The story
Tax incentives for the North East drew several of India's largest drug makers to set up plants along the Teesta valley road in east and south Sikkim, around Rangpo. The plants make formulations for the domestic market and for export. Pharmaceuticals now dominate the state's exports, and the state government meets the companies on employment and local issues.
In numbers
Pharmaceuticals and related instruments account for around 63% of Sikkim's total exports.
Sikkim: State Economy and Industries (IBEF) · 2026Total merchandise exports from Sikkim were Rs 211 crore in FY26, led by drug formulations.
Sikkim: State Economy and Industries (IBEF) · 2026In July 2026 the Governor of Sikkim met the state's leading pharmaceutical companies at Lok Bhawan to review their activities.
Press release: Governor meets pharmaceutical companies at Lok Bhawan (IPR Department, Govt of Sikkim) · 2026
Ways in for a newcomer
- Packaging, printing and carton supply to plants
- Canteen, transport, housekeeping and security contracts
- Lab testing, calibration and maintenance services
- Skill training for plant operators
Problems the cluster faces
- Hill roads and landslides disrupt supply
- Most raw materials come from outside the state
- Dependence on tax incentives
Businesses to start here
Capsule Shells and Medicine Blister Foil →Medicinal Tablets Manufacturing Unit →Offset Printing Unit →