Negative growth of 6.2 percent exp in fy 20-21, per capita income too drops by 3.7 per: Economic survey

Shimla, March 5

Due to the impact of pandemic covid-19 the economy of the State is expected to have a negative growth of 6.2 per cent in the current financial year 2020-21. This is stated in the economic survey tabled in the HP Vidhan Sabha today. As per first advance estimates, Himachalâ€™s GSDP for fiscal 2020-21 is estimated to drop by 6.2 per cent and the Per Capita Income at current prices is estimated to drop by 3.7 per cent to â‚¹1,83,286.

At the State level, the Gross State Domestic State Product at current prices (Nominal GSDP), is estimated to be â‚¹1, 62,816 crore in 2019-20 as against â‚¹1, 49,442 crore in 2018-19 showing a growth rate of 8.9 per cent during the year. Per Capita Income in Himachal Pradesh at current prices, for the year, 2019-20 is estimated to be â‚¹1, 90,407 as against â‚¹1, 76,460 for the year 2018-19; a growth of 7.9 per cent as compared to 6.6 per cent during 2018-19.

Agriculture & livestock sector

In 2021 a contraction of 3.1 per cent has resulted due to a decrease of 43 per cent in horticulture production. However registered a positive growth of 18.3 per cent in 2019-20 at constant (2011-12) prices with a Gross Value Added (GVA) of â‚¹10,583 crore as compared to â‚¹8,949 crore for 2018-19.

Â The share of Agriculture and allied sectors

A key sector that supports 60 per cent of the population in Gross Value Added (GVA) of the State at current prices has declined from 15.89 per cent in 2015-16 to 13.62 per cent in 2020-21. The share of agriculture and allied sectors in the total GVA of the State has been declining on account of relatively higher growth performance of non-agricultural sectors due to structural changes taking place in the economy and is in line with national and international trends.

Manufacturing sector

Showed a contraction of 14.2 per cent during 2020-21 as against a positive growth rate of 0.3 per cent in 2019-20. The Mining and Quarrying sector showed a negative growth of 18.4 per cent during 2020-21 as against 4.3 per cent growth in 2018-19. As per the estimates for 2019-20 at constant (2011-12) prices, the GVA of this secondary sector is estimated at â‚¹53,498 crore against â‚¹53,456 crore in 2018-19. The contribution of Manufacturing Sector in Gross State Value Addition (GSVA) at Current Prices Increased from 28.94 per cent in 2016-17 to 29.18 per cent in 2019-20 but is expected to decrease by 26.94 per cent in 2020-21. Mining & Quarrying Sector GSVA decreased from 0.64 per cent in the year 2016-17 to 0.25 per cent in 2020-21.

Construction sector, contracted by 11.5 per cent in 2020-21 as against 3.1 per cent growth in 2019-20.

Tourism sector

One of the hardest hit sectors by the Covid-19 pandemic was tourism; it saw a contraction of 81.33 per cent in foreign and domestic tourist arrivals in 2020. Though it did well in 2019 and witnessed a 4.63 per cent growth in both foreign and domestic tourist arrivals as compared to 2018 where negative growth of 16.08 per cent had been witnessed.

Trade, Hotel and Restaurant sector

Showed a contraction of 9.2 per cent during 2020-21 as against a growth of 4.6 per cent in 2019-20. Transport by other means, namely, road transport (mechanised and non-mechanised), water transport, air transport and services incidental to transport, too showed a negative growth of 28 per cent during 2020-21 as against 5.6 per cent growth during 2018-19.

Price Movement and Food Management

Himachal Pradesh, in current financial year, during the months of April-December, 2020, Consumer Price Index-combined (CPI-C) was 5.3 per cent as compared to 2.5 per cent for the same period in 2019-20. In current Financial Year (2020-21), during April-December 2020, CPIRural and CPI-Urban indices were 4.8 and 7.6 per cent, respectively, as compared to 2.0 and 4.7per cent in the corresponding period of 2019.

Periodic Labour Force Survey (PLFS)

Report for 2018-19. shows that Labour Force Participation Rate has increased from 49.1 per cent in 2017-18 to 52.8 per cent in 2018-19. A striking feature of the latest PLFS Report 2018-19 is a considerable increase in female workforce participation rate in the State from 37.9 per cent in 2017-18 to 44.6 per cent in 2018-19. Overall workforce participation rate also increased from 46.4 per cent 2017-18 to 50.1 per cent in 2018-19.The unemployment rate in the State declined from 5.5 per cent in 2017-18 to 5.2 per cent in 2018-19.