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. The topography in Uttarakhand ranges from foothills and plains to higher snow-clad mountains, thus including almost all major climatic zones conducive to agro-horticulture.

In 2019, domestic tourist inflow in the state stood at 37.58 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. During FY22, tourist inflow stood at 54.64 million.

At current prices, Uttarakhand’s GSDP is projected to be Rs. 3.94 trillion (US$ 47.34 billion) in FY25. Between 2018-19 and 2024-25, GSDP of the state is estimated to increase at a CAGR of 8.86%.

The main growth drivers in the economy have been identified as hill agriculture with emphasis on horticulture including aromatic and medicinal plants (promoted by AYUSH) and tourism to improve productivity and create sustainable livelihood, especially for people in the higher reaches of the state.

The Micro, Small and Medium Enterprises (MSME) sector is cross-cutting across all other sectors, due to its employment generation potential, and is hence, extremely important in the growth strategy of the state.

Simultaneous efforts to develop two other sectors—renewable energy in the form of small hydro-power and expansion of IT to all parts of the state economy—will make the growth plan sustainable and strengthen its fundamentals. Uttarakhand as a state has great potential for the clean option of hydro-power and the smaller and environment-friendly hydel projects offer renewable sources of energy.

The IT sector has consolidated strengths in the state by digitising many public services, especially by provision through the Common Service Centres (CSCs) under the e-governance programme. It has also established convenient Wi-Fi services for promotion of tourism in the state and is expanding mobile & Internet connectivity throughout the state among its other achievements.

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

• Policy for Skill Development & Entrepreneurship 2018
• Start-up Policy 2018
• Tourism Policy 2018
• MSME Policy-2015
• Mega Industrial and Investment Policy 2015
• Solar Energy Policy-2018
• Industrial Hill Policy 2011
• Information and Communication Technology & Electronics Policy 2016-2025
• Policy for Harnessing Renewable Energy Sources in Uttarakhand

According to the Department for Promotion of Industry and Internal Trade (DPIIT), between October 2019-March 2024, FDI inflow in Uttarakhand stood at US$ 187.00 million.  As of May 2022 (Upto December), 30 Industrial Entrepreneurs Memorandums (IEMs) worth US$ 209.30 million) have been filed in Uttarakhand.

• In FY24, the total exports from the state stood at US$ 1.80 billion. Major items exported from Uttarakhand are Engineering Goods and Drugs and Pharmaceuticals, Electronic Goods, Plastic and Linoleum, etc.
• In the State Budget 2024-25,
• 1,955 crore (US$ 234.50 million) has been allocated for capital outlay on roads and bridges.
• 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%).
• 3,455 crore (US$ 414.42 million) has been allocated to government primary schools
• 3,864 crore (US$ 463.48 million) revenue expenditure is budgeted for government secondary schools.
• 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.
• Production of loose flowers in the state stood at 3.02 thousand tonnes in 2021-22 as per first advance estimates.
• In 2023-24, Dehradun airport handled 8,622 aircraft movements and 9,73,419 passengers.