‘Sikkim sees strong industrial growth’

Sikkim’s industrial sector has seen strong growth over the last decade (2004-05 to 2013-14), according to a report by the Associated Chambers of Commerce and Industry of India (Assocham).

The report — An Analysis of the North-East Region: Economic Growth and Investment Development — says Sikkim’s industrial contribution to the State’s economy has seen an “exceptional increase” from 28.7 per cent to 60.4 per cent during this 10-year-period. Sikkim and Meghalaya (industrial contribution grew to 26.6 per cent from 16.8 per cent) are the only two States in the north-east where industry grew. For the other six – Tripura, Mizoram, Nagaland, Arunachal Pradesh, Assam and Manipur – it declined.

In terms of sectoral contribution to the GSDP of the region during the period, agriculture and allied sectors grew by 3.5 per cent; industry saw a 6.4 per cent growth and services grew by 7.5 per cent.

According to the report, the north-east region has recorded a compound annual growth rate of 16.8 per cent during the period compared to 21.3 per cent for the rest of India.

Nagaland has the highest outstanding investment growth of 43.6 per cent followed by Meghalaya (40.2 per cent), Assam (20.2 per cent), Mizoram (17.5 per cent), Manipur (16.7 per cent), Sikkim (6.6 per cent) and Tripura (3.3 per cent).

A sector-wise analysis, the report suggests, reveals investments taking place in electricity (62.6 per cent) and services (29.5 per cent) sectors. Manufacturing has a share of 6.2 per cent with mining and irrigation each having a share of 0.7 per cent.

Electricity sector accounted for majority of the outstanding investments in States like Sikkim, Arunachal Pradesh, and Meghalaya. In Sikkim, nearly 90 per cent of the outstanding investment is from the electricity sector.

Similarly, services account for majority of the outstanding investments in States like Assam, Manipur, Mizoram, Nagaland and Tripura.

In case of investments in the North East, some 65.4 per cent of them are coming from public sector companies.

According to the Assocham report, Manipur has seen investment from the public sector only. Public sector investments, it states, are reportedly lower than the NE average for Sikkim (61.3 per cent), Meghalaya (60 per cent) and Arunachal Pradesh (54.8 per cent).