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Economic Survey of Himachal Pradesh 2019-20


Academic year: 2023

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The flagship annual document of the Himachal Pradesh Government's Department of Economics and Statistics, the Economic Survey 2019-20, reviews developments in the Himachal Pradesh economy over the past 12 months. The survey also benefited from the comments and valuable inputs of Shri Anil Khachi, Chief Secretary, Government of Himachal Pradesh.

General Review

A Macro View

Overview: Indian Economy


Given the prevalent overall macroeconomic scenario, the Indian

As per the first advance estimates the all India growth rate for

Inflation management is the key priority of the Government. The

The inflation rate based on the index of average selling prices was 2.58 percent in December 2019 compared to 3.46 percent in December 2018.

Overview: Himachal Pradesh Economy

Swachh Bharat Mission: The objective of the Municipal Solid Waste Management (MSWM) strategy is to create garbage-free cities/towns and ensure clean and pollution-free environment in all urban areas of Himachal Pradesh. Under this scheme all the people whose name does not appear in the list of HP ration cards can.

Table 1.1  Key Indicators
Table 1.1 Key Indicators

Ek Buta Beti Ke Naam : the scheme has been launched to

Bal Balika Suraksha Yojna and Foster Care Programme: under the scheme an amount of ₹ 2000/- and additional ₹ 300 per child per month to foster parents for child maintenance has been sanctioned and ₹ 248.70 lakh to 960 Children has been disbursed till December, 2019. Prdhan Mantri Fasl Vima Yojna: the scheme was launched on 18 February 2016 by Prime Minister Narendra Modi is an insurance service for farmers for their yields.

State Economy, Public Finance and Taxation

State Economy

Estimates of BSDP at Current Prices 2.6 First Revised Estimates of GSDP for the year 2018-19 (FRE) at. The contribution of the industrial sector for the same period stood at ₹ 62,362 crore (44.03 per cent), while that of the services sector.

Per Capita Income

Prospects- 2019-20

A brief analysis of the economic growth in Himachal

Public Finance and Taxation

  • According to Budget Estimates of 2019-20, the tax revenue
  • Non-Tax Revenue consists mainly of interest receipts on
  • Non-Debt capital receipts consist of recovery of loans and
  • Rationalization and prioritization of Government expenditure

Revenue expenditure is likely to increase in 2019-20, while Capital expenditure is likely to decrease as a percentage of GDP in 2019-20. Composition of revenue expenditure 2.27 The composition of revenue expenditure is given in Table 2.6 below, which shows that 59 per cent of the total expenditure is likely to be spent on salary, pension, interest payment and subsidies in 2019-20 (BE).

Investment and Initiatives

  • Investment, especially private investment, is the “key driver”
  • Policy and Reforms
  • HP MSME (Facilitation of Establishment and Operation)
  • Single Window System which provides approvals and renewals
    • Success story
    • Highlights of Investors’ Meet
  • International Delegates
  • Details of all B2G/B2B meetings
  • Big Industrialists : 32 Nos
  • Number of Companies participated in Exhibition : 47

One of the most important policies is industrial policy, which has been developed to accelerate industrial expansion in the state. It will also provide growth opportunities for the state's talents in all departments of filmmaking.

Sustainable Development Goals (SDGs) 04 Chapter

Sustainable Development Goals (SDGs)

  • Mapping of SDGs with targets and identification
  • Development of State Vision Document-2030
  • Training need assessment and development of
  • Capacity building and sensitization on SDGs
  • Popularization of SDGs Awareness on SDGs is
  • Monitoring of targets and indicators
    • Current level of achievements:-
    • Efforts to achieve SDGs
    • Timeline for achieving SDGs

The country has taken several steps to integrate the SDGs into the budget and planning process. Other national training institutes have been instructed to include one hour on the SDGs in their ongoing training programmes.

Institutional and Bank Finances

The Lead Bank

The bank has a network of 218 branches and 23 local counters (Fully CBS) as well as 100 (including Mobile Van ATM) own ATMs. Around 1,654 associations are associated with the bank, and the bank provides dividends from its profits.

Position of Key Banking Business National Parameters In Himachal

Financial Inclusion initiatives

Financial Inclusion current status in Himachal Pradesh

Pradhan Mantri Jan Dhan Yojana (PMJDY)

Universal Social Security Initiatives under PMJDY

Micro Insurance Schemes

Micro Pension Scheme

Atal Pension Yojana (APY)

Pradhan Mantri Mudra Yojana (PMMY)

Stand-Up India Scheme (SUIS)

Financial Awareness and Literacy Campaigns

Comparative Data of Banks in Himachal Pradesh

Performance under Annual Credit Plan 2019-20

Total Priority Sector Loans

Implementation of Government Sponsored

National Rural Livelihood Mission (NRLM)

National Urban Livelihood Mission (NULM)

Dairy Entrepreneurship Development Scheme (DEDS)

The Ministry of Agriculture and Farmer Welfare, Government of

Kisan Credit Cards

Rural Self Employment Training Institutes (RSETIs)

Special drive for Aadhaar linkages with Bank account and


Rural Infrastructure

NABARD extended Long Term Refinance for diverse activities viz. rural

Micro Credit

NABARD’s Farm Sector Initiatives

Promotion of Farmers’ Producer Organisation

Tribal Development through the Tribal Development Fund (TDF)

Support through the Farm Sector Promotion Fund (FSPF)

New Business Initiatives of NABARD

Financial Assistance to Federation

NABARD Consultancy Services (NABCONS)

Price Movement and Food Management


Current Trends in Inflation

The monthly average wholesale price indices for the year 2019-20 reflecting the inflation rate are shown in Table 6.2. Consumer Price Index NAV (Base 2001=100) of Himachal Pradesh increased at a lower rate compared to the national level.

Drivers of Inflation

Volatility in Essential Commodity Prices

Volatility in inflation for most of the major agricultural commodities with the exception of pulses has also decreased over time. A major problem that still remains is the high wedge between retail and wholesale prices of some of the raw materials like onions.

Food Security and Civil Supplies

The Corporation is committed, to provide all essential commodities,

During the current financial year 2019-20, up to December 2019, the Corporation has distributed these goods under the said scheme to the tune of `384.00 crore as against `377.00 crore in the corresponding period last year to the Ration Card holders in the Pradesh as per the scale which it is determined by the state government. The corporation is working to create a storage capacity of 5000 tonnes in various parts of the country.

Agriculture, Horticulture and Allied Services


65 The agro-climatic conditions in the state are favorable for the production of cash crops such as potato nuts, off-season vegetables and ginger.

Monsoon Season 2019

Crop Performance 2018-19

Crop Prospects 2019-20

Growth in Foodgrains Production

High Yielding Varieties

Commercial Crops

Plant Protection Programme

Soil Testing Programme

Prakritik Kheti Khushal Kisan Yojna under Zero Budget

Fertilizer Consumption and Subsidy

Fertilizer is a critical input, which helps in increasing the production

In order to promote a balanced use of artificial fertilizers, a subsidy of `1,000 per

Agriculture Credit

Crop Insurance Scheme

The state government has introduced this scheme from Rabi,

Seed Certification Programme

Agro-climatic conditions in the state are quite conducive for seed

70 seed quality and also guaranteeing higher seed prices to growers, the seed certification program has been given due emphasis. Himachal Pradesh state seed certification agency registers growers in different parts of the state for seed production and certification of their produce.

Agriculture Marketing

Tea Development

Soil and Water Conservation

Mukhya Mantri Nutan Polyhouse Yojna

In order to achieve faster and more inclusive growth in agriculture

Rashtriya Krishi Vikas Yojna (RKVY)

71 7.21 Rashtriya Krishi Vikas Yojna –RAFTAAR was initiated in 2007 as an umbrella scheme for ensuring holistic development of agriculture and allied sector. The scheme was implemented as an Additional Central Assistance (100%) from GOI till 2014-15. The funding pattern has changed to the ratio of 90:10 for North Eastern/Himalayan States from 2015-16. Now RKVY has been revamped as RKVY-RAFTAAR-Remunerative Approaches for Agriculture and Allied Sector Rejuvenation for the remaining period of the Fourteenth Finance Commission. To provide flexibility and autonomy to states in the process of planning and execution of Agriculture and allied sector schemes.

National Mission on Agricultural Extension and

To promote value chain addition linked production models that will help farmers increase their income as well as encourage production/productivity. To empower the youth through skill development, innovation and agri-entrepreneurship based agri-business models that attract them to agriculture.

National Mission on Sustainable Agriculture

Thus, the conservation of natural resources in conjunction with the development of rain-fed agriculture holds the key to meeting the growing demand for food grains in the state. For this purpose, the National Mission for Sustainable Agriculture (NMSA) was formulated for the improvement of agricultural productivity, especially in rain-fed areas.

National Food Security Mission (NFSM)

72 7.23 Sustainable agricultural productivity depends on the quality and availability of natural resources such as land and water. Agricultural growth can be sustained by promoting the conservation and sustainable use of these scarce natural resources through appropriate site-specific measures.

Pradhan Mantri Krishi Sinchai Yojna

Efficient Irrigation through Micro-Irrigation Scheme

Uttam Chara Utpadan Yojna

Mukhya Mantri Khet Sanrakshan Yojna

With a view to provide Insurance cover to the farmers and agricultural

Lift Irrigation and Borewell Scheme

Under this scheme, 90 % assistance will be provided to small/marginal farmers for installing solar pumping machinery on individual basis. 80 % assistance is provided to medium/large farmers for installing solar pump machinery on individual basis.

Jal Se Krishi Ko Bal Yojna

100 percent aid is provided if a minimum of five farmers choose to install solar pumping machines on a community basis.


  • To bring diversification in horticulture industry a total area of
  • For the implementation of centrally sponsored scheme,
  • For providing employment to the skilled and unskilled unemployed
  • Pradhan Mantri Krishi Sinchayee Yojna-Per Drop More crop

A recently launched scheme Himachal Khumb Vikas Yojna was launched during 2019-20 to promote mushroom cultivation in the state and ₹5.00 crore was received and further allocated to field officials. For implementation of Mukhya Mantri Green House Renovation Scheme for replacement of poly film of old poly houses, an amount of ₹ 1.00 crore was provided in the year 2019-20 and.

Himachal Pradesh Marketing Corporation (HPMC)

The work of issuing the public tender has been completed and its escalation is likely to begin soon. In addition, the process of setting up a modern apple juice concentrate plant at Parala with a crushing capacity of 200 tonnes of fruit per day is at an advanced stage and work is underway to ensure its installation before the 2022 apple season.

Animal Husbandry and Dairying

This will help lower the price of AJC and the corporation will be able to compete in the international market for selling AJC. One farm for breeding yaks was also established in the premises of the Lari stud farm.

Dairy Entrepreneurship Development Scheme (Doodh

National Project on Bovine Breeding

Backyard Poultry Farming

To develop poultry sector in Himachal Pradesh, department is

Rashtriya Gokul Mission (RGM)


Assistance to State for Control of Animal Diseases

The Central Government has provided assistance to the State Government for the control of infectious diseases under "Assistance to States for Control of Animal Diseases". ASCAD), which is on the pattern of 90 percent central share and 10 percent state share.

Shepherd Scheme

BPL Krishak Bakri Palan Yona

Projects under RKVY aim at for strengthening infrastructure, Veterinary

Integrated Sample Survey for Estimation of Production of

Livestock Census

Livestock census is being conducted quinquennially by the

Milk Based Industries

Milkfed Developmental efforts

New Innovations of Milkfed

Milkfed has introduced Vitamin A & D Fortified Him Gauri Milk to address Vitamin A & D deficiency in the state in association with NDDB & TATA Trusts. Milkfed has installed 106 bulk milk coolers at the village level in different parts of the state.

Wool Procurement and Marketing Federation

Himachal Pradesh Milkfed also supplied 4,905 quintals of Skimmed Milk Powder (SMP) and 18,189 quintals of Baker's Biscuits to the Women and Child Welfare Department. The federation also runs some centrally sponsored schemes for the benefit and betterment of sheep and angora farmers in the country.

Fisheries and Aqua Culture

Forest plantation is being carried out under various state plan

Keeping these factors in mind, a centrally sponsored scheme - the Forest Fire Prevention and Management Scheme (formerly known as the Intensified Forest Management Scheme) is being implemented in the country. Another scheme under the State Plan, namely the 'Forest Fire Management Programme', was introduced with a budget provision of Rs.

Forest wealth of Himachal Pradesh is estimated at more than ` 1.50

Forest protection is being strengthened by equipping check posts at sensitive locations with CCTVs to ensure electronic surveillance to curb forest encroachments.

New Schemes

In order to sensitize the local communities, students and general

Samvardhan Yojna

Firefighting equipment and improved techniques are also being introduced and are available to all forest departments where fire is a major destructive element. During the current year, the selected JFMC/VFDS will implement plantation and soil conservation activities at all 31 selected locations in accordance with the approved micro plan of each selected JFMC/VFDS.

Externally Aided Projects

Himachal Pradesh Forest Eco- systems Climate Proofing

Himachal Pradesh Forest Eco- systems Climate Proofing Project with

The main objective of this project is rehabilitation, protection and sustainable use of selected forest ecosystems in Himachal Pradesh to enhance and secure the resilience of forest ecosystems against climate change and ensure the flow of forest products and other services that benefit forest-dependent people. community. In the long term, this will contribute to strengthening the ability of forest ecosystems to adapt to climate change, protect biodiversity, stabilize watersheds, preserve the natural resource base, and at the same time result in better livelihoods for the people of Himachal Pradesh.

91 KfW Bank Germany assistance is being implemented in Chamba and Kangra districts of the country for a period of 7 years w.e.f.

World Bank Aided Integrated Development Project for Source

Environment Forestry and Wildlife

Himachal Pradesh is home to a very impressive, diverse and unique

Water Resources Management and Environment

Drinking Water

The Government of India has launched Jal Jeevan Mission (JJM),

Hand Pump Programme


To increase crop

94 medium irrigation projects and balance 2.85 lakh hectares of area can be provided irrigation through minor irrigation schemes.

Minor Irrigation

Flood Control Works

Environment, Science and Technology

Plastic Waste Management

State Knowledge Cell on Climate Change

Implementation of project Sanctioned under National

A programme under

Proposals under National Adaptation Fund for Climate

A project proposal of `250.00 crore on “Securing Rural Livelihood through Biodiversity Conservation & Landscape Management- Skill development for two districts of Himachal Pradesh” for funding has also been approved by Ministry of Economy, Government of India and forwarded to German KFW.

State Level Environment Leadership Award

Himachal Pradesh

Biotechnology Division

Industries and Mining


Mukhyamantri Swavlamban Yojna, has been launched to provide

During this year, 687 cases involving a grant amount of `27.94 crore have been sanctioned by the banks to help young entrepreneurs start their self-employed businesses. Till December, 31.00 MT of MT Silk Cocoons converted into raw silk was produced, yielding a revenue of about `6.20 crore from the sale of silk products in the state.


Government of Himachal Pradesh has taken several industries

In order to improve the ease of doing business, emphasis was placed on simplification and rationalization of the existing rules and the introduction of information technology to make management more effective and efficient. Single Window Portal has been made fully operational and all the industry related services have been integrated under Single Window Portal of the Industries Department, which will act as one stop interface with the investors.

Labour and Employment

At the district level, the employment data is being collected

During the financial year 2019-20 through December 2019, an amount of `31.26 crore Skill Development Allowance has been disbursed among the 65,522 beneficiaries and an amount of `3.21 lakh Industrial Skill Development. Employment Exchange Information 10.11 During this fiscal year to December, applicants were registered and 1,079 placements were made in the government sector against advertised vacancies 1,369 and 5,332 posted in the private sector against advertised vacancies 6,984.

Himachal Pradesh Kaushal Vikas Nigam (HPKVN)

HPKVN was established with a mission “To bolster the

In December 2016, a short-term pilot training program was rolled out in 8 sectors with the aim of training. The program aims to train HP youth in industry-relevant, NSQF-aligned courses with support from NSDC and the Department of Skills Development.

Other programmes of HPKVN

  • Setting up of Center of Excellence (CoE)
  • MoU’s with reputed Government Training Institutions
  • Training Programme under English, Employability and
  • Up-gradation of Tools &
  • Short Term Training Programmes through Government Industrial
  • Other Short Term Training Programmes through Training
  • Livelihood based Skill training of Persons with Disability (PWD)
  • City Livelihood Centers (CLCs), Rural Livelihood Centers (RLCs)

During the Academic Year, more Government Colleges will be covered for the training of 5500 students under the Graduate Job Training Program. HPKVN has launched 'Nav Dharaana'- a livelihood based training program for persons with disabilities to cultivate employability and entrepreneurship skills among the differently abled.


  • Himachal Pradesh being a hilly State has natural strength in
  • Directorate of Energy’s Physical and Financial achievements
  • Projects under Operation/
  • HPPCL has set up a 5 MW Berra Dol solar power plant, near
  • Financial Achievements in Respects of Projects under
  • P. Power Transmission Corporation Limited

Detailed Project Report (DPR) of Kashang – IV stage (48 MW) in Kinnaur district and Chirgaun Majhgaon HEP ​​​​(60 MW) in Shimla district are in preliminary stage of evaluation by the Department of Power, Government of Himachal Pradesh. HPPTCL performs the duties of State Transmission Undertaking (STU) and coordinates transmission related issues with Central Transmission Company, Central Electricity Authority, Ministry of Power (Government of India), Government of Himachal Pradesh and HPSEB Ltd.


During the current financial year, 4 projects with a total capacity of 13.80 MW have been commissioned till December 2019. The status so far (as of December 2019) of projects allocated up to 5 MW is as follows.

Out of 12 projects, 4 projects were commissioned, 3 were awarded on BOT basis and 5 projects were in pre-construction agreement stage.

Important Policy Initiatives With view to harness hydro power

Tourism and Transport


The Government of India, Ministry of Tourism has sanctioned `

12 Chapter

This policy has been framed to achieve sustainable development goals

Himachal Pradesh Tourism Development Corporation

Transport and Communication Roads and Bridges (State Sector)

Significant achievements of the transport Department during the year

The Ministry of Transport under the guidelines of the Ministry of Road Transport and Highways, Government of India is continuing all efforts to enforce and widely publicize road safety. For this purpose, an electric vehicle policy was prepared, the purpose of which is to encourage electric vehicle consumers, manufacturers and the establishment of charging stations.

Social Sector

The State Government has proposed upgradation of six KGBVs of

Currently 150 girls live in girls' hostels and 850 girls from class 6th to 12th are in KGBVs.

Senior Secondary Education

Scholarship Schemes

From 2018-19 onwards, Integrated Rashtriya Madhyamik Shiksha

Inclusive education for persons with special needs at secondary level started in the country in 2013-14. Installation of Aadhar Enabled Bio Matric Attendance System (AEBAS) 13.23 The department has started the tender process for procurement of 2,552 Aadhar Enabled Bio Matric Attendance System (AEBAS) in collaboration with HPSEDC.

Technical Education

Distribution of netbooks/laptops:- 1:20 pm The department will distribute the laptops/netbooks to 9,700 deserving students of 10th and 12th class (4400-10th and 4400-12th class) of Himachal Pradesh Board of School Education, Dharamshala and 900 first division university students along with free monthly 1GB data cards to enhance learning activities among student Digital Yojana/Sri Niwasa Ramanujan Digital Yojana for the 2017-18 academic session. The state's 132 aspiring students can get both a degree and a diploma in engineering/pharmacy.


The Directorate of Medical Education Training and Research was

13.34 DCI has approved 17 PG seats and 75 BDS admissions (including 15 EWS seats) for the college. Enrollment for the dental mechanic and dental hygienist diploma course was completed with an enrollment capacity of 20 and classes for the said course began for the period 2019-20.

Indian System of Medicines and Homoeopathy plays a vital role in the

Free dental treatment to the IRDP and BPL families of the state is provided by the institution.

Social Welfare Programme

The brief description of the schemes in the state is given below in table 13.12. Widow remarriage scheme The main purpose of the scheme is to help rehabilitate the widow after remarriage.

Table 13.13: Trends in Social Service Sector Expenditure by State Government
Table 13.13: Trends in Social Service Sector Expenditure by State Government

Rural Development and Panchayati Raj

Following housing schemes are run by State Government

In the current year 2019-20, there is a budget provision of 12.49 crores in which construction of 558 houses of all categories has been proposed in the country. ii) Mukhya Mantri Awaas Repair Yojana (MMARY). There is a provision of 4.76 crore by which 1358 houses of all categories have been proposed for repair in the current financial year 2019-20.

Saansad Adrash Gram Yojana (SAGY)

Shyama Prasad Mukherjee Rurban Mission (SPMRM) was launched

State Reward Schemes:-

It has been made mandatory that village level

The other major provisions relating to Panchayati Raj are as under:-

Housing and Urban Development


Government of Himachal Pradesh through Housing and Urban

HIMUDA’s Initiatives

15 Chapter

Urban Development

Maintenance of Roads in Municipal Areas

Atal Mission for Rejuvenation and Urban Transformation

Smart City Mission (SCM)

Swachh Bharat Mission (Urban)

Pradhan Mantri Awas Yojna Housing for all (Urban)

14 th Finance Commission Grant:-

Construction of Parkings:-

Development of Parks:-

Town and Country Planning

To boost the investment in the state vide letter No. Rules for the state in a more scientific and rational manner considering geo-environmental as well as socio-cultural, economic and.

Initiatives by Town and

The Himachal Pradesh Town and Country Planning Act, 1977 has been implemented in 55 Planning Areas (1.60 percent of the total geographical area of ​​the State) and 35 special areas (2.06 percent of the total geographical area of ​​the State). To simplify the process of map approval and documentation related to NOCs for planning permission, the TCP Department has approved a proposed amendment to the Himachal Pradesh Town and Country Planning Rules, 2014. H.P TCP (Amendment) Rules, 2019 u announced for objection / general public suggestion.

TCP-F(5)-4/2019 dated has approved the Guidelines for Industrial Use Regulations as approved under the Himachal Pradesh Industrial Investment Policy, 2019. At present, the TCP department has similar/uniform regulations for plains and hilly areas which they need to be re-examined.

Single Window System

For the simplification and streamlining of the TCP rules and regulations, the Govt. constituted a State Level Working Committee which includes 3 field experts from various prestigious institutions of the State. The Real Estate Regulatory Authority (RERA) was established in the state in 2019, which started functioning in Shimla.

Information and Science Technology

Information and Technology



Citizens can register their complaints anywhere in the country by dialing the toll-free number 1100. The closure of the complaint is done in the software only after receiving confirmation from the complainant.

Status Snapshot Status Snapshot (31st December, 2019)

This unique platform aims to increase the partnership of citizens with the State Government and vice versa. The State Government gives due attention to constructive ideas, views and synergizes all other contributions for the betterment of the state and the country as well.

New Initiatives

भारत नेट चरण- I परियोजना के तहत हमीरपुर (नादौन, सुजानपुर टीहरा, बिझड़ी, बमसन), मंडी (सेराज) और सोलन (नालागढ़) के 6 ब्लॉकों में 207 ग्राम पंचायतें हाई स्पीड इंटरनेट बैंडविड्थ का उपयोग करके जुड़ी हुई हैं। राज्य सरकार ने 6 जनवरी, 2020 को नागरिक सहभागिता मंच MyGov हिमाचल (http://himachal.mygov.in) लॉन्च किया।


Table 1.1  Key Indicators
Table 1.2  Tourists Inflows
Table 6.5 Prices of essentials     commodities in the State
Fig  13.1  Percentage  of  Children  enrollment in the State