Sikkim, one of the smallest and remotest states of India, offers a striking case of development that defies conventional logic. Bordered by Tibet (China) to the north and northeast, Bhutan to the east, Nepal to the west, and the Indian state of West Bengal to the south, it is close to the Siliguri corridor, often termed as Chicken Neck that connects eastern states to the mainland India. Sikkim is tucked deep into the Himalayas. The state covers an area of about 7,096 square kilometers, with a population of just over 700,000 people, making it one of India’s least populous states. The terrain is rugged and mountainous, with limited arable land, making large-scale agriculture a difficult proposition. Likewise, due to its remoteness and poor connectivity to major urban and industrial centers, it is not an ideal location for large manufacturing industries either.
Yet, despite these apparent geographical and structural limitations, Sikkim has emerged as the richest states in India. In 2023, its per capita income was estimated at around ?450,000 (approximately USD 5,300), far higher than the national average of around ?170,000 (USD 2,100). Even more strikingly, Sikkim’s income levels surpass many of India’s traditionally prosperous states, including the industrialized Gujarat and the IT powerhouses of Karnataka and Telangana-home to megacities like Bengaluru and Hyderabad. Adjusted for purchasing power, Sikkim’s income levels start to resemble those of high-income countries, underscoring the strength of its localized, resource-driven development model.
This economic success raises an important question: how did a remote, underpopulated Himalayan state attain income levels comparable to the upper-middle-income or even high-income category? More importantly, what lessons does this hold for Azad Jammu and Kashmir (AJK) – another mountainous region with similar geography, climate, and challenges?
There are remarkable similarities between Sikkim and AJK. Both are Himalayan territories located on sensitive international borders. Both are ecologically rich, blessed with rivers, forests, and breathtaking landscapes. Both suffer from a degree of political marginalization in their respective federal structures. And most importantly, both face challenges of remoteness, poor infrastructure, and limited industrial base. Yet Sikkim has turned its disadvantages into opportunities, while AJK continues to struggle with poverty, underdevelopment, and environmental degradation.
Hydropower: From Resource to Revenue: Sikkim’s greatest economic strength lies in its hydropower generation; the state has harnessed its rivers – fed by glaciers and snowmelt – build a series of hydroelectric power projects. These not only meet its internal electricity needs but produce a large surplus, which is sold to the Indian national grid and neighboring states. This provides a steady and autonomous source of revenue for the state government.
AJK, too, is rich in hydropower resources. Projects such as Mangla Dam, Neelum-Jhelum, and others produce significant electricity-but under a centralized arrangement controlled by Pakistan’s federal authorities. The profits from electricity sales go to federal coffers, and AJK remains dependent on grants from Islamabad. This arrangement is both economically inefficient and politically disempowering. Like Sikkim, AJK should be allowed to manage and sell its own hydroelectric power, sharing a portion with the federal government as a stakeholder. This would not only boost local revenues but also promote a more cooperative and fiscally balanced federation.
Eco-Tourism: Growth Without Destruction: The second pillar of Sikkim’s success is eco-tourism – a sustainable form of tourism that celebrates nature without harming it. With its clean air, snow-covered peaks, monasteries, and trekking trails, Sikkim has positioned itself as a premier eco-tourism destination in India. Tourists come not for shopping malls or luxury resorts, but for peace, purity, and proximity to nature. Importantly, the state has invested in waste management, cleanliness drives, environmental regulation, and training for local tour operators. Tourism revenues are reinvested in maintaining the region’s ecological integrity.
AJK, by contrast, is rich in potential but poor in execution. Its valleys, rivers, and lakes attract tourists from across Pakistan, but there is no infrastructure to manage waste, no sustainable tourism plan, and no long-term vision. The result is deteriorating cleanliness, deforestation, and rising pollution. AJK must take a page from Sikkim and create a comprehensive eco-tourism policy, including regulated access to sensitive areas, clean-up campaigns, eco-lodges, trained local guides, and tourism taxes reinvested in environment preservation.
Organic and High-Value Agriculture: One of Sikkim’s most celebrated achievements is its status as the first fully organic state in India. All of its farmland – over 76,000 hectares – is certified organic, and the state bans chemical fertilizers and pesticides. This has allowed Sikkim to build a powerful brand in the agriculture market. Its crops – including large cardamom, ginger, turmeric, and oranges – fetch premium prices both domestically and internationally. Farmers have higher income security, and the environment benefits from cleaner soils and water systems.
In contrast, AJK has barely begun to explore the idea of organic agriculture. Most farming in AJK is small-scale, traditional, and non-commercialized. Yet the region is ideally suited to transition into organic farming, given its low use of chemicals, natural biodiversity, and clean mountain water. AJK can become a hub for organic honey, apples, walnuts, trout fish, medicinal herbs, and free-range poultry – if it adopts proper certification, training, and branding.
Further, like Sikkim, AJK has potential to grow high-value crops. While Sikkim cultivates cardamom and ginger, AJK could grow black mushrooms, saffron, medicinal herbs, and temperate fruits. These crops don’t need large land areas but offer high returns per hectare-ideal for a mountainous region with scattered farmland. AJK universities and agriculture departments should work with local farmers to pilot and scale up high-value agriculture, backed by research, cold chains, and market access.
Pharmaceutical Industry and Local Processing: While Sikkim does not have large industrial complexes, it has developed a targeted pharmaceutical industry, using local medicinal plants and leveraging central government incentives. Several national and multinational pharmaceutical companies have set up plants in Sikkim, attracted by its clean environment and low costs. This has provided employment, tax revenue, and technological transfer to the local population.
AJK could follow a similar model by encouraging herbal and medicinal processing units, packaging centers, and small-scale industries tied to its local resources. There is scope for natural cosmetics, herbal teas, essential oils, and alternative medicine products – if proper value chains are established.
Governance and Vision: The Real Catalyst: Behind all these achievements in Sikkim lies a visionary approach to governance. The state has maintained political stability, low corruption, community engagement, and alignment with central government policies. Development is locally led but nationally supported, allowing Sikkim to access federal grants and subsidies without becoming fiscally dependent.
AJK, on the other hand, suffers from frequent political instability, weak institutions, and over-reliance on Islamabad. Without a clear development vision, even the best natural resources will go untapped. AJK needs to reform its governance structures, empower local bodies, and prepare a 10-15-year regional development strategy, learning from Sikkim’s integrated approach.
Conclusion: Toward a “Sikkim Model” for AJK: Sikkim’s story is not a miracle – it is a case of strategic utilization of local advantages, underpinned by a focused and environment-conscious development model. Its success tells us that mountainous regions can be economically prosperous without turning into concrete jungles. The message for Azad Jammu and Kashmir is clear: geography is not destiny. With smart planning, clean governance, and community-led growth, AJK can transform itself from a grant-dependent region into a self-sustaining and proud contributor to national development. All that is needed is the will to adapt and the wisdom to learn – and perhaps a willingness to make AJK the “Sikkim of Pakistan.”
