The state is gifted with abundant natural resources. The resources can be grouped into biotic or abiotic, both of which can be renewable. Biotic resources include agriculture crops. fodder and forests. The entire Himalayan region is endowed with natural flora and fauna, and is a natural paradise for nature lovers, convervationists, botanists, zoologists and environmentalists. There are 4000 species of flowering plants, 300 species of ferns and its allies, 11species of Oaks, 8 species of tree ferns, 30-40 species of Primulas 20 species of bamboos. In Fauna, the state is also very rich 144 species of mammals. 500-600 species of birds, over 400 species of butterflies and moths. Many species of reptiles etc. are availble. Many medicinal plants/herbs/and important shrubs are found in low and high altitude areas. Other resources are water resources, human resources, livestock resources, hydro-electric potential, tourism, agricultural, horticulture etc. In forest, non-wood forest produce has a vast potential like sand, boulders and other materials. Under economic geology the minerals like copper, iron, lime, dolomite/limestone, coal, quartzite and tale, silicate & graphite are available in the state. Garnet is abundant in the gneiss and mica schists at places. Large cardamoms production is very high in the state. The basic information on various natural resources is either not available or if available it is not adequate and upto date. There is a vast potential for hydro-electric power generation. Tourism development deserves consideration to add to the economy of the region.

Sikkim contains within its borders a variety of non-tropical and geographic environments from the low snow-free outer hills to the high peaks with permanent snow and glaciers. Within its habitable portions, different social, religious, linguistic and ethnicgroups co-exist practising different types of agriculture and pastoral activities. As one moves northwards, valley floors and mountain peaks increase in altitude, the terrain becomes more rugged and the climate drier and more temperate, the vegetation changes from sal forest to rhododendrons and conifers and finally to grass above timber line. Such a transistion can sometimes be seen even on a single mountain side in any of the ecological zones.

Sikkim supports 2646 sq. Km. of forest cover, equivalent to 36% of the total land area. Forest types follow a complex altitudinal zonation sequence typical of the Kanchenjunga region. Tree species composition of forest associations depends on both altitude and local precipitation patterns, and may be summarized as follows (species names in parentheses refer to those tree taxa which typical dominate a particular association). Subtropical deciduous monsoon forest (Shorea robusta, Terminalia spp.)occurs in river basins below 1000 m. Subtropical evergreen hill forest (Schima wallichii, Castanopsis tribuloides) is abundant at 1000-2000 m .Lower temperate broadleaf forest (Quercus spp. Lithocarpus spp., Laursceae) and upper temperate conifer ( Tsuga dumosa) or deciduous ( Acer spp., Magnolia sp.) forest occurs at 2000-3000 m Rohododendron forest ( R. arboreum, Quercus semecarpifolia, Lyonia ovalifolia ) occurs at 2000-3000 m on drier slopes, and subalpine forest (Abies sp., Betula utilis) grows from 3000 m to altitudinal treeline at 4000 m Extensive moist alpine scrub( Juniperus spp., Rhodendron spp., Potentilla spp.) occurs between treeline and the altitude of permanent rock and ice Lower Hill Forest: This consists of three main types,viz., sal forest, dry mixed forest and wet mixed forest. Sal Forest: These are confined to Tista and Rangit river valleys. Principal associates of sal forest are Dabdabe (garuga pinnata),Pakasaj (Terminalia crenulata),Chilouni (Schima wallichii)and Burra(Terminalia chebula). In Rangit valley Chirpine(Pinus longifolia) also occur along with Shorea robusta.

Dry Mixed Forests: This type is mainly deciduous and occurs on ridges and drier slopes. Sal occurs as isolated species. Common species are Chilouni, Dabdabe and Comari(Gmelina arborea). Wet Mixed Forest: These are evergreen valley forests on damper soils and prevail on the north and north estern parts of the State.