Trade Analytics

About Himachal Pradesh: Information on Tourism, Industries, Geography

Latest update: May, 2018

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

Last Updated: May, 2018

HIMACHAL PRADESH State Report | May, 2018

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.

Himachal Pradesh is one of the fastest growing states in India. The gross state domestic product (GSDP) grew at a compound annual growth rate (CAGR) of 11.48 per cent between 2011-12 and 2016-17. Its per capita GSDP is estimated at Rs 173,469 (US$ 2,585.61) during 2016-17 compared with the national per capita GDP of US$ 1,750.29.

As of April 2018, Himachal Pradesh had a total installed power generation capacity of 4,038.68 megawatt (MW). With a hydro power potential of 18,820 MW (of which just 9,755 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) has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 1.47 billion during the period April 2000 to December 2017, according to data released by Department of Industrial Policy and Promotion (DIPP).

Key Sectors:

  • Agriculture is the main occupation and the major source of employment in the state, as 89.96 per cent 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 state has emerged as the leading producer of off-season vegetables. The yield for food grains is estimated at 2.09 metric tonnes in 2017-18. Horticulture production in 2017-18 is estimated at 2,423 thousand metric tonnes, as per 1st 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.
  • The tourism sector of Himachal Pradesh contributes to 6.6 per cent in the state GDP. Domestic tourist inflows in the state reached 19.13 million in 2017 while foreign tourist arrivals reached 470,992.

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