Himachal Economic Survey 2025-26: Economy grows, but climate losses emerge as big threat to future expansion
Shimla, March 20,
Himachal Pradesh has registered steady economic growth and a continued rise in income levels, but the State’s future expansion could face serious pressure from repeated climate-linked disasters, according to the Economic Survey 2025-26. The survey presents a broadly positive picture of the economy while also flagging the mounting cost of natural calamities as a key challenge for long-term sustainability.
The survey says Himachal Pradesh recorded 10.1 per cent nominal Gross State Domestic Product (GSDP) growth and 6.4 per cent real growth in FY 2024-25, reflecting what it describes as a strong post-pandemic recovery. It also notes that per capita income has risen by 49 per cent since 2020-21, indicating a broader improvement in living standards over the past few years.
Placing the present in a longer perspective, the survey states that Himachal witnessed its fastest phase of expansion between 2010-11 and 2020-21, when GSDP increased by 167 per cent and per capita income rose by 272 per cent. The document says this growth has been accompanied by a visible shift in the State’s economic structure, with industry and services playing an increasingly dominant role.
Also read:Himachal Pradesh economic survey indicates 7.1 pc growth, Rs 2.07L Cr GDP, tourism revival
According to the survey, the combined share of the secondary and tertiary sectors has reached 86.3 per cent of GSDP in FY 2024-25, while the primary sector’s share stands at 13.7 per cent. This reflects the growing contribution of manufacturing, hydropower, tourism, pharmaceuticals and services to the State economy, even as agriculture and horticulture remain important for rural livelihoods.
At the same time, the survey underlines that climate vulnerability is becoming a central economic concern for Himachal Pradesh. It records Rs 46,000 crore in losses due to disasters over the last four years, saying these losses are equivalent to nearly 4 per cent of GSDP annually. Infrastructure and horticulture have been identified among the sectors most affected, pointing to the wider economic risks posed by extreme weather events and environmental stress.
Despite this, the survey maintains a positive medium-term outlook. It says the State’s future prospects remain supported by climate-resilient infrastructure, welfare programmes and renewable energy potential. The message from the survey is that Himachal’s economy is growing and diversifying, but the durability of that growth will increasingly depend on how effectively the State responds to the economic impact of climate shocks.
About the Author
The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.
