Himachal Pradesh is famous for its topographic diversity and pristine natural beauty and tourism contributes ~7% to the state's GDP.
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.
At current prices, Himachal Pradesh’s gross state domestic product (GSDP) is estimated to be Rs. 2.55 trillion (US$ 30.07 billion) in FY26. The state’s GSDP (in Rs.) increased at a CAGR of 8.36% between FY16 and FY26.
Total exports from Himachal Pradesh stood at Rs. 19,028 crore (US$ 2,210.0 million) in FY25 (until February 2025).
The key items exported from Himachal Pradesh include drug formulations and engineering goods, cotton yarn, manmade yarn, fabrics and Madeups.
In FY25 (until February), exports of drug formulations and biologicals from the state stood at Rs. 13,175 crore (US$ 1.56 billion).
As of March 2025, Himachal Pradesh had a total installed power generation capacity of 4,826.16 MW, comprising 2,146.96 MW under private utilities, 1,193.20 MW (state utilities) and 1,486.00 MW (central utilities).
Himachal Pradesh has immense potential for hydropower as it is naturally blessed with abundant streams and rivers flowing down from towering mountains.
The State Government of Himachal Pradesh offers a wide range of policy and fiscal incentives for businesses under the Industrial Policy, 2017. The state has also undertaken other policies such as the Tourism Policy 2005 and IT Policy 2001 for the 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.
Himachal Pradesh will have the world’s longest and highest tunnel by 2025, which will connect Zanskar Valley in Ladakh to Lahaul in Himachal Pradesh and will be 4.25 km in length.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI inflows in Himachal Pradesh were valued at Rs. 2,788 crore (US$ 328.34 million) between October 2019- December 2024.
According to the Telecom Regulatory Authority of India (TRAI), Himachal Pradesh had 8.87 million wireless connections and 2,01,160 wireline subscribers, as of December 2024.