Last updated on Mar, 9 2021
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. Known as the Land of Gods is famous for its topographic diversity and pristine natural beauty.
At current prices, Gross State Domestic Product (GSDP) of Himachal Pradesh is estimated to reach Rs. 1.82 trillion (US$ 26.04 billion) in 2020-21. The state’s per capita GSDP in 2019-20 was Rs. 225,839 (US$ 3,203.85). GSDP will increase at a Compound Annual Growth Rate (CAGR) of 9.76% between 2015-16 and 2020-21. The tertiary sector witnessed the fastest growth at a CAGR of 12.02% between 2011-12 and 2019-20.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI inflows in Himachal Pradesh were valued at US$ 17.67 million between October 2019 and September 2020.
As per the State Budget 2020-21, an outlay of Rs. 1,912 crore (US$ 260.7 million) has been proposed for construction of roads and bridges. Additionally, under the rural development sector, Rs. 394 crore (US$ 53.7 million) has been allocated towards the Pradhanmantri Gram Sadak Yojana and Rs. 55 crore (US$ 7.5 million) has been allocated to the Mukhya Mantri Gram Sadak Yojana.
As of November 2020, Himachal Pradesh had a total installed power-generation capacity of 4018.87 MW, comprising 1466.53 MW under central utilities, 1601.13 MW under private utilities and 951.21 MW under state utilities.
Himachal Pradesh has made significant achievements in the field of industrialisation in the past few years. 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.
The four agro-climatic conditions in the state support cultivation of multiple crops, vegetables and fruits around the year. The state government is focusing on increasing productivity levels besides diversification towards high-value crops. In 2019-20, the total production of horticulture crops in the state was expected to be 2722.80 thousand metric tonnes and area under production was 332.12 thousand hectares. In 2019-20, the total production of vegetables and fruits in the state was estimated at 1856.80 thousand metric tonnes and 828.23 thousand metric tonnes, respectively.
To provide infrastructure support to entrepreneurs, Himachal Pradesh Government has developed 41 industrial areas and 15 industrial estates. Solan, Sirmour, Kangra and Una districts lead in terms of investments attracted. In October 2020, the Atal Tunnel at Rohtang in Himachal Pradesh was inaugurated by Prime Minister, Shri. Narendra Modi. The 9.02 km long tunnel, passes through the Rohtang Pass, is the world's longest highway tunnel, linking Manali with the Lahaul-Spiti valley.
Tourism sector of Himachal Pradesh contributes 7% to the state GDP. Domestic tourist inflow in the state reached 16.83 million in 2019, while foreign tourist arrivals reached 383,000. As of December 2019, there were 3,679 registered hotels in the state.
In 2020-21, Himachal Pradesh had a total of 58 AICTE-approved institutes. In October 2020, the ‘Strengthening Teaching-Learning and Results for States’ (STARS) project under the new education policy was approved by the Union Cabinet, chaired by the Prime Minister, Shri. Narendra Modi, to assist states in strengthening the school education system. States such as Himachal Pradesh, Rajasthan, Maharashtra, Madhya Pradesh, Kerala and Odisha will be covered under the scheme. The project is funded by the World Bank and is estimated to cost Rs. 5,718 crore (US$ 775.28 million). In September 2020, Himachal Pradesh government announced that National Education Policy, 2020 will be implemented in the state with immediate effect.
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