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 2011-12 and 2016-17, the gross state domestic product (GSDP) grew at a compound annual growth rate (CAGR) of 11.48 per cent to US$ 19.44 billion. With a hydro power potential of 27,436 MW (of which just 9,755MW has been harnessed), Himachal Pradesh accounts for 25.9 per cent of the country’s total hydro power potential. As of January 2018, the state had a total installed power capacity of 4,018.93 MW of which 2,910.48 was contributed by hydro power.
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 January 2017, the state recorded 43,420 working units, of which, the large industrial units were recorded to be 138 whereas the medium scale units were 438. An amount of US$ 29.95 million was allocated for Industries department in state budget 2017-18.
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.
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
Up to September 2017, the state government disbursed US$ 8.84 out of a total of US$ 79.42 million sanctioned in Tranche XXII under Rural Infrastructure Development Fund (RIDF). As of end of FY17, 53 projects that were sanctioned up to Tranche XXII are under progress in the state.