Prioritizing Sectors for Economic Development in Sikkim, India

Prioritizing Sectors for Economic Development in Sikkim, India

Manjushree Mishra, Ajeya Jha
DOI: 10.4018/ijabim.2014040105
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Sikkim, a mountainous state in the Himalayas joined the democratic mainstream of the Indian Union in 1975. It has made enormous progress in planned economic development since then. Mountainous terrain and lack of reliable transportation and infrastructure does not allow establishments of large scale industries. Agriculture, dairy farming and cottage industries have limited scope of expansion. Hydro-electricity generation, pharmaceutical, tourism and tea appear to be promising and fastest growing economic sectors. Thus, these four growth sectors have been considered for evaluation. Six major criteria (such as Installation Cost, Return on Investment, Sustainability, Social Acceptance, Environment Friendliness, and Future Demand) were appropriately selected have been considered for evaluation of these alternatives for prioritising these economic sectors. The alternatives were subjected to pairwise comparison using the Analytic Hierarchy Process (AHP) so as to arrive at objective conclusions. The analysis of selected economic sectors and findings has been discussed in this article.
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Selection Of Ahp For Priority Ordering

Several interactions with policy makers showed that no efforts have been made to use scientific methods for prioritizing these economic sectors for decision making both at strategic and tactical levels. Analytic Hierarchy Process (AHP) is known to be a robust and proven technique for ordering and hence was selected for evaluation of these alternatives. Therefore, AHP was selected for pairwise comparison of the above four industries discussed for prioritising and hence formulating future plans for economic growth in the state. A brief review of literature pertaining to AHP is given below.

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