The growth of industries is a recent phenomenon in Sikkim.
The situation where there was no industry is now changing and giving
place to a number of industrial units. They produce such items as
fruit jams and juices, biscuits, other bakery products, beer, matches,
washing soap, plastics, electric cables, barbed wires, watches, leather
goods and industrial jewels. The tax free status of the state in term
of income tax and other inducements offered by Sikkim have
become good attractions for entrepreneurs from within the state and other
parts of the country to set up industrial units. Hundreds of licenses
have been issued to the small scale units on a permanent or temporary
basis. Tiny cottage units have been received incentives and other benefits
from the department of industries.
The main exports from Sikkim are cardamom, oranges, tea,
potatoes, apples, liquors, wines, handicrafts, canned fruit and timber.
The trade in the past has mainly been with Tibet through the passes
of Nathu La and Jelep La. When Chinese invaded these parts and sealed
the borders the pattern of trade has turned to India.
Sikkim imports many consumer goods and manufactured goods from other
parts of India. Food grains, Beverages, cloth, cosmetics, electrical
equipment, engineering goods, synthetic goods, chemical fertilizers, insecticides,
pesticides, medicines and drugs, surgical equipments, sanitary goods,
hardware, paints ,Varnishes, machine tools etc are the important
articles imported by Sikkim.