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Khangchendzonga Conservation Committee
.: Sikkim
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ECONOMY OF SIKKIM

TOURISM
Tourism is considered as the backbone of Sikkim's economy. It has brought economic prosperity in Sikkim. With the salubrious climate, the natural beauty and the fine cultural heritage of Sikkim, the growth of tourism has immense possibilities. There are large number of places of tourist attraction particularly the snow clad mountains, the lakes and unspoiled forest areas and valleys of flowers. The advantage of having very fine monasteries in Sikkim can also be taken to attract Buddhist tourists from countries like Japan and the South Eastern countries.

AGRICULTURE
Other than Gangtok, the capital and largest town of Sikkim with a population of 30,000, people live in scattered villages and settlements with agriculture and related activities as the mainstay of the people. Other towns include Singtam, Rongphu, Jorthang, Nayabazar, Mangan, Gyalshing, and Namchi.

Maize, rice, wheat, and barley are cultivated in terraced hillsides. Beans, potatoes, vegetables, fruits and tea are grown. Sikkim is one of the world's main producers of cardamom.

There are in all 689 enterprises that have been identified, which are mostly concentrated in rural areas. Tea is exported to Russia & Germany. A coffee plantation has also been started at Majitar. Sikkimese economy broadly depends on the agriculture that provides livelihood to the majority of population in the state. However, it's progress remained limited due to difficult topography and other natural barriers.

HORTICULTURE
Horticulture is one of the major economic activities of the people of Sikkim. Large Cardamom, ginger and turmeric are the principal crops while Mandarin orange, guava, mango, banana and so on are the principal fruits grown in the state. Sikkim is also a paradise for flowers. Gladioli, anthuriums, lilliums, primulas, rhododendrons, orchids as well as many other floral species thrive here. The state is home to an amazing 450 species of exotic orchids alone. There is immense potential for developing floriculture on a commercial basis here.

 

LIVESTOCK
While yaks and sheep are popular in the higher elevations, other livestock that are tended include cattle, pigs, sheep, goats, and poultry. In a predominantly rural economy such as Sikkim, animal husbandry activities form an extremely important element in the effort to bring about substantial improvements in living standards.

FOREST
Forest is one of the richest natural resources of Sikkim. The total land area managed by and under administrative control of Forest Department is above 80% of the total geographical area of the state. Sikkim has a unique Bio-Diversity. The composition ranges from tropical Dry Deciduous Forests with Sal and its associates in the valleys of Teesta and Rangit to the Alpine Scrub and Grasslands in high altitudes.During the two last decades Forest Department has laid emphasis on development of fodder and fuelwood in the agriculture fallow lands of the villagers giving priority to plantation of broom grass for fodder and for economic upliftment of the villagers. This year, the target for afforestation under 20-Point program is 11,000 hectares of which Forest Department has achieved over 8,000 ha. by plantation.

MINING
Copper, lead, zinc, coal, graphite, and limestone are among the minerals found in the state, though not all are commercially exploited. The state of Sikkim is endowed with rich geological resources. The department of mines and geology has been responsible for exploration and establishment of mineral resources, with the object of developing commercially exploitable mineral resources. A fair amount of success has been achieved during the investigation carried out by different agencies in certain sectors namely dolomite, coal, quartzite, graphite, lime stone, silliminite, talc, mineral water, thermal springs, building stone and materials for porcelain.

INDUSTRIES
Until the early 1970' s, Sikkim had only cottage industries with carpets, blankets and traditional hand-woven textiles, woodcarving and scroll paintings and embroidery. Some small-scale industries have been set up, including a distillery, a fruit canning and bottling factory and a tea- processing factory.

The framework in regard to industrialization in Sikkim had to be formulated keeping in mind the particular factors endowments that the state had with regards to resources, particularly, minerals and industrial raw materials as well as manpower. The state is not so rich in mineral resources and apart from the deposits of copper, lead and zinc, no other viable and exploitable mineral deposits have so far been discovered. In regard to industrial development, a number of small and medium units have been promoted in the state.

POWER
The innumerable streams and rivers flowing down the Himalayas have provided Sikkim with an immense potential for development of Hydro Electric Power. The demand for power increased with the increase in the population.

In the VII Plan the two Hydel Projects namely Rimbi Stage II and Rongnichu Stage II were completed along with the Lachen Micro Hydel Project. Above all, Sikkim Government, extended a total number of 3000 free connections under the scheme of extending two point free domestic connections to the poor masses and provided electrification to all the district headquarters, towns and 90% of the total revenue blocks. Sikkim stood first in rank along with 12 States in the centpercent village electified.