Step 1: Understanding the Concept:
Orchids (family Orchidaceae) are a diverse group of flowering plants, with species distribution heavily influenced by altitude, humidity, and forest cover.
In India, the Himalayan region, the Western Ghats, and the Northeast hills are major orchid hotspots.
Step 2: Detailed Explanation:
According to the comprehensive floristic survey published by the Botanical Survey of India (BSI), the distribution of orchid species across these states is as follows:
- Kerala (D): Situated in the Western Ghats, this state has a rich diversity of orchids, with approximately $250$ to $300$ recorded species.
- West Bengal (B): It contains diverse habitats spanning the Darjeeling Himalayas and the Sundarbans, with approximately $350$ to $400$ recorded orchid species.
- Sikkim (C): Located in the Eastern Himalayas, Sikkim is a major center of orchid diversity, with about $500$ to $530$ recorded species.
- Arunachal Pradesh (A): Often called the 'Orchid State of India', it boasts the highest diversity of orchids in the country, with over $600$ recorded species.
Therefore, arranging these states in increasing order of recorded orchid species gives:
\[ \text{Kerala (D)} < \text{West Bengal (B)} < \text{Sikkim (C)} < \text{Arunachal Pradesh (A)} \]
This corresponds to the sequence D, B, C, A.
Step 3: Final Answer:
The correct increasing order is D, B, C, A.