Economy of Himachal Pradesh 2020


The economy of Himachal Pradesh 2020: 

The economy of any state can be estimated/calculated on the basis of the Sectoral composition of  Gross  State Domestic  Product  (GSDP).  It gives an idea of the relative position of different sectors in the economy over a  period of time,  which not only indicates structural changes taking place in the economy but also facilitates the formulation of plans for overall economic development.

The  GSDP  of  Himachal Pradesh for the year  2018-19  (First  Revised Estimates)  is estimated at  ₹  1,17,851 crore as against  ₹ 1,10,034  crore for 2017-18  (Second  Revised  Estimates) indicating a  growth of  7.1  percent in comparison with the  All  India  GDP growth rate of 6.1 percent for 2018-19.
The increase in total State Domestic Product is mainly attributed to:
  • 13.3 percent in Community & Personal Services sectors,
  • 7.3 percent in Finance & Real Estate,
  • 4.6 percent increase in Transport and Trade,
  • 8.2 percent in the Manufacturing sector,
  • 8.0 percent in Construction and
  • 7.3 percent increase in Electricity, Gas & Water Supply.


Classification of Economy of Himachal Pradesh in Three major sectors
  1. The primary sector comprises of  Agriculture,  Horticulture,  Livestock, Forestry & Logging, Fishing, mining, and quarrying sub-sectors.
  2. Secondary or Industry Sector  Industry sector broadly comprises of Manufacturing (Organised &  Un-Organised),  Electricity,  Gas  & Water Supply, and Construction.
  3. Tertiary or Services Sector Services sector, as before has a surging share in the State GVA. The  Services sector comprising of Trade, Hotels & Restaurants, Transport by other means    &    Storage Communications, Banking & Insurance, Real Estate & Professional Services and Community, Social & Personal services.
  • In the Primary Sector The Agriculture & Allied   Sectors as a   key sector supporting about  60  percent of the population, registered a negative growth of  1.7  percent in  2018-19  (FRE).
  • In  Himachal  Pradesh, Horticulture is no longer a sub-sector of the agriculture   sector,   it has crossed agriculture in terms of value addition.
  • The livestock sector has emerged as an alternative and dependable source of income generation.
  • In  2018-19,  the production of  Milk  Increased by  4.88 percent, Meat by 2.42 percent and eggs by  2.61  percent resulting in the growth of 9.7   percent in the Livestock Sector, the Fisheries sector registered a growth rate of  6.6%.
  • Forestry  &  Logging  Sector registered a growth rate of  1.4  percent, Mining  &  Quarrying saw  -9.7  percent growth in 2018-19 (FRE).
  • As per the (First Revised Estimates) for 2018-19  at  Constant  (2011-12)  prices,  the GVA(GROSS VALUE ADDED) of Industrial sector is estimated at ₹ 52,693 crores against  ₹ 48,787 crores, for 2017-18    (Second    Revised Estimates)  registering a  growth rate of 8.0 percent in 2018-19 over the previous year.
  • This sector has registered a growth rate of 8.6  percent in  2018-19  (FRE)  over the previous year. The GVA of the service sector as per FRE for the year 2018-19 is estimated at ₹ 45,083 crores as against ₹ 41,516 crores in  2017-18  (SRE).

According to the First revised estimates for  2018-19  the  Per  Capita Income of  Himachal  Pradesh at current prices increased to  ₹ 1,83,108  from  ₹1,65,025  in  2017-18  (SRE), registering a growth of 11.0 percent.


  • The  State’s own taxes increased to 15.69 percent in 2019-20 (BE)  which is estimated at  ₹  7,921 crores as against ₹ 6,847 crores in 2018-19 (RE) and   ₹ 7,108 crores in 2017-18(A).
  • The   State’s non-tax revenue (comprising mainly of interest receipts,   power receipts,   road transport receipts, and other administrative services, etc.)   are estimated at  ₹  2,443 crores in  2019-20(BE), which is 7.24 percent of total revenue receipts of  2019-20. 
  • In  2018-19  Excise and Taxation  Department collected worth ₹ 6,422 crores of taxes under different heads against the target of ₹ 5,861 crore which is  9.57  percent more than the target.     


About Rahul Dhatwalia 67 Articles
Rahul loves to read article on internet, He crawls over whole net for interesting and unknown facts. He is presently working in Public Sector Bank. In Leisure time He loves to play guitar, produce music and watching movies.

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