HP Economic Survey - Chapter 1 : Key Highlights

Himachal Pradesh Economy: Overview

Geographical & Economic Context

• Location: Northern India, bordered by Jammu & Kashmir, Punjab, Haryana, Uttar Pradesh, and Tibet (China).

• Natural Resources: Lacks iron ore, coal, and highly fertile land but has progressed through hardworking population and progressive policies.

Economic Growth & GSDP Trend

Gross State Domestic Product (GSDP) at Current Prices:

• FY2023-24 (FR): ₹2,10,662 crore
• FY2022-23 (SR): ₹1,91,659 crore
• Growth Rate: 9.9%

GSDP at Constant (2011-12) Prices:

• FY2023-24 (FR): ₹1,37,320 crore
• FY2022-23 (SR): ₹1,28,779 crore
• Growth Rate: 6.6%

Sectoral Contributions & Employment

1. Economic Transformation: Shift from agriculture to industry and services.
2. Employment: 53.98% of the state population still engaged in the primary sector.
3. Sectoral Share in GSDP: 

-> Primary Sector Contribution:

• 1950-51: 70.37%
• FY2023-24: 14.74%

-> Secondary & Tertiary Sector Growth:

• 1950-51: 7.41% (secondary), 22.22% (tertiary)
• FY2023-24: 39.98% (secondary), 45.28% (tertiary)

Per Capita Income (PCI) Growth

• FY2023-24 (FR): ₹2,34,782
• FY2022-23 (SR): ₹2,14,489
• Increase: 9.5%

Agriculture & Horticulture

Also read :HP Economic Survey - Chapter 1 : Key Highlights

• Importance: Despite its declining GDP share, agriculture remains vital for employment and economic stability.

• Challenges: Limited irrigation, dependence on rainfall and weather conditions.

Horticulture Development:

• Favorable topography supports temperate to sub-tropical fruits.
• Growing sectors: Flowers, mushrooms, honey, hops.
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India & Global Economic Outlook

• Global Growth: 3.3% in 2023, expected to continue steadily through 2026.
• India’s Growth: 7% GDP growth projected for 2024, maintaining strong momentum.
• Key drivers: Manufacturing, services, agriculture, rural demand, government initiatives.

Himachal Pradesh’s Economic Shift:

• Transition from agriculture-led growth to balanced contributions from manufacturing and services.
• Horticulture, construction, and services are emerging as major growth drivers.

Conclusion

• Despite resource constraints, Himachal Pradesh has shown steady economic growth with a rising per capita income and a shift towards industries and services. Horticulture remains crucial, while infrastructure and trade initiatives will further drive growth.

Explanation of Important Terms

1. Real GDP: Measures the value of economic output adjusted for inflation, reflecting true growth.

2. Nominal GDP: GDP at current market prices, without adjusting for inflation.

3. Advance Estimates (AE): Preliminary GDP projections based on early data.

4. Provisional Estimates (PE): Updated GDP estimates with more complete data but subject to further revision.

5. Gross State Domestic Product (GSDP): The total economic output of a state, similar to GDP at the national level.

6. Per Capita Net National Income: Average income per person, indicating economic prosperity.

7. Constant Prices (2011-12): GDP measured using fixed prices from 2011-12 to eliminate inflation effects.