Last updated on Aug, 31 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, Himachal Pradesh’s gross state domestic product (GSDP) is estimated at Rs. 1,72,174 crore (US$ 23.58 billion) in FY22, an increase of 3% YoY. The state’s GSDP is estimated to increase at a CAGR of 7.06% between 2015-16 and 2021-22. Tertiary sector witnessed the fastest growth at a CAGR of 10.76% between 2011-12 and 2020-21.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI inflows in Himachal Pradesh were valued at US$ 22.83 million between October 2019 and March 2021.
Under the State Budget 2021-22, the government has proposed an outlay of Rs. 4,046 crore (US$ 551.87 million) to construct roads and bridges.
As of April 2021, Himachal Pradesh had a total installed power generation capacity of 4,155.13 MW, comprising 1,626.39 MW under private utilities, 1,062.21 MW (state utilities) and 1,466.53 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 May 2021, Okaya Power commissioned a 100 KWp hybrid solar plant at its Baddi manufacturing unit, in the state, 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.
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, Mr. 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.
In April 2021, National Highways Authority of India (NHAI) awarded a contract to IRB Infrastructure Developers Ltd. (IRB) worth Rs. 828 crore (US$ 113.40 million) to upgrade and rehabilitate to four lane outline to strengthen the Punjab/HP border.
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, Himachal Pradesh government announced that National Education Policy, 2020 will be implemented in the state with immediate effect.
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