Last updated on Jun, 26 2020
HIMACHAL PRADESH State Report | June, 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 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.
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 per cent 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.
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).