Himachal Pradesh is located in the northern region of India. The state is surrounded by Jammu & Kashmir on the north, Punjab on the west and the south-west, Haryana on the south, Uttar Pradesh on the south-east and China on the east.
Himachal Pradesh is one of the fastest growing states in India. Its per capita gross state domestic product (GSDP) is estimated at US$ 1,903.5 during 2012-13, as compared to the national per capita GDP of US$ 1414.2.
With a hydro power potential of 23,000 megawatt (MW), Himachal Pradesh accounts for 25 per cent of the country’s total hydro power potential. The state also boasts of a high level of village electrification; about 17,480 of 17,495 villages had been electrified by the end of March 2013.
The state has a large base of skilled labour, making it a favourable destination for knowledge-based sectors. It also has a large pool of semi-skilled and unskilled labours. Himachal Pradesh has a strong hydropower base, with a potential capacity of 23,000 MW.
It has attracted investments in pharmaceuticals, IT and engineering industries. Agriculture plays a significant role in the state’s economy. Himachal Pradesh has a robust food processing sector.
The state offers a wide range of policy and fiscal incentives for businesses under the Industrial Policy, 2004. Himachal Pradesh has well drafted sector-specific policies for biotechnology and IT.