Best performing small state in economy: Sikkim

When it comes to Sikkim’s economic health, a single data point is enough to show that it is a powerhouse – Sikkim’s per capita GSDP (Gross State Domestic Product) is around Rs 4.86 lakh, according to the state government. Nearly three times the national average. , Sikkim is one of the fastest growing states in the country, with its GSDP growing at a CAGR (combined annual growth rate) of 15.86 per cent between 2015 and 2020.

The state’s recent economic growth is partly a result of FDI inflows from pharmaceutical manufacturing and exports of medical and scientific equipment. Sikkim is home to about 50 pharmaceutical companies—the state government’s policies, including excise and income tax benefits, as well as freight and capital investment subsidies for the sector, have proved to be a major attraction. Estimates suggest that the total revenue of the sector is projected to grow by 20 per cent year-on-year. According to state Industries Secretary HK Sharma, apart from tourism—which forms a major part of the state’s revenue—the booming pharma industry has proved to be a lifeline for downstream SMEs (small and medium enterprises) and a source of jobs.

For a long time the economy of Sikkim was agriculture based. In recent years, the state has emerged as an industrial hub with a focus on pharmaceuticals, ecotourism and food processing. To encourage the growth of start-ups and boost employment among the youth, the state government has also implemented a ‘Skilled Youth Start-up Scheme’, which provides bank loans up to Rs 20 lakh with 35 per cent subsidy. provides convenience. For entrepreneurs below the poverty line, the subsidy increases to 50 percent. This financial assistance has proved to be a strong step to generate employment and contribute to the economy of the state.