Sikkim’s economy is set to be transformed as the Sikkim Integrated Service Provision and Innovation for Reviving Economies Program or INSPIRES and the World Bank have come forward with its assistance.
This initiative aims to pivot from traditional agriculture to emerging sectors like IT or ITeS, tourism, creative design, environmental conservation, and the care economy. This strategic shift is intended to enhance economic resilience against natural calamities, as highlighted by the World Bank.
Agriculture is the primary livelihood for over 60 per cent of Sikkim’s residents at present. However, climate change has led to significant challenges, including rising temperatures and unpredictable rainfall patterns, which have reduced water availability for irrigation and decreased soil fertility.
Consequently, agricultural productivity and quality have suffered. Forecasts suggest that by the 2050s, Sikkim could see a rise in average maximum temperatures by 1.8-2.6 degrees Celsius, with the southern regions potentially experiencing a 25 percent reduction in precipitation.
The ‘Sikkim State Action Plan on Climate Change’ stresses the need to climate-proof livelihoods to effectively manage climate risks. The plan advocates for the expansion of the non-farm economy, highlighting measures such as MGNREGA, trade, non-farm labour, and migration as essential strategies already being implemented.
The INSPIRES program aims to promote sectors less affected by climate fluctuations, ensuring long-term sustainability and economic stability for Sikkim’s populace. This approach seeks to mitigate the negative impacts of climate change on traditional agricultural practices, encouraging a more resilient economy.
