Uttarakhand

Recent Developments in Key Sectors

• Prime Minister Mr. Narendra Modi inaugurated the Rs. 12,000 crore (US$ 1.30 billion) Delhi–Dehradun Economic Corridor in April 2026. The 213-km expressway is expected to reduce travel time between Delhi and Dehradun to around 2.5 hours, boosting connectivity, tourism and economic activity in Uttarakhand.
• Prime Minister Mr. Narendra Modi inaugurated and laid the foundation stone for multiple development projects worth Rs. 8,260 crore (US$ 0.93 billion) in Uttarakhand in November 2025 the state's foundation day. The projects span infrastructure, tourism and connectivity and are aimed at strengthening the state's economic development.
• Kedarnath Ropeway Project: The Rs. 4,081 crore (US$ 0.44 billion) Sonprayag–Kedarnath Ropeway Project was approved to enhance pilgrimage connectivity. The 12.9-km ropeway will reduce travel time to Kedarnath from 8–9 hours to about 36 minutes and strengthen religious tourism infrastructure in the state.
• On October 24, 2025, the Uttarakhand Government launched the Rs. 18,520 crore (US$ 2.11 billion) Sharda Corridor Project to enhance tourism, connectivity, and local economic growth. The project aims to develop border villages as cultural and religious hubs, boost infrastructure in the Sharda Peeth region, and promote sustainable tourism while improving livelihoods in remote areas.
• On October 17, 2025, the Uttarakhand government, in collaboration with the India AI Mission and the Ministry of Electronics and Information Technology, hosted the Uttarakhand AI Impact Summit 2025 as a pre-summit event to the India AI Impact Summit 2026. The summit emphasised responsible, inclusive AI growth and pledged to make world-class computing power accessible at less than a dollar an hour.
• In October 2025, the Uttarakhand Education Department launched a free coaching initiative for over 10,000 students from economically weaker sections across Arts, Science and Commerce streams to improve competitive exam preparedness and promote education equity.
• In August 2025, Maya Devi University in Dehradun was recognised as an emerging innovation-driven global education hub, offering advanced digital programmes, strong industry linkages, and scholarships to promote inclusive and technology-focused learning.
• In August 2025, the Government of India has sanctioned Rs. 547.8 crore (US$ 62.4 million) for power infrastructure modernisation in Rishikesh and Dehradun in Uttarakhand. In Rishikesh, the funds will facilitate underground cabling to enhance safety and reduce outages. In Dehradun, deployment of a Supervisory Control and Data Acquisition (SCADA) system will enable real-time grid monitoring and smarter load management. These upgrades support the state’s aim of delivering reliable, resilient and future-ready electrical services.
• In August 2025, the Uttarakhand government launched multiple Information and Communication Technology (ICT) services including the “Digital Uttarakhand App”, 66 new websites under the S3WaaS platform, a GIS-based rubbish-truck tracking system, an AI-enabled CM Helpline (1905) and an encroachment-monitoring web app to enhance transparency, speed and citizen access.
• On March 8, 2025, the Uttarakhand government announced a push for horticulture and floriculture, highlighting state efforts to scale up high-value flower farming (including tulips), provide technical support and market linkages for growers, and harness the Himalayan climate to make the State a major floriculture hub.
• Under GST 2.0, the Government of India has reduced the GST rate on Uttarakhand’s key hill produce, including Pahari Toor Dal, Uttarakhand Red Rice, and Lakhori Mirchi, from 12% to 5% to boost local agriculture and farmer incomes. The move is expected to benefit nearly 9,000 farmers across the State and promote sustainable, organic farming practices rooted in traditional systems such as Barahnaja.
• The Cabinet Committee on Economic Affairs (CCEA), has sanctioned the development of a 12.4 km ropeway project connecting Govindghat to Hemkund Sahib Ji in Uttarakhand. This initiative will be executed under the Design, Build, Finance, Operate, and Transfer (DBFOT) model, with a total capital investment of Rs. 2,730 crore (US$ 319.9 million).
• Uttarakhand Tourism has launched www.uttarastays.com, a state-sponsored homestay booking portal that allows nearly 5,000 homestay owners to list their properties for free, promoting local tourism and providing training to enhance customer service skills.
• The Uttarakhand government signed investment MoUs worth Rs. 4,600 crore (US$ 551.43 million) with various companies, including those in the agro-industry such as Himalayan Basket and Silage Agro, during a roadshow in Bengaluru, highlighting the state's focus on food processing and agricultural development.
• The Centre has allocated Rs. 559 crore (US$ 67.01 million) for 33 infrastructure projects in Uttarakhand, including funds for a tunnel parking facility at Kempty Fall, an inter-state bus terminal in Herbertpur, and health infrastructure improvements at Haridwar Medical College, as part of the 'Scheme for special assistance to states for capital investment 2023-24’.
• Union Defence Minister Mr. Rajnath Singh inaugurated 35 infrastructure projects worth Rs. 670 crore (US$ 80.32 million) in Joshimath, Uttarakhand, including roads and bridges across seven states, emphasizing the importance of timely completion, national security, and environmental considerations in border area development.
• As of June 2024, the state had a total installed power generation capacity of 4,459.48 MW. Of this, hydro power accounted for 2,155.89 MW, followed by thermal power at 1,335.76 MW, renewable power at 936.59 MW, nuclear power at 31.24 MW.
• In the State Budget FY27,
  • Uttarakhand received a record railway budget allocation of Rs. 4,769 crore (US$ 0.52 billion) for 2026-27 to accelerate rail connectivity projects, including the Rishikesh–Karnaprayag rail line, station redevelopment and network modernisation across the state.
  • The Uttarakhand Budget 2026-27 has allocated Rs. 2,106 crore (US$ 0.23 billion) towards capital outlay on roads and bridges. It allocated 3.2% of its expenditure on roads and bridges in 2026-27.
  • A capital outlay of Rs. 1,202 crore (US$ 140.7 million) has been designated for power projects.
  • Expenditure on education, sports, arts and culture is estimated at Rs. 13,201 crore (US$ 1.43 billion) in 2026-27, representing a 7% increase over the revised expenditure of Rs. 12,338 crore (US$ 1.40 billion) in 2025-26.
  • Uttarakhand expenditure on health and family welfare is estimated at Rs. 4,916 crore (US$ 0.53 billion) in state budget 2026-27, registering a 1% increase over the revised expenditure of Rs. 4,862 crore (US$ 0.55 billion) in 2025-26. The budget includes an allocation of Rs. 1,452 crore (US$ 0.16 billion) for allopathic rural health services and Rs. 798 crore (US$ 0.09 billion) for allopathic urban health services.
  • Expenditure on agriculture and allied activities is estimated at Rs. 6,078 crore (US$ 0.66 billion) in state budget 2026-27, marking an 18% increase over the revised expenditure of Rs. 5,158 crore (US$ 0.58 billion) in 2025-26. The budget allocates Rs. 710 crore (US$ 0.08 billion) towards the development of horticulture and vegetable crops.
• With the establishment of the Software Technology Parks of India (STPI) earth station at Dehradun, Uttarakhand now offers high-speed connectivity.
• Information Technology is an enabling sector that provides underpinning of smooth connectivity throughout the state in various departments, businesses, and homes, thereby improving productivity and efficiency across sectors. Given the high literacy rate of 78.82% in the state, employment opportunities for educated youth can be generated by encouraging ICT, ITES and electronics manufacturing units to establish their enterprises in Uttarakhand.
• Uttarakhand Policy for Skill Development and Entrepreneurship was launched in 2018, which aims to increase the employability of workers, competitiveness of enterprise, and inclusiveness of growth.
• Under the State’s Vision 2030, the processing capacity of horticulture produce will be enhanced from 7.5% to 15% of the total horticulture production by 2030.
• The MSME sector envisages massive expansion in the future, which would increase employment from the existing 2.58 lakh people to 8.5 lakh people by 2030.
• Sonprayag-Gaurikund-Kedarnath ropeway project undertaken by National Highways Logistics Management Limited (NHLML) will be 13 km in length and the estimated cost of the project will be over Rs. 985 crore (US$ 126.77 million).
• Empyrean Skyview Projects will develop two more ropeway systems in Mussoorie and Yamunotri with an investment of Rs. 700 crore (US$ 90.09 million)