Shimla, March 13,
Himachal Pradesh’s primary sector is expected to contract by -2.2 per cent at constant prices in the fiscal year 2023-24, driven primarily by a significant downturn in the crop sector. According to the Advance Estimates (AE), the Gross Value Added (GVA) from the primary sector is projected at ₹17,036 crore in FY 2023-24, down from ₹17,417 crore in FY 2022-23 at constant prices. This contraction follows growth rates of 4.6 per cent in FY 2021-22 and 5.7 per cent in FY 2022-23, marking a sharp reversal in the current fiscal year.
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The decline is most evident in the crop sector, which saw its GVA shrink by -6.5 per cent, falling from ₹9,138 crore in FY 2022-23 to ₹8,540 crore in FY 2023-24. In contrast, other segments of the primary sector showed positive trends: forestry and logging grew by 1.6 per cent, livestock by 4.1 per cent, fishing by 7.0 per cent, and mining and quarrying by 5.8 per cent. Despite employing 58.71 per cent of the state’s population, the primary sector’s diminishing performance highlights the challenges faced by agricultural production and its ripple effects on the state economy.
Despite its role as the backbone of employment in Himachal Pradesh, the primary sector remains the least significant contributor to the state’s economy. As per the AE for FY 2023-24, the primary sector accounts for only 14.1 per cent of the state’s GVA at current prices, amounting to ₹27,147 crore. In comparison, the secondary sector’s contribution stands at ₹81,968 crore (42.4 per cent), while the tertiary or services sector leads with ₹84,005 crore (43.5 per cent). This disparity showcases the limited economic output generated by the primary sector relative to its large workforce, suggesting the need for workforce reallocation and modernization efforts in agriculture.
The secondary sector, driven by industrial development, showed a robust growth rate of 9.3 per cent, with its GVA rising from ₹58,039 crore in FY 2022-23 to ₹63,424 crore in FY 2023-24 at constant prices. Meanwhile, the tertiary sector, the largest contributor to the state’s economy, grew by 7.4 per cent, increasing its GVA from ₹50,520 crore to ₹54,253 crore.
Himachal Pradesh’s economic structure diverges notably from the national average. While agriculture and allied activities employ 58.37 per cent of the state’s workforce compared to 45.76 per cent across India, the primary sector contributes only 13.57 per cent to the state’s GVA against a national average of 18.97 per cent. This imbalance points to the prevalence of disguised unemployment in agriculture and emphasizes the potential benefits of transitioning the workforce toward the more productive secondary and tertiary sectors.
The state government’s initiatives to strengthen industrial development are expected to further bolster the secondary sector, promising job creation and enhanced productivity across the economy. At the same time, the services sector’s increasing share in GVA underscores its importance not only for economic growth but also as a key driver of employment generation in the state.
