Sectoral distribution of Gross State Domestic Product (GSDP ) of Himachal
Introduction :
The State of Himachal is becoming a vibrant economy of the country due to the steady efforts of the simple and hardworking people of the State and progressive policies of the Central and state Government. Today Himachal could become the most prosperous and fastest growing economy in the country. The economy of the State is expected to achieve a growth rate 6.3 percent in the current financial year.
Overall overview of state GDP :
The Gross Domestic Product (GDP) at constant prices, with new Base year i.e. 2011-12, in 2016-17 is estimated at `121.96 lakh crore as against `113.86 lakh crore in 2015-16. At current prices Gross Domestic Product in 2016-17 is estimated at `152.54 lakh crore as against `137.64 lakh crore in 2015-16 shows an increase of 10.8 percent during the year. The Gross Value Added (GVA) at basic prices witnessed a growth of 7.1 percent during 2016-17 (Base 2011-12) against the growth rate of 8.2 percent during the previous year. The growth rate in Gross Value Added during 2016-17 has been lower than that in 2015-16 due to the lower growth in manufacturing (7.9%), construction (1.3%), transport, storage, communication & services releated to broadcasting (4.3%), trade, repair, hotel and restaurants(8.9%), financial services (1.3%) and real estate, ownership of dwelling & professional services (8.0%)
The per capita income at current prices is estimated at `1,03,870 in 2016-17 as against `94,731 for the previous year recording an increase of 9.6 percent. The per capita income in real terms i.e at 2011-12 prices, is estimated at `82,229 for 2016- 17 as against `77,826 in 2015-16 registering an increase of 5.7 percent.
The inflation management is the key priority. The inflation rate, year–on-year, as measured by the Wholesale Price Index (WPI), remained below 3 percent in the most part of the current financial year 2017-18 (AprilDec.). The inflation rate in terms of Whole Sale Price Index was 3.6 percent in the month of December, 2017 against 2.1 percent in the month of December,2016. The All India Consumer Price Index Number for Industrial workers was 4.0 percent in December,2017 as against 2.2 percent in December, 2016.
The State Gross Domestic Product (GSDP) at factor cost at current prices, is estimated at `1, 24,236 crore in 2016-17 as against `1,13,355 crore in 2015-16 showing an increase of 9.6 percent during the year. At constant (2011-12) prices in 2016-17 is estimated at `1,02,954 crore as against `96,274 crore in 2015-16 registering a growth of 6.9 percent during the year as against the growth rate of 8.1 percent during the previous year. The increase in total State Domestic Product is mainly attributed to 18.1 percent in community & personal services sectors, 8.2 percent increase in transport and trade, 7.1 percent in manufacturing sector, 5.8 percent in finance & real estate, 5.4 percent in construction and 2.9 percent increase in electricity, gas & water supply. Whereas the Primary sector has shown a marginal decrease of 0.7 percent. Food-grains production, which was 16.34 lakh MT during 2015-16 has increased to 17.45 lakh MT during 2016-17 and is targeted at 16.45 lakh MT in 2017-18. The fruit production has 8.1 6.9 6.3 2015-16 2016-17 2017-18 Growth Rate Percent Year decreased by 34.1 percent i.e from 9.29 lakh MT in 2015-16 to 6.12 lakh MT in 2016-17 and during 2017-18 (up to December, 2017) production was 5.00 lakh MT. 1.10 The per capita income at current prices witnessed an increase of 9.1 percent as it increased to `1,46,294 in 2016-17 from `1,34,089 in 2015-16.
The economy has shown a shift from agriculture sector to industries and services as the percentage contribution of agriculture and allied sectors in total State Domestic Product has declined from 57.9 percent in 1950-51 to 55.5 percent in 1967-68, 26.5 percent in 1990-91 and to 9.7 percent in 2016-17.
Key Sectors:
Agriculture :
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. 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 The yield for food grains is estimated at 2.09 metric tonnes in 2017-18. Whereas the Primary sector has shown a marginal decrease of 0.7 percent. Food-grains production, which was 16.34 lakh MT during 2015-16 has increased to 17.45 lakh MT during 2016-17 and is targeted at 16.45 lakh MT in 2017-18.
Horticulture :
The State has made significant progress in the development of horticulture. The topographical variations and altitudinal differences coupled with fertile, deep and well drained soils favour the cultivation of temperate to sub-tropical fruits. The region is also suitable for cultivation of ancillary horticultural produce like flowers, mushroom, honey and hops. 1.16 During the year 2017-18 up to December, 2017, 5.00 lakh tonnes of fruits were produced in the state and 5 it is envisaged to bring 3,000 hectares of additional area under fruit plants against which 2,552 hectares of area has already been brought under plantation and 6.69 lakh fruit plants of different species were distributed up to December, 2017. Growing of off-season vegetables has also picked up in the state. During the year 2016-17, 16.54 lakh tonnes of vegetables were produced as against 16.09 lakh tonnes in 2015-16 recorded a growth rate of 2.8 percent. It is anticipated that the production of vegetables will be of the order of 15.40 lakh tonnes in 2017-18.
Tourism :
Tourism is a major engine of economic growth, an important source of revenue earnings and a generator of employment of diverse kinds. The State Govt. has also developed appropriate infrastructure for its development which includes provision of public utility services, roads, communication network, airports, transport facilities, water supply and civic amenities etc. As a result of high profile media thrust, a significant rise has been noticed in the domestic as well as foreign tourist .
Industry and service sector :
Himachal Pradesh has made significant achievements in the field of industrialization in the past few years. Recently many initiatives have been taken by Government to facilitate investment in the State. Status of Industrialization as on 31.12.2017, there were 45,597 units working in the State. Out of these 138 Industrial Units are Large and 484 are Medium Scale Units.
• 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. Drug formulations and biologicals’ exports from the state reached US$ 702.87 million in FY18.
• The increase in GSDP is mainly attributed to,18.1 % in community and personal services sectors and 8.2per cent increae in transport sector and trade
Hydro power :
Hydro Power development is the key engine to the economic growth of the State of Himachal Pradesh, as it makes a direct and significant contribution to economy in terms of revenue generation, employment opportunities and enhancing the quality of life. The Hydro Power Sector in Himachal Pradesh strongly emphasizes the economic dimensions by way of environmentally and socially sustainable Hydropower Development in the State in line with the objective of Government of Himachal Pradesh to promote inclusive green growth and sustainable development of the State through climate change related with transformative actions across the key engines of economic growth of the State. Contribution of electricity to state GDP in the current financial year is 2.9 %.
Public Finace :
Financial resources through direct and indirect taxes, non-tax revenue, share of central taxes and grants-in-aid from Central Govt. to meet the expenditure on administration and developmental activities. According to the budget estimates for the year 2017-18 Budget Estimates (BE) the total revenue receipts were estimated at `27,714 crore as against `26,677 crore in 2016-17 Revised Estimates (RE). The revenue receipts increased by 3.88 percent in 2017-18 over 2016-17. 2.21 The state?s own taxes were estimated at ` 7,946 crore in 2017-18(BE) as against `7,217crore in 2016-17(RE) and `6,699 crore in 2015-16(A). The state?s own taxes was estimated 10.10 percent more in 2017-18 (BE) as against 2016-17 (RE) .
Himachal Pradesh Economy has been rapidly transformed from one of the most backward in the country to one of most advanced, ranking fourth in respect of per capita income. The economy of Himachal Pradesh is developed in all aspects, from its self-sufficient agriculture to the infrastructure built for its industrial development, along with the horticulture, transport, forest, and hydel resources.