Sikkim & Arunachal: High On Per Capita Income, Low On Self-Generated Revenue

As the two states gear up for Assembly polls, INDIVJAL DHASMANA analyses their economy and dependency on the Centre for resource

- INDIVJAL DHASMANA

Along with the first phase of the Lok Sabha elections, the 32-mem.ber Sikkim and 60-member Arunachal Pradesh Assemblies will also go to polls on April 19.

These two northeastern states share many similarities, such as a higher per capita income than the national average and a dependence on the Centre for resources.

However, they differ in one key aspect: Multidimensional poverty - Sikkim has very few people under this category, but Arunachal Pradesh's numbers are close to the national average.

Let's examine the political-economic landscape of these two states.

Sikkim

The incumbent Sikkim Krantikari Morcha (SKM) will face off directly with the Sikkim Democratic Front (SDF) in the Assembly polls. The Bharatiya Janata Party (BJP) and the Congress are also in the running. Despite being one of the two most prosperous states in the country in terms of per capita income (the other being Goa), Sikkim's economy, dominated by agriculture or agro-based industries, is just a fraction of the nation's.

At 7,096 square km, the state's area comprises 0.2 per cent of India's, but the size of the economy is 0.1 per cent of the national economy over the years. Since its population is just 0.05 per cent of that of the country, in terms of both 2011 Census and estimation as of mid-July 2021, the per capita income of the state is now thrice that of the all-India level. For instance, per capita income of Sikkim stood at ₹5,19,964 during 2022-23, while the national average was 1,69,496.