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Development Strategy for the Hill Districts of Uttarakhand

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Development Strategy for the Hill Districts of Uttarakhand Working Paper No. 217 Development Strategy for the Hill Districts of Uttarakhand Surabhi Mittal Gaurav Tripathi Deepti Sethi July 2008 INDIAN COUNCIL FOR RESEARCH ON 1INTERNATIONAL ECONOMIC RELATIONS Table of Contents Foreword.........................................................................................................................i Abstract..........................................................................................................................ii Acknowledgments.........................................................................................................iii 1. Profile of Uttarakhand...............................................................................................1 1.1 Background.........................................................................................................1 1.2 Economic Profile of Uttarakhand .......................................................................2 1.3 Literature Review................................................................................................4 1.4 Government Initiatives........................................................................................6 1.5 Vision, Objectives and Plan of the study............................................................8 2. Agriculture and Agriculture-Based Systems ............................................................8 2.1 Agriculture Profile of Uttarakhand .....................................................................8 2.2 District Profile...................................................................................................12 2.3 Agriculture Sub-Sectors....................................................................................15 2.3.1 Horticulture................................................................................................15 2.3.2 Herbal and Medicinal plants .....................................................................17 2.4 Organic farming................................................................................................19 2.5 Animal Husbandry............................................................................................21 2.6 Forests...............................................................................................................22 2.7 District-wise constraints....................................................................................25 2.8 Development of Markets...................................................................................28 3. Development of SMEs............................................................................................29 3.1 Industrial Policy.................................................................................................29 3.2 Industrial profile of Uttarakhand ......................................................................30 3.3 Small-Scale Industries and employment...........................................................34 4. Promoting Tourism .................................................................................................37 4.1 Status of Tourism Sector...................................................................................37 4.2 Issues and recommendations for tourism development....................................40 4.2.1 Infrastructure .............................................................................................40 4.2.2 Appropriate Skill Development..................................................................43 4.2.3 Government policies ..................................................................................43 5. Developing Infrastructure .......................................................................................44 5.1 Water Issues: Drinking water and irrigation.....................................................44 5.2 Electricity and other sources of power..............................................................47 5.3 Transportation and Communication .................................................................51 6. Development Strategy and Sectoral Perspective ....................................................61 6.1 Agriculture Diversification and Development of Allied Sectors......................62 6.2 Development of Small and Medium Enterprises (SMEs).................................64 6.3 Promoting Tourism ...........................................................................................64 6.4 Developing Infrastructure .................................................................................65 6.5 Development Strategy for Hill Districts ...........................................................66 References....................................................................................................................69 List of Tables Table 1 : Geographical indicators, 2006........................................................................2 Table 2 : Per cent share of different sectors in GDP at factor cost in Uttarakhand.......2 Table 3 : Rate of growth of Net Domestic Product at factor cost..................................3 Table 4 : Demographic Indicators, 2001........................................................................3 Table 5 : Area, production and yield for selected commodity groups, 2005-06 ...........9 Table 6 : Area, production and yield of foodgrains.......................................................9 Table 7 : Operational Holdings, 2001..........................................................................10 Table 8 : Distribution of Agricultural land by type of use: 2004-05 ...........................11 Table 9 : Area and production patterns of hill districts of Uttarakhand, 2003-04.......13 Table 10 : Productivity of major agriculture crops in Kg/ha.......................................14 Table 11 : Holdings and areas under different operational holding sizes, 2001..........15 Table 12 : Average land holdings in hill districts of Uttarakhand, 2001.....................15 Table 13 : Area under other crops (ha), 2003-04.........................................................16 Table 14 : Aromatic plantation in Uttarakhand ...........................................................17 Table 15 : Benefits from plantation of aromatic crops in Uttarakhand .......................17 Table 16 : Clusters developed by HRDI for herbal and medicinal plants ...................18 Table 17 : Market price for oil extracts of aromatic plants..........................................18 Table 18 : Fertilizer use in Uttarakhand districts, 2005-06 .........................................19 Table 19 : Livestock statistics in hill districts of Uttarakhand, 2004...........................23 Table 20 : Land use in hill districts of Uttarakhand, 2004-05 .....................................24 Table 21 : Number of small-scale industrial units in India and Uttarakhand (2001-02 and 2006-07) ...............................................................................................31 Table 22 : Factories (registered under Factories Act 2M I and 2M II Act, 1948).......31 Table 23 : Status of industrialisation in districts of Uttarakhand, 2004.......................32 Table 24 : Per cent share in industrialisation of districts in Uttarakhand, 2004 ..........33 Table 25 : Employment in Organized sector ...............................................................33 Table 26 : Proportion of total household income by category of entrepreneurship.....35 Table 27 : Summary of constraints and proposed corrective action............................36 Table 28 : Status of tourist arrivals.............................................................................38 Table 29 : Share of tourists in Uttarakhand compared to India ...................................38 Table 30 : Availability of tourism infrastructure, 2006 ...............................................38 Table 31 : Number of tourist arrivals, 2005-06 ..........................................................39 Table 32 : Hotel accommodation by district, 2005......................................................40 Table 33 : Taxes per day on tourist vehicles in Uttarakhand and neighboring states..43 Table 34 : Drinking water supplies in hill districts of Uttarakhand, 2004...................45 Table 35 : Area under irrigation and different sources of irrigation in districts of Uttarakhand, 2004-05..................................................................................45 Table 36 : Irrigation profile of Uttarakhand, 2005 ......................................................46 Table 37 : Status of Irrigation Infrastructure, 2004 .....................................................46 Table 38 : Electricity consumption by different sectors ..............................................48 Table 39 : Profile of electricity consumption in the hill districts, 2006-07 .................48 Table 40 : Rural electrification in districts of Uttarakhand, 2006-07..........................49 Table 41 : Status of roads in hill districts of Uttarakhand, 2003 .................................51 Table 42 : Communication infrastructure in hill districts of Uttarakhand, 2005........52 Table 43 : Number of bank offices ..............................................................................52 Table 44 : District wise Bank offices in Uttarakhand (As on September 2007)..........53 Table 45 : Loan disbursement, 2004............................................................................54 Table 46 : Credit Deposit
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