Himachal likely to post 6.4 pc growth, shrink by 1.2%
Shimla : Himachal Pradesh has an estimated per capita income of Rs 201,271 for financial year 2021-22 (first revised) compared to Rs 150,007 at the national level, an income gap of Rs 51,264, Chief Minister Sukhvinder Singh Sukhu said on Thursday, with the economic growth expected to be 6.4 per cent, shrinking by 1.2 per cent this fiscal.
Himachal is progressive due to steady efforts of the hardworking people and by the implementation of progressive policies, he informed the assembly, citing the state’s economic survey 2022-23.
The state’s economy is highly dependent on hydroelectric power, horticulture and tourism. The report was tabled in the assembly by Sukhu, who also holds the finance portfolio.
“During 2021-22, the state economy grew by 7.6 per cent and is expected to grow by 6.4 per cent during 2022-23. The Gross State Domestic Product (GSDP) at current prices is estimated at Rs 176,269 crore in 2021-22 first revised as against Rs 155,251 crore in the second revised estimate in 2020-21, showing an increase of 13.5 per cent during the year.”
The GSDP at constant (2011-12) prices in 2021-22 first revised is estimated at Rs 126,433 crore against Rs 117,555 crore in 2020-21 (second revised), registering a growth of 7.6 per cent during the year as against the negative growth rate of three per cent for the previous year.
The growth of 7.6 per cent is mainly attributed due to 4.6 per cent increase in primary sector, 7.8 per cent increase in secondary sector, 15.6 per cent increase in transport, communication, trade hotel and restaurants sector and 7.9 per cent increase in community and personal services sector of the economy.
Finance and real estate sector saw a marginal growth of one per cent only. Food grain production, which was 15.21 lakh metric tons (MT) during 2020-21 increased to 16.92 lakh MT in 2021-22 and is anticipated to be 15.94 lakh MT in 2022-23.
The fruit production increased to 7.54 lakh MT in 2021-22 as against 6.24 lakh MT in 2020-21, showing an increase of 20.83 per cent in 2021-22. The fruit production during 2022-23, up to December 2022, is expected to be 7.93 lakh MT.
The per capita income at current prices as per first revised estimates for 2021-22 is Rs 201,271 as compared to Rs 177,924 in 2020-21, an increase of 13.1 per cent. As per current estimates on the basis of economic conditions up to December 2022, the economy of the state for 2022-23 is expected to grow by 6.4 per cent.
The total expenditure of the state government was estimated to be Rs 51,365 crore out of which Rs 40,279 crore (78.42 per cent) was earmarked for revenue expenditure followed by capital expenditure as 10.99 per cent and debt as 10.59 per cent for 2022-23.
The debt as percentage to GSDP was 39.29 per cent in 2020-21 as against 35.25 per cent in 2019-20. The economy has shown a shift from agriculture sector to industries and services as the percentage contribution of agriculture in total Gross State Domestic Product has declined from 57.9 per cent in 1950-51 to 55.5 per cent in 1967-68, 26.5 per cent in 1990-91 and 9.50 per cent in 2021-22.
The growing of off-season vegetables has also picked up in the state. As per the economy report, 18.04 lakh tonnes of vegetables were produced in 2021-22 against 18.67 lakh tonnes in 2020-21.
The production of vegetables will be about 17.59 lakh tonnes in 2022-23. Himachal Pradesh’s hydropower generation potential is 23,500 MW — about 25 percent of country’s total hydropower potential. A total of 10,580 MW has already been harnessed.
The state has the distinction of being net exporter of power with 100 per cent renewable energy. Tourism, a significant contributor of the state gross domestic product, last year attracted 139.23 lakh tourists, of which 0.26 lakh were foreigners, till November 2022.
The tourist arrival hugely improved after the Covid-19 lockdown. The growth rate reached to 75.43 per cent in 2021 and 167.87 per cent in 2022.
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