Trade Analytics

Industrial Development & Economic Growth in Uttarakhand

Latest update: December, 2019

Economic Snapshot
Per capita Income

 

December, 2019

Uttarakhand is one of the fastest growing states in India, thanks to the massive growth in capital investments 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 that 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 2017, domestic tourist inflow in the state were 34.36 million and foreign tourist visits had crossed over 0.13 million. In 2018, 27.81 lakh pilgrims arrived in state for Chardham Yatra, out of which 7.32 lakh pilgrims visited Kedarnath.

Between 2011-12 and 2018-19AE, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 10.85 per cent to Rs 2.37 trillion (US$ 32.87 billion) whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 11.06 per cent to Rs 2.12 trillion (US$ 29.44 billion).

The state has close proximity to the national capital Delhi, a leading market of the country and excellent connectivity with neighbouring states. Uttarakhand has abundant natural resources due to hills and forests. Its agro-climatic conditions support horticulture-based industries. The vast water resources avalable in the state are also favourable for hydropower.

Uttarakhand is being developed as an ‘energy state’ to tap the hydropower electric potential of over 25,000 MW. As of November 2019, the state had total installed power generation capacity of 3487.97 MW. Hydro (renewable) power contributed 1,815.69 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 1,229.34 MW under private utilities and 938.61 MW under central utilities.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI inflows, during April 2000 to June 2019, stood at around US$ 698 million. Total exports from the state stood at US$ 2.35 billion during 2018-19 and reached US$ 1.44 billion during April-September 2019.

 

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

  • With Uttarakhand emerging as a hot tourist and industrial destination, the state government is focusing on upgrading the Jolly Grant airport as an international airport, in coordination with Airports Authority of India.
  • In 2019-20, the work of 120 MW Byasi hydro power project is expected to be completed.
  • Since Investors Summit of October 2018, the state received Rs 17,246 crore investment and generated around 45,000 jobs in various sectors.
  • In July 2019, Bharat Heavy Electricals Limited and Container Corporation of India (CONCOR) entered in agreement to set up a rail-based logistics terminal at Haridwar.
  • In 2019, the merger of the Uttarakhand Special Area Development Authority (SADA) with the Mussoorie Dehradun Development Authority (MDDA) was approved.
  • Uttarakhand government to introduce mobile caravans or motor homes equipped with all facilities available in a house to attract tourist.
  • Under Pradhan Mantri Gram Sadak Yojana (PMGSY), 32 habitations have been provided connectivity by completing the construction work on 598 km long roads, spending Rs 720 crore (US$ 103.02 million) in 2018-19 and Rs 900 crore (US$ 128.77 million) have been allocated for 2019-20.
  • The state government has started a service called e-Aushadhi Yojna in order to maintain continuous supply and availability of medicines and tele-radiology service has been started by the Government to accelerate the tests and diagnosis facilities of patients in 35 major hospitals of the state.
  • In April 2018, the second mega food park was at Mahuakhera Ganj village, Kashipur in Udham Singh Nagar district. M/s Himalayan Mega Food Park Private Ltd has been set up at Rs 99.96 crore (US$ 15.51 million) and will benefit 25,000 farmers and neighbouring districts.
  • Uttarakhand Policy for Skill Development & Entrepreneurship was launched in 2018, which aims to increase the employability of workers, competitiveness of enterprise, and inclusiveness of growth.

 

Note: AE - Advanced Estimate

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Uttarakhand