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Economic Snapshot – GSDP

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Economic Snapshot – GSDP HIMACHAL PRADESH NAKO LAKE IN KINNAUR VALLEY June 2021 For updated information, please visit www.ibef.org 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 & Policies 34 Appendix 43 2 Executive summary 1 Strong economic growth 5 Heritage • Himachal Pradesh is one of the • Himachal Pradesh has a rich heritage of fastest-growing states in India. At handicrafts. These include woollen and current prices, Himachal Pradesh’s 5 pashmina shawls, carpets, silver and gross state domestic product 1 metal ware, embroidered chappals, (GSDP) is estimated at Rs. 1,72,174 grass shoes, Kangra and Gompa style crore (US$ 23.58 billion) in FY22, an paintings, woodwork, horse-hair bangles, increase of 3% YoY. wooden and metal utensils and various other household items. 2 Tourist’s paradise 2 4 4 Increasing agricultural productivity • Himachal Pradesh, is famous for its • Government’s emphasis on improving topographic diversity and pristine natural productivity has yielded positive results in beauty. Domestic tourist inflows in the state 3 the state. Horticulture production in the reached 16.83 million in 2019 while foreign state reached 2,722.80 thousand metric tourist arrivals reached 398,000. tonnes in 2019-20, as per third advance • the tourism sector contributed ~7% to the estimates. state's GDP. 3 India’s hydro-power hub • With a hydro power potential of 27,436 MW (of which just 10,547.17 MW has been harnessed), Himachal Pradesh accounts for 12.66% of the country’s total hydro power potential. All villages of Himachal Pradesh have been electrified. • The state has been accelerating the pace of Hydropower development through the active involvement of both the public and the private sector. 3 INTRODUCTION 4 Fact File Shimla Capital 123 persons per sq. km. 6.83 million Population density total population 55,673 sq.km. geographical area 3.38 million 3.48 million female population male population 971 Sex ratio 82.08% administrative districts: 12 (females per 1,000 males) Key Insights literacy rate • 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. • Agriculture contributes nearly 45% to the net state domestic product. It is the main source of income as well as employment in Himachal. About 93% of the state population depends directly upon agriculture Source: Census 2011 5 Advantage High economic growth and stable Rich labour pool and infrastructure support political environment • The state has a large base of skilled labour, making it a favourable destination for knowledge-based sectors It also . The state’s GSDP is estimated to increase at a CAGR of has a large pool of semi-skilled and unskilled labour. 7.06% between 2015-16 and 2021-22. • Himachal Pradesh has a strong hydropower base, with a • With a stable political environment and a single-party potential capacity of 27,436 MW. Government, the state Government is committed • A 210 MW Luhri Stage-I hydropower project worth Rs. 1,810 towards creating a progressive business environment. crore (US$ 245.41 million) was approved in November 2020 by the Union Cabinet to strengthen the power infrastructure in Himachal Pradesh. Pharmaceuticals and food processing hub • Himachal Pradesh has attracted investments in the pharmaceuticals, Policy and incentives IT and engineering industries. • The state is implementing the • Agriculture plays a significant role in ‘National Education Policy’ by the state’s economy. Himachal undertaking initiatives such as Pradesh has a robust food ‘Strengthening Teaching-Learning processing sector. and Results for States’ (STARS) project (backup by World Back). • Himachal Pradesh has well drafted sector specific policies for biotechnology and pharmaceuticals, solar power and startups. Source: Ministry of Statistics and Programme Implementation, News articles 6 Himachal Pradesh in figures Himachal Pradesh’s Contribution to Indian Economy (2019-20) Physical Infrastructure in Himachal Pradesh GSDP as a percentage of all states’ GSDP GSDP Installed power capacity (MW) (as of April 2021) India: 100.0 | Himachal Pradesh: 1.08 India: 382,730.02 | Himachal Pradesh : 4,155.13 GSDP growth rate* (%) Wireless subscribers (million)** (as of February 2021) India: 11.5 | Himachal Pradesh : 8 India: 1,167.71 | Himachal Pradesh : 11.13 Per capita GSDP* (US$) Internet subscribers (million)** (as of December 2020) India: 1,982.65 | Himachal Pradesh : 3,081.45 India: 795.18 | Himachal Pradesh : 6.57 National highway length (km) (as of FY21) Social Indicators India: 136,440 | Himachal Pradesh : 2,606.88 Literacy rate (%) India: 77.7 | Himachal Pradesh : 86.6 Airport (No.) India: 153 | Himachal Pradesh : 3 Birth rate (per 1,000 population) (2018) India: 20| Himachal Pradesh : 15.7 Investments (as of March 2021) Industrial Infrastructure Cumulative FDI equity inflow between October Operational & Maintenance PPP projects (No.) 2019 and March 2021 India: 1,824 | Himachal Pradesh : 110 India: US$ 83.516 billion Himachal Pradesh: US$ 22.83 million 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 7 ECONOMIC SNAPSHOT 8 Economic Snapshot – GSDP GSDP of Himachal Pradesh at Current prices Per Capita GSDP of Himachal Pradesh at Current prices 25 2 3,500 240000 CAGR (in Rs.) 7.06% CAGR (in Rs.) 5.84% 1.8 3,000 210000 20 1.6 23.58 180000 1.72 22.22 3,032 2,500 222,214 21.50 1.4 2,972 21.24 2,937 1.63 212,262 2,880 20.71 1.57 205,277 15 1.49 1.2 150000 2,597 18.73 191,554 1.39 2,000 2,442 17.45 174,249 1.26 1 120000 159,842 10 1.14 0.8 1,500 90000 0.6 1,000 60000 5 0.4 500 0.2 30000 0 0 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 US$ Rs. US$ billion Rs. trillion . At current prices, Himachal Pradesh’s gross state domestic product (GSDP) stood at Rs. 1.72 trillion (US$ 23.58 billion) in 2021-22. The state’s per capita GSDP in 2020-21 was Rs. 212,262 (US$ 2,880). The state’s GSDP (in Rs.) increased at a CAGR of 7.06% between 2015-16 and 2021-22. rThe pe capita GSDP (in Rs.) rose at a CAGR of 5.84% between 2015-16 and 2020-21. The downward pressure on growth rates was aggravated due to COVID-19 pandemic and consequent lockdowns. This is in line with national and international trends. Source: Directorate of Economics & Statistics of Himachal Pradesh, MOSPI 9 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.) 6.89% CAGR (in Rs.) 6.23% 1.4 180000 20 2,500 2,701 1.40 1.2 1.35 2,568 150000 190,407 2,525 2,487 1.28 2,000 183,286 176,459 19.79 1.20 1 15 2,240 18.57 165,497 18.38 18.34 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 2020-21 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 US$ billion Rs. trillion US$ Rs. At current prices, the total net state domestic product (NSDP) . The state’s per capita NSDP in 2019-20 was Rs. 183,286 (US$ of Himachal Pradesh stood at Rs. 1.35 trillion (US$ 18.34 2.487). billion) in 2020-21. rThe pe capita NSDP (in Rs.) expanded at a CAGR of 6.23% . The state’s NSDP (in Rs.) increased at a CAGR of 6.89% between 2015-16 and 2020-21. between 2015-16 and 2020-21. Note: exchange rates used are averages of each year Source: Directorate of Economics & Statistics of Himachal Pradesh, MOSPI 10 Economic Snapshot – % Distribution Of GSDP . In 2020-21, the tertiary sector accounted for 46.47% 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 39.66% and 13.87%, respectively. 100% 39.03% CAGR 46.47% . Tertiary sector posted the fastest rise at a CAGR of 10.76% between 90% 10.76% 2011-12 and 2020-21. 80% . Between 2011-12 and 2020-21, the secondary sector expanded at a 70% CAGR of 7.44% and the primary sector increased at a CAGR of 60% 6.08%. 43.81% 50% 39.66% 7.44% 40% 30% 20% 17.16% 10% 6.08% 13.87% 0% 2011-12 2020-21 Primary Sector Secondary Sector Tertiary Sector Source: Directorate of Economics and Statistics of Himachal Pradesh 11 Economic snapshot – FDI inflow & investments FDI Inflow in Himachal Pradesh^ Proposed Investments April 2000-March 2020 (US$ billion) Proposed Year IEMs filed investments 3 (in US$ million) 3 0.31 2.40 2016 9 147.5 0.62 2017 6 17.6 2 2018 17 75.78 0.11 2019 15 49.36 2 0.09 0.04 0.03 0.01 0.13 0.05 2020* 7 30.03 1.02 1 .
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