Export & Import - Exim Policy- Industrial Policy - States- Sikkim, India Finance & Investment Guide

Sikkim is a small mountain state in the eastern Himalayas. It is bounded by Tibet on the north, Nepal on the west, Bhutan on the east, and West Bengal on the South. It is the least populous state of the country. Sikkim is strategically important to India, as it lies astride the shortest route to Tibet from India. The state’s economy is basically agrarian, with the principal crops being maize, paddy, millet, wheat and barley. Sikkim has the highest surplus power in the country at low power tariffs. It is the least troubled state in the north-east. The state has poor connection with large markets and is more suitable for tourism and agro-processing.

Land area: 7,096 sq. km.
Population: 0.4 million
Capital: Gangtok
Per Capita Income: Rs 5,729
Inflation Rate: 8.5%

Incentives:

100% rebate (up to Rs 10,000) on consultancy charges
Transport subsidy for all new industrial units for 5 years
25% subsidy (up to Rs 100,000) on the purchase and installation of generating sets
Exemption from power tariff for units with consumption of up to Rs 25,000 per annum
15% price preference on products purchased by government departments for small-scale units
Sales tax exemption for 5 years for new industrial units
Sales tax deferral for 7 years for new industrial units
Rebate of up to Rs 1,000 per employee per month on the cost of training