various parts of India. This would attract palaeontology enthusiasts across the world.

Domestic tourists (in 000)

700.0 615.6 465.2 347.7 421.9 512.4 421.3 16.5 552.5 18.0

Foreign tourists (in 000)

23.9 17.8 19.2

20.8
17.7

18.4

2005

2006

2007

2008

2009

2010

2011

2012*

2005

2006

2007

2008

2009

2010

2011

2012*

Source: Sikkim Tourism, Government of Sikkim; Sikkim Tourism Policy 2010; mines.gov.in GSI: Geological Survey of India, *Upto September 2012

Sikkims IT policy aims to increase the use of IT in the industrial and government sectors. With a high literacy rate, affordable cost, strong English-speaking population, improved telecommunications connectivity and favourable climate, Sikkim is well poised to serve the IT industry. The IT policy provides several incentives and concessions for investments in the IT sector. The Government of Sikkim has placed information technology high on its agenda. The Department of Information Technology has been set up for preparing extensive projects; particularly aiming at egovernance, promoting IT enabled services such as medical transcription, telemedicine and computerised braille. The Department of Information Technology, Government of Sikkim is in the process of setting up an IT park and National Institute of Electronics and Information Technology (NIELIT) at Pakyong. The IT Park will have state-of-the-art facilities that will offer a plug and play environment and cater to the specific needs of the information technology and business process outsourcing (BPO) segments.

Mulberry, muga, eri, oak-tussar and silk are cultivated in Sikkim. The Sericulture Directorate is responsible for development of sericulture in Sikkim. The Directorate is maintaining three sericulture farms, one each in east, south and west district. Forest Department has two sericulture farms, one at Rorathang (east Sikkim) and the other at Mamring and Namthang (south district). Production of mulberry and eri cocoons increased at a CAGR of 8.3 per cent and 25.9 per cent, respectively, between 200809 and 2010-11.

Source: NEDFi Databank

Carpet weaving, blanket making, handloom, cane and bamboo, thangka painting, lepcha hat-making and angora shawl-weaving are the various handlooms and handicraft activities practised in Sikkim. The industry has a great potential to generate income and employment in the state. In order to give a boost to the sector, the Government of Sikkim has been making several efforts, which include providing training to upgrade the quality and designs of the products; bringing expertise and professionals for their marketing and supply, etc. Directorate of Handicrafts and Handlooms, Government of Sikkim, promotes and preserves the rich arts and crafts of the state. The khadi and village industrys total production in the state was valued at US$ 5.3 million, while sales stood at US$ 7.0 million over 2012-13*.

Khadi and village industry production in Sikkim (US$ million)

7.2 8.2

8.6
5.3

2009-10

2010-11

2011-12

2012-13*

Khadi and village industry sales in Sikkim (US$ million)

11.4 10.2 7.0 11.3

2009-10

2010-11

2011-12

2012-13*

Source: Ministry of Micro, Small and Medium Enterprises, Government of India; *Upto December 2012

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea. The tea has its unique flavour and about 100 metric tonnes of tea is produced annually. Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres. The garden employs about 400 regular and seasonal workers. The tea produced is exported as well as sold in local and national markets. Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials. It also produces some of the best clone planting materials, which are distributed among small tea growers' cooperatives in the state. During the harvesting season 2009-10, Temi Tea Estate produced 59,665 kilograms of saleable tea. Sang-Martam Tea Growers Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to increase tea production capabilities in the state. Total area of land under the cultivation of this society is around 75 acres. Major buyers of Temi Tea are Germany, the UK, the US and Japan. Moreover, the state is trying to diversify the product range (including redesigning of more attractive packets for value addition) due to growing demand for green teas.

The state is considered as a large cardamom epicentre of the world. India contributes 50 per cent to total large cardamom production in the world. Sikkim is the largest producer of the crop in India, accounting for around 80 per cent of total production. The crop produced in the state is mainly exported to Pakistan, Singapore or the Middle East, and is the preferred choice among these nations due to its distinctive aroma and colour. Total production of large cardamom was 3,234 tonnes during 2011-12. Export of the crop increased at a CAGR of 33 per cent to 1,175 tonnes in 2010-11 compared to that during 2007-08. The Spices Board has proposed to replant 5,000 hectares and rejuvenate 2,500 hectares of large cardamom in Sikkim during the 12th Five Year Plan. Improved bhattis transformed cardamom cultivation into a profitable venture, ensuring quality livelihood to farmers and boosting large cardamom production.

Production of large cardamom (in tonnes)

4,305.0 3,675.0 3,540.0 3,310.0 3,234.0

2007-08

2008-09

2009-10

2010-11*

2011-12*

Exports of large cardamom (in tonnes)

1,175.0

CAGR 33%
500.0

2007-08

2010-11

Source: Spices Board, Business Today, January 2013 *Provisional

Sikkim has significant, untapped natural resource reserves of coal, lime stone, marble, quartzite, graphite and garnet. Contour mapping and survey of minerals is being carried out by the Department of Mines, Minerals and Geology, of the Government of Sikkim. Occurrences of high grade quartzite with over 90.0 per cent silica have been found in parts of east, west & south Sikkim. Graphite in the state occurs over parts of west and north districts. Workable occurrences are located at Chitre-Dariely & Dentam-Uttarey area of west Sikkim. The graphite is made up of 40-60 per cent fixed carbon. Sikkim has extensive deposits with bands of dolomite limestone in Rangit valley Tectonic Window. The state is endowed with sizeable deposits of marble around Tsungthang, Tsongo and Tolong. Coal deposits in the form of small pockets have been found in parts of south and west Sikkim. Total coal reserves are estimated to be 0.3 million tonnes. The state is expected to have marble deposits of 30.0 million tonnes in the Chungthang Valley.

Source: Department of Mines, Minerals and Geology, Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low manufacturing and labour costs. Sikkim is home to 14 major pharma companies, which have significant investments in the state. These include Cipla, Sun Pharma, Zydus Cadila, Alembic, IPCA, Alkem Lab, Intas Pharma, Torrent Pharma and Unichem. The North-East Industrial and Investment Promotion Policy, 2007 and the pollution free atmosphere is highly beneficial for pharma investments in Sikkim. Some of the policy incentives are: 100 per cent excise duty exemption on finished products 100 per cent income tax exemption 30 per cent capital investment subsidy on investments in plant and machinery The state attracted pharmaceutical investments of US$ 527.3 million in 2010-11.

Source: Economic Times, Pharmabiz

Cipla

Cipla is one of the worlds largest generic pharmaceutical companies with presence in over 170 countries. It exports raw materials, intermediates, prescription drugs, over the counter (OTC) and veterinary products, among others. With more than 20,000 employees, the company generated revenue of US$ 1.5 billion over 2012-13.

Sun Pharmaceutical industries limited

India-based Sun Pharmaceutical Industries Limited is a global pharmaceutical company headquartered in Mumbai, Maharashtra. It manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) mainly in India and the US. The company offers formulations in therapeutic areas such as cardiology, psychiatry, neurology, gastroenterology and diabetology. With over 13,000 employees, Sun Pharmaceutical generated revenue of US$ 2.1 billion during 2012-13.

Zydus Cadila

India-based Cadila Healthcare is a pharmaceutical company headquartered in Ahmedabad, Gujarat. It is the fifth largest pharmaceutical company in India and is a significant manufacturer of generic drugs. Cadila Healthcare has global operations in four continents spread across the US, Europe, Japan, Brazil, South Africa and 25 other emerging markets. With more than 13,000 employees worldwide, the company generated revenue of US$ 1.2 billion over 2012-13.

List of approvals and clearances required

Incorporation of company Registration, Industrial Entrepreneurs Memorandum, industrial licences Permission for land use Allotment of land Site environmental approval

Department
Registrar of Companies

Commerce and Industries Department

Sikkim Pollution Control Board No-objection Certificate and consent under Water and Pollution Control Act Registration under States Sales Tax Act and Central and State Excise Act Excise Department Commercial taxes Sanction of power Power feasibility Power connection Approval for construction activity and building plan Water and sewerage clearance Water connection Public Works Department Water Security & Public Health Engineering Department Energy and Power Department

Agency

Contact information
Government of Sikkim Gangtok-737101, Sikkim Phone: 91-3592-202 670 Website: sikkimindustries.gov.in E-mail: industriesdept@yahoo.co.in Energy & Power Department Gangtok, Sikkim Website: www.sikkimpower.org E-mail: pbsubba@sikkimpower.org Bhanu Path, Gangtok-737103, Sikkim Phone: 91-3592-202287, 202637, 209622, Fax: 91-3592-202287 Website: www.sidico.org E-mail: mdsidico@rediffmail.com Director, D.H.H, Gangtok East Sikkim Phone: 91-3592-203 126/202 926

Commerce and Industries Department

Energy and Power Department

Sikkim Industrial Development & Investment Corporation Limited (SIDICO)

Directorate of Handloom and Handicrafts

Cost parameter
Hotel costs

Cost estimate
US$ 30-150 per room per night Industry sources

Source

Office space rent (2,000 sq ft)

Residential space rent (2,000 sq ft) Labour cost (minimum wages per day)

US$ 500-2,500 per month

US$ 100-500 per month

Industry sources
Industry sources

Unskilled: US$ 1.8 Skilled: US$ 2.8

Ministry of Labour and Employment, Government of India

Sikkim Ecotourism Policy 2011

Objectives

To establish Sikkim as an ultimate and unique ecotourism destination, offering memorable and high quality learning experiences to visitors to contribute to poverty alleviation and promote nature conservation. To promote ecotourism in a sustainable manner based on the Global Sustainable Tourism Criteria.

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Sikkim Tourism Policy 2010

Objectives

To build Sikkim as an attractive tourist location and promote the sector as an economic growth engine. To promote sustainable development of tourism and encourage the private sector to develop tourism-related infrastructure and services without disturbing ecology and the environment.

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North East Industrial and Investment Promotion Policy (NEIIPP) 2007

Objective

To promote the Northeast as an attractive investment destination through several concessions and incentives.

Read more

IT Policy of Sikkim 2006

Objectives

To employ IT to provide better governance and generate employment. To improve productivity in government departments through computerisation.

Read more

Exchange rates Year

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

INR equivalent of one US$

44.95 44.28 45.28 40.24 45.91 47.41 45.57 47.94 54.31
Average for the year

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