Himachal Pradesh is among the most advanced socio-economic states and has shown promising growth over the years. Over the last decade the strong agro-based economy has shifted towards Industry services. Industrial progress is one of the most important indicators of the economic development of a region. The industrial development, in turn, largely depends, on the large and medium scale industry due to its large employment potential, higher levels of industrial efficiency and ancillary spin off.
At the time of independence, Himachal Pradesh was predominantly an agrarian economy. Almost all other items of common use were imported. During the nineties, the growth rate remained more or less stable. The decade showed an average annual growth rate of 5.7 percent, which is at par with the national level. The pace of industrial development has picked up after the Grant of special package of incentive by Central govt. for setting up of Industries in the State which was notified on 07.01.2003 together with the package of incentives provided by the State Govt. in the industrial policy & incentive. This has resulted in high investment in both MSEs and Medium & Large Scale sector in the State. Types of Industeries in Himachal are product based. These are :
Agriculture based :
( a) Raw material based :
Agriculture is the mainstay of Himachal Pradesh’s economy. About 81.5% of the total cultivated area in the state is rainfed. Rice Wheat and Maize are important cereal crops of t Agriculture and its allied activities is the main source of income of the state of Himachal Pradesh as it contributes around 15 % of the total GSDP and it provides direct employment to 68.44% of the total workers of the state. Agriculture Production in the state is largely dependent on timely rainfall, as is evident from the above table that production of total food crop which was 1469.66 thousand tones in the year 2007-08 has decreased to 1111.16 thousand tones in the year 2009-10. The reason for the decrease in production is shifting of cultivation from principal food crops to cash crops like fruits and vegetables by the farmers in the subsequent years. The production of vegetables which was 25 thousand tones in the year 1951-52 has increased to the extent of 1580.923 thousand tones in the year 2012-13. The production of other cash crops such as potato and ginger has increased to some extent, yet the state has not achieved self –sufficiency in both food and non food crops. It is observed that the State has some quantity of maize surplus which could be put to industrial use such as manufacturing of cattle feed. Poultry feed cornflakes etc. Considerable quantity of potatoes and some quantity of ginger and tomatoes are also surplus in the state and are sent to other States. These can also be used to produce potato chips, dry ginger, ginger powder, tomato sauces etc.
( b ) Processed Products :
Agriculture based industry located in all over the state. Bread based industry mostly located in Una, Hamirpur, Solan area. Biscuit , Bakery products, milk based products like Ghee, Butter, Paneer,Milk Shakes, Curd etc. are processed at large level in these areas to supply in state. H.P. Milkfed is implementing dairy development activities in the state. Ginger and many usefull spices in the form of paste so that the time can be saved in cooking food.
Horticulture Based :
During 2011-12 total area under fruits was 2,14,574 hectares, Apple, Mango, Plum, Pear, Peach, Apricot, Almond, Walnut, Orange, K-lime, Litichi, Guava and Aonala are popular fruits grown in the State. Production of fruits was 5,40,775 tonnes during the same period. A small quantity of fruits is processed in Himachal Pradesh and a major portion is sold afresh. The following table gives an account of production and area under different fruits in the State.
Himachal Pradesh has rich diversity of agro-climatic condition varying from sub-tropical to humid temperate and cold deserts. The topographical variations and altitudinal differences coupled with fertile, deep and well drained soil favors the cultivation of temperate to sub- tropical fruits. Thanks to the scientific cultivation of fruits as a result the production of all types of fruits which was 342.30 tones during the year 1991-92 have touched a figure of 5,40,775 tones in the year 2011-12. Apple is the main fruit crop of the state which constitutes more than 76% of the total fruit production and around 48% of the total fruit area.
In Himachal Pradesh farmers are selling their products not only in Mandi but directly to companies to for further processing. Such as apple juice, apple wine, mixed fruit juice, etc. Himachal government has established HPMC ( Horticulture Produce Marketing & Processing Corporation ) Solan .
Mohan makin is the global name in the making of liquor. Mohan Meakin is a large group of companies started with Asia's first brewery incorporated in 1855 (but established much earlier) by Edward Dyer at Kasauli in the Himalayan Mountains in India under the name Dyer but now named as Mohan Mekin at Solan. Jam, jelly, Murabba, pickles,packaging are small scale industeries in the state mostly run by women as self help groups.
Forest based Induteries :
The national average of area under forest is 19.4%. The main forest produce in Himahcal Pradesh is Deodar, Kail, Chil, fir/spruce, Sal, Ban Oak, Mohru, Kharsy-oak, Mapple, Hrsechestnut & Walnut.
These forests contribute to the State economy by way of providing timber, fuel, Ayurvedic medicine, herbs, resins, fodder etc. The said forest produce also act as resource to set up industries in the State. Based on these resources a considerable number of units have been set up in the state. There is still huge scope to utilize the forest waste which is available in the form of Deodar, Kail, Chil, fir/spruce, Sal, Ban Oak, Mohru, Kharsy-oak, Mapple, Hrsechestnut, Walnut, Bird-cherry & other Species etc.
Baskets made up of Bamboo , chairs, mats, crafts like ear rings made up of local colour and flowersby tribals are also on demand by tourist and locals.
Poultary based :
Poultry development provides employment both in rural as well as in urban areas, and supplies nutritive food to the consumer in the form of meat, eggs and manure for use in the field. Poultry farming have quick returns from the investment and well-distributed turnover throughout the year. It has helped the establishment of poultry as an industry in the State. The total poultry population in the St ate of Himachal Pradesh as per 2007 census has been approximately 809546.
Now 75 percent subsidy will be given to people on the poultry farm. Under the National Livestock Mission, subsidy on poultry will be given. There is a provision of subsidy for general BPL and SC BPL.
In the state, there was a budget of Rs 53,47,550 for poultry farming. For the first time such subsidy is being given on poultry. The department also manipulated the allocation process of the chicks.
Mineral based :
Himachal Pradesh is blessed with mineral wealth. As per Geological survey of India, there are deposits of Lime stone, iron ore, rock salt, slate, gypsum antimony and lead etc in the state. The distribution of these minerals is scattered all over the state and includes lime stone in Bilaspur , Sirmour and Kangra districts; salt and slates in Mandi district; gypsum in Sirmour and Lahaul &Spiti Districts: barite in Sirmaur. In addition to its deposits of natural gas, petroleum and uranium are also expected in some parts of the state. But so far there is no comprehensive survey of their exact location and quantum of deposits except for very few minerals. Natural gas sources in Naina Devi , Bilaspur, Jwalji, Kangra has been found.
Cement Plants : Major plants in State are Ambuja in Darlaghat, ACC cement factory in Barmana, Cement factory at Rajban, Sirmaur and Jaypee cement plant in Solan.
Mandi distt. Of Himachal Pradesh is the only so far known source of rock salt in India, locally called Lokhan, indicates its presence. It is being mined in Gumma and Darrang areas. Steps are being taken to increase the output.
Fisheries based :
There is a great potential of pissi culture in the State. Fishery resources of Himachal Pradesh comprise rivers, small water reservoirs and lakes. In addition, there are village ponds which can be made suitable for fish culture after some renovation and water supply arrangements. Farmers have also started construction of fish tanks on farmland as a measure of diversification from agricultural practices in favour of fish farming because they find it more lucrative. The following table gives an account of development of fisheries in the State of Himachal Pradesh. The future of fisheries development appears to be bright in Himachal Pradesh.
The major streams include Beas, Setluj, Ravi, Tirthan, Sainj, Uhl, Baspa, Pabar, Lambadug, Giri, Rana, Nugal, Baner & Bata etc.. The major fish available in these streams are Trout, Mahseer, Namacheilus, Schizothoracids & Glyptothorax etc. The main reservoir resources such as Govind Sagar, Pong dam & Chamera are also good source of commercial fish production. The Reservoir of Govind Sagar dam has the highest fish production per hectares. Effort are being made by the department of fisheries to increase the production of fish through its fish breeding farms spread over the different parts of the state ie. Katrain and Nagini in Kullu , Barot in mandi, Holi in Chamba and Sangla in Kinnaur district where Trout fish is being reared. Besides this general water Carp farms are located at Deoli in Bilaspur, Alsu in mandi, Kangra and Sultanpur in Chamba.
Sericulture based :
Sericulture is emerging as one of the important cottage industry in the state. This is providing subsidiary employment to the farmers and also supplementing their income by way of rearing silkworms for production of silk cocoons. In the State seven Sericulture divisions viz. Ghumarwin, Mandi, Palampur, Dehra, Nadaun, Dhaulkuan, Shimla under which 72 sericulture centre, 85 departmental mulberry farms and 28 mulberry nurseries .
Tourism based :
Tourism in HP has been recognized as one of the most important sectors of the economy. It is being realized as a major engine of growth for future. Himachal Pradesh is endowed with all the basic resources necessary for thriving tourism activity, geographical and cultural diversity, clean monuments and the friendly and hospitable people. Tourism Industry in Himachal Pradesh has been given very high priority and the Govt. has developed an appropriate infrastructure for its development which includes provision of public utility services, roads, communication, network, airport, transport, facilities of water supply and civic amenities etc.
The department has a proposal for setting up of seven ropeways in Bhuntar to Bijli Mahadev (Kullu), Palchan to Rohtang (Manali), Neugal (Palampur), Shahtalai to Deotsidh (Bilaspur), Khayara to Triund (Kangra), Anadpur Sahib to Naina Devi (Bilaspur) & Jai to Adi Himani Chamunda (Kangra) location in the State under PPP mode on Build, Operate & Transfer basis. Besides, the department of tourism is providing training in various adventure sports like water sports, paragliding, river rafting, tracking guide etc. to the unemployed youths. es are functioning.
Energy based :
Energy is a vital input for fuelling the speedy economic growth. Renewable and non-renewable sources of energy are the two constituents of total energy. Renewable sources of energy include hydropower, fuel wood, biogas, solar, wind, geo-thermal and tidal power. Non-renewable sources of energy include coal, oil and gas. Coalmines and oil wells are not available in Himachal Pradesh.
Himachal Pradesh has been blessed with vast hydroelectric potential in its five river basins, namely Yamuna, Satluj, Beas, Ravi and Chenab and through preliminary hydrological, topographical and geological investigations, it has been estimated that about 23,000 MW of hydel power can be generated in the state by constructing various major, medium, small and mini/micro hydel projects on the five river basin. Out of this hydel potential only 8368 MW has been harnessed by various agencies which also includes 473 MW by H.P.S.E.B. The State Govt. has adopted multi pronged strategy for power development through State Sector, Central Sector, Joint Venture and Independent Power Producers. With the completion of ongoing power projects such as Karcham-Wangtoo, Koldam , Rampur and many other hydel projects, the state would not only be able to feed the rising demand of the industrial sector of the state but would also be able to meet the requirement of the northern region of the country. Out of the total electricity consumed during the year 2012-13, around 61% was consumed by the industrial sector which is increasing year after year due to the increase in industrialization in the state.
Electronics and IT and Pharmaceutical based induteries :
Electronics based industries are mainly concentrated in Baddi, Amb and Sirmaur areas.Solan, Baddi area is the hub of television production, Amb is famous for motor vehicles spare parts production. Registered in 2009, Navrich Electronics (P) Ltd. has gained immense expertise in supplying & trading of Solid stabilizers, inverters etc., Salzer in Electrical Installation Products, coupled with dependability and excellence in service to the Indian Industry in Una are some leading companies.
Baddi indutrial area is known as hub of pharmaceutical industeries. Baddi is home to multiple pharmaceutical companies which have established manufacturing plants and R&D hubs in the town. The town is Asia's biggest Pharmaceuticals hub and is home to some of the largest pharmaceutical companies such as Cipla, Dabur India, Colgate Cadila Healthcare, Abbott Laboratories, Ranbaxy Laboratories, etc.
In order to develop industrialization, a number of new policies were adopted by the state government like providing various incentives such as cheaper power, twenty five percent subsidy besides easier credit facilities through the State Finance Corporation and the nationalised banks for establishing new industries. Also, land was made available on 99 years low rate lease basis and new industries were exempted from sales or purchase tax. Concessions were also given on charges for transportation of raw materials from the nearest railhead outside the state beside provision of other marginal benefits. These concessions helped the state in establishing industrial houses.
The Government of Himachal Pradesh has formulated its policies with an objective to improve the industrial sector in the state. It has initiated many welfare programmes to improve the economic well being of its people. The state provides special package of incentives to the investors and ranks highest on the incentives index. The state enjoys a healthy investment climate with the presence of several domestic and multinational corporations. The state attracted an investment of US$ 1.1 billion approximately, in 2003-04.