According to the 2001 census (provisional) the total population of Sikkim is 540493.There has been increase of 134036 compared to population of 1991 which was 406457.The literacy rate is 69.6 in 2001 as compared to 56.4of 1991.About 30% of the total population reside in urban areas of Sikkim. The increase in economic activities in all sectors and increase in the literacy rate play important role in the urbanization of the State. In the absence of industries in the State, towns and bazaars are the main places for the economic activities of the State. The rural products are brought to the towns, bazaars and the rural marketing centres for which the basic infrastructure has to be matched. There are eight notified towns and 46 rural marketing centers. The eight notified towns are Gangtok, Singtam and Rangpo in the East, Mangan in the North, Jorethang, Naya bazaar and Namchi in the South and Gyalshing in the West.

The urban population according to 1991 census district wise in the notified town areas is as under:
 

Districts	Total	Male	Female	Urban Total	Male	Female
East	178452	95986	82466	31872	18124	13748
South	98604	52105	46499	2569	1517	1052
West	98161	51246	46915	1762	1001	761
North	31240	17090	14150	803	508	295
Total	406457	216427	190030	37006	21150	15856