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About Himachal Pradesh: Information on Tourism, Industries, Geography

Last updated on Nov, 17 2020

Economic Snapshot
Per capita Income

 

Factfile

  • Capital:Shimla
  • Geographical Area (sq km):55,673
  • State Language:Hindi and Pahari
  • Literacy Rate:82.8 per cent
  • Key Industries:Textiles, pharmaceuticals, food procurement and processing, light engineering, IT and electronics, cement, tourism and hydropower

HIMACHAL PRADESH State Report | September, 2020

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, the Gross State Domestic Product (GSDP) of Himachal Pradesh is estimate reached Rs. 1.65 trillion (US$ 22.58 billion) in 2019-20. 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 9.71% between 2015-16 and 2019-2020. The tertiary sector witnessed the fastest growth at a CAGR of 12.02% between 2011-12 and 2019-20.  

Total merchandise export from Himachal Pradesh stood at US$ 1.32 billion in FY19. Between April-December 2019, merchandise export from the state reached US$ 1,02 billion.

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 2,910.48 MW (of which just 24,000 MW has been harnessed), Himachal Pradesh accounts for 25.9% of the country's total hydro power potential. All the villages of Himachal Pradesh were electrified. The state has also attracted investments in other sectors including in pharmaceuticals, IT and food processing industries.

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 Tourism Policy 2005 and IT Policy 2001 for 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.

Under State Budget 2020-21, the highest increase in allocations was observed in Water Supply, Sanitation, Housing and Urban Development at 33% of the overall budget.

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 & Internal Trade (DPIIT).

Key Sectors:

  • Agriculture is the main occupation and the major source of employment in the state, as 89.96% of the population lives in rural areas. With suitable agro-climatic conditions, Himachal Pradesh has realised the importance of commercial crops, including off-season vegetables, potatoes and ginger. The food grain production was targeted at 1.63 million metric tonnes in 2019-20. Horticulture production in the state reached 2374.57 thousand metric tonnes in 2018-19, as per third advance estimates.
  • Himachal Pradesh is one of the fastest-growing regions in the pharmaceutical industry in India, driven by incentives announced by the state Government in its Industrial Policy, 2004. During 2018-19, export of drug formulations and biologicals from the state stood at US$ 533.4 million, which reached US$ 593.68 million during April-December 2019.
  • The 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.

Factfile

  • Capital:Shimla
  • Geographical Area (sq km):55,673
  • State Language:Hindi and Pahari
  • Literacy Rate:82.8 per cent
  • Key Industries:Textiles, pharmaceuticals, food procurement and processing, light engineering, IT and electronics, cement, tourism and hydropower
Himachal Pradesh Map

Himachal Pradesh