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’, it is famous for its topographic diversity and pristine natural beauty.

At current prices, Himachal Pradesh’s gross state domestic product (GSDP) is estimated to be Rs. 2.14 trillion (US$ 25.92 billion) in 2023-24.The state’s GSDP (in Rs.) increased at a CAGR of 8.16% between 2015-16 and 2023-24.

Under the State Budget 2023-24:

• 1,691 crore (US$ 206.11 million) has been allocated for capital outlay on roads and bridges
• 267 crore (US$ 32.5 million) has been allocated for assistance to electricity boards.
• 255 crore (US$ 31.08 million) has been allocated for assistance to local bodies, corporations.
• The government has proposed an outlay of Rs. 9,068 crore (US$ 1.11 billion) for education, sports, arts, and culture. Of which, 4,147 crore (US$ 505.4 million) has been allocated for elementary education.
• The government has proposed an outlay of Rs. 3,116 crore (US$ 379.8 million) for the health and family welfare sector. Of which, Urban health services (allopathy) and rural health services (allopathy) have been allocated Rs. 407 crore (US$ 49.6 million) and Rs 463 crore (US$ 56.4 million) respectively.

Mr. Nitin Gadkari, Minister of Road Transport and Highways, laid the foundation stone and inaugurated various National Highway projects in Himachal Pradesh in June 2021. The overall cost of the nine road corridors, which span 222 kms, is Rs. 6,155 crore (US$ 828.85 million).

In October 2022, Prime Minister Mr. Narendra Modi launched the Pradhan Mantri Gram Sadak Yojana (PMGSY)-III for the upgradation of 3,125 km of rural roads in Himachal Pradesh, with funds worth Rs. 420 crore (US$ 51 million).

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.

In June 2021, Bharti Airtel announced that it deployed an additional 17.4MHz spectrum across the 900, 1800 and 2300MHz bands in Himachal Pradesh to improve its customers' indoor network experience.

As of April 2023, Himachal Pradesh had a total installed power generation capacity of 4,489.90 MW, comprising 2,030.19 MW under private utilities, 1,062.21 MW (state utilities) and 1,397.50 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.

In August 2022, power giant NHPC signed a deal with the Himachal Pradesh government for the construction of a 500 MW Dugar Hydroelectric Project in Chamba district.

In May 2022, the Himachal Pradesh government announced plans to allot 27 hydro power projects in the state's Chamba, Kangra, Lahaul-Spiti, Kullu, Shimla, and Kinnaur districts, with a combined tentative generation capacity of 722.4 MW. Proposals from 'eligible bidders' have been invited for the implementation of these projects in the private sector on a Build, Own, Operate, and Transfer (BOOT) basis.

In June 2021, the Himachal Pradesh State Electricity Board (HPSEB) launched a 50-kilowatt (KWp) solar rooftop project in Solan as part of the Centre's integrated power development scheme (IPDS).

In May 2021, Okaya Power commissioned a 100 KWp hybrid solar plant at its Baddi manufacturing unit that was aimed to reduce power consumption by 40% from the grid and generate >144 Mwh energy per year.

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.

• In March 2022, the Himachal Pradesh Industries department signed 15 MoUs with investors amounting to Rs. 810 crore (US$ 104.62 million) for the upcoming Medical Device Park (MDP) at Nalagarh in Solan district.

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 2021-22, the total production of horticulture crops in the state was estimated to be 2,709.69 thousand metric tonnes and area under production was 336.10 thousand hectares. In 2021-22, the total production of vegetables and fruits was estimated at 1,875.24 thousand metric tonnes and 796.79 thousand metric tonnes, respectively.

In July 2022, a two-day capacity building workshop on the Prakritik Kheti Khushal Kisan Yojana (PK3Y) was conducted at Dr. YS Parmar University of Horticulture and Forestry, Nauni, in Solan.

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.

In April 2022, the Ministry of Civil Aviation and the Himachal Pradesh government signed an MoU (Memorandum of Understanding) for the development of a Greenfield Airport in Nagchala, located in the district of Mandi in Himachal Pradesh. The project is estimated to cost around Rs. 900 crore (US$ 116.24 million), excluding the cost of land.

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, Mr. 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, the Himachal Pradesh government announced that the National Education Policy, 2020 will be implemented in the state with immediate effect.

In February 2022, DeepTech startup TechEagle partnered with the Government of Himachal Pradesh to offer drone delivery solutions for delivering medicine and vaccines to hard-to-access areas in the state, especially during winter.