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Economic Survey of Himachal Pradesh 2011-12

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Economic Survey of Himachal Pradesh 2011-12 ECONOMIC SURVEY OF HIMACHAL PRADESH 2011-12 Economics & Statistics Department 1 1. GENERAL REVIEW Economic Situation growth of 8.1 percent which is at National Level more than the the Tenth Plan 1.1 THE Indian economy, growth of 8 percent. Unlike in the on the whole, has performed past when periods of rapid growth better in comparison to the last were followed by a sharp slowdown, year as the GDP registered a this time the economy seems to growth rate of 8.4 percent in have shifted to a stable growth 2010-11. In the post crisis period trajectory. the global economic and financial situation has worsened in major 1.4 The Gross Domestic western countries whereas the Product (GDP) at factor cost at Indian economy posted a good constant prices, with new Base recovery not only in terms of year i.e. 2004-05, in 2010-11 is overall growth figures but also in estimated at ` 48,85,954 crore as terms of macro economic against ` 45,07,637 crore in 2009- fundamentals. However, the continued high rate of inflation is 10. At current prices Gross still a major concern. Domestic Product in 2010-11 is estimated at ` 71,57,412 crore as 1.2 The world views India as against ` 60,91,485 crore in 2009- a vibrant economy but the 10 showing an increase of 17.5 developments over the last one percent during the year. Real year have resulted in an erosion of Gross Domestic Product witnessed investor confidence with a growth of 8.4 percent during commensurate impact on the 2010-11 (Base 2004-05) against investment component of demand. the growth rate of 8.4 percent during the previous year. The 1.3 The Eleventh Five growth rate in real Gross Domestic Year Plan target was pegged at an Product during 2010-11 has been average annual growth of 9 percent achieved due to the higher growth but for the first four years of the in transport, storage and eleventh plan has registered a communication (14.7 percent), 2 financing, insurance, real estate & Consumer Price Index Number for business services (10.4 percent), Industrial workers was 6.5 percent trade, hotels & restaurants in December, 2011 as against 9.5 (9.0 percent), and construction percent during the period (8.0 percent) sector. December, 2010. 1.5 The growth rate for Economic Situation in the fiscal year 2011-12 is expected Himachal Pradesh around 6.9 percent as per 1.8 Himachal Pradesh has advanced estimates. emerged as a leading economy in the Country and is also a leader in 1.6 The per capita income Hill Area Development, Agriculture at current prices is estimated at & Horticulture revolution. ` 53,331 in 2010-11 as against Himachal is an ideal destination for investment in Power and Tourism `46,117 for the previous year sector. Responsive administration recording an increase of 15.6 and conducive macro economic percent. The per capita income in conditions have induced a real terms i.e at 2004-05 prices, is competitive environment in the estimated at ` 35,993 for 2010-11 economy and has lead to a robust economic performance in the state as against ` 33,843 in 2009-10 of Himachal Pradesh. The economy registering an increase of 6.4 of the state has been progressing percent. at a uniform pace and it is expected to achieve a high growth 1.7 Headline inflation, year – rate of 7.6 percent in the current on-year, as measured by the financial year which is Wholesale Price Index (WPI), comparatively better than the remained at elevated levels in the national growth of 6.9 percent. current financial year, even though Fifty seven awards bagged by it has by and large been on a the State is the result of this downward trajectory since extraordinary performance of December, 2011. The inflation rate the economy. in terms of Whole Sale Price Index was 7.5 percent in the month of December, 2011 against 8.4 percent in the month of December 2010. The All India 2 Growth Rate in 2010-11 from ` 56,706 in 2009- 8.4 8.8 10. The increase in total State 7.6 Domestic Product is mainly attributed to 16.3 percent in percent 2009-10 2010-11 2011-12 Primary sectors, 15.9 percent in Years Finance & Real estate, 12.4 percent in Services Sector and 5.0 percent in Transport and Trade. Whereas the Secondary sector attributed only 4.3 percent. Food-grains 1.9 The State Gross Domestic production, which was 11.11 lakh Product (GSDP) at factor cost at MT during 2009-10 has increased constant (2004-05) prices in 2010-11 is to 14.94 lakh MT during 2010-11 estimated at `39,066 crore as against ` and is expected to increase to 15.59 lakh MT (anticipated) in 35,907 crore in 2009-10 registering a 2011-12. The fruit production has growth of 8.8 percent during the year increased by 2.69 times i.e from as against the growth rate of 8.1 3.82 lakh MT in 2009-10 to 10.27 percent during the previous year. At lakh MT in 2010-11 and during current prices, the GSDP is estimated 2011-12 (up to December, 2011) at ` 54,695 crore as against ` 46,969 production was 3.29 lakh MT. crore in 2009-10 showing an increase of 16.4 percent during the year. 1.11 As per the advanced estimates and on the basis of 1.10 The Per Capita economic conditions up to Income at current prices December, 2011, the likely growth witnessed an increase of 15.6 rate for 2011-12 will be around percent as it increased to `65,535 7.6 percent. TABLE 1.1 Key Indicators Indicators 2009-10 2010-11 2009-10 2010-11 Absolute Value %age change over previous year G.S.D.P.( ` in crore) (a)At current prices 46969 54695 13.2 16.4 (b)At constant prices 35907 39066 8.1 8.8 Food grains production 11.11 14.94 (-) 9.5 (+) 34.5 (lakh tonnes) Fruit production 3.82 10.27 (-) 39.1 (+) 169.4 (lakh tonnes) Gross Value Added from Industrial Sector* 3 6660 7253 16.7 8.9 ( ` in crore) Electricity generated (Million Units) 1804 2045 (-) 13.1 (+) 13.4 Wholesale Price Index 130.8 143.3 3.9 9.6 C.P.I. for Industrial Workers(HP) 151 163 9.4 7.9 *At current prices 1.12 The economic growth 1.14 The declining share in the State is predominantly of agriculture sector do not, governed by agriculture and its however, affect the importance of allied activities showed not much this sector in the State economy fluctuations during nineties as the as the state economic growth still growth rate remained more or less is being determined by the trend in stable. The decade showed an agriculture and horticulture average annual growth rate of 5.7 production. It is the major percent, which is at par with contributor to the total domestic national level. The economy has product and has overall impact on shown a shift from agriculture other sectors via input linkages, sector to industries and services employment and trade etc. Due to as the percentage contribution of lack of irrigation facilities our agriculture and allied sectors in agricultural production to a large total State Domestic Product has extent still depends on timely declined from 57.9 percent in rainfall and weather conditions. 1950-51 to 55.5 percent in High priority has been accorded to 1967-68, 26.5 percent in 1990-91 this sector by the Govt. and to 17 percent in 2010-11. 1.15 The State has made 1.13 The share of industries significant progress in the and services sectors respectively development of Horticulture. The has increased from 1.1 & 5.9 topographical variations and percent in 1950-51 to 5.6 and 12.4 altitudinal differences coupled percent in 1967-68, 9.4 & 19.8 with fertile, deep and well drained percent in 1990-91 and to 11.7 and soils favour the cultivation of 13.3 percent in 2010-11. However, temperate to sub tropical fruits. the contribution of other The region is also suitable for remaining sectors showed a cultivation of ancillary favourable shift i.e. from 35.1 horticultural produce like flowers, percent in 1950-51 to 65.0 percent mushroom, honey and hops. in 2010-11. 4 1.16 During the year 2011- participation in terms of 12 up to December, 2011, 3.29 lakh investments in this sector has tonnes of fruits were produced in been encouraging but the smaller the state and it is envisaged to projects has been reserved for bring 4,000 hectares of additional investors from Himachal Pradesh area under fruit plants against only (up to 2 MW) and preference which 4,328 hectares of area has will be given for projects up to already has brought under 5 MW. plantation and 10.48 lakh fruit 1.18 High priority has also plants of different species were been accorded to Tourism distributed up to December, 2011. Industry, which has also emerged Growing of off-season vegetables as a major sector in the has also picked up in the state. development of economy of the During the year 2010-11, 12.69 lakh State. A ` 428 crore project with tonnes of vegetables were the assistance of World Bank has produced as against 12.06 lakh been implemented to create tonnes in 2009-10 recording a infrastructure for tourism growth rate of 5.2 percent.
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