Strong economic growth • Himachal Pradesh is one of the fastest-growing states in India. Its per capita Gross State
Domestic Product (GSDP) is estimated at US$ 1,945.6 during 2013-14 compared with the
national per capita GDP of US$ 1389.61.
High literacy rate • As per 2011 census (provisional data), Himachal Pradesh has a literacy rate of 82.8 per cent
compared with the national average of 74.0 per cent.
Tourists paradise • Himachal Pradesh, known as the Land of Gods, is famous for its sheer topographic diversity and
pristine natural beauty. The state received 16.1 million tourists, including 500,284 foreign
travellers, in 2012.
India’s hydro-power hub • With a hydro power potential of 23,000 MW (of which just 8,432 MW has been harnessed),
Himachal Pradesh accounts for 25 per cent of the country’s total hydro power potential. About
17,480 of 17,495 villages in the state had electricity by the end of March 2013.
Heritage
• Himachal Pradesh has a rich heritage of handicrafts. These include woollen and pashmina
shawls, carpets, silver and metal ware, embroidered chappals, grass shoes, Kangra and Gompa
style paintings, wood work, horse-hair bangles, wooden and metal utensils and various other
house hold items.
Source: Himachal Pradesh Economic Survey 2013-14, Aranca Research
MT- Metric Tonnes
Increasing agricultural
productivity
• The government’s emphasis on improving productivity has yielded positive results, with food
grain production per hectare rising to 1.96 MT in 2011-12 from 1.41 MT in 2009-10. Productivity is
also expected to increase to 2.02 MT by 2014. In the horticulture segment, Himachal Pradesh is
the second largest producer of apples in India, with a production of 738,720 tonnes until
December 2013.
Source: Socio-Economic Survey of Himachal Pradesh 2013-14, News articles
GSDP: Gross State Domestic Product, *Target
Growing demand High economic growth and
stable political environment
• GSDP expanded at a Compounded Annual Growth Rate (CAGR) of 14.7 per cent between 2004-05 and 2013-14.
• With a stable political environment and a single-party government, the state government is committed towards creating a progressive business environment.
Rich labour pool and
infrastructure support
• The state has a large base of skilled labour, making it a favourable destination for knowledge-based sectors. It also has a large pool of semi-skilled and unskilled labour.
• Himachal Pradesh has a strong hydropower base, with a potential capacity of 23,000 MW.
Policy and incentives
• The state offers a wide range of policy and fiscal incentives for businesses under the Industrial Policy, 2004.
• Himachal Pradesh has well drafted sector specific policies for biotechnology and IT
• To promote and incentivise industry led sustainable growth, Industrial Policy 2013 was launched by the state government.
Pharmaceuticals
and food processing hub
• Himachal Pradesh has attracted investments in the pharmaceuticals, IT and engineering industries.
• Agriculture plays a significant role in the state’s economy. Himachal Pradesh has a robust food processing sector.
FY2013
Tourism
sector’s
contribution
to GSDP
10 per cent
FY2020*
Tourism
sector’s
contribution
to GSDP
15 per cent
Advantage
Himachal
Pradesh
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. Source: Government of Himachal Pradesh website, www.himachal.nic.in,
*Provisional data – Census 2011
Parameters Himachal
Pradesh
Capital Shimla
Geographical area (sq km) 55,673
Administrative districts (No) 12
Population density (persons per sq
km)* 123
Total population (million)* 6.86
Male population (million)* 3.48
Female population (million)* 3.38
Sex ratio (females per 1,000 males)* 972
Literacy rate (%)* 82.8
Source: Maps of India
Agriculture contributes nearly 45 per cent to the net state
domestic product. It is the main source of income as well as
employment in Himachal. About 93 per cent of the state
population depends directly upon agriculture.
* Calculated in Indian rupee terms, **As of December 2011
Parameter Himachal
Pradesh All states Source
Economy 2013-14 2013-14
GSDP as a percentage of all states’ GSDP 0.9 100.0 Planning Commission Databook, 2013-14,
current prices
Average GSDP growth rate (%)* 14.7 11.54 Planning Commission Databook, 2004-05 to 2013-
14 (November 2014), current prices
Per capita GSDP (US$) 1,946.7 1,833.24 Planning Commission Databook, 2004-05 to 2013-
14, current prices, (December 2014)
Physical Infrastructure
Installed power capacity (MW) 4,093.6 258,701.5 Central Electricity Authority, as of January 2015
Wireless subscribers (No) 7,695,330 952,344,219 Telecom Regulatory Authority of India,
as of January 2015
Broadband subscribers (No) 81,480** 94,490,000 Ministry of Communications & Information
Technology, as of January 2015
National Highway length (km) 2,396.5 96,260 Ministry of Road Transport & Highways,
as of January 2015
Airports (No) 3 125 Airports Authority of India
*Including Chandigarh, Punjab and Haryana
PPP: Public-Private Partnership, SRS: Sample Registration System
Parameter Himachal
Pradesh All states Source
Social Indicators
Literacy rate (%) 82.8 74.0 Census 2011
Birth rate (per 1,000 population) 16.2 21.4 SRS Bulletin (www.censusindia.gov.in),
September 2013
Investment
FDI equity inflows (US$ billion) 1.3* 243.2 Department of Industrial Policy & Promotion, April
2000 to January 2015
Outstanding investments (US$ billion) 18.7 2,414.2 CMIE (2013-14)
Industrial Infrastructure
PPP projects (No) 1 1,339 www.pppindiadatabase.com
5.4 6.1 6.7
8.4 9.0 10.2
12.6
13.9 13.6 13.7
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1
201
1-1
2
201
2-1
3
201
3-1
4
At current prices, Himachal Pradesh’s GSDP was estimated
at US$ 13.7 billion over 2013-14.
GSDP expanded at a CAGR of 14.7 per cent** between
2004-05 and 2013-14.
The year-on-year GSDP growth rate during 2013-14 stood
at 6.2 per cent. Growth was mainly driven by the tertiary and
secondary sectors.
Source: Planning Commission Databook, March 2014,
**In Indian rupee terms,
CAGR - Compound Annual Growth Rate
GSDP of Himachal Pradesh at current prices
(in US$ billion)
CAGR
14.7%**
846 956 1,032
1,284 1,355 1,516
1,861 2,008
1,947 1,946
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1
201
1-1
2
201
2-1
3
201
3-1
4
GSDP per capita of Himachal Pradesh at
current prices (In US$)
CAGR
13.4%**
Himachal Pradesh’s per capita GSDP increased to US$
1,945.6 over 2013-14 from US$ 846.0 during 2004-05.
Average per capita GSDP rose at a CAGR of 13.4 per
cent** between 2004-05 and 2013-14
4.7 5.4 5.8
7.2 7.2 8.3
10.1 11.1 10.8 10.8
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1
201
1-1
2
201
2-1
3
201
3-1
4
At current prices, Himachal Pradesh’s Net State Domestic
Product (NSDP) was estimated at US$ 10.8 billion during
2013-14.
NSDP increased at a CAGR of 13.3 per cent** between
2004-05 and 2013-14.
Source: Planning Commission Databook, March 2014,
**In Indian Rupee terms,
CAGR - Compound Annual Growth Rate
NSDP of Himachal Pradesh at current prices
(in US$ billion)
CAGR
13.3%**
744
837 895
1,092 1,081
1,232
1,497
1,604 1,545 1,531
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1
201
1-1
2
201
2-1
3
201
3-1
4
NSDP per capita of Himachal Pradesh at
current prices (In US$)
CAGR
12.0%**
Himachal Pradesh’s per capita NSDP grew to US$ 1,531.2
over 2013-14 from US$ 744.1 during 2004-05.
Average per capita NSDP increased at a CAGR of 12.0 per
cent** between 2004-05 and 2013-14.
During 2013-14, the tertiary sector accounted for 42.8 per
cent.
There has been a shift in the sectoral contribution over the
years from primary to the tertiary sector. The overall
performance of the economy during FY14 was encouraging.
At a CAGR of 9.8** per cent, the tertiary sector has grown
the fastest among others from 2004-05 to 2013-14.
Agriculture retains a major share of the primary sector.
Community and personal services are the main components
of the tertiary sector.
Source: CMIE
**In Indian Rupee terms
GSDP composition by sector
25.7% 19.3%
38.1% 37.9%
36.2% 42.8%
2004-05 2013-14
Primary sector Secondary sector Tertiary sector
CAGR
4.2%**
9.8%**
7.9%**
Annual Budget
(Estimates in US$ million)
2013-14 2014-15
Revenue
receipt 3,068 2,741
Revenue
expenditure 3,241 3,282
Revenue A/C
deficit 173 541
Capital
receipts 64 33
Capital
expenditure 346 324
Capital A/C
deficit 282 291
Budget for 2014-15 is US$ 3,918 million.
The fiscal deficit for 2014-15 is estimated at US$ 888.0
million.
Capital expenditure during 2014-15 is estimated to be US$
324 million, a 6.4 per cent year-on-year drop.
A budget outlay of US$ 39.3 million was made for the food,
civil supplies & consumer affairs department during FY’15.
An amount of US$ 9.1 million was kept for a four thousand
hectare area under off-season vegetables during FY’15.
A budget outlay of US$ 31.7 million was kept aside for
promotion of horticulture in FY’15.
All figures converted at INR 60/US$
Budget highlights:
To cover 80,000 individuals from the youth for skilling in the next financial year.
To construct 450 km of road for motor vehicles, 40 km of road for jeeps and 30 bridges.
To reduce electricity duty from 17 per cent to 15 per cent for the EHT category customers.
To set up ‘HP Investment Promotion Cell in various industries.
To develop ‘State of the Art’ industrial area with an investment of US$ 36.3 million.
To establish two women police stations in Shimla and Dharmashala.
To give 10 per cent dearness allowance to all state government employees and pensioners.
To start 1,300 new buses for HRTC.
To allocate a sum of US$ 16.6 million for the skill development initiative in the state in 2014-15.
To provide laptops to 7,500 meritorious students of class 10th and 12th for 2014-15 under the ‘Rajiv Gandhi Digital
Yojna’.
A state government guarantee of US$ 38.8 million was provided to Himachal Pradesh Cooperative Agriculture &
Rural Development Bank Ltd for 2014-15.
Department-wise plan outlay as per budget 2014-15:
Education Department: US$ 710.4 million.
Agriculture Sector: US$ 63.7 million.
Source: Economic Survey of Himachal Pradesh 2013-14,
^Target, *Production up to December 2013, #Food grains include rice, maize, ragi, small millets, wheat, barley, gram and other pulses
Crop Annual production
(‘000 tonnes) – 2014-15^
Rice 130.0
Maize 740.0
Ragi 3.0
Small millets 5.0
Wheat 667.0
Barley 36.0
Gram 2.5
Other pulses 19.0
Potato 190.0
Vegetables 1,400.0
Ginger (dry) 4.0
Apple 738.7*
Other fruit crops 75*
Agriculture happens to be the premier source of GSDP.
About 15 per cent of the total GSDP came from agriculture
and its allied sectors in 2013-14.
Over 2012-13, the total area under food grain production in
Himachal Pradesh was estimated at 77 million hectares.
Overall production of food grains# in the state was projected
at 1.6 million tonnes during 2012-13.
Maize, wheat and rice are the major food grains produced in
Himachal Pradesh.
Vegetable production is estimated to reach 1.4 million
tonnes over 2014-15.
Apple remains the major fruit crop, with mango and litchi
gaining prominence in the recent years. Other major fruits
grown are peaches, apricots and cherries.
Apple production had reached 738,720 tonnes during April-
December, 2013. Apples account for around 83 per cent of
the total fruit production of Himachal Pradesh.
According to the Department of Industrial Policy &
Promotion (DIPP), FDI inflows totalled US$ 1.3 billion* from
April 2000 to January 2015.
Over 2013-14, outstanding investments in Himachal
Pradesh totalled US$ 18.7 billion.
Electricity and services are major sectors of investments,
contributing more than 82 per cent together. The electricity
sector accounted for around 63.6 per cent of total
outstanding investments, followed by services (19.0 per
cent) and manufacturing (11.9 per cent).
Source: CMIE
*Including Chandigarh, Punjab and Haryana
Break up of outstanding investments by sectors
(2013-14)
63.6%
19.0%
11.9%
4.6%
0.4% 0.4%
Electricity
Services
Manufacturing
Irrigation
Real Estate
Mining
Since much of the state is hilly, roads play a vital role in
transportation.
The state had a total road length of 34,945 km as of
December 2013.
As of March 2014, the length of national highways in the
state was about 2,396 km.
Himachal Pradesh is being funded under Pradhan Mantri
Gram Sadak Yojna (PMGSY) by the World Bank assisted
Rural Road Project (RRP-II). Under this project, approvals
worth US$ 85.2 million have been received.
Emphasis would be given towards metalling and tarring of
the existing road length under PMGSY and providing new
connectivity. For this, a target of availing the sanction of
US$ 49.6 million for the year 2015, from the central
government has been fixed.
Source: Himachal Pradesh Economic Survey, 2013-14
Source: Maps of India
Source: Himachal Pradesh Economic Survey 2013-14,
*Up to December 2013, #Up to December 2014
Road type 2009-10 2010-11 2011-12 2012-13 2013-14*
Motorable double lane (kms) 2,384 2,403 2,411 2,415 2,415
Motorable single lane (kms) 28,832 29,464 29,999 30,550 33,325#
Jeepable (kms) 300 290 276 260 250
Less than jeepable (kms) 1,655 1,565 1,483 1,422 1,370
Total (kms) 33,171 33,722 34,169 34,647 34,945
Roads have been assigned high priority by the Government of Himachal Pradesh. Over 2012-13, the government outlay for
road development and related activities was US$ 138 million. The government plans to connect 99 more villages through
road transport; of which, 73 villages stood connected as of December 2012.
As of December 2012, 9,861 villages in the state were connected by roads.
Himachal Pradesh falls under the Northern Railways
network.
In the Railway Budget 2013-14, the railway minister
announced plans to conduct a survey in the next fiscal year
for the Baddi-Bilaspur rail line. Furthermore, the Ministry of
Railways has decided to impart skills to the youth in railway-
related trades at 25 centres in India, Shimla being one of
them.
In a recent development, Himachal Pradesh’s Chief Minister
has announced that the Government would bear 50 per cent
cost of the railway expansion project in the state. The
decision was taken in order to boost the railway expansion
programme, as railways continue to be an important link for
the state’s development.
As of March 2012, Himachal Pradesh had a total railway
route length of 296 km.
Two narrow gauge lines connect Kalka with Shimla and
Joginder Nagar with Pathankot, with a route length of 96 km
and 113 km, respectively.
A broad gauge line connects Nangal Dam in Punjab to Una.
Currently this line is being extended till Talwara (Punjab)
with track operational till Churu takarla. Una is connected to
New Delhi by Jan Shatabdi express and Himachal Express.
Source: Himachal Pradesh Economic Survey, 2012-13,
Indian Railways, Railway Budget, 2013-14
There are three airports in Himachal Pradesh – at Kullu
(Bhuntar), Kangra (Gaggal) and Shimla (Jubbar Hatti).
There are 63 operational helipads, with plans of a few more
helipads in the pipeline.
The state government has identified three sites at
Kandaghat in the Solan district and Nadaun in the Hamirpur
district to establish an international airport in the state.
A new international airport is also proposed in Sunder
Nagar district.
The state government has taken an initiative to introduce
heli-taxi services, which are expected to improve
connectivity and open up remote areas for tourists.
Presently, these service are being operated in the Mani-
Mahesh sector, Chamba district, during the Mani-Mahesh
yatra.
Source: Himachal Pradesh Economic Survey 2013-14
Himachal Pradesh is naturally suited for hydropower
generation and accounts for around 25.0 per cent of India’s
total hydropower potential.
As per estimates, the state has the potential to generate
23,000 MW of hydro power through the construction of
various hydel projects on river basins. The largest potential
for electricity generation lies on the river Satluj (10,361
MW), followed by Beas (5,357 MW), Chenab (2,973 MW)
and Ravi (2,958 MW)
Through preliminary hydrological, topographical and
geological investigations, it has been estimated that about
23,000 MW of hydroelectric potential can be exploited in the
state by constructing various major, medium, small and
mini/micro hydroelectric projects on these five river basins
Of this hydel potential, 8,432.5 MW of projects have already
been commissioned, while 3,805 MW of projects are under
execution/construction.
Himachal Pradesh is one of the few states in India where
power delivered to consumers is entirely metred.
Source: Himachal Pradesh Economic Survey, 2013-14
Assessed hydro power potential (MW)
817
10,361
5,357
2,958 2,973
534
Yamuna Satluj Beas Ravi Chenab SelfIdentified
/NewIdentified
As of January 2015, Himachal Pradesh had a total installed
power generation capacity of 4,093.6 MW
Hydro power accounted for 3,098.9 MW of total installed
power generation capacity, followed by renewable power
(638.1 MW) and thermal power (214.0 MW).
As of September 2013, the private sector contributed more
than twice to the capacity of hydro-based power plants as
compared to the central government.
A large number of villages in the state have electricity; about
17,480 of 17,495 villages had electricity by the end of March
2013.
As of March 2013, 99.9 per cent of the state’s villages
receive electricity. Source: Central Electricity Authority,
Figures for 2014-15 are as of January 2015)
Installed power capacity (MW)
1,896.5 2,030.2
2,326.7
3,584.9
3,770.1 3,986.0 4,093.6
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Telecom infrastructure (as of March 2014)
Wireless subscribers 7,695,330
Wire-line subscribers 233,008
Broadband subscribers 81,480*
Teledensity (in per cent) 112.56
Public call offices (PCOs) 10,277*
Source: Telecom Regulatory Authority of India,
Department of Telecommunications, Annual Report 2011-12,
Ministry of Communications & Information Technology, India Post
*As of 2011-12, #As of November 2014
According to the Telecom Regulatory Authority of India
(TRAI), Himachal Pradesh had nearly 7.6 million wireless
subscribers and 233,008 wire-line subscribers as of January
2015.
According to the Department of Telecommunications,
Government of India, the state had 1,170 telephone
exchanges and 10,277 public call offices (PCOs) as of
2011-12.
As of January 2015, the state had a high tele-density of
112.56 per cent compared with the national average of
78.16 per cent. Major telecom operators in Himachal Pradesh
Bharat Sanchar Nigam Limited (BSNL)
Bharti Airtel
Tata Teleservices
Reliance Communications
Vodafone Essar
Aircel Limited
IDEA Cellular Services
Source: JNNURM, Ministry of Urban Development, www.urbanindia.nic.in; Municipal Corporation, Shimla
Shimla is one of the 65 cities that have been identified under the Jawaharlal Nehru Urban Renewal Mission (JNNURM) for
local infrastructure development.
Under JNNURM, five projects worth US$ 35.2 million have been sanctioned for Shimla.
The projects have been sanctioned between 2006-07 and 2011-12. Key areas of development are roads and flyovers, water
supply, solid-waste management and sewerage
The Swarna Jayanti Shahari Rozgar Yojana (SJSRY) was launched in all the 49 urban local bodies of the state. The main
objective was to provide assistance to the 11,734 eligible identified BPL families by providing employment to the
unemployed and under-employed poor. This scheme will help them to set up self employment ventures, and impart training
in different trades.
The Government of Himachal Pradesh has constituted a state-level steering committee under the chairmanship of the Chief
Minister and has nominated Himachal Pradesh Housing and Urban Development Authority (HIMUDA) as the state-level
nodal agency for implementing the planned projects under JNNURM.
Source: www.pppindiadatabase.com
EOI: Expression Of Interest, BOOT: Build-Own-Operate-Transfer, BOT: Build-Operate-Transfer,
DBFOT: Design-Build-Finance-Operate-Transfer, BOO: Build-Own-Operate
Himachal Pradesh has a road project being implemented under the Public-Private Partnership (PPP) mode; the cost of the
project is US$ 100.2 million. Additionally, a PPP of US$ 360-560 million has been mooted for the development of an
international airport in the state.
Contract authority Project Investment
(US$ million) PPP type Stage
Integrated IT park-cum- township at
Wakanaghat Urban development 85.3 BOO Under construction
National Highway Authority of India Zirakpur-Parwanoo Road 100.2 BOT -Toll Under construction
The state has a literacy rate of 82.8 per cent according to
the provisional data of Census 2011; the male literacy rate
is 89.5 per cent and the female literacy rate is 73.5 per cent.
Sarva Shiksha Abhiyan, a programme that ensures each
and every child receives elementary education, is being
implemented in the state on a priority basis.
Net Enrolment Ratio (NER) at the elementary stage (6–14
age group) of education in the state stood at more than 99
per cent, indicating an extremely small number of students
outside the formal range of education.
Himachal Pradesh is placing special emphasis on girl
education, with the implementation of National Programme
for Education of Girls at Elementary Level (NPEGEL) in
eight educationally backward blocks, where rural literacy
rates were below the national average.
US$ 884.3 million has been allotted for educational
development in the state under the Annual Budget of
Himachal Pradesh for FY’15.
Literacy rates (%)
Literacy rate 82.8
Male literacy 89.5
Female literacy 73.5
Source: Himachal Pradesh Economic Survey 2013-14,
Provisional data – Census 2011
No of educational
institutions (functional) 2013-14
Primary 10,739
Middle 2,349
High schools 827
Senior secondary schools 1,370
Degree colleges 72
Pupil-Teacher Ratio (2010-11) 16:1 (all schools)
There were 10,739 primary schools over 2013-14, ensuring
education at the granular level.
One engineering college in Bandla in the Bilaspur district
and five government polytechnics (in Bilaspur, Kullu,
Kinnaur, Sirmaur and Lahaul & Sipti) are expected to open
from the academic session starting from August 2013.
Vocational courses are currently offered in 25 senior
secondary schools in the fields of electronic technology,
computer techniques, audit and accountancy, electrical,
horticulture and food preservation.
The state is planning to establish 16 new universities in an
effort to boost vocational and higher education.
The education department plans to start vocational
education in 75 senior secondary schools, with four new
courses (automobile, retail, security and IT).
Private participation is being encouraged in technical and
vocational education.
With the introduction of new Industrial Training
Institutes/Centres (ITIs/ITCs), the annual seats for
vocational training stand at 29,780 in the state.
No of technical
educational institutions 2012-13
Engineering colleges 20
Medical colleges 2
Dental colleges 5
Polytechnics 28
ITI/ITC 207
Source: Himachal Pradesh Economic Survey 2013-14
There are 55 civil hospitals, 77 community health centres,
476 primary health centres, 11 ESI dispensaries and 2,066
sub-centres in the state.
The state government has launched Himachal Health Vision
2020, to provide effective and efficient health services.
Under the National Rural Health Mission, the government
had proposed to open four new Ayurvedic Health Centres
(AHCs) and one homeopathic health centre, upgrade
hospitals and provide panchkarma/ksharsutra at 11 centres
in 2013-14.
Under the National Leprosy Eradication Programme, the
prevalence rate reduced to 0.25 per 10,000 as of November
2012 compared with 5.14 per 10,000 in 1995.
A provision of US$ 309.8 million has been made for
infrastructure development of public health in the state’s
annual budget FY’15.
Health indicators (2011)
Birth rate* 16.2
Death rate* 6.7
Infant mortality rate** 36.0
Life expectancy at birth (years)
Male (2002-06) 66.5
Female (2002-06) 67.3
Source: Himachal Pradesh Economic Survey 2013-14,
Ministry of Health and Family Welfare, Government of India,
Sample Registration System (SRS) Bulletin 2012, (www.censusindia.gov.in)
*Per thousand persons, **Per thousand live births, ^Up to December, 2013
No of institutions 2013-14^
Civil hospitals 55
Community health centres 77
Primary health centres 476
Sub-centres 2,066
ESI dispensaries 11
The Himachal Pradesh Sports Council oversees the state’s sports related activities.
The Indira Gandhi State Sports Complex provides training for judo, badminton, volleyball, gymnastics, table tennis, boxing,
wrestling and martial arts. The complex also has a fitness centre and an aerobics facility.
Adventure sports, such as river rafting, paragliding and trekking, are popular, given the climate and topography of Himachal
Pradesh.
Key hotels in Shimla are the East Bourne Resort & Spa, the Wildflower Hall and the Oberoi Cecil. In Dharamshala, main
hotels are the Clubhouse and the Asia Health Resorts, while Hotel Kullu Valley and the Ambassador in Manali are known to
be the most popular hotels in Kullu-Manali.
Kangra Valley is considered as the cultural capital of Himachal Pradesh; it is home to Dharamshala and Mcleodganj, a hub
for Buddhist-Tibetan culture. The district has several Buddhist monasteries and Hindu temples.
The S.M. Convention Centre in Palampur is one of the largest of its kind in the state. It has 25 rooms, five banquet halls,
seminar rooms and a board room.
Under the state’s Annual Budget 2014-15, the Himachal Academy of Art, Culture & Language is providing financial
assistance for bulk purchase of books to Himachali writers engaged in research work of folk lore and music and other
cultural aspects of Himachal Pradesh.
As of December 2013, there were 494 medium and large scale industries and about 39,325 small scale industries, with a
total investment of around US$ 3.2 billion, operating in the state.
For development of industrial infrastructure, the state government planned the following under the state budget 2014-15:
Opening of ‘Himachal Pradesh Investment Promotion Cell’ to drive new investment in the state.
An ‘Industry Advisory Council’ with representatives of industries to create a platform for deliberation of policy issues
for industrial development in the state.
Development of industrial areas at Pandoga and Kandrori with an investment of US$ 45.2 million.
Infrastructure Description
Industrial areas Set up at Baddi, Barotiwala, Parwanoo, Kala Amb, Paonta Sahib, Mehatpur, Tahliwal,
Amb, Sansarpur Terrace, Golthai, etc.
Baddi Barotiwala Nalagarh Industrial Area
The industrial area has been promoted by the Ministry of Commerce and Industries,
Government of India. It has emerged as a hub for textiles, pharmaceuticals and
packaging industries.
Biotechnology Park The government has proposed to set up a biotechnology park at Nalagarh.
Nanotechnology Park A nanotechnology park is proposed to come up on a 400-acre area near the
Biotechnology Park at Aduwal near Nalagarh.
Inland Container Depot (ICD)
An ICD is being developed at Baddi for the benefit of exporting industries through the
Container Corporation of India. A Memorandum of Understanding (MoU) has been
signed between the Himachal Pradesh government and Container Corporation of India.
In an effort to provide infrastructure support to entrepreneurs, the Himachal Pradesh government has developed 41
industrial areas and 17 industrial estates.
Name and location Primary industry Description
Baddi Pharmaceuticals/textiles Located in the Solan district, the Baddi industrial area has several
pharmaceutical, textile, auto ancillary, paper and printing units.
Barotiwala Multi-industry Located in the Solan district; hub for small scale industries.
Parwanoo Light engineering Located in the Solan district; the city is an industrial cluster for High-Density
Polyethylene (HDPE) pipe companies.
Chambaghat Electronics
Located on the Shimla-Kalka highway in the Solan district, the industrial area
has prominent companies such as Himachal Futuristic Communications
Limited and Shivalik Bimetal Controls Limited.
Paonta Sahib Pharmaceuticals/chemicals Located in the Sirmour district, the industrial area has a number of
pharmaceutical and chemical companies.
Tahliwal and Gagret Electronics Located in the Una district, it has prominent telecommunications companies.
Amb Industrial Area Engineering/auto Amb has prominent engineering and automotive companies such as
International Cars and Motors Limited.
Sansarpur Terrace Engineering Located in the Kangra district, it has some of the leading engineering
companies of North India.
Golthai Multi-industry Located in the Bilaspur district, it has been identified as a mini growth centre.
The rich natural resources of the state are favourably suited
for investments in major sectors such as procurement of
agricultural produce, hydroelectric power, cement and
tourism.
Himachal Pradesh has made significant achievements in
the field of industrialisation in the past few years.
Solan, Sirmour, Kangra and Una districts lead in terms of
investments attracted.
Small-scale village based industries play an important role
in employment generation in the state. In the small scale
sector, microscopes, watch parts, thermometers and
hospital and heating equipment are manufactured. The
village industry consists of sheep-rearing, wood carving,
blacksmithing, spinning, weaving, leather tanning, pottery,
handloom, handicrafts and bamboo crafts.
As of December 2013, there were 494 medium and large
scale industries and about 39,325 small-scale industries,
with a total investment of about US$ 3.2 billion, operational
in the state. These industries provide employment to about
0.28 million people.
Key industries in Himachal Pradesh
• Textiles
• Pharmaceuticals
• Food procurement and processing
• Light engineering
• IT and electronics
• Cement
• Tourism
• Hydropower
• Animal husbandry
• Agro-horticulture
• Sericulture
Agriculture is the main occupation and the major source of employment in the state, as 89.96 per cent of the population lives
in rural areas
Major food crops in the state are rice, maize, wheat, barley, jowar, pulses, bajra and potato.
The state government is focusing on increasing productivity levels besides diversification towards high-value crops.
Production of principal crops (in ‘000 tonnes) Production per hectare (in metric tonnes)
Source: Himachal Pradesh Economic Survey 2013-14
*Tentative, **Production, ***Target
1.4
1.9 2.0 1.9 2.0
2009-10 2010-11 2011-12 2012-13*** 2013-14**2009-10 2010-11 2011-12 2012-13* 2013-14** 2014-15***
Rice Maize Wheat Barley Pulses
1,111
1,489 1,538 1,562 1,510 1,595
With suitable agro-climatic conditions, Himachal Pradesh
has realised the importance of commercial crops, including
off-season vegetables, potatoes and ginger. The state has
emerged as the leading producer of off-season vegetables,
with the annual yield reaching a million tonnes during 2012-
13.
The food processing industry primarily focuses on the areas
of traditional processing of agricultural and horticultural raw
materials.
Agri-procurement has lately been an investment area for
corporate entities.
Source: Himachal Pradesh Economic Survey 2013-14
*Tentative, **Production, ***Target
Production of commercial crops (in ‘000 tonnes)
2009-10 2010-11 2011-12 2012-13* 2013-14** 2014-15***
Potato Vegetables
Some of the key players
• Cremica Group
• Adani Agri Fresh
• Nestle India
• Dabur
1,391 1,475 1,510 1,581 1,568 1,591
‘Mukhya Mantri Adarsh Krishi Gaon Yojana’ was started
during FY’14 covering one Panchayat of each constituency.
Each Panchayat was provided Rs 1 million as gap filling
fund for creation and upgradation of agriculture
infrastructure, which has yielded good results.
To extend this scheme in another 68 panchayats, one
additional panchayat in each constituency would be
provided with the same fund in FY15.
Agro-climatic conditions favour cultivation of temperate to sub-tropical fruits in Himachal Pradesh.
Accordingly, the land use pattern has shifted from agriculture to fruit crops in the past few decades. Area under fruit
cultivation has increased to 220,706 hectares during 2013-14 compared with barely 792 hectares in 1950-51.
Apple remains the major fruit produced, constituting about 85.0 per cent total fruit cultivation.
Vegetables play a notable part in the agriculture sector of Himachal Pradesh.
Area under fruits (in ‘000 hectares) Production of fruits (in ‘000 tonnes)
Source: Himachal Pradesh Economic Survey 2013-14
*Upto December 2013
692 696
369
713
628
382
1,028
373 467
828
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1
201
1-1
2
201
2-1
3
201
3-1
4*
187 192
197 201
205 208 211
215 218
221
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1
201
1-1
2
201
2-1
3
201
3-1
4
Cremica Group
Adani Agrifresh Ltd
Nestle India
Dabur India Ltd
• Cremica Group is a prominent player in food retail and food services industries in India. The
company’s business activities include Cremica Frozen Foods, EBI Foods, Mrs Bector’s
Desserts and Cremica Agro India. The company is commissioning a plant at Tahliwal Industrial
Area, Una, for manufacturing biscuits and Indian snack foods. It is a 100 per cent automated
facility, with a monthly manufacturing capacity of 5,000 tonnes of biscuits.
• Adani Agrifresh, a 100 per cent subsidiary of Adani Enterprises, which had consolidated
revenue of US$ 9.1 billion over 2013-14, has set up three controlled-atmosphere storage units
at Rampur, Sainj and Rohru in Himachal Pradesh, with an investment of US$ 40 million and a
combined capacity of 18,000 metric tonnes of apples per year. The subsidiary is involved in the
procurement, storage and transportation of fresh fruits and vegetables. The company directly
buys fruits from about 4,000 farmers.
• Nestlé has been operating in India for almost a century, with seven production facilities across
the country. The company produces chocolates and confectionaries, prepared dishes and
cooking aids, beverages and milk products and nutrition. It generated revenue of US$ 1.51
billion in 2013. The construction of Nestlé’s factory in Tahliwal, Una, Himachal Pradesh, is
underway.
• Dabur is one of the country’s largest consumer goods companies. It generated revenue of US$
1.2 billion over 2013-14. The company manufactures several products, including honey and
amla, in Baddi.
Himachal Pradesh is one of the fastest-growing regions in
the pharmaceutical industry in India, driven by incentives
announced by the state government in its Industrial Policy,
2004.
Over 300 pharmaceutical companies, including Ranbaxy, Dr
Reddy’s, Morepen and Torrent Pharmaceuticals, have set
up operations in the state.
The Department of Environment, Science & Technology
(DEST), Government of Himachal Pradesh, proposes to
develop a Biotechnology Park (BTP) spread over an area of
about 35 acres at Aduwal in Solan under PPP mode in the
state. The park would have a Biotechnology Incubation
Centre as well as a Biotechnology Industrial Cluster.
Under the state’s Annual Budget 2014-15, the state
government planned to allocate US$ 41.9 million for
development of Ayurveda-based pharmaceutical industries
during FY15.
Some of the key players
• Ranbaxy Laboratories Ltd
• Cipla Ltd
• Dr Reddy's Laboratories Ltd
• Panacea Biotec Ltd
Ranbaxy Laboratories Ltd
Cipla Ltd
Dr Reddy's
Laboratories Ltd (DRL)
Panacea Biotec Ltd
• Ranbaxy is one of the leading pharmaceutical companies in India, with business operations in 43
countries and manufacturing facilities in eight countries. It has a manufacturing facility at Paonta
Sahib, Sirmaur. In 2008, Japanese conglomerate Daiichi Sankyo became the largest shareholder in
Ranbaxy, which is now its global generic arm. In 2013-14, the company’s revenue was around US$
2.1 billion. Ranbaxy now plans to sell its generic drugs in Japan, where only a few generic companies
are present. However, approval from Japanese authorities is currently under process.
• Cipla has one of the largest product portfolios, with over 1,000 products and revenue of around US$
1.7 billion over 2013-14. The company targets to reach revenues of US$ 5 billion by 2020. The
company established a manufacturing facility in Baddi in 2005. The unit manufactures bulk drugs,
tablets and capsules, creams, aerosols/inhalation devices and injections/sterile solutions. Recently,
Cipla’s subsidiary Meditab Holdings Ltd acquired a 14.5 per cent stake in Qualities Chemicals
Industries Limited for US$ 15 million, with holding now increasing to 51.05 per cent.
• Established in 1984, Dr Reddy’s ranks among the top 15 generics players in the world. It is the first
pharmaceutical company in Asia-Pacific (outside Japan) to be listed on the New York Stock
Exchange (NYSE). It is a global pharmaceutical major with presence in over 25 countries. Overseas
business contributed around 87.0 per cent to total revenue (US$ 2.3 billion) over 2013-14. The
company has a presence in therapeutic categories such as anti-infectives, cardio-vascular, diabetes,
dermatology, pain management, nutrition, dental, urological and oncology. Dr Reddy’s has a finished
dosage facility in Baddi.
• Panacea is one of India’s prominent pharmaceutical and biotech companies involved in research,
manufacturing and marketing of pharmaceutical formulations. It generated revenue of US$ 117.8
million over 2013-14. As of March 2013, the company had filed around 1,510 patents, of which 415
have been granted. The company has around 3,300 employees, including around 275 scientists.
Panacea’s pharmaceutical and vaccine formulations facility is located in Baddi, with a production
capacity of 600 million doses per annum. The production is likely to be increased to one billion doses
per annum after the addition of the third line.
The textiles industry in Himachal Pradesh is mainly
focussed on spinning, with companies such as Vardhman
engaged in weaving and dyeing.
Handloom and carpet weaving have developed as small
scale industries.
Low power tariffs in the state are encouraging growth in the
textile industry, with the knitwear industry emerging in
Himachal Pradesh.
Indorama Industries has unveiled plans to expand its
spandex production capacity to 10,000 tonnes per annum
by the end of 2014 compared to the current capacity of
5,000 tonnes.
Himachal Textile Park Ltd, a subsidiary of Jindal Cotex Ltd,
established a Textile Park in the state to provide land and
necessary infrastructure facilities to units set up in the park.
Jindal Medicot Limited and Jindal Specialty Textiles Limited
have already set up their technical textile projects in the
textile park. More units are coming up in the near future to
set up their technical textile projects
Vardhman Textiles Ltd is going to set up two major units,
worth US$ 91.2 million, in Himachal Pradesh through it’s
two subsidiaries Auro Textiles and Mahavir Spining Mills.
Some of the key players
• Vardhman Group
• Winsome Group
• Birla Textile Mills
• Himachal Fibre Ltd
Vardhman Group
Winsome Group
Birla Textile Mills
Himachal Fibre Ltd
• The Group has a turnover of US$ 817.27 million. It has four state-of-the-art spinning facilities in
Baddi, with a combined installed capacity of about 260,160 spindles. The Group’s products
include yarns, fabrics, garments, sewing threads and fibre. Vardhman is among the largest
producers and exporters of yarns and grey woven fabrics, tyre cord yarns and sewing threads.
The Group has also set up a finishing operation in Baddi under the name of Auro Textiles,
which has a production capacity of 50 million metres per annum.
• Winsome Textile Industries Limited, part of the Winsome Group, has a spinning facility in Baddi.
It produces yarns in a variety of shades in melange, package dyed and fibre-dyed yarns. The
company is planning to set up another spinning unit, with a production capacity of 40,800
spindles as well as a circular knitting unit in Himachal Pradesh at an investment of
approximately US$ 43.8 million. It generated a revenue of US$ 83.32 million in 2013-14.
• Division of Chambal Fertilisers and Chemicals Limited is a flagship company of the KK Birla
Group of companies. The company’s Baddi plant has an installed capacity of more than 83,320
spindles.
• Established in 1982, the company manufactures multiple types of yarns such as cotton,
melange, open-end and blended. It has a manufacturing unit in the Barotiwala industrial area,
Solan, and generated revenue of US$ 21.8 million over 2013-14.
The light engineering goods industry in Himachal Pradesh
includes precision engineering components, automotive
components, steel and fabrication units, and cylinder
manufacturing.
Kala Amb in Paonta Sahib has a large number of steel
fabrication mills.
Auto component units are mainly based in Parwanoo (Solan
district). A general and light engineering industrial cluster is
also located in Parwanoo.
International Cars and Motors Limited has a factory in Una.
Chennai-based Rajsriya Automotive Industries, a tier-I
supplier of sheet metal pressed parts, opened a new plant
in Nalagarh in January 2015 in order to be at a location
close to its largest customer - TVS Motor Company.
Some of the key players
• Gabriel India
• International Cars and Motors Ltd
• Blue Star India
• TVS Motor Company
Gabriel India
International Cars and
Motors Ltd
Blue Star India
TVS Motor Company
• Gabriel is a flagship company of Anand Automotive Group; it manufactures ride-control systems
and engine bearings. The company supplies to all three segments of the market: original
equipment, aftermarket and exports. It produces 20 million units per annum.
• In 2007, Gabriel set up a plant in Parwanoo. The plant manufactures shock absorbers for
commercial vehicles and two wheelers, struts for passenger cars and front forks for motor
cycles. It generated a revenue of US$ 213 million 2013-14.
• ICML is a subsidiary of the Sonalika Group. It sells multi-utility vehicles under the Rhino brand.
The company has an installed capacity of 2,000 vehicles per month, a state-of-the-art facility at
Una and a technical collaboration agreement with MG Rover of the UK. The Sonalika Group
intends to invest US$ 219 million in Himachal Pradesh during 2011–14.
• Blue Star is one of India’s largest air conditioning companies. It generated revenue of US$
484.0 million over 2013-14. The company employs 2,785 people in six manufacturing facilities
across the country. In 2005, Blue Star set up a 14,000 sq m manufacturing unit in Kala Amb.
• TVS Motor is one of the largest two-wheeler manufacturers in India. During 2007-08, the
company began operations at its new plant in Nalagarh. It generated revenue of US$ 1.4 billion
over 2013-14 and had around 4,405 employees. The company plans to be debt free by fiscal
year 2015 and plans to incur a capital expenditure of US$ 33.7 million for increasing the
production capacity of its three-wheelers. Earlier in the year, TVS inked a partnership with BMW
to roll out bikes in the 500cc category.
Minerals constitute a fundamental component of the state’s
economic base. Good quality limestone, which is one of the
ingredients in the manufacture of cement, is available in
plenty in the state.
Five cement plants at Barmana, Bilaspur (two units),
Kashlog, district Solan (two units) and Rajban district
Sirmour (one unit) and one major cement plant in Baga-
Bhalag of Solan district are under operation in the state.
Reliance Cement Company was recently granted a
prospecting licence to set up a cement plant.
MoUs have been signed for the establishment of major
cement plants by M/s Harish Cement (Grasim) at
Sundernagar (Mandi district), M/s India Cements Limited at
Gumma-Rohaha (Shimla), and M/s Lafarge India Limited at
Alsindi (Mandi).
The Government of Himachal Pradesh has signed an MoU
with Jaypee Industries to establish a large cement plant at
Broh Shind (Chamba district).
In addition, the state government has granted prospecting
licenses to the companies in order to carry out the detailed
study for proving the deposits, quantity and quality of
limestone and other associated minerals.
Key players
• ACC Ltd
• Ambuja Cements Ltd
• Jaypee Cements
ACC Ltd
Ambuja Cements Ltd
Jaypee Cement
• ACC is one of India’s foremost manufacturers of cement and concrete, with 14 cement factories.
It has a plant, Gagal Cement Works, in Bilaspur. In September 2009, Himachal Pradesh allowed
ACC to generate electricity using waste exhaust from kiln gases, an eco-friendly method.
• Ambuja Cements is among the large cement companies in India, with an annual combined
capacity of 27.35 million tonnes. It has an installed capacity of two million tonnes per annum
(MTPA) in Darlaghat (Solan district). The company inaugurated its third cement plant in
Nalagarh, with a production capacity of 1.5 million tonnes. It also set up a new clinker
production facility, with a production capacity of 2.2 million tonnes, in Rauri in 2010. Recently, in
November 2013, Ambuja Cements announced that it received shareholders’ approval to buy 24
per cent stake in Holcim (India) from Holderind International for US$ 589.4 million.
• Jaypee Cement has an aggregate annual capacity of 28 million tonnes per annum and is
among the largest cement producers in the country. The company has aggressive expansion
plans and is targeting an annual production capacity of 35.9 million tonnes by 2013. Jaypee has
a cement blending unit in Nalagarh, with a production capacity of 2.5 million metric tonnes. In
February 2014, Jaypee Cement Corporation began talks with Ultratech for the sale of its two
units (two MTPA each) in Himachal Pradesh.
Himachal Pradesh’s IT policy and incentives offered to the
IT industry are aimed at promoting the state as an attractive
destination for the industry.
The state has proposed to set up IT parks, and several
incentives are being offered to IT firms.
Software Technology Parks of India (STPI) has established
a centre in Shimla.
During 2010-11, software exports made by registered units
through STPI were worth US$ 0.19 million.
The state has launched a venture capital fund dedicated to
the IT industry, with a corpus of around US$ 4.2 million. It is
funded jointly by Small Industries Development Bank of
India (SIDBI) and other state government agencies.
Information technology has a great scope for employment
generation and revenue earnings in the state. The
government has introduced HIMSWAN, SUGUM, Hospital
Management Information System (HMIS), Common
Services Centres (CSCs), and State Data Centre (SDC),
AGRISNET, e-Procurement, Content Service Provider
(CSP) and e-Samadhan systems to bring efficiency and
transparency in administration through IT and IT-enabled
services.
Some of the key players
• Himachal Futuristic Communication Ltd
• Microtek International
• WeP Peripherals Ltd
• Spice Mobile
Himachal Futuristic
Communications Ltd
(HFCL)
Microtek International
Pvt Ltd
WeP Peripherals Ltd
Spice Mobile
• HFCL is a leading telecom equipment manufacturer, particularly into transmission equipment,
optical-fibre cables, accessories and terminal equipment. It has a manufacturing facility at
Solan. The total employee strength of the company was 973, as of March 2012. The company is
among the first Indian telecommunication companies to have successfully subscribed a Global
Depository Receipts (GDR) issue. The company has participated and executed various national
and international turnkey projects in the fields of satellite & radio communication, CDMA mobile
networks, optical transport networks and spectrum management solutions.
• Microtek International is an IT peripherals and power products company. It has set up a
motherboard manufacturing facility in Parwanoo, with a capacity of 50,000 motherboards per
month.
• Established in 2000, WeP Peripherals (earlier Wipro Peripherals) started manufacturing dot-
matrix printers. It has now diversified into retail solutions, energy solutions and printing
solutions. The company has a state-of-the-art manufacturing facility in Baddi, with a production
capacity of more than 650,000 products per annum.
• Spice Mobile, a subsidiary of the Spice Group, is among the largest mobile handset
manufacturers in India. The company has a manufacturing facility in Baddi, where it began
mobile handset production in March 2010. Spice Mobile accounts for around 4.0-5.0 per cent of
the mobile devices market in India.
Destination No of tourists*
(in million)
Shimla 3.4
Kullu 3.2
Kangra 2.3
Una 1.1
Bilaspur 1.0
Chamba 1.0
Sirmaur 1.0
Solan 0.9
Mandi 0.8
Hamirpur 0.7
Kinnaur 0.5
Lahaul & Spiti 0.4
Tourism is emerging as a big industry in Himachal Pradesh.
The state has a number of beautiful places, rivers, rivulets,
lakes, parks and other centres that attract the tourists.
Tourism is one of the most important sectors for the state
economy in terms of foreign exchange earnings and
creation of employment opportunities
Himachal Pradesh is endowed with topographic diversity,
historical monuments and religious shrines.
As of December 2014, there were 2,953 registered hotels in
the state.
Top tourist
destinations
No of registered hotels
and guest houses
Kullu 613
Shimla 397
Kangra 379
Solan 204
Chamba 145 Source: Ministry of Tourism, Government of India,
Himachal Pradesh Economic Survey 2013-14,
*Tourist arrivals for 2012
The government introduced a home-stay scheme in 2008 that aims at providing clean and comfortable accommodation to
tourists in rural areas in the vicinity of famous tourist destinations where hotels are packed to capacity.
Tourist inflows in the state increased to 16.1 million in 2012 from 11.4 million in 2009, implying a CAGR of 12.2 per cent.
To boost tourism, the state plans to set up a golf course and improve connectivity by increasing the number of helipads.
Sustainable Tourism Policy, 2013 has been formulated for promoting sustainable tourism without damaging the ecology and
environment.
Number of domestic tourists (in millions) Number of foreign tourists (in ‘000s)
Source: Ministry of Tourism, Government of India,
Himachal Pradesh Economic Survey 2013-14
401 454
485 500
2009 2010 2011 2012
11 13
15
16
2009 2010 2011 2012
Livestock is integral to the sustainability of the economy of
Himachal Pradesh.
Farm activities are being supplemented by improvement in
milch cattle through a cross-breeding programme, rabbitry,
pisiculture and floriculture.
The contribution of major livestock products during the year
2012-13 was 1.14 million MT of milk, 1,650 MT of wool,
107.00 million eggs and 3,997 MT of meat, which would
likely be to the order of 1.16 million MT of milk, 1,670 MT of
wool, 110.00 million eggs and 4,000 MT of meat during
2013-14.
Under Animal Health and Disease Control, Himachal
Pradesh had one state level veterinary hospital, seven
polyclinics, 49 sub-divisional veterinary hospitals, 282
veterinary hospitals, 30 central veterinary dispensaries and
1,762 veterinary dispensaries as on 31 December 2013.
Dairy production is an integral part of animal husbandry
and forms part of the earning of small and marginal farmers
in Himachal Pradesh.
Source: Ministry of Tourism, Government of India,
Himachal Pradesh Economic Survey 2013-14
Annual production (in metric tonnes)
2012-13 2013-14
Milk 1.1 million 1.2 million
Wool 1,650 1,670
Eggs 107.0 million 110.0 million
Meat 3,997 4,000
Source: Himachal Pradesh Economic Survey 2013-14
Projects Description
Doodh Ganga Yojna
• Bank Loan of US$ 8,295 for purchase of 10 cows and construction of shed for them including 10 per
cent share of beneficiary.
• Bank Loan of US$ 29,860 for purchase of cold chain milk transportation system and US$ 39,814 for
establishing milk product making units.
Livestock Insurance Scheme
• Cows and buffaloes giving five litres or more milk per day are insured under this scheme.
• Premium of insurance kept at 5.15 per cent for three years and 2.91 per cent for the first year, which
is shared equally by the government and the owner.
National Project on Cattle &
Buffalo Development
• It has been sanctioned on the basis of 100 per cent central assistance. US$ 2.10 billion during the 1st
phase and US$ 3.98 billion during the 2nd phase were released for the state.
• Aims to strengthen liquid nitrogen storage & distribution, sperm stations & banks, training facilities,
etc.
Bhed Palak Samridhi Yojna
• 500 sheep and 25 goats would be given to the beneficiary for breeding units, and an amount of US$
41,473 is the total outlay.
• About 33.3 per cent subsidy of total outlay and maximum of US$ 13,819 would be paid to the
beneficiary. The concerned person will have to pay 25 per cent of the total project cost.
Shepherd Insurance Scheme
• Life Insurance Corporation, Government of India and the shepherd would bear the premium of the
insurance.
• To provide chaff cutter at 75 per cent subsidy.
• To provide a scholarship of US$ 20 per year for two children of the beneficiary studying in classes 9–
12.
Single-Window Clearance Mechanism (SWM) was
established in 2004. It has a two-tier structure.
District Single Window Clearance Committee for
each district in the state is chaired by General
Manager/Member Secretary, with senior-most
officers of departments concerned in the district as
members.
State-level agency with Chief Minister of Himachal
Pradesh as Chairman and various heads of
departments as members.
Approval for proposals with investments of over US$
1.09 million, power requirement of above 1 MW and
industries in the negative list (such as forest-based
and mining); as defined by central and state
governments, are decided by the state-level Single-
Window Clearance Agency.
SWM structure in Himachal Pradesh
State-level Single
Window Clearance
and Monitoring
Authority
Chief Minister of
Himachal Pradesh
GM-DIC/ Member
Secretary
District-level Single
Window Clearance
Agency
Source: Industries Department, Government of Himachal Pradesh
GM: General Manager, DIC: District Industrial Centre
Single-window Clearance and Monitoring Agency: State-level Nodal Agency
Purpose Composition
• Provides first approval to medium and large scale investment
proposals between 30–60 days of submission.
• Projects above US$ 1.09 million, power requirements above
one MW and industries in the negative list (such as forest-
based and mining) as defined by the central and state
governments are approved by the agency.
• The Chief Minister of Himachal Pradesh is Chairman of the
agency; other members include heads of the departments of
town and country planning, labour, electricity, water, director of
industries and industrial adviser.
District Industry Centre (DIC): District-level Committee for Single-window Clearance
Purpose Composition
• Provides sanctions and clearances for setting up small scale
industrial units.
• Convened by the General Manager, DIC or member secretary,
Single-window Clearance and Monitoring Agency.
Source: Industries Department, Government of Himachal Pradesh
MW: Mega-Watt, DIC: District Industrial Centre
Agency Description
Single-Window
Clearance Agency
• Agency for speedy clearance and in-principle approval to large and medium scale
projects.
• Time frame for approval is 30–60 days.
• Since inception in 2004, 60 meetings have been held, and 898 projects, with an
investment of US$ 6.41* billion, have been approved up to March 2012.
Himachal Pradesh State
Small Industries and Export
Corporation
• Supply of raw materials through appropriate depots.
• Supply of machinery on hire-purchase.
• Provision of assistance in export and marketing.
Himachal Pradesh
Financial Corporation
• To provide medium and long-term loans as well as working capital loans to small and
medium scale units under various schemes.
• To provide loans for expansion, modernisation and rehabilitation of existing units.
*US$ 1 = 45.19 (Average rate for 2004-12)
Agency Description
Directorate of
Industries
• Registration of Small Scale Industries (SSI) and recommendation of medium and large scale
industries to the appropriate authority.
• Technical and general consultancy.
• Recommendation for financial assistance to financial institutions/banks for margin money and
loans.
• Industrial infrastructure development.
• Collection and maintenance of data relating to industrial units.
• Allotment of industrial plots, sheds and shops in districts.
• Liaison with and provide feedback to the central and state governments.
• Administration of all incentives to industries given by the central and state governments.
Agency Contact information
Himachal Pradesh Industries Department
Udyog Bhawan
Shimla
Phone: 91-177-2813414
E-mail: [email protected]
Website: http://himachal.nic.in/industry/welcomelat.htm
Himachal Pradesh State Industrial Development
Corporation Limited
New Himrus Bhawan
Circular Road
Shimla
Phone: 91-177-2624751, 2621426
Fax: 91-177-2624278
E-mail: [email protected]
Website: http://www.hpsidc.nic.in
Approvals and clearances required Departments to be consulted
Prior to setting up the unit
Registration District Industry Centre for SSI or Large and Medium Industries
Allotment of land/shed State Department of Industries/Infrastructure Corporation
Permission for land use District Authorities, Department of Town and Country Planning
No Objection Certificate under Water and Air Act Himachal Pradesh State Pollution Control Board
Approval for construction activity and building plan Town and Country Planning Authority
Site environmental approval State Pollution Control Board and Ministry of Environment and
Forests
Provisional trade tax registrations Central and State Excise Departments
Registration under Central Sales Tax Act Central and State Excise Departments
Source: Commissionerate of Industries, Government of Himachal Pradesh
Approvals and clearances required Departments to be consulted
Before commencement of production
No Objection Certificate under Water and Air Act Himachal Pradesh State Pollution Control Board
No Objection Certificate Fire Department and Directorate of Factories and Boilers
Permanent trade tax registration Central and State Excise Departments
Registration under Central Sales Tax Act Central and State Excise Departments
After commencement of production/activity
Registration Department of Industries and respective sector departments
such as Information Technology/Biotechnology, etc.
Source: Commissionerate of Industries, Government of Himachal Pradesh
Parameter Cost estimate
Industrial land (per sq ft) Baddi Industrial Area: US$ 15–50
Other Industrial Areas: US$ 12–35
Office space rent
(per sq ft per month) US 10 cents to US$ 8
Residential rent
(1,600 to 2,500 sq ft house) US$ 250–900 per month*
Hotel costs (per room, per night) US$ 30–210
Power (per kWh) Small and medium industries: US 8.3–8.7 cents
Large industries: US 7.5–8.7 cents
Labour (minimum wage per day) US$ 4.3–6.8
Water (per kl) Domestic: US 16.2 cents
Commercial: US 32.6 cents
Source: Directorate of Industries, Ministry of Labour and Employment, Government of India,
Himachal Pradesh Irrigation and Public Health Department,
Himachal Pradesh State Electricity Board Ltd, Industry sources
*Simla or Kullu Manali, kl: kilolitre
Industrial Policy 2004
• To develop infrastructure with lesser number of regulations and provide speedy clearance of new
projects. Read more
Objective
Tourism Policy 2005
• To make tourism the prime engine of economic growth by positioning the state as a leading
global destination by 2020.
Read more
Objective
IT Policy 2001
• Action plan to harness potential benefits offered by the IT sector.
• To use IT for heralding world class e-tourism in the state.
Read more
Objectives
Hydro Policy
• To focus on capacity addition, energy security, access and availability, affordability, efficiency,
environment and local employment. Read more
Objective
Average for the year, *Average for first three quarters
Year INR equivalent of one US$
2004-05 44.81
2005-06 44.14
2006-07 45.14
2007-08 40.27
2008-09 46.14
2009-10 47.42
2010-11 45.62
2011-12 46.88
2012-13 54.31
2013-14 60.28
2014-15* 60.6
Year INR equivalent of one US$
2005 43.98
2006 45.18
2007 41.34
2008 43.62
2009 48.42
2010 45.72
2011 46.85
2012 53.46
2013 58.44
Q12014 61.58
Q22014 59.74
Q32014 60.53
Exchange rates (Fiscal Year) Exchange rates (Calendar Year)
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