Regarding the share within the primary sector, agriculture continues to be a significant contributor to the state economy. Distribution of households by socio-economic classification (SEC) indicates that the majority of households in the state fall into the educated and self-employed or medium-to-high income salary classes. In terms of ownership of household goods and basic amenities like sewing machine, in-house toilet, clock and ceiling fan, rural Himachal Pradesh is ahead compared to all India levels.
Medium and large industries make up 66 percent of investments and 22 percent of employment in the state. The state's rich natural resources are ideal for investments in major sectors such as procurement of agricultural products, hydropower, cement and tourism. Agriculture is still the largest employer with 69 percent of the workforce employed in it.
With the introduction of new ITIs, the annual vocational training seats are over 7,000 in the state. The state also has 13 engineering colleges and 25 polytechnic colleges with an annual intake of 3,020 and 5,390 students respectively. Male literacy is 85.3 percent, and female literacy is 67.4 percent.
Educational infrastructure
Credit disbursement of district central cooperative banks registered a CAGR of 19.7 per cent between 2003-04 and 2005-06, while state cooperative banks registered 18.2 per cent CAGR during this period.
Roads
Railways
Civil Aviation
Himachal Pradesh is obviously suitable for hydel power generation – of the total potential of around 20,416 MW, around 6,419 MW has been generated. To provide electricity to all households in the state, the Rajiv Gandhi VidyutikaranYojna (RGGVY) scheme has sanctioned USD 41.6 million. Himachal Pradesh has a high optical fiber cable (OFC) density per unit area with an 8,500 km network.
In an effort to provide infrastructure support to entrepreneurs, the Himachal Pradesh state government has developed 38 industrial estates and 15 industrial estates. Per As on 31 December 2008, the National Bank of Agriculture and Rural Development (NABARD) had provided refinancing assistance of US$ 9.1 million to the rural non-agricultural sectors under its District Rural Industries Project (DRIP). Industrial areas set up at Baddi, Barotiwala, Parwanoo, Kala Amb, Paonta Sahib, Mehatpur, Tahliwal, Amb, Sansarpur Terrace and Golthai.
The area was promoted by the Ministry of Commerce and Industry, Government of India. Biotechnology Park The Government proposed the establishment of a Biotechnology Park in Solan; a feasibility report has been submitted and all permits have been received; pending government approval. Nanotechnology Park The proposed nanotechnology park is expected to emerge on a 400-hectare area near Biotehnologija. Special Economic Zones (SEZs) SEZs approved in Kangra, Una and Solan at an estimated cost of USD 1.8 billion;.
Kangra and Solan to have multi-product SEZs; Una to have an SEZ based at the airport. Registration of small industries (SSI) and recommendation of medium and large industries to the relevant authority.
Purpose
Composition
Complementing the special package of incentives to the state with special concessions and benefits to ensure the sustainable development of the industry. Establishment of one-stop customs clearance and monitoring agency under the chairmanship of the Chief Minister along with one-stop agencies in major industrial towns like Parwanoo, Baddi, Paonta Sahib, Goalthai and Sansarpur Terrace. Developing standard of “best practices” in delivery end government departments like State Electricity Board, Labor Department, Excise Department etc.
The state government on February 7, 2009 amended Incentives Rules, 2004 to include biotechnology process-based industrial and non-industrial products, processing laboratories and research and development facilities. Department of Information Technology (DoIT) serves as a single point interface for setting up an IT unit in the state. To provide incentives for the industry in accordance with the approved policy of the Government of India, IT software and services are considered as manufacturing activity.
Projects up to 2 MW are earmarked for the investors in Himachal Pradesh and for projects between 2 MW and 5 MW, the first preference is given to residents of Himachal Pradesh. Projects above 5 MW and up to 100 MW to be allotted to the Independent Power Producers (IPP) through MoU route and for those above 100 MW through international competitive bidding: the state government reserves the right to equity participation in private sector projects above 100 MW up to a maximum limit of 49 percent. Release of 15 percent of minimum discharge downstream of the dam/diversion structure should be ensured during the lean season.
To ensure the employment of local residents, a minimum of 70 percent of the total employees, officers, managers engaged by the companies must be from the state. The concept of involving local people in the development of the ―Project Affected Area‖ has been specifically created where Local Area Development Committees (LADCs) have been formed; also, 1.5 percent of the project cost will be earmarked by developers for local area development through LADCs. Promotion of activities such as construction of Hydel projects, strengthening of transmission and distribution networks to facilitate transmission of power from these projects and its distribution for utilization within the state.
It focuses on the development of new technologies in the field of biotechnology, such as agriculture, animal husbandry and healthcare. Single Window Mechanism (SWM) established under the Himachal Pradesh Industrial Facilitation Act, 2005; a two-tier structure for granting an exemption or relaxation of any provision or rule of law. Approvals for proposals with investment above USD 1.2 million, required power above 5 MW and negative list industries like forestry, mining etc. as defined by Central and State Governments are decided by the State Level Unitary Authority Cleanup Agency windows.
Major industries developed as a result of state government policies and factor advantages. Agriculture is the main occupation in the state and a major source of employment; although its share in the GSDP has declined.
Overview
Cremica Foods • Cremica Foods to set up a factory in Tahliwal Industrial Area, Una, for the production of biscuits and Indian snacks; it is a 100 percent automated factory with a monthly production capacity of 5,000 tons of cookies. Adani Agri Fresh • Adani Agri Fresh has set up three controlled atmosphere storage units with an investment of US$33 million and a capacity of 6,000 tonnes each; involved in the purchasing, storage and transport of apples, apricots and vegetables; In 2007-2008, approximately 24,000 tons of apples were purchased for both storage and spot sales. One of the fastest growing regions for the pharmaceutical industry in India, driven by the incentives announced by the state.
In July 2009, Ranbaxy announced that it would set up another plant in Solan district at an outlay of US$7.3 million. The textile industry in Himachal Pradesh is mainly focused on the spinning thread; some companies like Vardhman are also into weaving and dyeing. Facility at Paonta Sahib manufactures cotton, acrylic, polyester and viscose Vardhman Group • The group has three modern spinning facilities at Baddi with a combined.
Winsome Group • The group has a spinning plant at Baddi; the yarns are produced in different shades in melange, pack-dyed and fiber-dyed yarns. Birla Textile Mills • Division of Chambal Fertilizers and Chemicals Limited, a flagship company of the KK Birla Group of companies; The Baddi plant has an installed capacity of more than 80,000 spindles. Gabriel India • Flagship company of Anand Automotive Group at USD 400 million; manufactures drive control systems and engine bearings; supplies to all three segments of the market – original equipment, aftermarket and export; produces 20 million units per year.
In November 2008, the company started operations at the Parwanoo factory; Manufactures shock absorbers and components for two-wheelers; annual capacity of 2.4 million shock absorbers and 400,000 struts. Anand Group and Arvin Meritor (USA) joint venture; one of the largest manufacturers and exporters of air, oil and hydraulic filters in the country. The company is setting up its second plant in Parwanoo and production will start in February 2010; annual capacity of 22 million filters.
It sells multi-utility vehicles under the Rhino brand name; has an installed capacity of 2000 vehicles per month; the most advanced facility in Una; has a technical cooperation agreement with MG Rover of Great Britain. Himachal Pradesh has abundant availability of quality limestone; the state supplies almost half of the cement produced in other states. Ambuja Cements • Among the major cement companies in India; annual capacity of 16 million tons; installed capacity of 2 MTPA at Darlaghat (Solan district).
In late 2008, the company announced a US$760 million expansion program; The capacity of the company's Nalagarh grinding plant is to be expanded by 1.5 million tonnes and a new clinker unit is to be set up at Rauri with a capacity of 2.2 million tonnes. The IT policy of Himachal Pradesh and the incentives offered to the IT industry are aimed at.
Socio-Economic Classification of urban and rural households
Exchange Rate
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