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Economic Survey of Himachal Pradesh 2017-18

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Economic Survey of Himachal Pradesh 2017-18 ECONOMIC SURVEY OF HIMACHAL PRADESH 2017-18 Economic and Statistics Department FOREWORD Economic Survey is one of the budget documents which indicates the important economic activities and achievements of the Government. The salient features of the State of the economy of Himachal Pradesh during 2017-18 are presented in Part-I, and statistical tables on various subjects are given in Part-II. I am thankful to all the departments and public undertakings for their co-operation in making available the material included in the Survey. The burden of collection and updating the huge and voluminous data and its presentation in a concise and inter-related form was borne by the Economic and Statistics Department. I appreciate and commend the work done by the officers and officials of this department. Dr. Shrikant Baldi Additional Chief Secretary (Finance, Plg., and Eco. & Stat.) to the Govt. of Himachal Pradesh. I N D E X Contents Pages 1. General Review 1 2. State Income and Public Finance 9 3. Institutional and Bank Finances 14 4. Excise and Taxation 32 5. Price Movement 34 6. Food Security and Civil Supplies 36 7. Agriculture and Horticulture 41 8. Animal Husbandry and Fisheries 57 9. Forest and Environment 66 10. Water Resource Management 72 11. Industries and Mining 75 12. Labour and Employment 78 13. Power 82 14. Transport and Communication 100 15. Tourism and Civil Aviation 105 16. Education 109 17. Health 123 18. Social Welfare Programme 130 19. Rural Development 142 20. Housing and Urban Development 149 21. Panchayati Raj 154 22. Information and Science Technology 156 ------------------------------------------ Part-I ECONOMIC SURVEY-2017-18 ------------------------------------------ 1. GENERAL REVIEW Economic Situation at National 1.4 The Gross Domestic Product Level (GDP) at constant prices, with new Base year i.e. 2011-12, in 2016-17 is 1.1 THE Indian economy has estimated at `121.96 lakh crore as continued to consolidate the gains against `113.86 lakh crore in 2015-16. achieved in restoring macro-economic stability. This stability was marked by a At current prices Gross Domestic major domestic policy development Product in 2016-17 is estimated at paving the way for implementing the `152.54 lakh crore as against transformational Goods and Services `137.64 lakh crore in 2015-16 Tax(GST). The upswing in the national economy continued during the year shows an increase of 10.8 percent 2017-18. Indian‟s growth story remained during the year. The Gross Value Added positive and registered a steady pace of (GVA) at basic prices witnessed a economic growth during last three years. growth of 7.1 percent during 2016-17 The economy having grown 7.1 percent (Base 2011-12) against the growth rate in 2016-17 is expected to moderate to of 8.2 percent during the previous year. 6.5 percent in 2017-18. The growth rate in Gross Value Added during 2016-17 has been lower than 1.2 The India growth story is thus that in 2015-16 due to the lower growth firmly established with the fact that this in manufacturing (7.9%), construction growth is diversified in all sectors of the (1.3%), transport, storage, Indian economy. India has communication & services releated to demonstrated that it can be as broadcasting (4.3%), trade, repair, hotel competitive as the rest of the world. The and restaurants(8.9%), financial macroeconomic parameters of fiscal services (1.3%) and real estate, deficit, current account balance and ownership of dwelling & professional inflation is under control despite the services (8.0%). rise in the global crude oil prices. The Wholesale Price inflation was within the 1.5 The per capita income at manageable limits during the year and current prices is estimated at Inflation in terms of Consumer Price `1,03,870 in 2016-17 as against `94,731 Index in this period has declined what it for the previous year recording an was a year ago. The exports are picking increase of 9.6 percent. The per capita up and the world views India as the income in real terms i.e at 2011-12 most vibrant economy prices, is estimated at `82,229 for 2016- 1.3 Given the prevalent overall 17 as against `77,826 in 2015-16 macroeconomic scenario, the Indian registering an increase of 5.7 percent. economy seems to consolidate growth story and is relatively insulated from 1.6 The growth rate for the cyclical factors. fiscal year 2017-18 is expected around 1 6.5 percent as per the advanced Growth Rate estimates. 9 8.1 8 6.9 1.7 The inflation management 7 is the key priority. The inflation rate, 6 6.3 5 year–on-year, as measured by the 4 Wholesale Price Index (WPI), remained 3 below 3 percent in the most part of the 2 Percent current financial year 2017-18 (April- 1 Dec.). The inflation rate in terms of 0 Whole Sale Price Index was 3.6 percent 2015-16 2016-17 2017-18 in the month of December, 2017 against Year 2.1 percent in the month of December,2016. The All India Consumer Price Index Number for Industrial workers was 4.0 percent in December,2017 as against 2.2 percent in December, 2016. 1.9 The State Gross Domestic Product (GSDP) at factor cost at current Economic Situation in Himachal Pradesh prices, is estimated at `1, 24,236 crore 1.8 The State of Himachal is in 2016-17 as against `1,13,355 crore in becoming a vibrant economy of 2015-16 showing an increase of 9.6 the country due to the steady efforts of percent during the year. At constant the simple and hardworking people of (2011-12) prices in 2016-17 is estimated the State and progressive policies of the at `1,02,954 crore as against `96,274 Central Government. Today Himachal could become the most prosperous and crore in 2015-16 registering a growth of fastest growing economy in the country. 6.9 percent during the year as against The economy of the State is expected to the growth rate of 8.1 percent during achieve a growth rate 6.3 percent in the the previous year. The increase in total current financial year . State Domestic Product is mainly attributed to 18.1 percent in community & personal services sectors, 8.2 percent increase in transport and trade, 7.1 percent in manufacturing sector, 5.8 percent in finance & real estate, 5.4 percent in construction and 2.9 percent increase in electricity, gas & water supply. Whereas the Primary sector has shown a marginal decrease of 0.7 percent. Food-grains production, which was 16.34 lakh MT during 2015-16 has increased to 17.45 lakh MT during 2016-17 and is targeted at 16.45 lakh MT in 2017-18. The fruit production has 2 decreased by 34.1 percent i.e from 9.29 lakh MT in 2015-16 to 6.12 lakh MT in 2016-17 and during 2017-18 (up to December, 2017) production was 5.00 lakh MT. 1.10 The per capita income at current prices witnessed an increase of 9.1 percent as it increased to `1,46,294 in 2016-17 from `1,34,089 in 2015-16. 1.11 As per the advanced estimates and on the basis of economic conditions up to December, 2017, the likely growth rate for 2017-18 will be around 6.3 percent. 3 TABLE 1.1 Key Indicators Indicators 2015-16 2016-17 2015-16 2016-17 Absolute Value %age change over previous year G.S.D.P.(`in crore) (a)At current prices 1,13,355 1,24,236 9.2 9.6 (b)At constant prices 96,274 1,02,954 8.1 6.9 Food grains production 16.34 17.45 1.6 6.8 (lakh tonnes) Fruit production (lakh tonnes) 9.29 6.12 23.5 (-) 34.1 Gross Value Added from Industrial 28,361 29,281 9.2 3.2 Sector*( ` in crore) Electricity generated (Million Units) 1573 1596 (-) 25.0 1.5 Wholesale Price Index# 109.7 111.6 (-) 3.6 1.8 C.P.I. for Industrial Workers(HP) 235 246 4.4 4.7 *At current price # Base Year 2011-12 affect the importance of this sector in the state economy as the state economic 1.12 The economic growth in growth still is being determined by the the State is predominantly governed by agriculture and its allied activities showed not much fluctuations during trend in agriculture and horticulture nineties as the growth rate remained production. It is the major contributor to more or less stable. The economy has the total domestic product and has shown a shift from agriculture sector to overall impact on other sectors via input industries and services as the linkages, employment and trade etc. percentage contribution of agriculture Due to lack of irrigation facilities our and allied sectors in total State agricultural production to a large extent Domestic Product has declined from still depends on timely rainfall and 57.9 percent in 1950-51 to 55.5 percent weather conditions. High priority has in 1967-68, 26.5 percent in 1990-91 and been accorded to this sector by the to 9.7 percent in 2016-17. Government. 1.13 The share of industries and 1.15 The State has made services sectors respectively has significant progress in the development increased from 1.1 & 5.9 percent in of horticulture. The topographical 1950-51 to 5.6 and 12.4 percent in variations and altitudinal differences 1967-68, 9.4 & 19.8 percent in 1990-91 coupled with fertile, deep and well and to 25.2 and 44.0 percent in drained soils favour the cultivation of 2016-17.
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