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== Economy == {{Main|Economy of Himachal Pradesh}} {| class="wikitable" style="float: right; width: 300px; margin: 0 0 1em 1em;" |+ {{plain list|'''Gross State Domestic Product at Current Prices''' *figures in crores of [[Indian rupee]]s}} |- ! Year ! Gross State Domestic Product |- | 1980 | 794 |- | 1985 | 1,372 |- | 1990 | 2,815 |- | 1995 | 6,698 |- | 2000 | 13,590 |- | 2005 | 23,024 |- | 2006 | 25,435 |- |2010 |57,452 |- |2013 |82,585 |- |2014 |92,589 |- |2015 |101,108 |- |2016 |110,511<ref name="growth ToI" /> |- |2017 |124,570<ref name="HPG" /> |- |2018 |135,914<ref name="HPG1" /> |- |2021 |172,174 |} Planning in Himachal Pradesh started in 1951 along with the rest of India with the implementation of the first [[Five-year plans of India|five-year plan]]. The First Plan allocated {{INR}}52.7 million to Himachal Pradesh.<ref>{{cite web |url=http://hpplanning.nic.in/An%20Overview%20of%20Planning%20in%20Himachal%20Pradesh.pdf |pages=31β40 |publisher=Planning Department, Himachal Pradesh |title=An Overview of Planning in Himachal Pradesh |access-date=16 April 2018|archive-url=https://web.archive.org/web/20150501015629/http://hpplanning.nic.in/An%20Overview%20of%20Planning%20in%20Himachal%20Pradesh.pdf|archive-date=1 May 2015|url-status=live}}</ref> More than 50% of this expenditure was incurred on transport and communication; while the power sector got a share of just 4.6%, though it had steadily increased to 7% by the Third Plan.<ref name="PLA">{{cite web |url=http://planningcommission.nic.in/plans/stateplan/sdr_hp/sdr_hpch1.pdf |page=14 |title=Himachal Pradesh: A Profile, Economic Development|access-date=16 April 2018 |publisher=[[Planning Commission (India)]]|archive-url=https://web.archive.org/web/20171026162818/http://planningcommission.nic.in/plans/stateplan/sdr_hp/sdr_hpch1.pdf|archive-date=26 October 2017|url-status=live}}</ref> Expenditure on agriculture and allied activities increased from 14.4% in the First Plan to 32% in the Third Plan, showing a progressive decline afterwards from 24% in the Fourth Plan to less than 10% in the Tenth Plan.<ref name="PLA" /> Expenditure on energy sector was 24.2% of the total in the Tenth Plan.<ref name="PLA" /> [[File:Shimla Mall.jpg|left|thumb|The Mall Road is the central business district of Shimla, Himachal Pradesh's capital city.]] The total GDP for 2005β06 was estimated at {{INR}}254 billion as against {{INR}}230 billion in the year 2004β05, showing an increase of 10.5%.<ref name="ecogdp">{{cite web |url=http://www.tribuneindia.com/2007/20070306/himachal.htm#6 |title=Current GDP |access-date=23 May 2007 |publisher=H. K. Dua, The Tribune House |archive-url=https://web.archive.org/web/20070613003632/http://www.tribuneindia.com/2007/20070306/himachal.htm#6 |archive-date=13 June 2007 |url-status=live }}</ref> The GDP for fiscal 2015β16 was estimated at {{INR}}1.110 trillion,<ref name="growth ToI"/> which increased to {{INR}}1.247 trillion in 2016β17, recording growth of 6.8%.<ref name="HPG">{{cite web |url=https://timesofindia.indiatimes.com/city/shimla/growth-rate-for-hp-estimated-at-6-8/articleshow/57583673.cms |title=Growth rate for Himachal Pradesh estimated at 6.8% |work=[[The Times of India]]|access-date=7 February 2018 |date=11 March 2017|archive-url=https://web.archive.org/web/20180711125749/https://timesofindia.indiatimes.com/city/shimla/growth-rate-for-hp-estimated-at-6-8/articleshow/57583673.cms|archive-date=11 July 2018|url-status=live}}</ref> The per capita income increased from {{INR}}130,067 in 2015β16 to {{INR}}147,277 in 2016β17.<ref name="growth ToI" /><ref name="HPG" /> The state government's advance estimates for fiscal 2017β18 stated the total GDP and per capita income as {{INR}}1.359 trillion and {{INR}}158,462, respectively.<ref name="HPG1">{{cite web |url=http://admis.hp.nic.in/budget/Aspx/Anonymous/pdf/FS_Eng_2018.pdf |title=Final English Budget Speech for 2018β19 |work=Finance Department, [[Government of Himachal Pradesh]]|access-date=16 April 2018 |page=7|archive-url=https://web.archive.org/web/20180416200450/http://admis.hp.nic.in/budget/Aspx/Anonymous/pdf/FS_Eng_2018.pdf |archive-date=16 April 2018|url-status=dead}}</ref> As of 2018, Himachal is the [[List of Indian states and union territories by GDP|22nd-largest state economy]] in India with {{INRConvert|1.52|lc}} in [[gross domestic product]] and has the 13th-highest per capita income ({{INRConvert|160|k}}) among [[List of Indian states and union territories by GDP per capita|the states and union territories of India]].<ref name="MOSPI">{{cite web |url=http://www.mospi.gov.in/sites/default/files/press_releases_statements/StatewiseDomesticProduct_3aug18.xls |title=MOSPI Gross State Domestic Product |date=3 August 2018 |website=Ministry of Statistics and Programme Implementation|archive-url=https://web.archive.org/web/20180818150754/http://www.mospi.gov.in/sites/default/files/press_releases_statements/StatewiseDomesticProduct_3aug18.xls|archive-date=18 August 2018|url-status=dead |access-date=29 December 2018}}</ref> Himachal Pradesh also ranks as the second-best performing state in the country on human development indicators after [[Kerala]].<ref name="HPHDI">{{Cite news |url=http://www.livemint.com/Politics/3KhGMVXGxXcGYBRMsmDCFO/Why-Kerala-is-like-Maldives-and-Uttar-Pradesh-Pakistan.html |title=Why Kerala is like Maldives and Uttar Pradesh, Pakistan |date=17 December 2015 |access-date=2 May 2017 |newspaper=[[Mint (newspaper)|Live Mint]] |last=Kundu |first=Tadit |archive-url=https://web.archive.org/web/20170510115727/http://www.livemint.com/Politics/3KhGMVXGxXcGYBRMsmDCFO/Why-Kerala-is-like-Maldives-and-Uttar-Pradesh-Pakistan.html |archive-date=10 May 2017 |url-status=live }}</ref> One of the Indian government's key initiatives to tackle unemployment is the National Rural Employment Guarantee Act (NREGA). The participation of women in the NREGA has been observed to vary across different regions of the nation. As of the year 2009β2010, Himachal Pradesh joined the category of high female participation, recording a 46% share of NREGS (National Rural Employment Guarantee Scheme) workdays for women. This was a drastic increase from the 13% that was recorded in 2006β2007.<ref name="Sudarshan.2011">{{Cite journal |last=Sudarshan.M |first=Ratna |date=January 2011 |title=India's National Rural Employment Guarantee Act: women's participation and impacts in Himachal Pradesh, Kerala and Rajasthan |journal=Center for Social Protection Report |volume=6}}</ref> === Agriculture === [[File:Terrace Farming (2877646816).jpg|left|thumb|Terrace farming is the most common form of agricultural practice in the state.]] [[Agriculture in Himachal Pradesh|Agriculture]] accounts for 9.4% of the net state domestic product.<ref name="admis.hp.nic.in">{{cite web |url=http://admis.hp.nic.in/himachal/economics/pdfs/EconomicSurveyEng2016_17_A1b.pdf |title=Economic Survey: 2016β17 |publisher=Official Website of Irrigation and Public Health Department, Himachal Pradesh |access-date=16 April 2018 |archive-url=https://web.archive.org/web/20180219220449/http://admis.hp.nic.in/himachal/economics/pdfs/EconomicSurveyEng2016_17_A1b.pdf |archive-date=19 February 2018 |url-status=dead}}</ref> It is the main source of income and employment in Himachal. About 90% of the population in Himachal depends directly upon agriculture, which provides direct employment to 62% of total workers of state.<ref name="admis.hp.nic.in" /> The main cereals grown include [[wheat]], [[maize]], [[rice]] and [[barley]] with major cropping systems being maize-wheat, rice-wheat and maize-potato-wheat.<ref name="HPCrop">{{cite journal |first1=H. R. |last1=Sharma |title=Crop Diversification in Himachal Pradesh: Patterns, Determinants and Challenges |journal=Indian Journal of Agricultural Economics |volume=66 |issue=1 |year=2011 |pages=97β114 |url=https://ageconsearch.umn.edu/record/204738/files/11-H.%20R%20Sharma.pdf}}</ref><ref>{{cite web |url=http://www.icar.org.in/files/state-specific/chapter/57.htm |title=State specific files, Chapter 57: Himachal Pradesh |website=[[Indian Council of Agricultural Research]]|access-date=16 April 2018 |archive-url=https://web.archive.org/web/20180401170941/http://www.icar.org.in/files/state-specific/chapter/57.htm |archive-date=1 April 2018|url-status=live}}</ref> [[Pulses]], [[fruits]], [[vegetables]] and [[oilseeds]] are among the other crops grown in the state.<ref name="HPCrop" /> Centuries-old traditional [[Kuhl irrigation (Himachal Pradesh)|Kuhl irrigation]] system is prevalent in the [[Kangra Valley|Kangra valley]],<ref>{{cite web |title=Irrigation in Kangra valley: no longer kuhl |last=Pinto |first=Aditi |date=13 May 2019 |url=https://ruralindiaonline.org/en/articles/irrigation-in-kangra-valley-no-longer-kuhl |publisher=People's Archive of Rural India |access-date=4 May 2023 |archive-date=28 April 2023 |archive-url=https://web.archive.org/web/20230428232756/https://ruralindiaonline.org/en/articles/irrigation-in-kangra-valley-no-longer-kuhl/ |url-status=live }}</ref> though in recent years these Kuhls have come under threat from hydroprojects on small streams in the valley.<ref>{{cite web |date=7 May 2018 |title=HP 'Kulhs' bear the brunt of small hydro projects |url=https://www.thestatesman.com/cities/hp-kulhs-bear-brunt-small-hydro-projects-1502632613.html |access-date=27 July 2020 |website=The Statesman |language=en-US |archive-date=27 July 2020 |archive-url=https://web.archive.org/web/20200727191853/https://www.thestatesman.com/cities/hp-kulhs-bear-brunt-small-hydro-projects-1502632613.html |url-status=live }}</ref> Land husbandry initiatives such as the [[Mid-Himalayan Watershed Development Project]], which includes the Himachal Pradesh Reforestation Project (HPRP), the world's largest clean development mechanism (CDM) undertaking, have improved agricultural yields and productivity, and raised rural household incomes.<ref name=WB20120927>{{cite web |url=http://www.worldbank.org/en/news/2012/09/27/37-million-additional-financing-himachal-pradesh-mid-himalayan-watershed-development-project-india-18000-farmer-households-benefit |title=$37 Million Additional Financing for Himachal Pradesh Mid Himalayan Watershed Development Project, India β 18000 Farmer Households to Benefit |publisher=Worldbank.org |date=27 September 2012 |access-date=7 February 2014 |archive-url=https://web.archive.org/web/20121111021816/http://www.worldbank.org/en/news/2012/09/27/37-million-additional-financing-himachal-pradesh-mid-himalayan-watershed-development-project-india-18000-farmer-households-benefit |archive-date=11 November 2012 |url-status=live}}</ref> [[File:Kullu Valley, Vashisht, Manali, Apples, India.jpg|thumb|left|[[Apple]]s at an orchard in [[Vashisht, Himachal Pradesh|Vashisht]]; the state is the second-largest producer of apples in India]] [[Apple]] is the principal cash crop of the state grown principally in the districts of Shimla, Kinnaur, Kullu, Mandi, Chamba and some parts of Sirmaur and Lahaul-Spiti with an average annual production of five [[lakh]] tonnes and per hectare production of 8 to 10 tonnes.<ref name="APP">{{cite news |url=http://www.thehindu.com/news/national/other-states/apple-season-begins-in-himachal-pradesh/article7493082.ece |title=Apple season begins in Himachal Pradesh |newspaper=[[The Hindu]] |author=Kanwar Yogendra|access-date=1 June 2016 |date=3 August 2015 |archive-url=https://web.archive.org/web/20161127183750/http://www.thehindu.com/news/national/other-states/apple-season-begins-in-himachal-pradesh/article7493082.ece|archive-date=27 November 2016|url-status=live}}</ref> The apple cultivation constitute 49 per cent of the total area under fruit crops and 85% of total fruit production in the state with an estimated economy of {{INR}}3500 [[crore]].<ref name="APP" /> Apples from Himachal are exported to other [[Indian states and territories|Indian states]] and even other countries.<ref>{{cite web |url=http://nhb.gov.in/report_files/apple/APPLE.htm |title=APPLE |publisher=National Horticulture Board|access-date=1 June 2016|archive-url=https://web.archive.org/web/20151105042259/http://nhb.gov.in/report_files/apple/APPLE.htm|archive-date=5 November 2015|url-status=live}}</ref><ref name="Apple">{{cite web |url=http://www.businesstoday.in/sectors/agriculture/himachal-pradesh-exports-over-3-crore-apple-boxes-to-markets-across-country/story/224999.html |title=Himachal Pradesh headed for good Apple crop this year |date=19 October 2015|access-date=1 June 2016 |work=[[Business Today (business magazine)|Business Today]]|archive-url=https://web.archive.org/web/20160629131817/http://www.businesstoday.in/sectors/agriculture/himachal-pradesh-exports-over-3-crore-apple-boxes-to-markets-across-country/story/224999.html|archive-date=29 June 2016|url-status=live}}</ref> In 2011β12, the total area under apple cultivation was 104,000 hectares, increased from 90,347 hectares in 2000β01.<ref name="Apple" /> According to the provisional estimates of [[Ministry of Agriculture & Farmers Welfare]], the annual apple production in Himachal for fiscal 2015β16 stood at 753,000 tonnes, making it India's second-largest apple-producing state after [[Jammu and Kashmir (union territory)|Jammu and Kashmir]].<ref>{{cite web |url=http://pib.nic.in/newsite/PrintRelease.aspx?relid=148013 |publisher=[[Press Information Bureau]] |title=Production of Apple Increases by About 36% in 2015β16|access-date=23 April 2018 |date=29 July 2016|archive-url=https://web.archive.org/web/20180424071527/http://pib.nic.in/newsite/PrintRelease.aspx?relid=148013|archive-date=24 April 2018|url-status=live}}</ref> The state is also among the leading producers of other fruits such as [[apricots]], [[cherries]], [[peaches]], [[pears]], [[plums]] and [[strawberries]] in India. [[File:Tea Gardens Dharamshala.jpg|thumb|Tea gardens in Dharamsala]] [[Kangra tea]] is grown in the Kangra valley. Tea plantation began in 1849, and production peaked in the late 19th century with the tea becoming popular across the globe.<ref>{{Cite news |url=http://www.thehindu.com/todays-paper/tp-features/tp-youngworld/tea-the-kangra-way/article6120742.ece |title=Tea, the Kangra way |date=17 June 2014 |newspaper=The Hindu |language=en-IN |issn=0971-751X |access-date=4 May 2023 |archive-date=15 April 2022 |archive-url=https://web.archive.org/web/20220415170613/https://www.thehindu.com/todays-paper/tp-features/tp-youngworld/tea-the-kangra-way/article6120742.ece |url-status=live }}</ref> Production dipped sharply after the [[1905 Kangra earthquake]] and continues to decline.<ref>{{cite news |url=https://indianexpress.com/elections/plantations-in-himachal-pradesh-palampur-a-tea-thats-not-on-the-menu-of-any-political-party-5732238 |title=Plantations in Himachal Pradesh's Palampur: A tea that's not on the menu of any political party |date=18 May 2019 |newspaper=Indian Express |language=en-IN |access-date=4 May 2023 |archive-date=28 September 2022 |archive-url=https://web.archive.org/web/20220928052226/https://indianexpress.com/elections/plantations-in-himachal-pradesh-palampur-a-tea-thats-not-on-the-menu-of-any-political-party-5732238/ |url-status=live }}</ref> The tea received [[Geographical Indication|geographical indication]] status in 2005. === Industry === {{Main|Industry in Himachal Pradesh}} ==== Pharma hub ==== Himachal Pradesh is renowned as Asia's pharmaceutical hub, housing a total of 652 [[Pharmaceutical industry|pharmaceutical units]]. The state hosts a thriving βΉ40,000 crore drug manufacturing industry.<ref>{{cite news |last1=Bisht |first1=Gaurav |date=22 November 2023 |title=Drug regulator flags quality issues, shoots off notices to 19 firms in HP |url=https://www.hindustantimes.com/cities/chandigarh-news/drug-regulator-flags-quality-issues-shoots-off-notices-to-19-firms-in-hp-101700587832410.html |work=hindustan Times |access-date=30 January 2024 |archive-date=30 January 2024 |archive-url=https://web.archive.org/web/20240130195458/https://www.hindustantimes.com/cities/chandigarh-news/drug-regulator-flags-quality-issues-shoots-off-notices-to-19-firms-in-hp-101700587832410.html |url-status=live }}</ref><ref>{{cite news |last1=Sharma |first1=Ambika |date=18 January 2024 |title=Solan: Pharma hub without State Drugs Controller since Jan 1 |url=https://www.tribuneindia.com/news/himachal/pharma-hub-without-state-drugs-controller-since-jan-1-582501 |work=The Tribune |access-date=30 January 2024 |archive-date=30 January 2024 |archive-url=https://web.archive.org/web/20240130195458/https://www.tribuneindia.com/news/himachal/pharma-hub-without-state-drugs-controller-since-jan-1-582501 |url-status=live }}</ref> === Energy === {{See also|Hydroelectric power in Himachal Pradesh}} [[Hydropower]] is one of the major sources of income generation for the state.<ref>{{cite web |url=http://www.shimlatimes.in/2013/08/independence-day-2013-speech-by.html |title=Independence Day-2013 Speech by Virbhadra Singh |publisher=shimlatimes.in |access-date=18 August 2013 |archive-url=https://web.archive.org/web/20140221225807/http://www.shimlatimes.in/2013/08/independence-day-2013-speech-by.html |archive-date=21 February 2014 |url-status=live }}</ref> The state has an abundance of hydropower resources because of the presence of various perennial rivers. Many high-capacity hydropower plants have been constructed which produce surplus electricity that is sold to other states, such as [[Delhi]], [[Punjab, India|Punjab]] and [[West Bengal]].<ref name="HPHYD">{{cite news |url=http://www.hindustantimes.com/india/while-others-sweat-himachal-struggles-to-sell-its-surplus-power/story-cJHgyMIuWSZJDgJAWlU7bJ.html |newspaper=[[Hindustan Times]] |title=While others sweat, Himachal struggles to sell its surplus power |date=5 August 2013|access-date=31 May 2016|archive-url=https://web.archive.org/web/20160815030733/http://www.hindustantimes.com/india/while-others-sweat-himachal-struggles-to-sell-its-surplus-power/story-cJHgyMIuWSZJDgJAWlU7bJ.html|archive-date=15 August 2016|url-status=live}}</ref> The income generated from exporting the electricity to other states is being provided as subsidy to the consumers in the state.<ref name="Aggarwal-2010" /> The rich hydropower resources of Himachal have resulted in the state becoming almost universally electrified with around 94.8% houses receiving electricity as of 2001, as compared to the national average of 55.9%.<ref name="Aggarwal-2010">{{cite journal |date=1 May 2010 |title=Emerging energy scenario in Western Himalayan state of Himachal Pradesh |journal=Energy Policy |volume=38 |issue=5 |pages=2545β2551 |doi=10.1016/j.enpol.2010.01.002 |issn=0301-4215 |last1=Aggarwal |first1=R.K. |last2=Chandel |first2=S.S.|bibcode=2010EnPol..38.2545A }}</ref> Himachal's hydro-electric power production is, however, yet to be fully utilised.<ref name="ET">{{cite news |url=https://energy.economictimes.indiatimes.com/news/power/himachals-mega-100-mw-hydro-power-project-to-be-commissioned-this-month/58591053 |title=Himachal's mega 100 Mw hydro power project to be commissioned this month |newspaper=[[The Economic Times]] |agency=IANS |date=9 May 2017|access-date=26 April 2018 |place=Shimla|archive-url=https://web.archive.org/web/20180427045002/https://energy.economictimes.indiatimes.com/news/power/himachals-mega-100-mw-hydro-power-project-to-be-commissioned-this-month/58591053|archive-date=27 April 2018|url-status=dead}}</ref> The identified hydroelectric potential for the state is 27,436 MW in five river basins<ref name="HPHYD" /> while the hydroelectric capacity in 2016 was 10,351 MW.<ref name="ET" />
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