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) was estimated at US$ 1,903.5 during 2012–13, as compared to the national per capita GDP of US$ 1,414.2.
With a hydro power potential of 23,000 megawatt (MW) (of which just 8,368 MW has been harnessed), 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.
Himachal Pradesh has attracted investments in pharmaceuticals, IT and engineering industries. Agriculture plays a significant role in the state’s economy, with Himachal Pradesh possessing a robust food processing sector.
With a stable political environment and a single-party government, the state government is committed towards creating a progressive business environment. 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.