ECONOMIC SURVEY OF HIMACHAL PRADESH 2016-17 Economics & 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 2016-17 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 Economics & 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 10 3. Institutional and Bank Finances 15 4. Excise and Taxation 32 5. Price Movement 35 6. Food Security and Civil Supplies 37 7. Agriculture and Horticulture 42 8. Animal Husbandry and Fisheries 58 9. Forest and Environment 66 10. Water Resource Management 70 11. Industries and Mining 72 12. Labour and Employment 75 13. Power 79 14. Transport and Communication 94 15. Tourism and Civil Aviation 98 16. Education 101 17. Health 115 18. Social Welfare Programme 122 19. Rural Development 134 20. Housing and Urban Development 141 21. Panchayati Raj 147 22. Information and Science Technology 149 ------------------------------------------ Part-I ECONOMIC SURVEY-2016-17 ------------------------------------------ 1. GENERAL REVIEW Economic Situation at National `136.75 lakh crore as against Level `124.34 lakh crore in 2014-15 shows an increase of 10.0 percent 1.1 THE global macro during the year. The Gross Value Added economic landscape is currently (GVA) at basic prices witnessed a chartering a rough and uncertain terrain growth of 7.8 percent during characterised by weak growth of world 2015-16 (Base 2011-12) against the output. Indian’s growth story remained growth rate of 6.9 percent during the positive and registered a steady pace of previous year. The growth rate in Gross economic growth in 2016-17. However, Value Added during 2015-16 has been weak growth in advanced and emerging achieved due to the higher growth in economies has taken its toll on India’s Real estate, Ownership of dewellings exports. The economy having grown and Professional services 7.9 percent in 2015-16 is expected to (12.6 percent), Trade, Repair, Hotels & decline to 7.1 percent in 2016-17. Restaurant (11.6 percent), Transport, Communication and related services to 1.2 The macro economic Broadcasting (9.1 percent), parameters of fiscal deficit, current Manufacturing (10.6 percent), Mining & account balance and inflation have Quarrying (12.3 percent), Public shown signs of improvement whereas administration & Other Services (8.9 the savings and investment rates are percent) and Agriculture, Forestry & showing hardly any signs of revival. Fishing has shown an increase of 0.8 The Wholesale price inflation has been percent. in negative side for more than a year and Inflation in terms of Consumer Price 1.5 The per capita income at Index in this period continued to be half current prices is estimated at `94,178 what it was a year ago. Given the in 2015-16 as against `86,513 for the prevalent overall macroeconomic previous year recording an increase of scenario, the Indian economy seems to 8.9 percent. The per capita income in consolidate growth story. real terms i.e at 2011-12 prices, is estimated at `77,524 for 2015-16 as 1.3 The world views India as against `72,712 in 2014-15 registering the most vibrant economy but the an increase of 6.6 percent. developments over the last one year have resulted in an erosion of investor 1.6 The growth rate for the confidence. fiscal year 2016-17 is expected around 7.1 percent as per the advanced 1.4 The Gross Domestic estimates. Product (GDP) at constant prices, with new Base year i.e. 2011-12, in 2015-16 1.7 The inflation management is estimated at `113.58 lakh crore as was the key priority. The inflation rate, against `105.23 lakh crore in 2014-15. year–on-year, as measured by the At current prices Gross Domestic Wholesale Price Index (WPI), remained Product in 2015-16 is estimated at below 3 percent in the most part of the 1 current financial year (2016-17) in 1.9 The State Gross Domestic comparison to the previous years in Product (GSDP) at factor cost at current when it was as high as 7.3 percent. The prices, the GSDP is estimated at inflation rate in terms of Whole Sale `1,13,667 crore in 2015-16 as against Price Index was 3.4 percent in the `1,04,177 crore in 2014-15 showing an month of December, 2016 against increase of 9.1 percent during the year. (-)0.5 percent in the month of At constant (2011-12) prices in December,2015. The All India 2015-16 is estimated at `96,289 crore Consumer Price Index Number for as against `89,095 crore in 2014-15 Industrial workers was 2.2 percent in registering a growth of 8.1 percent December,2016 as against 5.9 percent during the year as against the growth during the period December, 2015. rate of 7.5 percent during the previous year. The increase in total State Economic Situation in Himachal Domestic Product is mainly attributed to Pradesh 12.3 percent in Community & Personal 1.8 In a short span of time of Services sectors, 11.0 percent in Himachal Pradesh has become a model manufacturing sector, 9.2 percent of development not for smaller States increase in Electricity, Gas & Water but for the bigger States of the country Supply, 8.6 percent increase in in the field of Education, Health, Transport and Trade, 7.5 percent in Horticulture, Social Welfare and Finance & Real estate. Whereas the inclusive growth. Today Himachal is Primary sector has shown a marginal known as most prosperous and fastest increase of 0.7 percent. Food-grains growing economy in the country. The production, which was 16.08 lakh MT economy of the State is expected to during 2014-15 has increased to 16.34 achieve a growth rate 6.8 percent in the lakh MT during 2015-16 and is targeted current financial year . at 16.45 lakh MT in 2016-17. The fruit production has increased by 23.5 percent i.e from 7.52 lakh MT in 2014- 15 to 9.29 lakh MT in 2015-16 and Growth Rate during 2016-17 (up to December, 2016) 8.5 production was 5.10 lakh MT. 8 8.1 1.10 The Per Capita Income at 7.5 7.5 current prices witnessed an increase of Percent 7 9.1 percent as it increased to `1,35,621 6.8 6.5 in 2015-16 from `1,24,325 in 2014-15. 6 1.11 As per the advanced estimates 2014-15 2015-16 2016-17 and on the basis of economic conditions Year up to December, 2016, the likely growth rate for 2016-17 will be around 6.8 percent. 2 TABLE 1.1 Key Indicators Indicators 2014-15 2015-16 2014-15 2015-16 Absolute Value %age change over previous year G.S.D.P.(`in crore) (a)At current prices 1,04,177 1,13,667 9.9 9.1 (b)At constant prices 89,095 96,289 7.5 8.1 Food grains production 16.08 16.34 1.5 1.6 (lakh tonne) Fruit production (lakh tonne) 7.52 9.29 (-) 13.2 23.5 Gross Value Added from Industrial Sector*( ` in crore) 25,436 26,662 8.0 4.8 Electricity generated (Million Units) 2,097 1573 7.4 (-) 25.0 Wholesale Price Index 181.2 176.7 2.0 (-) 2.5 C.P.I. for Industrial Workers(HP) 225 235 5.6 4.4 *At current price 1.12 The economic growth in growth still is being determined by the the State is predominantly governed by trend in agriculture and horticulture agriculture and its allied activities production. It is the major contributor to showed not much fluctuations during the total domestic product and has nineties as the growth rate remained overall impact on other sectors via input more or less stable. The economy has linkages, employment and trade etc. shown a shift from agriculture sector to Due to lack of irrigation facilities our industries and services as the agricultural production to a large extent percentage contribution of agriculture still depends on timely rainfall and and allied sectors in total State weather conditions. High priority has Domestic Product has declined from been accorded to this sector by the 57.9 percent in 1950-51 to 55.5 percent Govt. in 1967-68, 26.5 percent in 1990-91 and to 9.4 percent in 2015-16. 1.15 The State has made significant progress in the development 1.13 The share of industries and of Horticulture. The topographical services sectors respectively has variations and altitudinal differences increased from 1.1 & 5.9 percent in coupled with fertile, deep and well 1950-51 to 5.6 and 12.4 percent in drained soils favour the cultivation of 1967-68, 9.4 & 19.8 percent in 1990-91 temperate to sub-tropical fruits.