Shimla, March 13 -- The Economic Survey Report presented in the state Assembly on Thursday indicates a slight improvement in Himachal Pradesh's growth rate for the financial year 2024-25, with an anticipated increase from 6.6 percent to 6.7 percent.
Except for the period 2020-21 when the economic growth in Himachal Pradesh took a sharp dip to negative, during the Covid-20 period, there has been a steady rise from 4.8 percent in 2021-22 to 6 percent in 2022-23, 6.6 percent in 2023-24 and now estimated at 6.7 percent at the end of the financial year.
In the Economic Survey report laid in the House, ahead of the state's budget on March 17, the Gross State Domestic Product (GSDP) at current prices for 2024-25 is projected to be Rs 2,32,185 crore, a jump from Rs 2,10,662 crore in the previous year.
The state's Per Capita Income (PCI) for 2024-25 is expected to reach Rs 2.57 lakh, posting a growth of 9.6 percent over the previous year.
Earlier, the PCI for 2023-24 was Rs 2,34,782. The PCI has risen significantly from Rs 87,721 in 2011-12.
Report claims that the inflation in Himachal Pradesh has remained relatively stable, decreasing from 5 per cent in 2023-24 to 4.2 per cent in the current financial year.
The Agriculture and Allied sectors are estimated to grow by 3.07 percent, a remarkable improvement from the negative growth of -2.63 percent in 2023-24.
Gross State Domestic Product and Per Capita Income show positive trends, according to the Economic Survey Report.
The tertiary sector accounted for 45.3 percent of the state's Gross Value Added (GVA) at current prices, followed by the secondary sector at 39.5 percent and the primary sector at 15.2 percent.
The industrial sector is also expected to grow at a rate of 8.1 per cent in 2024-25, compared to 6.5 percent at the national level.
Referring to the tourism industry, which contributes 7.78 per cent to the GSDP, the report hints at positive signs with tourist arrivals approaching pre-pandemic levels. In 2024, tourist arrivals touched 181.24 lakh, compared to 150.99 lakh in 2023.
As per report, the percentage contribution of agriculture and allied activities in total Gross State Domestic Product has declined from 70.37 percent in 1950-51 to 35.06 percent in 1990-91, 17.16 percent in 2011-12 and 14.74 percent in FY2023-24.
The economy of the State has shown a shift from the agriculture sector to industries, manufacturing and services.
"Despite challenges like limited natural resources, the state's economy has grown steadily, with significant improvements in per capita income. Horticulture plays a vital role in the state's growth, alongside evolving sectors like construction and services" said a senior official of the state's finance department.
Published by HT Digital Content Services with permission from Millennium Post.