Anomalies of Growth

Sectoral Growth

Jobless Growth

  The Missing Multiplier

Trends in Revenue & Expenditure

 

Sikkim has been growing at a satisfactory nominal rate of nearly 14.5 per cent per annum between 1980-81 and 1995-96. Real growth rate during 1980-81 to 1991-92 was impressive at 10 per cent,which is far higher than the all-India average growth. Nevertheless,the excellent growth performance masks fundamental problem of unemployment and poverty facing the country today.High growth should have ideally led to low unemployment and eradication of poverty.But according to Planning Commission estimates (1994-95), Sikkim ranks fifth in the country in terms of poverty. It is clear that the benefits of growth have not percolated down to the people at the lower rungs of the economic ladder, with almost 38 per cent of the population below the age of 15, a large number of young people will be joining the labour force in the near future, which could exacerbate the unemployment problem, unless job opportunities are created for them.

For at least 65 per cent of the population,agriculture is the main means of livelihood .However, the stagnant share of agriculture in the state income could compel people to look for jobs in industry or the services sector. Available evidence indicates a very limited organised sector in the state.

With liberalisation of the Indian economy, private investment,both domestic and foreign, has received a tremendous boost. Sikkim, however, has received neither any major domestic investment nor any foreign investment.The benefits of economic reforms sweeping the economy seem to have bypassed Sikkim, notwithstanding its high growth performance.