ECONOMIC SURVEY OF HIMACHAL PRADESH 2018-19 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 economy of Himachal Pradesh during 2018-19 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. Anil Kumar Khachi 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 58 9. Forest and Environment 67 10. Water Resource Management 73 11. Industries and Mining 76 12. Labour and Employment 79 13. Power 83 14. Transport and Communication 102 15. Tourism and Civil Aviation 108 16. Education 112 17. Health 128 18. Social Welfare Programme 135 19. Rural Development 147 20. Housing and Urban Development 154 21. Panchayati Raj 160 22. Information and Science Technology 162 ------------------------------------------ Part-I ECONOMIC SURVEY-2018-19 ------------------------------------------ 1. GENERAL REVIEW Economic Situation at National Index in this period has increased what Level it was a year ago. The exports are picking up and the world views India as 1.1 THE Indian economy has the most vibrant economy. continued to consolidate the gains achieved in restoring macro-economic 1.3 Given the prevalent overall stability. This stability was marked by a macroeconomic scenario, the Indian major domestic policy development with economy seems to consolidate growth the introduction of Goods Services Tax story and is relatively insulated from (GST) from 1st July 2017 and cyclical factors. consequent change in the tax structure. Further, as the short term disruptions 1.4 The Gross Domestic caused by major reforms such as the Product (GDP) at constant prices or real Goods and Services Tax and GDP i.e. Base year 2011-12, in the year demonetization recede, the economy is 2017-18 is estimated at `130.11 lakh on the rebound and is likely to achieve crore as against `121.96 lakh crore in higher growth targets in the future. 2016-17. At current prices Gross Indian growth story remained positive Domestic Product in the year 2017-18 is and registered a steady pace of estimated at `167.73 lakh crore as economic growth during last three years. against `152.54 lakh crore in the The economy has grown by 6.7 percent year 2016-17, shows an increase of in 2017-18 and is expected to grow by 10.0 percent during the year. The 7.2 percent in 2018-19. The long term Gross Value Added (GVA) at basic growth prospective of the Indian prices witnessed a growth of 6.5 percent economy is positive due to its young during 2017-18 (Base 2011-12) against population, corresponding low the growth rate of 7.1 percent during the dependency ratio, healthy savings and previous year 2016-17. The growth rate investment rates, and increasing in Gross Value Added during 2017-18 integration into the global economy. has been lower than that in 2016-17 due to the lower growth in agriculture, forestry and fishing (3.4%), mining and 1.2 The Indian growth story is quarrying (2.9%), manufacturing (5.7%), thus firmly established with the fact that financial, real estate and professional this growth is diversified in all sectors of services(6.6%) and construction ( 5.7%). the Indian economy. India has demonstrated that it can be as 1.5 The per capita income at competitive as the rest of the world. The current prices is estimated at `1,12,835 macroeconomic parameters i.e fiscal in 2017-18 as against `1,03,870 for the deficit, current account balance and previous year recording an increase of inflation is under control despite the 8.6 percent. The per capita income in rise in the global crude oil prices. The real terms i.e. at 2011-12 prices, is Wholesale Price inflation was within the estimated at 86,668 for 2017-18 as manageable limits during the year and ` Inflation in terms of Consumer Price against `82,229 in 2016-17 registering an increase of 5.4 percent. 1 1.6 The growth rate for the 1.9 The State Gross Domestic fiscal year 2018-19 is expected around Product (GSDP) at current prices, is 7.2 percent as per the advanced estimated at `1, 36,542 crore in 2017-18 estimates. as against ` 1,25,122 crore in 2016-17 showing an increase of 9.1 percent 1.7 The inflation management during the year. At constant (2011-12) is the key priority of the Government. prices in 2017-18 is estimated at The inflation rate, as measured by the `1,09,747 crore as against `1,03,038 Wholesale Price Index (WPI) on year– crore in 2016-17 registering a growth of on-year basis, remained below 5 6.5 percent during the year as against percent in the most part of the current the growth rate of 7.0 percent during financial year 2018-19 (April-Dec.). The the previous year. The increase in total inflation rate in terms of Whole Sale State Domestic Product is mainly Price Index was 3.8 percent in the attributed to 20.4 percent in Community month of December, 2018 against 3.6 & Personal Services sectors, 4.5 percent in the month of December, percent in Finance & Real Estate, 3.7 2017. Inflation based on All India percent increase in Transport and Consumer Price Index Number for Trade, 8.5 percent in Manufacturing Industrial workers was 4.9 percent in sector, 1.1 percent in Construction and November, 2018 as against 4.0 percent 2.8 percent increase in Electricity, Gas & in November, 2017. Water Supply. Whereas the Primary Sector has shown a marginal decrease Economic Situation in Himachal of 1.0 percent. Food-Grains production, Pradesh which was 15.63 lakh MT during 2016- 1.8 The State of Himachal is 17 has decreased to 15.31 lakh MT becoming a vibrant economy of the during 2017-18 and is targeted at country due to the steady efforts of the 16.69 lakh MT in 2018-19. The Fruit simple and hardworking people of the Production has decreased to 5.65 lakh State and progressive policies of the MT in 2017-18 as against 6.12 lakh MT Central and State Government. Today in 2016-17, showing a decrease of 7.68 Himachal could become the most percent in 2017-18. The fruit production prosperous and fastest growing during 2018-19 (up to December, 2018) economy in the country. The economy production was 4.06 lakh MT. of the State is expected to achieve a growth rate of 7.3 percent in the current 1.10 The per capita income at current financial year 2018-19. prices witnessed an increase of 7.8 percent as it increased to Growth Rate ` 1,60,711 in 2017-18 from ` 1,49,028 in 2016-17. 7.5 7.3 7.0 7.0 1.11 As per the advanced estimates 6.5 6.5 and on the basis of economic conditions 6.0 up to December, 2018, the likely growth rate for 2018-19 will be around 7.3 Percent GrowthPercent percent. 2 TABLE 1.1 Key Indicators Indicators 2016-17 2017-18 2016-17 2017-18 Absolute Value %age change over previous year G.S.D.P.(`in crore) (a)At current prices 1,25,122 1,36,542 9.5 9.1 (b)At constant prices 1,03,038 1,09,747 7.0 6.5 Food grains production 15.63 15.31 (-)4.5 (-)2.0 (lakh tonnes) Fruit production (lakh tonnes) 6.12 5.65 (-)34.1 (-)7.7 Gross Value Added from Industrial Sector*( ` in crore) 33,485 37,284 14.7 11.3 Electricity generated (Million 1596 1941 1.5 21.6 Units) Wholesale Price Index# 111.6 114.9 1.8 2.9 C.P.I. for Industrial Workers(HP) 246 256 4.7 4.1 *At current price # Base Year 2011-12 1.12 The economic growth in 1.14 The declining share of the State is predominantly governed by agriculture sector do not, however, agriculture and its allied activities affect the importance of this sector in showed not much fluctuations during the State economy as the state nineties as the growth rate remained economic growth still is being more or less stable. The economy has determined by the trend in agriculture shown a shift from agriculture sector to and horticulture production. It is the industries and services as the major contributor to the total domestic percentage contribution of agriculture product and has overall impact on other and allied sectors in total State sectors via input linkages, employment Domestic Product has declined from and trade etc. Due to lack of irrigation 57.9 percent in 1950-51 to 55.5 percent facilities our agricultural production to a in 1967-68, 26.5 percent in 1990-91 and large extent still depends on timely to 8.8 percent in 2017-18.