The Uttar Poorva Transformative Industrialization (UNNATI) Scheme 2024, a central government program to boost industrial growth in North-Eastern states, is creating local job and economic development opportunities in Sikkim.
Understanding the Unnati Scheme
The Unnati Scheme aims to strengthen the industrial ecosystem in North-Eastern India. It covers eight states—Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura—from March 9, 2024, to March 8, 2034, plus an additional eight years for committed liabilities.
Key Benefits of the Scheme:
- Capital Investment Incentive (CII) – Businesses setting up industries in Sikkim will receive financial support for initial costs.
- Central Interest Subvention (CIS) – Local entrepreneurs can avail of interest subsidies on loans, making it easier to start or expand businesses.
- Manufacturing & Services Linked Incentive (MSLI) – Companies registered under the GST will get additional benefits on tax payments.
How the Unnati Scheme Benefits Sikkim Locals
The Unnati Scheme is set to bring multiple benefits to the people of Sikkim:
Job Creation and Skill Development
The scheme encourages new industrial units and the expansion of existing ones. With more manufacturing and service companies setting up in the state, a range of job opportunities will open up.
The scheme supports skill development programs, allowing residents to acquire the technical expertise for new roles. This is important for a state where many young people have moved away for better opportunities.
Economic Growth and Diversification
Sikkim’s economy has historically been reliant on agriculture, with the state earning a reputation as the first 100% organic state since 2016. The introduction of industrial activities promises to diversify income sources and boost the state’s GDP.
With incentives attracting domestic and foreign investments, Sikkim’s economic base is expected to grow stronger, leading to a more balanced regional economy.
Infrastructure Improvement
Part of the Unnati Scheme focuses on developing industrial infrastructure, including common facilities, better logistics, and improved connectivity. Enhanced infrastructure will support new industries and benefit local businesses and the community by improving transportation and public services.
Increased Tax Revenue for Public Services
As industries expand and more businesses operate, the state will likely see an increase in tax revenues. These funds can be reinvested in public projects like education, healthcare, and road construction, improving local residents’ quality of life.
Local Implementation and Success Stories
The Unnati Scheme was introduced in Sikkim in August 2024 through a workshop in Gangtok by the Commerce and Industries Department. The event was attended by District Industries Centres (DICs), local banks, and Unnati Foundation representatives.
Several local entrepreneurs have expressed interest in applying for benefits under the scheme.
Success Story:
1. Local Handicraft Industry Expansion
One of the first beneficiaries is Tashi Handicrafts, a small business in Gangtok specializing in traditional Sikkimese artifacts. With support from the Unnati Scheme, they expanded production, hired more local artisans, and started selling online. This increased their revenue and provided employment to 15 additional workers.
2. Organic Food Processing Unit in Pakyong
A young entrepreneur from Pakyong has set up an organic food processing unit, processing locally grown cardamom and ginger for national and international markets. With financial support from the Capital Investment Incentive, the business has been able to scale up operations and employ 20 local youth.
Conclusion
The initiative promises sustainable growth for the region by creating jobs, boosting industries, and improving infrastructure.
For those looking to start a business, expand operations, or find employment, now is the time to act. The success of the Unnati Scheme depends on how well the people of Sikkim utilize its benefits.