Last updated on Jun, 26 2020
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 per cent between 2015-16 and 2020-21. The tertiary sector witnessed the fastest growth at a CAGR of 12.02 per cent between 2011-12 and 2019-20.
The state (including Chandigarh, Punjab, and Haryana) attracted Foreign Direct Investment (FDI) equity inflow worth US$ 2.40 billion between April 2000 and March 2020 according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).
During 2019, 15 investment intentions were filed in Himachal Pradesh with a proposed investment of Rs 345 crore (US$ 49.39 million).
As of March 2020, Himachal Pradesh had a total installed power generation capacity of 4,007.17 megawatt (MW). Hydro power accounted for 2,812.88 MW of total installed power generation capacity, followed by renewable power (951.64 MW) and thermal power (213.70 MW). Under thermal power, coal accounted for 151.69 MW and gas accounted for 62.01 MW of total installed power.
With a hydro power potential of 27,436 MW (of which 24,000 MW has been harnessed), Himachal Pradesh accounts for 25.9 per cent of the country’s total hydro power potential. As per the State Economic Survey 2018-19, 20,912 MW of this is already allocated under various sectors.
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. The food grain production was targeted at 1.63 million metric tonnes in 2019-20. Horticulture production in the state reached 2,374.57 thousand metric tonnes in 2018-19, as per third advance estimates.
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.
Tourism sector of Himachal Pradesh contributes 7 per cent 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.
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