KH RA AN A D T T U Uttarakhand Development Report PLANNING COMMISSION GOVERNMENT OF INDIA NEW DELHI Published by ACADEMIC FOUNDATION NEW DELHI First Published in 2009 by e l e c t Academic Foundation x 2 AF 4772-73 / 23 Bharat Ram Road, (23 Ansari Road), Darya Ganj, New Delhi - 110 002 (India). Phones : 23245001 / 02 / 03 / 04. Fax : +91-11-23245005. E-mail : [email protected] www.academicfoundation.com a o m i t x 2 Published under arrangement with : Planning Commission, Government of India, New Delhi. Copyright : Planning Commission, Government of India. Cover-design copyright : Academic Foundation, New Delhi. © 2009. ALL RIGHTS RESERVED. No part of this book shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of, and acknowledgement of the publisher and the copyright holder. Cataloging in Publication Data--DK Courtesy: D.K. Agencies (P) Ltd. <[email protected]> Uttarakhand development report / Planning Commission, Government of India. p. cm. Includes bibliographical references. ISBN 13: 9788171887767 ISBN 10: 8171887767 1. Economic development--India--Uttarakhand. 2. Uttarakhand (India)--Economic policy. 3. Uttarakhand (India)-- Social policy. 4. Uttarakhand (India)--Social conditions. I. India. Planning Commission. DDC 338.95451 22 Designed and typeset by Italics India, New Delhi Printed and bound in India. RAKHA TA N T D U Core Committee The Core Committee constituted on 1st January 2002 under the chairmanship of Shri N.K.Singh was as follows: 1 Member (N.K. Singh) Chairman 2 Principal Adviser (SP) Member 3 Planning Secretary, Uttarakhand Member 4 Joint Secretary (SP) Member 5 Representative of other Partner Agency Member 6 Director (SP) Convener The Core Committee which was later reconstituted on 6th August, 2004 under the chairmanship of Dr. Kirit S. Parikh is as follows (page 37 ante F/; B’) 1 Shri Kirit S. Parikh Chairman 2 Principal Adviser/Adviser (In-charge of Uttarkhand) Member 3 Planning Secretary, Government of Uttarakhand Member 4 Representative of Partner Agencies Member 5 Director (SP) Planning Commission Convener 6 UTTARAKHAND DEVELOPMENT REPORT Project Team National Council of Applied Economic Research • Dr. Kanhaiya Singh (Project Leader and Editor) • Dr. P.K. Joshi • Dr. P.S. Birthal • Mr. S.K. Nair • Dr. Lakshmi Joshi • Dr. D.B. Gupta • Dr. Pradeep Srivastava • Ms. Y. Venkatramana • Dr. C.S. Rao • Dr. Rupinder Kaur • Mr. S.K. Mondal • Ms. Rachna Sharma • Mr. Kaushik Sen • Ms. Poonam Munjal • Dr. Samantak Das • Ms. Subha Grover • Mr. Honey Karun • Mr. Rakesh Srivastava mik/;{k ;kstuk vk;ksx Hkkjr DEPUTY CHAIRMAN PLANNING COMMISSION INDIA ,e. ,l. vkgyqokfy;k MONTEK SINGH AHLUWALIA FOREWORD India has grown at an unprecedented rate of 9 per cent and more for the last three years. However, the performance has been uneven across sectors and a number of people have been excluded from benefits of this process. Geographically too, the disparities are increasing and leading to concentrated pockets of deprivation across the country. At the same time, consensus is emerging across the world, that a one size fit all development policy will not engender development universally. There is a need for context specific policies. The success of policy and programme interventions too, is heavily dependent on the settings in which these are implemented. The present exercise was undertaken in recognition of the fact that an identical developmental strategy for all the states, regardless of the specific circumstances and binding constraints is unlikely to be effective. The Planning Commission took the important initiative of sponsoring the preparation of State Development Reports during the 10th Plan. The report has been prepared with the help of reputed national level institutions to ensure the necessary analytical rigour required. The main objective was to produce a high quality document, focusing on development and related issues at both the micro and macro levels. The Uttarakhand Development Report does address these issues and highlights aspects crucial for the State’s development needs in the coming years. I hope its publication will stimulate debate on growth strategies appropriate for Uttarakhand and it will be of immense benefit to practitioners, administrators, academicians and the larger public in general. ;kstuk Hkou] laln ekxZ] ubZ fnYyh & 110001 nwjHkki % 23096677] 23096688 QSDl % 23096699 Yojana Bhawan, Parliament Street, New Delhi : 110001 Phones: 23096677, 23096688 Fax : 23096699 E-mail : [email protected] 8 UTTARAKHAND DEVELOPMENT REPORT I am sure the road map indicated in the report will create a broader awareness of the critical policy issues facing the state, result in better policies and enable the State to move on a higher growth trajectory on a sustainable basis. (Montek Singh Ahluwalia) Major General Secretariat Annexe, Bhuwan Chandra Khanduri, DEHRADUN - 248001 AVSM (Retd.) CHIEF MINISTER, UTTARAKHAND Message I am pleased to introduce ‘Uttarakhand Development Report’ prepared at the behest of Planning Commission, Government of India. We appreciate and acknowledge the efforts of the Planning Commission and the Partner Agency, the National Council of Applied Economic Research, New Delhi for producing such a comprehensive document. The National Council of Applied Economic Research has documented in great detail development story of the State since its formation, recognising its progressive outlook and achievements. The macroeconomic analysis relating to various aspects of economic development of the State presented in the report will go a long way in choosing proper strategies and initiating corrective measures in the process of development. The recommendations for development of the various sectors are based on an in-depth analysis. The State has been generally acclaimed for its achievements in social development and recent initiatives of the State Government in meeting fiscal discipline. The report has brought out critical issues the state is facing. It has also sought to present solutions. The State Government is committed to ensure an accelerated development of the State, and in this process, the recommendations made in the report would be very valuable. I take this opportunity to thank the members of the Core Group in the Planning Commissions of Government of India for extending technical and financial support for the preparations of this report. I believe that this document which is an outcome of sincere and continuous efforts of scholars, experts and institutions, will provide valuable information for policy planning, academic research and governance. I appreciate the endeavour. (Bhuwan Chandra Khanduri) MkW. fdjhV ,l. ijh[k lnL; Dr. Kirit Parikh ;kstuk vk;ksx ;kstuk Hkou ubZ fnYyh&110 001 MEMBER PLANNING COMMISSION YOJANA BHAWAN NEW DELHI-110 001 July 30, 2008 Message The Planning Commission keeping in view the Central Plan Scheme “50th Year Initiative for Planning” has been sponsoring preparation of the State Development Reports (SDR) for all states. These SDRs are an attempt to compile quality reference documents on the profile and strategy for accelerating the pace of development in respective states. The Uttarakhand Development Report has been prepared by Planning Commission with the assistance of National Council of Applied Economic Research (NCAER) in partnership with the Govt. of Uttarakhand. Some initial material was prepared by partner agencies such as Dhan Foundation, Wapcos, Development Corporation for Handicrafts, IDFC, IHD, NCAEPR, NIPFP, etc., whose contribution is also acknowledged. A core committee review the major issues and helped chalk out the scope and coverage of the SDR for Uttarakhand. This report will serve as a resource material not only for the central and state government but also for the non-governmental organisations working for Uttarakhand. I would sincerely like to thank everyone from the Planning Commission and to record my appreciation of the work done by various partner agencies for their effective contribution in preparing the report. The efforts made by NCAER in coordinating and preparing the final report deserves to be specially noted. I am thankful to the Govt. of Uttarakhand for rendering full cooperation and support to the partner agencies involved in preparation of the report. The efforts done by State Plan Advisor, Shri Harish Chandra in liaising with State Govt. and partner agencies is noteworthy. I look forward to Uttarakhand, with its vigour and enterprise, attaining the high level of prosperity and human welfare which will follow in the wake of its realising its true potential. (Kirit Parikh) nwjHkki %+91-11-23096568 VsyhQSDl % +91-11-23096569 Telephone: +91-11-23096568 Telefax : +91-11-23096568, e-mail: [email protected] RAKHA TA N T D U Contents Core Committee. 5 Foreword by Deputy Chairman, Planning Commission. 7 Message from Chief Minister, Uttarakhand. 9 Message from Member, Planning Commission. 11 List of Tables, Figures and Appendices.. 17 Acknowledgements. 27 Executive Summary. 29 Introduction. 75 1. Social and Economic Condition: An Overview. 77 New State Geography Administrative Divisions Area, Land Use and Habitation Pattern Population Social Indicators Physical and Financial Infrastructure Economic Status Financial Condition of the State References 2. Economic Growth and Development Strategy. 115 Robust Growth Structure of the Economy and Revealed Advantages Investment and Growth Linkage