Policy and Reforms

New Policies Notified in 2019

1. The government has notified a slew of policies to attract more investors to the State. These policies make the process of

25 investment in the State easier.

One of the most important policies is the Industrial Policy, which has been developed to speed up the industrial expansion in the state. The new Industrial Policy which provides incentives to ensure sustainable and balanced industrial development to benefit all parts of the State.

Special provisions have been made for development of remote and interior areas, vulnerable sections of the society and local resources based industries and services. The vision statement of the policy is, “to create an enabling ecosystem to enhance the scale of economic development & employment opportunities; ensure sustainable development & balanced growth of industrial & service sectors to make Himachal as one of the preferred destination for investment”. The main objective of the policy is to achieve uniform growth of industry over the entire State and also aims to

i) serve as a guideline to create a congenial investment climate for existing industries to grow as well as to attract further investment in the State for creating employment opportunities for local youth and to ensure development of Industrial & Service Sector throughout the State. ii) specifically address issues impeding industrial growth and ensure simplification of procedures, key physical and social infrastructure, human resource development, access to credit and market.

iii) promote Ease of Doing Business by digitization of all processes and to promote self- certification.

iv) give impetus to food processing industry by establishing effective forward and backward linkages; promoting Agro-Horticulture and rural prosperity.

v) promote MSME sector for uniform sustainable growth of service and industrial sector throughout the State to facilitate generation of employment opportunities for local youth and stakeholders.

vi) promote start-ups and entrepreneurship to create and generate local entrepreneurial base. vii) recognize and encourage the role of large investment to enhance the scale of economic development, employment opportunities, ancilliarisation, revenue generation and remunerative prices to local resources.

viii) uplift weaker sections of the society.

2. Tourism Sector Policy 2019 is another important policy. The policy has been developed with a vision to, “positioning Himachal Pradesh as a leading global sustainable tourism destination for inclusive economic growth”.

The mission of the tourism policy 2019 is to grow an inclusive and sustainable tourism economy through: Protection of State’s natural and cultural heritage, improved quality of life and better employment opportunities, enhanced tourist experience and

26 innovation through private sector participation. The prime goal is to establish the State of Himachal Pradesh as a leading global sustainable tourism destination.

Other goals are

i) Establish Himachal Pradesh tourism as an international brand in tourism

ii) Make tourism sustainable with prime focus on socio-economic growth and employment generation.

iii) Ensure quality experience of tourists.

iv) Encourage Private Sector Participation in tourism related investments & infrastructure.

In order to realize the mission and achieve the goals for sustainable tourism, objectives focusing on different facets have been formulated to achieve the proposed target for 2029. These objectives are:

i) To promote Tourism Diversification through theme based development

ii) To safeguard state’s tourist destinations through sustainable interventions

iii) To ensure that sustainable tourism primarily benefits host communities

iv) To build capacity and develop quality human resource for the tourism industry

v) To provide safe, secure and unique “tourism for all”

vi) To create an enabling environment for investments for sustainable tourism

3. Himachal Pradesh State has also notified IT, ITeS and ESDM Policy 2019. The policy enables a competitive environment for setting IT, ITeS and ESDM (Electronics System Design and Manufacturing) organizations to generate more

employment through

entrepreneurship in the State.

The main objective of the policy is to:

i) Transform the State of Himachal Pradesh as a front runner destination for IT, ITeS and ESDM companies.

ii) Set up all the infrastructure facilities required to build the IT, ITeS and ESDM companies in the State

iii) Establish an organisational arrangement in the State to strengthen the skilled manpower resources

iv) Encourage and support Micro,

Small and Medium

Entrepreneurs in the state to participate in the field of IT, ITeS and ESDM sector

v) Develop a framework with backend automation to strengthen the business process

vi) Establish a favourable environment by guaranteeing digital services delivered within a specified time framework

vii) Improve the overall socio- economic growth of in the state

viii) Concentrate on the long-term development of technology and innovation

27

ix) Generate more employment opportunities and encourage entrepreneurship in the State 4. Ayush Policy 2019 is another

important policy. The policy has been developed with a vision to,

“to bring about the all-round development of the society by working progressively for achieving better health outcomes by providing AYUSH facilities at their doorstep and integrating the AYUSH based life style at the grass root level and to develop Himachal Pradesh investment destination in AYUSH sector including wellness with focus on promoting inclusive and sustainable development”. The mission of the Ayush Policy 2019 is “to establish a strong and well- designed network of AYUSH services in the state providing easily accessible, affordable and equitable healthcare delivery system to the general population, and to set up a benchmark of the best AYUSH practices in the nation by promoting highest standards of AYUSH intervention and endeavouring to ensure signification contribution of the sector to the State’s Economy by 2025”.

5. State government has also notified approved Himachal Pradesh film Policy-2019, “to create an amiable atmosphere that not only would facilitate film shooting at a large scale in

Himachal Pradesh, but also ensure all round development of activities related to various aspects of film production”. It will develop Himachal Pradesh as an important destination for film production and promote the culture, history, heritage and glorious traditions and captivating tourist places of the State through films to attract tourists. It will also provide opportunity of growth to the talents of the State in all departments of film making.

3.4 Key Reforms Undertaken (Ease of Doing Business)

1. HP MSME (Facilitation of