NAKO LAKE IN KINNAUR VALLEY, HIMACHAL PRADESH
HIMACHAL PRADESH
THE ABODE OF THE GODS
For updated information, please visit www.ibef.org September 2020 Table of Contents
Executive Summary .…………….…….…....3
Introduction ……..………………………...….4
Economic Snapshot ……………….….…….8
Physical Infrastructure ………..……...... 14
Social Infrastructure ...... 21
Industrial Infrastructure ……...………...... 24
Key Sectors ………….……………..…..…...27
Key Procedures and Policies……...……..…...34
Annexure.………….…………...... 43 EXECUTIVE SUMMARY
. Himachal Pradesh is one of the fastest-growing states in India. Its per capita Gross State Domestic Product Strong economic growth (GSDP) reached Rs. 1.65 trillion (US$ 22.58 billion) in 2019-20.
. Himachal Pradesh, is famous for its topographic diversity and pristine natural beauty. Domestic tourist inflows in the state reached 16.83 million in 2019 while foreign tourist arrivals reached 398,000. Tourists paradise . The government introduced ‘Himachal Pradesh Tourism Sector Policy 2019’ to position the state as a leading global sustainable tourism destination for inclusive economic growth.
. With a hydro power potential of 27,436 MW (of which just 10,547.17 MW has been harnessed), Himachal India’s hydro-power hub Pradesh accounts for 12.66% of the country’s total hydro power potential. All villages of Himachal Pradesh have been electrified.
Increasing agricultural . Government’s emphasis on improving productivity has yielded positive results in the state. Horticulture productivity production in the state reached 2374.57 thousand metric tonnes in 2018-19, as per third advance estimates.
. Himachal Pradesh has a rich heritage of handicrafts. These include woollen and pashmina shawls, carpets, Heritage silver and metal ware, embroidered chappals, grass shoes, Kangra and Gompa style paintings, wood work, horse-hair bangles, wooden and metal utensils and various other house hold items.
Source: Himachal Pradesh Economic Survey 2018-19, Department of Agriculture Cooperation and Farmers Welfare
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INTRODUCTION FACT FILE
. Himachal Pradesh is located in the northern region of India. The state is surrounded by Jammu & Kashmir on the North, Punjab on the West and the South-West, Haryana on the South, Uttar Pradesh on the South-East and China on the East.
. Being a sub-Himalayan state, Himachal Pradesh has a varied climate that changes with altitude. The climate ranges from warm and sub-humid tropical at low altitudes to cold and icy at high altitudes. There are three main seasons: winter from October to March, summer from April to June and rainy from July to September.
Parameters Haryana . Agriculture contributes nearly 45% to the net state domestic product. It is the main source of income as well as employment in Himachal. Capital Shimla About 93% of the state population depends directly upon agriculture. Geographical area (sq km) 55,673 Administrative districts (No) 12
Population density (persons per sq km) 123
Total population (million) 6.86 Male population (million) 3.48 Female population (million) 3.38 Sex ratio (females per 1,000 males) 971 Literacy rate (%) 82.8
Source: Government of Himachal Pradesh website, Economic Survey of Himachal Pradesh
5 HIMACHAL PRADESH For updated information, please visit www.ibef.org ADVANTAGE
High economic growth and stable political environment Rich labour pool and infrastructure support . GSDP (in Rs.) grew at a Compounded Annual Growth Rate . The state has a large base of skilled labour, making it a (CAGR) of 9.71% between 2015-16 and 2019-20. favourable destination for knowledge-based sectors It also . With a stable political environment and a single-party has a large pool of semi-skilled and unskilled labour. Government, the state Government is committed towards . According to the 2011 census, the overall literacy rate of creating a progressive business environment. the state was around 82.8%. . Himachal Pradesh has a strong hydropower base, with a potential capacity of 27,436 MW.
Advantage Himachal Pradesh Pharmaceuticals and food processing hub Policy and incentives . Himachal Pradesh has attracted investments in the . The state offers a wide range of policy and fiscal pharmaceuticals, IT and engineering industries. incentives for businesses under the Industrial Policy, 2017. . Agriculture plays a significant role in the state’s economy. Himachal Pradesh has a robust food processing sector. . Himachal Pradesh has well drafted sector specific policies for biotechnology and pharmaceuticals, solar power and startups.
Note: GSDP: Gross State Domestic Product, MW- Megawatt Source: Himachal Pradesh Economic Survey 2017-18
6 HIMACHAL PRADESH For updated information, please visit www.ibef.org HIMACHAL PRADESH IN FIGURES
Himachal Pradesh’s Contribution to Indian Economy (2019-20) Physical Infrastructure in Himachal Pradesh
Parameter Himachal Pradesh India Parameter Himachal Pradesh India GSDP as a % of all states’ 1.08 100.0 Installed power capacity GSDP 40.16.38 372,693 (MW) (As of August 2020) GSDP growth rate* (%) 8 11.5 Wireless subscribers 10.74 1149.52 Per capita GSDP (US$) 3081.45 1,982.65 (million) (June 2020)
Social Indicators Internet subscribers 6.00 743.19 (million) (March 2020) Parameter Himachal Pradesh India National highway length Literacy rate (%) 82.8 73.0 2,607 132,499 (km) Birth rate (per 1,000 16.0 20.4 population) (2017) Airports (No) 3 153
Industrial Infrastructure Investments (US$ billion)
Parameter Himachal Pradesh India Parameter Himachal Pradesh** India Number of PPP projects 110 1824 Cumulative FDI equity (No) inflows between April 2000 - 2.39 469.99 March 2020
Note: *in Rs. terms, GSDP, per capita GSDP figures are taken at current prices, PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System, ** - Including Chandigarh, Punjab and Haryana, For sources refer to annexure
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ECONOMIC SNAPSHOT ECONOMIC SNAPSHOT - GSDP
GSDP of Himachal Pradesh at Current prices Per Capita GSDP of Himachal Pradesh at Current prices
25 1.8 3,500 240000 CAGR (in Rs.) 9.71% CAGR (in Rs.) 9.03% 1.6 3,000 210000 20 1.65 1.4
22.58 180000 225,839 3,081 1.54
2,500 3,024 21.47 2,968 21.32
1.2 211,325 15 1.38 150000 2,597 18.73 191,278 1.26 1 2,000 2,442 17.45 174,249 1.14 120000
0.8 159,842 10 1,500 90000 0.6 1,000 60000 5 0.4 0.2 500 30000 0 0 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 US$ Rs. US$ billion Rs. trillion . At current prices, the Gross State Domestic Product of Himachal Pradesh reached Rs. 1.65 trillion (US$ 22.58 billion) in 2019-20. . The state’s per capita GSDP in 2019-20 was Rs. 225,839.22 . The state’s GSDP (in Rs.) increased at a Compound Annual (US$ 3,203.85). . Growth Rate of 9.71% between 2015-16 and 2019-20. . rThe pe capita GSDP (in Rs.) increased at a CAGR of 9.03% . Under the state’s Budget 2020-21, GSDP for 2020-21 (at current between 2015-16 and 2019-20. prices) is projected to be Rs. 1,82,020 crore. This is 10% higher than the revised estimates for 2019-20.
Note: BE- Budget Estimate Source: Directorate of Economics & Statistics of Himachal Pradesh, MOSPI
9 HIMACHAL PRADESH For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT - NSDP
NSDP of Himachal Pradesh at Current prices Per Capita NSDP of Himachal Pradesh at Current prices
25 1.6 3,000 210000 CAGR (in Rs.) 10.24% CAGR (in Rs.) 9.56% 1.4 180000 20 2,500 2,770 1.43 1.2 2,620 195,255 1.33
2,561 150000
2,000 183,108 20.30 1 1.19 19.07
15 2,240 18.52 165,025 120000 1.08 2,070
0.8 1,500 150,290 16.15 0.97 135,512 14.80 90000 10 0.6 1,000 60000 0.4 5 500 0.2 30000
0 0 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20
US$ billion Rs. trillion US$ Rs.
. At current prices, the total Net State Domestic Product of . The state’s per capita NSDP in 2019-20 was Rs. 195,254.77 Himachal Pradesh reached Rs. 1.43 trillion (US$ 20.30 billion) (US$ 2,769.96). in 2019-20. . The per capita NSDP (in Rs.) increased at a CAGR of 9.56% . The state’s NSDP (in Rs.) increased at a CAGR of 10.24% between 2015-16 and 2019-20. between 2015-16 and 2019-20.
Note: exchange rates used are averages of each year Source: Directorate of Economics & Statistics of Himachal Pradesh, MOSPI
10 HIMACHAL PRADESH For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT - % DISTRIBUTION OF GSDP
. During 2019-20, tertiary sector accounted for 43.88% share of the VisakhapatnamGSVA Composition port traffic by(million Sector tonnes) state’s Gross Service Value Added (GSVA), followed by secondary and primary sectors at 42.90% and 13.22%, respectively. 100% 39.03% CAGR 43.88%
. Tertiary sector witnessed the fastest growth at a CAGR of 12.02% 90% 12.02% between 2011-12 and 2019-20. 80%
. Secondary sector in the state expanded at a CAGR of 10.10% 70% between 2011-12 and 2019-20. Primary sector grew at a CAGR of 60% 6.85% during the same period. 43.81% 42.90% 50% 10.10% 40%
30%
20% 17.16% 6.85% 10% 13.22%
0% 2011-12 2019-20
Primary Sector Secondary Sector Tertiary Sector
Source: Directorate of Economics and Statistics of Himachal Pradesh
11 HIMACHAL PRADESH For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT - FDI INFLOW & INVESTMENTS
FDI Inflow in Himachal Pradesh^ Proposed Investments April 2000-March 2020 (US$ billion) Proposed 3 Year IEMs filed investments (in US$ million)
3 0.31 2.40 2016 9 147.5 0.62 2 2017 6 17.6
0.11 2018 17 75.78 2 0.09 0.04 0.03 0.01 0.13 0.05 1.02 2019 15 49.36 1
. According to Department for Promotion of Industry and Internal 1 Trade (DPIIT), FDI inflow in the state^ stood at US$ 2.40 billion between April 2000 and March 2020,. 0 . ForY F 2020, (up to July 2020), five investment intentions were filed FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 in Himachal Pradesh with a proposed investment value of Rs. 47
FY00-FY11 FY00-FY20 crore (US$ 6.41 million).
Annual FDI Inflow . The state Government will organise a global investors meet in June 2019 to show Himachal Pradesh as a model industrial hub.
Note: ^ - including Chandigarh, Punjab and Haryana Source: Department for Promotion of Industry & Internal Trade (DPIIT)
12 HIMACHAL PRADESH For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT - EXPORT
Merchandise Export from Himachal Pradesh (US$ million) Major Commodities Exported in FY20*
1400.00
1,323.43 1200.00 1,221.66 Drug, Formulations & Biologicals 19% 1000.00 Cotton yarn 1,056.01 1,027.51 800.00 893.14 2% Man Made Yarn & Fabrics 4% Cotton Fabrics 600.00 4% 58% 5% Bulk Drugs 400.00 3% 5% Paper & Paper Board 200.00 Cosmetics & Toiletries
0.00 Others FY16 FY17 FY18 FY19 FY20
. Total merchandise export from Himachal Pradesh was around US$ 1,323.43 million in FY19. Between Apr-Dec 2019, merchandise export from the state stood at US$ 1,027.51 million.
. Among the Himalayan states, Himachal Pradesh specialises in antacid, antibiotic and hypertension medicines. Drug, Formulations and Biologicals account for a majority of the share in the overall export from the state and reached US$ 374.53 million in FY20*.
. Cotton Yarn and Man Made Yarn & Fabrics products are the other major products that account for a significant share in Himachal Pradesh’s export basket.
. Amid the COVID-19 pandemic, the fish exports were halted; however, in June 2020, Himachal Pradesh’s Fisheries Minister, Mr. Virender Kanwar, announced that the state has resumed fish exports—from its reservoirs—to its neighbouring states of Punjab, Haryana, Chandigarh and Delhi. Note: *- up to December 2019 Source: DGCIS Analytics
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PHYSICAL INFRASTRUCTURE PHYSICAL INFRASTRUCTURE - ROADS
. Since much of the state is hilly, roads play a vital role in transportation.
. Starting almost from scratch, the state government has constructed 38,984 kms. of motorable roads (inclusive of jeepable and track) as of November 2019.
. At present, 2,592 kms. of 19 National Highways are the main lifelines of the state road network.
. As of December 2018, 10,308 villages in the state were connected by roads.
. As per the State Budget 2020-21, an outlay of Rs. 1,912 crore (US$ 260.7 million) has been proposed to construct roads and bridges.
. In addition, under the rural development sector, Rs. 394 crore (US$ 53.7 million) has been allocated towards the Pradhan Mantri Gram Sadak Yojana and Rs. 55 crore (US$ 7.5 million) has been Source: Maps of India allocated to the Mukhya Mantri Gram Sadak Yojana.
. In September 2020, the Shimla-Mataur highway, one of Himachal Pradhan Mantri Gram Sadak Yojana (PMGSY) in 2019-20 Pradesh’s primary national highways set for four-laning, was declared unviable by the central government due to the financial Target Habitations 115 crisis caused by the COVID-19 pandemic. Target Length (km) 3,015
. However, another project on a strategic road, linking Darcha in Habitations Connected 60 Himachal Pradesh with Ladakh, that will criss-cross a number of high-altitude snow-bound passes, has been expedited and is expected to be completed by the end of 2022.
Source: Himachal Pradesh Economic Survey, 2020-21, State Budget 2020-21
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. Himachal Pradesh falls under the Northern Railways network.
. There are only two narrow gauge railway lines connecting Shimla with Kalka (96 kms.) and Jogindernagar with Pathankot (113 kms.) and one 33 kms. broad gauge railway line from Nangal Dam to Charuru in District Una upto December,2019.
. A provision of Rs. 422 crore (US$ 65.18 million) has been made in 2018-19 for expansion of the railway network in the state.
. In July 2020, the State Transport Minister, Mr. Govind Singh Thakur, announced to expediate land acquisition for the 475-km Bhanupali (Anandpur Sahib)-Bilaspur-Manali-Leh railway line.
. The Bilaspur-Manali-Leh railway line will be made operational by 2022; the Keylong station in Himachal, which will be a part of this line, will be India’s first railway station under a tunnel.
Source: Himachal Pradesh Economic Survey, 2020-21
16 HIMACHAL PRADESH For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE - AIRPORTS
. Theree ar 3 airports in Himachal Pradesh - at Kullu (Bhuntar), Kangra (Gaggal) & Shimla (Jubbar Hatti).
. The state Government has identified 3 sites at Kandaghat in the Solan district & Nadaun in the Hamirpur district to establish an international airport in the state.
. The state Government has taken an initiative to introduce heli-taxi services, which are expected to improve connectivity and open up remote areas for tourists.
. Under the state’s 2020-21 budget, a provision of Rs. 1,013 crore (US$ 138.1 million) has been made for the expansion of airports, construction of an airport at Mandi and construction of five heliports.
Airport indicators in 2019-20
Airport Passengers Aircraft Movements
Bhuntar 27,276 1,448
Gaggal (Kangra) 1,51,535 3,082
Shimla 3,346 1,463
Source: Himachal Pradesh Economic Survey, 2020-21, AAI, State Budget 2020-21
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Installed power capacity (MW) Break-up of Installed Capacity in FY20
4,600 4,500 4,400 5% 1% 4,300 Hydropower
4,200 4,463.00 24% 4,100 Renewable Power 4,000 Thermal Power 3,900 70% Nuclear Power
3,800 4,068.13 4,038.68 3,700 4,007.17 3,892.72 3,600 FY16 FY17 FY18 FY19 FY20
. Himachal Pradesh is naturally suited for hydropower generation and accounts for around 25.9% of India’s total hydropower potential. Out of the 27,436 MW hydro power potential, 24,000 MW is harnessed. As per Economic Survey 2019-20, 20,912 MW of this is already allocated under various sectors.
. Himachal Pradesh is one of the few states in India where power delivered to consumers is entirely metered.
. As of March 2020, Himachal Pradesh had a total installed power generation capacity of 4,007.17 MW. Hydro power accounted for 2,812.88 MW of total installed power generation capacity, followed by renewable power (951.64 MW) and thermal power (213.70 MW). Under thermal power, coal accounted for 151.69 MW and gas accounted for 62.01 MW of the total installed power.
Note: MW- megawatt Source: Central Electricity Authority, Himachal Pradesh Economic Survey 2020-21, State Budget 2020-21
18 HIMACHAL PRADESH For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE - TELECOM
Telecom Statistics (as of June 2020) Performance of Bharat Net (as of November 2019)
Wireless subscribers 10,737,183 Service Ready GPs 241 Wire-line subscribers 93,646
Tele-density (%) 147.10 GPs for which Cable laid (As of 223 Internet subscribers(As of July 2018) 5.60 September 2019) (million)
. At 147.10 % in June 2020, the state had the second highest tele density in India after Delhi.
. According to Telecom Regulatory Authority of India (TRAI), Himachal Pradesh had 10.74 million wireless subscribers and 93,646 wire-line subscribers as of June 2020.
. The major telecom operators in Himachal Pradesh are: Bharat Sanchar Nigam Limited (BSNL), Bharti Airtel, Vodafone idea, Cellular Services
Note: GP-Gram Panchayat Source: Telecom Regulatory Authority of India; Department of Telecommunications- Ministry of Communications & Information Technology
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. Under the State Budget 2020-21, the highest increase in allocations Cities under Smart Population Area (sq km) was observed in water supply, sanitation, housing and urban Cities Mission development at 33% of the overall budget. Dharamshala 22,580 29.51 . Rs. 343 crore (US$ 46.78 million) has been allocated towards Jal Jeevan Mission. Rs. 108 crore (US$ 14.73 million) will be spent on Shimla 269,578 5131 the Greater Shimla Water Supply scheme and Rs. 100 crore (US$ 13.64 million) has been allocated towards the Smart City mission. . In Himachal Pradesh, Dharamshala and Shimla have been . In October 1, 2020, Himachal Pradesh Urban Development Minister, selected to be developed as smart cities under the smart city Mr. Suresh Bhardwaj, reviewed the Mukhya Mantri Shahri Ajeevika scheme of the central Government. Guarantee Yojana (MMSAGY) and Deendayal Antyodaya Yojana - National Urban Livelihoods Mission (DAY-NULM) schemes and said . Under the smart city scheme, 24 hours persistent water and that both schemes are related to employment and will pave the way power supply would be provided to the city. for Aatmanirbhar Bharat. . Under the Smart City Mission (SCM), six projects were . He further highlighted that in FY2020-21, Rs. 1.54 crore (US$ 0.21 completed, and 11 additional projects were initiated in million) has been spent under DAY-NULM scheme, while Rs. 3.64 Dharamshala, out of the 74 proposed projects in FY2019-20. crore (US$ 0.050 million) is still unspent. In addition, 324 self-help groups (SHGs) have been formed in 2020-21, against the target of 200.
. The government has constructed 10,000 houses during the last 2.5 years under various housing schemes in the state. Himachal Pradesh was the only state in the country that provided Rs. 1,50,000 to each beneficiary for constructing the house. The project is supported by the Pradhan Mantri Awas Yojna (Urban) scheme.
Source: JNNURM, Ministry of Urban Development, Rajyasabha, Economic Survey 2019-20, State Budget 2019-20
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SOCIAL INFRASTRUCTURE SOCIAL INFRASTRUCTURE - EDUCATION
Institutes Student Intake (2018-19) No of educational institutions (functional) December 2019
Degree level 3,430 Primary 10,721
B-Pharmacy 900 Middle 2,049
High schools 931 Diploma level 6,500 Senior secondary schools 1,866 Government, Private ITIs 49,319 Degree colleges 138
. Under the State Budget 2020-21, the government has proposed an outlay of Rs. 8,304 crore (US$ 1.13 billion) for the education sector.
. As per the State Budget 2020-21, under the Swaran Jayanti Gyanodaya Cluster Sreshtha Vidyalaya Yojana, Rs. 15 crore (US$ 2.05 million) has been allocated towards providing modern facilities such as smart classrooms in 100 cluster schools and improving the pupil-teacher ratio. Other initiatives included are as follows:
. Under the Swaran Jayanti Utkrisht Vidyalaya Yojana, Rs. 30 crore has been allocated to improve facilities such as furniture, sports facilities and labs in 68 schools in the first phase.
. Encourage meritorious youth to take admission into professional courses under the Swaran Jayanti Super 100 scheme.
. Himachal Pradesh is placing special emphasis on girl education, with the implementation of National Programme for Education of Girls at Elementary Level in 8 educationally backward blocks, where rural literacy rates were below the national average. The state Government is also providing girls free education up to university level, which includes vocational and professional courses.
. The “Swayamsidham Project”, that aims to provide teachers with online solutions for their problems and deliver academic support to school heads through the web portal, is being executed in around 2,153 schools of Himachal Pradesh.
Source: Himachal Pradesh Economic Survey 2019-20, State Budget 2020-21
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Facility Number (As of May 2020) Health indicators (SRS bulletin, September 2017) Sub centres 2,208
1 Community Health Birth rate 16.0 115 Centres 1 Death rate 6.8 Primary Health Centres 640 2 Sub District Hospital 98 Infant mortality rate 25.0
District Hospital 17
Total Institutions 3,078
. According to the State Budget 2020-21, under the Health and Family Welfare sector, Rs. 1,715 crore (US$ 233.9 million) will be spent on salaries and wages and Rs. 334 crore (US$ 45.5 million) has been allocated towards the National Rural Health mission. Other initiatives included are as follows: . Mammography facility in all district hospitals to fight breast cancer, prevention and awareness about cervical cancer will be established under the Swasth aur Sashakat Kishoritav evam Matritva (SKM) scheme. . IT system to provide unique health ID to all citizens under the HIMAROGYA scheme. . 10 new mobile health centres to provide healthcare services in remote areas. . Free treatment will be provided to all citizens, including diagnostic to destitute persons left without identity and attendant in hospitals under the Samman scheme.
. As of May 2020, the state had 2,208 sub centres, 640 primary health centres, 115 community health centres, 98 sub district hospitals and 17 district hospitals.
. In 2017-18, the state Government introduced a new scheme- “Mukhayamantri Shaya Rog Nivaran Scheme”, which aims to eradicate Tuberculosis from the state by 2021.
Source: State Budget 2020-21, Ministry of Health & Family Welfare; Sample Registration System (SRS) Bulletin 2014, 1Per thousand persons, 2Per thousand live births
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INDUSTRIAL INFRASTRUCTURE INDUSTRIAL INFRASTRUCTURE … (1/2)
. As of November 2019, 54,310 industrial units were established in the state with an investment of ~Rs. 49,974 crore (US$ 6.82 billion), providing employment to ~4.52 lakh people. Out of these, 140 industrial units are large and 628 are medium scale units. . For development of industrial infrastructure, the state Government has planned the following under the state budget 2018-19: • No electricity duty on new small and medium industries for first five years • New e-stamping system to be launched • All tenders above Rs. 500,000 (US$ 7,723) will be carried out on e-Procurement portal • Lease on industrial plots increased from to be given for 90 years, up from 30 years at present • Industrial areas of Kandrori and Pandoga to be completed on priority
Attracting Investments Infrastructure Description Set up at Baddi, Barotiwala, Parwanoo, Kala Amb, Paonta . A ‘Global Investors Meet’ was organised at Industrial areas Sahib, Mehatpur, Tahliwal, Amb, Sansarpur Terrace, Golthai, Dharamshala, Kangra in November 2019 to attract etc. investors in Himachal Pradesh in various sectors. Baddi Barotiwala The industrial area has been promoted by the Ministry of Nalagarh Commerce and Industries, Government of India. It has emerged . Against the target of Rs. 85,000 crore (US$ 11.59 Industrial Area as a hub for textiles, pharmaceuticals and packaging industries. billion), 703 MoUs worth Rs. 96,000 crore (US$ Biotechnology The Government has proposed to set up a biotechnology park 13.09 billion) were signed by the investors, who Park at Nalagarh. wished to set up their projects in Himachal. Nanotechnology A nanotechnology park is proposed to come up on a 400-acre Park area near the Biotechnology Park at Aduwal near Nalagarh. . Himachal Pradesh also organised its first An ICD is being developed at Baddi for the benefit of exporting industries through the Container Corporation of India. A groundbreaking ceremony at Shimla in December 2019 Inland Container Memorandum of Understanding (MoU) has been signed Depot (ICD) for 251 projects amounting to Rs. 13,600 crore (US$ between the Himachal Pradesh Government and Container 1.85 billion). Corporation of India.
Source: Himachal Pradesh Economic Survey 2019-20, State Budget 2020-21
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. In an effort to provide infrastructure support to entrepreneurs, the Himachal Pradesh Government has developed 41 industrial areas and 15 industrial estates.
Primary Name and location Description industry Pharmaceuticals Located in the Solan district, the Baddi industrial area has several pharmaceutical, textile, auto Baddi /Textiles ancillary, paper and printing units. Barotiwala Multi-industry Located in the Solan district; hub for small scale industries. Located in the Solan district; the city is an industrial cluster for high-density polyethylene (HDPE) pipe Parwanoo Light engineering companies. Located on the Shimla-Kalka highway in the Solan district, the industrial area has prominent companies Chambaghat Electronics such as Himachal Futuristic Communications Limited and Shivalik Bimetal Controls Limited. Pharmaceuticals Paonta Sahib Located in the Sirmour district, the industrial area has a few pharmaceutical and chemical companies. /Chemicals Tahliwal and Gagret Electronics Located in the Una district, it has prominent telecommunications companies. Amb has prominent engineering and automotive companies such as International Cars and Motors Amb Industrial Area Engineering/auto Limited. Sansarpur Terrace Engineering Located in the Kangra district, it has some of the leading engineering companies of North India. Golthai Multi-industry Located in the Bilaspur district, it has been identified as a mini growth centre.
Source: Himachal Pradesh Economic Survey 2019-20, State Budget 2020-21
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KEY SECTORS
Agriculture and Allied Industries
Pharmaceuticals
Tourism KEY SECTOR - AGRICULTURAL AND ALLIED INDUSTRIES… (1/3)
Horticulure Production (‘000 metric tonnes) Production of commercial crops (in ‘000 tonnes)
2,000 2,800 1,800 2,700 1,600 2,709 1,400 1,722 1,692 2,600 1,200 1,656 1,000 2,500 800 600 2,452 400 2,400 2,431 200 34 34 34 2,375 199 2,300 - 187 196 FY18 FY19 FY20** 2,200 FY16 FY17 FY18 FY19^ Potato Vegetables Ginger
. Agriculture is a key livelihood for the people of Himachal Pradesh and holds a significant share in the state’s economy. Major food crops in the state are rice, maize, wheat, barley, jowar, pulses, bajra and potato. The four agro-climatic conditions in the state support cultivation of multiple crops, vegetables and fruits around the year. The state Government is focusing on increasing productivity levels besides diversification towards high-value crops.
. The food grain production was targeted at 1.63 million metric tonnes in 2019-20. Horticulture production in 2018-19 stood at 2,374.57 thousand MT as per the third advance estimates.
. As per State Budget 2020-21, Rs. 50 crore (US$ 6.8 million) has been allocated towards subsidy to install anti-hail nets and Rs. 25 crore (US$ 3.4 million) has been allocated towards the Prakritik Kheti Khushal Kissan scheme.
Note: **target, MT - Metric tonnes, ^- third advance estimate Source: Himachal Pradesh Economic Survey 2019-20, Department of Agriculture Cooperation and Farmers Welfare, Ministry of Food Processing Industries, PRS Legislative Research
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Food Processing Clusters in Himachal Pradesh . With suitable agro-climatic conditions, Himachal Pradesh has realised the importance of commercial crops, including off-season Category Districts
vegetables, potatoes and ginger. The state is one of the largest Dairy products and Shimla, Mandi, Bilaspur, Kullu, Kangra, producers of off-season vegetables and exotic fruits and the second analogues Solan, Hamirpur, Una, Sirmaur largest producer of apples and almonds in the country. Spices Mandi, Bilaspur, Shimla
. The food processing industry primarily focuses on the areas of Prepared Foods Kangra, Mandi, Hamirpur traditional processing of agricultural and horticultural raw materials. Cereals and cereal Solan, Hamirpur, Kangra, Kullu, Kangra products . Agri-procurement has lately been an investment area for corporate entities. Ready to eat Hamirpur, Solan, Kangra
Solan, Kangra, Una . Under the State Budget 2020-21, the government has allocated 6% Pickle, Jam Squash of its total expenditure towards agriculture and allied activities.
. Presence of good food processing infrastructure has attracted major companies to invest in the state. There are 12 cold chains and one dedicated food park in Himachal Pradesh.
Source: Ministry of Food Processing Industries, PRS Legislative Research
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Key players
. Cremica Group is a prominent player in food retail and food services industries in India. The company’s business activities include Cremica Frozen Foods, EBI Foods, Mrs Bector’s Desserts and Cremica Agro India. The company is commissioning a plant at Tahliwal Industrial Area, Una, for manufacturing biscuits and Indian snack foods. It is a 100% automated facility, with an annual manufacturing capacity of 150,000 MT. Cremica Group
. Adani Agrifresh, a 100% subsidiary of Adani Enterprises, has set up three controlled-atmosphere storage units at Rampur, Sainj and Rohru in Himachal Pradesh, with an investment of US$ 40 million and a combined capacity of 18,000 metric tonnes of apples per year. The subsidiary is involved in the procurement, storage and transportation of fresh fruits and vegetables. The company directly buys fruits from about 4,000 farmers. Adani Agrifresh Ltd
. Nestlé has been operating in India for almost a century, with seven production facilities across the country. The company produces chocolates and confectionaries, prepared dishes and cooking aids, beverages and milk products and nutrition. . Nestle India The company has a factory in Tahliwal, Una, Himachal Pradesh.
. Dabur is one of the country’s largest consumer goods companies.
. The company produces several products, including honey and amla, in Baddi. Dabur India Ltd
Source: Company Websites & Annual Reports
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. Himachal Pradesh is one of the fastest-growing regions in the pharmaceutical industry in India, driven by incentives announced by Exports of drug formulations and biologicals the state Government in its Industrial Policy, 2004. Baddi is one of 800.0 the largest pharmaceutical hubs in Asia and the world. 700.0 702.9 . The Department of Environment, Science & Technology (DEST), 600.0 Government of Himachal Pradesh, proposes to develop a 500.0 593.7 Biotechnology Park (BTP) spread over an area of 35 acres at 533.4 400.0 Aduwal in Solan under PPP mode in the state. 450.1 300.0 352.8 . The Union Finance Ministry is actively considering to allocate Rs. 200.0 1,000 crore (US$ 136.5 million) for the development of a 2,000-acre 100.0 bulk drug park at Nalagarh area in Baddi, Himachal Pradesh. 0.0 FY16 FY17 FY18 FY19 FY20( till . The Ayurvedic Department has three ayurvedic pharmacies at - December Jogindernagar District Mandi, Majra District Sirmaur & Paprola 2019) District Kangra. The 4 herbal gardens of the state are located at - Jogindernagar (Mandi), Jungle Jhalera (Bilaspur), Neri (Hamirpur) & Dumreda (Shimla). Some of the key players
. During 2018-19, exports of drug formulations and biologicals from . Ranbaxy Laboratories Ltd the state stood at US$ 533.4 million and have reached US$ 593.68 . Cipla Ltd million between in 2019-20 (till December 2019). . Dr Reddy's Laboratories Ltd
. Panacea Biotec Ltd
. Mankind Pharma
Source: Himachal Pradesh Economic Survey 2019-20, News articles
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Key players
. Ranbaxy is one of the leading pharmaceutical companies in India, with business operations in 43 countries and manufacturing facilities in eight countries.. In 2008, Japanese conglomerate Daiichi Sankyo became the largest shareholder in Ranbaxy, which is now its global generic arm. In March 2015, Sun Pharma acquired Ranbaxy Laboratories. Ranbaxy Laboratories . It has a manufacturing facility at Paonta Sahib, Sirmaur Ltd (Sun Pharma)
. Cipla has one of the largest product portfolios, with over 1,000 products. . It established a manufacturing facility in Baddi in 2005. The unit manufactures bulk drugs, tablets and capsules, creams, aerosols/inhalation devices and injections/sterile solutions. Cipla Ltd
. Established in 1984, Dr. Reddy’s ranks among the top 15 generics players in the world. . Dr Reddy’s has a finished dosage facility in Baddi. Dr Reddy's Laboratories Ltd (DRL)
. Panacea is one of India’s prominent pharmaceutical and biotech companies involved in research, manufacturing and marketing of pharmaceutical formulations. The company has around 2,700 employees, including 130 scientists. . Panacea’s pharmaceutical and vaccine formulations facility is located in Baddi, with a production capacity of 600 million doses per annum. The production is likely to be increased to one billion doses per annum after the addition Panacea Biotec Ltd of the third line.
32 HIMACHAL PRADESH For updated information, please visit www.ibef.org KEY INDUSTRIES - TOURISM
Number of domestic tourists (million) Number of foreign tourists (in ‘000s)
19.50 500 19.00 450 471 453 18.50 400 19.13 18.00 350 383 356 17.50 300
17.00 17.99 250 16.50 200
16.00 16.83 150 15.50 100 16.09 15.00 50 14.50 0 2016 2017 2018 2019 2016 2017 2018 2019
. Tourism is one of the most important sectors for the state economy in terms of foreign exchange earnings and creation of employment opportunities. Himachal Pradesh is endowed with topographic diversity, historical monuments and religious shrines. As of December 2019, there were 3,679 registered hotels in the state. Top tourist destinations in the state include Kullu, Shimla, Kangra, Solar, Chamba and Spiti.
. The tourism sector of Himachal Pradesh contributes 7% to the state GDP. Domestic tourists inflow in the state reached 16.83 million in 2019, while foreign tourists arrival reached 383,000.
. Sustainable Tourism Policy, 2013 was formulated for promoting sustainable tourism without damaging the ecology and environment.
. The government introduced ‘Himachal Pradesh Tourism Sector Policy 2019’ to position the state as a leading global sustainable tourism destination for inclusive economic growth. The state envisions to achieve the set goal by protecting the state’s natural and cultural heritage, improving quality of life and offering better employment opportunities; enhancing tourist experience and innovation through private sector participation.
Source: Ministry of Tourism, Government of India, Himachal Pradesh Economic Survey 2019-20
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KEY PROCEDURES AND POLICIES SINGLE-WINDOW CLEARANCE MECHANISM … (1/2)
. Single -Window Clearance Mechanism (SWM) was established in SWM structure in Himachal Pradesh 2004. It has a two-tier structure.
• District Single Window Clearance Committee for each district in the state is chaired by General Manager/Member Secretary, with State-level Single Chief Minister of Window Clearance and senior-most officers of departments concerned in the district as Himachal Pradesh membeRs Monitoring Authority
• State -level agency with Chief Minister of Himachal Pradesh as Chairman and various heads of departments as membeRs
• Approval for proposals with investments of over US$ 1.09 million, power requirement of above 1 MW and industries in the negative list (such as forest-based and mining); as defined by central and state Governments, are decided by the state-level Single-Window Clearance Agency.
• In the budget 2015-16, the Government announced its plans to revamp the State Level Single Window Clearance & Monitoring District-level Single Authority. GM-DIC/ Member Window Clearance Secretary • According to the budget speech 2015-16, approval for Agency establishing industries in the state would be granted within a period of 45 days from the date of submission of common application form, which should be complete in all respect and fulfilling all necessary requirements.
Source: Industries Department, Government of Himachal Pradesh, State Budget 2015-16; GM: General Manager, DIC: District Industrial Centre
35 HIMACHAL PRADESH For updated information, please visit www.ibef.org SINGLE-WINDOW CLEARANCE MECHANISM … (2/2)
. Single -window Clearance and Monitoring Agency: State-level Nodal Agency
Purpose Composition
. Provides first approval to medium and large scale investment proposals . The Chief Minister of Himachal Pradesh is Chairman of the between 30-60 days of submission. agency; other members include heads of the departments of town and country planning, labour, electricity, water, director of . Projects above US$ 1.09 million, power requirements above one MW and industries and industrial adviser. industries in the negative list (such as forest-based and mining) as defined by the central and state governments are approved by the agency.
. District Industry Centre (DIC): District-level Committee for Single-window Clearance
Purpose Composition
. Provides sanctions and clearances for setting up small scale industrial . Convened by the General Manager, DIC or member secretary, units. Single-window Clearance and Monitoring Agency.
Source: Industries Department, Government of Himachal Pradesh ; MW: Mega-Watt, DIC: District Industrial Centre
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Agency Description
. Agency for speedy clearance and in-principle approval to large and medium scale projects. Single-Window . Time frame for approval is 45 days. Clearance Agency . Since inception in 2004, 104 meetings have been held, and 1,023 projects, with an investment of US$ 11.77 billion, have been approved up to December 2014.
. Himachal Pradesh State Supply of raw materials through appropriate depots. Small Industries and Export . Supply of machinery on hire-purchase. Corporation . Provision of assistance in export and marketing.
. To provide medium and long-term loans as well as working capital loans to small and medium scale units under Himachal Pradesh various schemes. Financial Corporation . To provide loans for expansion, modernisation and rehabilitation of existing units.
. Registration of Small Scale Industries (SSI) and recommendation of medium and large scale industries to the appropriate authority. . Technical and general consultancy. . Recommendation for financial assistance to financial institutions/banks for margin money and loans. Directorate of . Industrial infrastructure development. Industries . Collection and maintenance of data relating to industrial units. . Allotment of industrial plots, sheds and shops in districts. . Liaison with and provide feedback to the central and state Governments. . Administration of all incentives to industries given by the central and state Governments.
Source: Department of Industries, Government of Himachal Pradesh; State Budget 2015-16
37 HIMACHAL PRADESH For updated information, please visit www.ibef.org CONTACT LIST
Himachal Pradesh State Industrial Development Corporation Himachal Pradesh Industries Department Limited
Udyog Bhawan 4th & 5th Floor, New Himrus Building Shimla Cart Road Phone: 91-177-2813414 Shimla E-mail: [email protected] Phone: 91-177-2624751, 2621426 Website: http://himachal.nic.in/industry/welcomelat.htm Fax: 91-177-2624278 E-mail: [email protected] Website: http://www.hpsidc.nic.in
38 HIMACHAL PRADESH For updated information, please visit www.ibef.org KEY APPROVALS REQUIRED … (1/2)
Approvals and clearances required Departments to be consulted
Prior to setting up the unit
Registration District Industry Centre for SSI or Large and Medium Industries
Allotment of land/shed State Department of Industries/Infrastructure Corporation
Permission for land use District Authorities, Department of Town and Country Planning
No Objection Certificate under Water and Himachal Pradesh State Pollution Control Board Air Act
Approval for construction activity and Town and Country Planning Authority building plan
Site environmental approval State Pollution Control Board and Ministry of Environment and Forests
Provisional trade tax registrations Central and State Excise Departments
Registration under Central Sales Tax Act Central and State Excise Departments
Source: Commissionerate of Industries, Government of Himachal Pradesh
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Approvals and clearances required Departments to be consulted
Before commencement of production
No Objection Certificate under Water and Himachal Pradesh State Pollution Control Board Air Act
No Objection Certificate Fire Department and Directorate of Factories and Boilers
Permanent trade tax registration Central and State Excise Departments
Registration under Central Sales Tax Act Central and State Excise Departments
After commencement of production/activity
Department of Industries and respective sector departments such as Information Registration Technology/Biotechnology, etc.
Source: Commissionerate of Industries, Government of Himachal Pradesh
40 HIMACHAL PRADESH For updated information, please visit www.ibef.org COST OF DOING BUSINESS IN HIMACHAL PRADESH
Parameter Cost estimate
Baddi Industrial Area: US$ 15-50 Industrial land (per sq ft) Other Industrial Areas: US$ 12-35
Office space rent US 10 cents to US$ 8 (per sq ft per month)
Residential rent US$ 100-200 per month (1,600 to 2,500 sq ft house)
Hotel costs (per room, per night) US$ 20-200
Small and medium industries: US 8.3-8.7 cents Power (per kWh) Large industries: US 7.5-8.7 cents
Labour (minimum wage per day) US$ 4.5-7
Domestic: US 18 cents Water (per kl) Commercial: US 32.6 cents
Source: Directorate of Industries, Ministry of Labour and Employment, Government of India, Himachal Pradesh Irrigation and Public Health Department, Himachal Pradesh State Electricity Board Ltd, Industry sources
41 HIMACHAL PRADESH For updated information, please visit www.ibef.org STATE ACTS & POLICIES
Objectives
Himachal Pradesh . To achieve environmentally sustainable and balanced industrial growth leading to more employment opportunities, Industrial Investment income generation and overall economic development of the state. Policy, 2019 Read more
Himachal Pradesh . To make tourism sustainable with prime focus on socio-economic growth and employment generation. Tourism Policy 2019 Read more
IT, ITeS and ESDM . Set up all the infrastructure facilities required to build the IT, ITeS and ESDM companies in the state. Policy 2019 . Generate more employment opportunities and encourage entrepreneurship in the state. Read more
. To establish a strong and well-designed network of AYUSH services in the state providing easily accessible, AYUSH Policy 2019 affordable and equitable healthcare delivery system to the general population. Read more
Himachal Pradesh State . To ensure the planning, development and management of water resources. The policy directs that the use of water Water Policy 2013 should be optimised and an awareness of water as a scarce resource should be fostered. Read more
Himachal Pradesh film . To create an amiable atmosphere that not only would facilitate film shooting at a large scale in Himachal Pradesh, Policy-2019 but also ensure all round development of activities related to various aspects of film production. Read more
. The policy was framed with the objective of increasing the portion of renewable energy in total energy consumption Himachal Pradesh Solar by the state. Power Policy, 2016 . To provide 24X7 power among remote and rural areas of the state through distributed supply of solar power for meeting the basic needs of people living in the mountains. Read more
42 HIMACHAL PRADESH For updated information, please visit www.ibef.org HIMACHAL PRADESH
ANNEXURE ANNEXURE…(1/2) - SOURCES
Data Sources
GSDP (state) Directorate of Economics & Statistics of Himachal Pradesh
Per capita GSDP figures Directorate of Economics & Statistics of Himachal Pradesh, Central Statistics Office
GSDP (India) Central Statistics Office
Installed power capacity (MW) Central Electricity Authority
Wireless subscribers (No) Telecom Regulatory Authority of India
Internet subscribers (million) Telecom Regulatory Authority of India
National highway length (km) NHAI, Roads and Building Department-Government of India
Airports (No) Airports Authority of India
Literacy rate (%) Census 2011
Birth rate (per 1,000 population) SRS Bulletin September 2017
Cumulative FDI equity inflows (US$ billion) Department for Promotion of Industry & Internal Trade
Operational PPP projects (No) DEA , Ministry of Finance, Government of India
44 HIMACHAL PRADESH For updated information, please visit www.ibef.org ANNEXURE…(2/2) - EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year Rs. Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2005 44.11
2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29 2007-08 40.24 2008 43.42 2008-09 45.91 2009 48.35 2009-10 47.42 2010 45.74 2010-11 45.58 2011 46.67 2011-12 47.95 2012 53.49 2012-13 54.45 2013 58.63 2013-14 60.50 2014 61.03 2014-15 61.15 2015 64.15 2015-16 65.46
2016-17 67.09 2016 67.21
2017-18 64.45 2017 65.12
2018-19 69.89 2018 68.36
2019-20 70.49 2019 69.89
Source: Reserve Bank of India, Average for the year
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