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About Himachal Pradesh: Information on Tourism, Industries, Geography

November, 2017

Himachal Pradesh is located in the northern region of India. The state is surrounded by Jammu and 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. The gross state domestic product (GSDP) grew at a compound annual growth rate (CAGR) of 10.8 per cent between 2004-05 and 2015-16. Its per capita GSDP is estimated at US$ 2,437.3 during 2015-16 compared with the national per capita GDP of US$ 1,546.

As of June 2016, Himachal Pradesh had a total installed power generation capacity of 4,537.5 megawatt (MW). 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. As of March 2016, all the villages of Himachal Pradesh have been electrified. The state has also attracted investments in other sectors including in pharmaceuticals, IT and engineering industries.

The State Government of Himachal Pradesh offers a wide range of policy and fiscal incentives for businesses under the Industrial Policy, 2013. The state has also undertaken other policies such as Tourism Policy 2005 and IT Policy 2001 for upgradation of these sectors in the state. Himachal Pradesh has announced a Revised Solar Policy 2016 under which it plans to establish 700 MW of solar photovoltaic cell capacity.

The state (including Chandigarh, Punjab and Haryana) has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 1.35 billion during the period April 2000 to March 2016, according to data released by Department of Industrial Policy and Promotion (DIPP).

Key Sectors:

  • Agriculture is the main occupation and the major source of employment in the state, as 89.96 per cent of the population lives in rural areas. With suitable agro-climatic conditions, Himachal Pradesh has realised the importance of commercial crops, including off-season vegetables, potatoes and ginger. The state has emerged as the leading producer of off-season vegetables.
  • Himachal Pradesh is one of the fastest-growing regions in the pharmaceutical industry in India, driven by incentives announced by the state Government in its Industrial Policy, 2004.
  • The textiles industry in Himachal Pradesh is mainly focussed on spinning, with companies such as Vardhman engaged in weaving and dyeing. Raw silk production in the state has increased from 23 metric tonnes in 2012-13 to 30 metric tonnes in 2014-15. In 2015-16, production of raw silk in the state was 32 metric tonnes.