Sikkim, July 06, 2023: The state of Sikkim is set to receive financial support from the World Bank for the first time, as the international organization extends its aid to the region. The World Bank’s Integrated Service Provision and Innovation for Rural Economies Program, scheduled to receive financing next year, aims to promote economic inclusion opportunities for women and youth in the non-farm sector. With a total cost of $269.74 million, the World Bank will contribute $100 million towards this initiative.
During a recent meeting organized by the state government, Rohini Pradhan from the Planning and Development Department emphasized the significance of the project in transforming the socio-economic status of women and youth in rural areas, particularly those outside the agricultural sector.
According to the World Bank’s project information document, Sikkim has experienced remarkable economic growth while prioritizing sustainable development outcomes. Despite covering an area of just 7,096 square kilometers, the Himalayan state holds strategic importance within the Government of India’s Act East Policy and has become one of the fastest-growing states in terms of economy.
The document also highlights the disparity between Sikkim’s changing economic structure and the lag in employment transformation. While sectors like manufacturing, services (particularly tourism, pharmaceuticals, and hydropower), have witnessed impressive growth rates and are crucial to the state’s economic progress, the corresponding shift in employment has been slower. Over 70 percent of the state’s workforce is still employed in agriculture, despite significant potential for non-farm wage employment and entrepreneurship opportunities.
Sikkim also faces specific challenges in terms of female labor force participation and youth employment. Although the state has a relatively high female labor force participation rate of 58 percent, a significant portion of women in the 15-59 age group are employed in agriculture. Furthermore, while Sikkim boasts a lower unemployment rate for its youth population compared to the national average, approximately 41 percent of the state’s youth are still engaged in agricultural activities, indicating a lack of viable opportunities in non-farm sectors.
The World Bank’s project aims to address these disparities by creating economic opportunities outside of the agricultural sector, promoting inclusive growth, and supporting women and youth in Sikkim. It recognizes the need to bridge the gap between aspirations and job market realities, reduce out-migration, and capitalize on Sikkim’s biodiversity for income-generating activities such as community-based tourism and green jobs.
Through its financial assistance, the World Bank aims to contribute to Sikkim’s sustainable development and economic progress, while fostering greater opportunities and improved livelihoods for women and youth in the region.
