Introduction
Uttarakhand is located in the foothills of the Himalayan mountain range. The state shares borders with China (Tibet) in the north, Nepal in the east, and inter-state boundaries with Himachal Pradesh in the west and northwest and Uttar Pradesh in the south. It has almost all agro-geo climatic zones, which provide commercial opportunities for floriculture and horticulture. The state is home to more than 175 species of rare medicinal, aromatic & herbal plants. The state has proximity to the national capital, Delhi, a leading market of the country and excellent connectivity with neighboring states. Uttarakhand has abundant natural resources due to hills and forests. Its agro-climatic conditions support horticulture-based industries. The vast water resources available in the state are also favorable for hydropower.
Uttarakhand is one of the fastest growing states in India, thanks to the massive growth in capital investment arising from conducive industrial policy and generous tax benefits.
The state offers a wide range of benefits in terms of interest incentives, financial assistance, subsidies, and concessions.
Uttarakhand has a robust social and industrial infrastructure, virtual connectivity with over 39,000 km of road network, two domestic airports, 345.23 km of rail routes.
As of May 2022 (Upto December), 30 Industrial Entrepreneurs Memorandums (IEMs) worth US$ 209.30 million) have been filed in Uttarakhand.
Uttarakhand Tourism
The presence of several hill stations, wildlife parks, pilgrimage places and trekking routes make Uttarakhand an attractive tourist destination. The tourism sector is accepted as a growth driver for inclusive social economic progress through its forward and backward linkages and the ability to create employment in the economy. The state is considering development of spiritual and religious theme-based circuits for tourism. Under the Swadesh Darshan scheme of the central government, Uttarakhand is a site for eco-tourism. Other themes may involve treks/hikes/tours to view famous Himalayan peaks or treks along the course of the Ganga river, places of culinary interest, or villages where communities maintain traditional lifestyles that tourists may find interesting. The state witnessed surge in tourist arrivals, with 7 crore tourists arriving in 2023, it is expected to grow by 20% to 8.4 crore in 2024.
The economy of Uttarakhand
At current prices, Uttarakhand’s GSDP is projected to be Rs. 3.94 trillion (US$ 47.34 billion) in FY24. Between 2018-19 and 2024-25, GSDP of the state is estimated to increase at a CAGR of 8.86%. According to the Department for Promotion of Industry and Internal Trade (DPIIT), between October 2019-March 2024, FDI inflow in Uttarakhand stood at US$ 187 million. In FY24, the total exports from the state stood at US$ 1.80 billion.
Industries in Uttarakhand
Uttarakhand is one of the fastest growing states in India, thanks to the massive growth in capital investment arising from conducive industrial policy and generous tax benefits. The MSME sector plays a crucial role in the economic and social development of the state as this sector is the nursery of entrepreneurship. The government has placed a special mandate in its Vision 2030 strategy to develop the MSME sector. In the State Budget 2024-25, crop husbandry has been allocated Rs. 644 crore (US$ 77.25 million) which includes schemes such as National Mission for Natural Farming and PMKSY. Additionally, Rs. 157 crore (US$ 18.83 million) is allocated for research assistance to agriculture institutions. As part of the State Budget 2023-24, over the next three years, 50,000 polyhouses (a type of greenhouse) will be set up to promote cluster-based horticulture. Six ‘aroma valleys’ will also be developed, such as the Cinnamon Valley in Nainital and Mint Valley in Haridwar.
Recent Developments in Key Sectors
- 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 2024-25,
- Rs. 1,955 crore (US$ 234.50 million) has been allocated for capital outlay on roads and bridges.
- Rs. 11,700 crore (US$ 1.40 billion) has been allocated to Education, Sports, Arts, and Culture.
- Allocated 16.8% of its expenditure on education in 2024-25. This is higher than the average allocation for education by states in 2023-24 (14.7%).
- Rs. 3,455 crore (US$ 414.42 million) has been allocated to government primary schools.
- Rs. 3,864 crore (US$ 463.48 million) revenue expenditure is budgeted for government secondary schools.
- Rs. 525 crore (US$ 62.97 million) has been allocated towards urban water supply programmes and Rs. 427 crore (US$ 51.22 million) towards rural water supply programmes.
- Allocated 1.6% of its expenditure towards urban development.
- 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).
FACTFILE
Capital
DehradunGeographical Area (sq km)
53,483State Language
Hindi, Garhwali, Kumaoni and EnglishLiteracy Rate
78.8 per centKey Industries:
Information and communications technology (ICT)
Agro-based and food processing
Horticulture
Floriculture
Food processing
Pharmaceutical and biotechnology
Hydropower
Tourism
Engineering
Allied industries
Fast moving consumer goods (FMCG)
Related News
MOREPartners
