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Industrial Development & Economic Growth in Uttarakhand

February, 2018

Uttarakhand is one of the fastest growing states in India, thanks to the massive growth in capital investments arising from conducive industrial policy and generous tax benefits. The state is situated in the foothills of Himalayas. The presence of several hill stations, wildlife parks, pilgrimage places and trekking routes make Uttarakhand an attractive tourist destination.

Between 2011-12 and 2016-17, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 13.27 per cent to US$ 30.29 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 9.4 per cent to US$ 27 billion.

Uttarakhand has been successful in attracting long-term investments because of its key industrial and sector-specific policies. The state offers a wide range of benefits in terms of interest incentives, financial assistance, subsidies and concessions. 

Directorate of Industries is the state level office responsible for implementing the policies and programmes for industrial development in the state.

Uttarakhand is being developed as an ‘energy state’ to tap the hydropower electric potential of over 25,000 MW. As of January 2018, hydropower generation capacity in the state was recorded to be 1,815.69 MW. 

Some of the major initiatives taken by the government to promote Uttarakhand as an investment destination are:

  • With Uttarakhand emerging as a hot tourist and industrial destination, the state government is focussing on upgrading the Jolly Grant airport as an international airport, in coordination with Airports Authority of India.
  • The MSME policy of Uttarakhand is boosting the growth of MSME sector in the state. After the insertion of this policy, the Government of Uttarakhand is expecting a growth of 15 per cent in next few years.
  • In November 2015, the state government of Uttarakhand signed a Memorandum of Understanding (MOU) with The Hans Foundation (THF) for the launch of initiatives and development projects in agriculture sector in addition to health, education, forest, water, sanitation and welfare of the handicapped.
  • Uttarakhand is being developed as an ‘energy state’ to tap the hydropower electric potential of over 25,000 MW.
  • The state government of Uttarakhand is planning to launch a rail project between Rishikesh and Karanprayag. The length of the railway track would be around 12 km.
  • The Government of Uttarakhand announced the implementation of single window clearance system in the MSME (medium, small and micro enterprises) policy introduced in 2015.
  • With the establishment of the Software Technology Parks of India (STPI) earth station at Dehradun now offers high-speed connectivity. There are more such earth stations planned at other locations. Facilities by BSNL and Reliance are also available in the state.
  • The state government has decided to set up a horticulture marketing board to boost horticulture products in the state.
  • The state government aims to set up cold chain storage warehouses in every district by 2022.
  • The state government plans to utilise and leverage biotechnology for accelerating the economic development by converting its bio wealth into economic wealth.

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