Trade Analytics

Industrial Development & Economic Growth in Himachal

Latest update: January, 2017

Economic Snapshot: GSDP of Himachal Pradesh

Himachal Pradesh's gross state domestic product (GSDP) was US$ 14.4 billion over 2014-15.

Economic Snapshot: GSDP of Himachal Pradesh

Economic Snapshot: NSDP of Himachal Pradesh

Himachal Pradesh's net state domestic product (NSDP) was US$ 11.09 billion over 2014-15.

Break up of outstanding investments in Himachal Pradesh

January, 2017

Himachal Pradesh is one of the fastest-growing states in India. Being a sub-Himalayan state, Himachal Pradesh has a varied climate that changes with altitude. Agriculture contributes nearly 45 per cent to the net state domestic product. It is the main source of income as well as employment in Himachal.

Between 2004-05 and 2015-16, the gross state domestic product (GSDP) grew at a compound annual growth rate (CAGR) of 10.8 per cent to US$ 16.7 billion. With a hydro power potential of 27,436 MW (of which just 9,433 MW has been harnessed), Himachal Pradesh accounts for 25.9 per cent of the country’s total hydro power potential.

The rich natural resources of the state are favourably suited for investments in major sectors such as procurement of agricultural produce, hydroelectric power, cement and tourism. Himachal Pradesh has made significant achievements in the field of industrialisation in the past few years. As of December 2015, the state recorded 40,172 working units, of which, the large industrial units were recorded to be 138 whereas the medium scale units were 380. Out of the total allocated budget of US$ 5.23 million for the Industrial sector, an amount of US$ 3.03 million was incurred by the sector till December 2015.

Minerals constitute a fundamental component of the state’s economic base. Good quality limestone, which is one of the ingredients in the manufacture of cement, is available in plenty in the state.

In an effort to provide infrastructure support to entrepreneurs, the Himachal Pradesh government has developed 41 industrial areas and 15 industrial estates. Solan, Sirmour, Kangra and Una districts lead in terms of investments attracted.

The following are some of the major initiatives taken by the government to promote Himachal Pradesh as an investment destination:

  • Himachal Pradesh has made significant achievements in the field of industrialisation in the past few years.
  • The Department of Environment, Science & Technology (DEST), Government of Himachal Pradesh, proposes to develop a Biotechnology Park (BTP) spread over an area of about 35 acres at village Aduwal in Solan under public-private partnership (PPP) mode in the state. The park would have a Biotechnology Incubation Centre and a Biotechnology Industrial Cluster. As of May 2015, the park is already in process of being set up.
  • Government has signed MoUs for the establishment with major cement players like Harish Cement (Grasim) at Sundernagar (Mandi district), India Cements Limited at Gumma-Rohaha Shimla), and Lafarge India Limited at Alsindi (Mandi).
  • State government has approved a new project on management of horticultural crops in the state. World Bank has approved a funding of US$ 166.7 million for this project
  • The state government approved the financial assistance of US$ 835.31 million under Rural Infrastructure Development Fund (RIDF) for the execution of 5,238 projects in the state. Out of this allocation, 51% was accounted for the rural roads and bridges.
Himachal Pradesh State Presentation

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Himachal Pradesh Map

Himachal Pradesh