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Industrial Development & Economic Growth in Uttarakhand

Latest update: June, 2020

Economic Snapshot
Per capita Income

 

June, 2020

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 is situated in the foothills of Himalayas. The presence of several hill stations, wildlife parks, pilgrimage places and trekking routes make Uttarakhand an attractive tourist destination.

Uttarakhand is a well-renowned religious and wildlife tourism destination. About 21 new places in Uttarakhand have the potential to become major tourist destinations. These places include Jageshwar, Baijnath, Saat Taal, Bhimtal, Patal Bhuvaneshwar, Chakori, Someshwar, Pithoragarh, Chakrata, Roopkund, Hanaul, Anson Barrage, Harshil, Dhanaulti and Dayara meadow. Jauljiwi in Kumaon and Tons in Garhwal division are planned to be developed as adventure tourism destinations.

In 2018, domestic tourist inflow in the state stood at 35.60 million, while foreign tourist visits crossed over 0.15 million. In 2018, 27.81 lakh pilgrims arrived in state for Chardham Yatra, out of which 7.32 lakh pilgrims visited Kedarnath.

Between 2015-16 and 2020-21, Gross State Domestic Product (GSDP) is expected to expand at a Compound Annual Growth Rate (CAGR) of 10.62 per cent to reach Rs 2.93 trillion (US$ 41.99 billion).

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 being developed as an ‘energy state’ to tap the hydropower electric potential of over 25,000 MW. As of March 2020, the state had a total installed power generation capacity of 3,549.68 megawatt (MW). Hydro (renewable) power contributed 1,876.89 MW to the total installed power generation capacity of the state, followed by thermal power with a contribution of 980.83 MW and 660.21 MW from renewable sources. Of the total installed power generation capacity, state utilities accounted for the largest share of 1,320.02 MW, followed by 1,291.05 MW under private utilities, and 938.61 MW under central utilities. In FY20, energy requirement in the state reached 122,562 million units.

According to Department for Promotion of Industry and Internal Trade (DPIIT), cumulative Foreign Direct Investment (FDI) inflow stood at around US$ 714 million during April 2000 and March 2020. In 2019, 46 Industrial Entrepreneurs Memorandums (IEMs) worth Rs 2,142 crore (US$ 306.48 million) were filed in Uttarakhand.

 

Some of the major initiatives taken by the Government to promote Uttarakhand as an investment destination are:

  • Since Investors Summit of October 2018, the state has received Rs 17,246 crore investment and has generated around 45,000 jobs in various sectors.
  • In July 2019, Bharat Heavy Electricals Limited and Container Corporation of India (CONCOR) entered an agreement to set up a rail-based logistics terminal at Haridwar.
  • In 2019, the merger of Uttarakhand Special Area Development Authority (SADA) with Mussoorie Dehradun Development Authority (MDDA) was approved.
  • Under Pradhan Mantri Gram Sadak Yojana (PMGSY), 32 habitations were provided connectivity with completion of construction work on 598 km long roads. Rs 900 crore (US$ 128.77 million) was allocated for 2019-20.
  • Uttarakhand Policy for Skill Development and Entrepreneurship was launched in 2018 with an aim increase employability of workers, competitiveness of enterprise, and inclusiveness of growth.

 

Note: AE - Advanced Estimate

Uttarakhand State Presentation

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Uttarakhand Map

Uttarakhand