Photo used for indicative purpose only. Source Internet
Shimla, Feb 16
Himachal Pradesh unveiled its Economic Survey 2023-24 today, showcasing growth of 7.1 percent. In a media release they noted that the State’s Economic Performance in 2023-24 is pegged at 7.1 per cent. Nominal GDP or GDP at Current Prices is estimated at 2,07,430 crore and Per Capita Income is estimated at ₹2,35,199. Also tourism sector of the State has witnessed a remarkable resurgence with domestic tourist arrivals surging to pre-pandemic levels claims the report.
Chief Minister, Sukhvinder Singh Sukhu, unveiling the Economic Survey in the Vidhan Sabha underscored the state’s unwavering commitment to economic progress and development. This growth, amidst the backdrop of unprecedented rains and flash floods in 2023, speaks volumes about the state’s resilience and adaptability.
Sectoral analysis portrayed a diverse economic landscape, with the tertiary sector emerging as the cornerstone of the state’s Gross Value Added (GVA) with 43.50 percent contribution. Followed by Secondar sector with 42.44 percent and Primary sector contribution of 14.06 percent in this kitty.
The contribution of the Agriculture and Allied Sector to Gross State Value Added (GSVA) at Current Prices has increased 49 per cent from 17,767 crore in 2018-19 to 26,458 crore in 2023-24 (Advance Estimates (AE)). There is a marked improvement in GSVA of crops at current prices between 2018-19 to 2023-24 (from 10,286 crore in 2018-19 to 16,410 crore in 2023-24), stated the press communique.
Adding that, some of the sub-sectors witnessed a robust recovery after the COVID-19 pandemic and crossed the prepandemic level of 2019-20 in terms of output and contribution. The share of “Trade, Repair, Hotels & Restaurants” which was 6.2 per cent in 2020-21 increased to 7.0 per cent in 2023-24(AE).
In 2023-24, as per the advance estimate, services sector in Himachal Pradesh is expected to grow at 7.4 per cent. All the key sub-sectors within services sector depicted buoyant growth rates in 2021-22(SR) and 2023-24(AE) in Himachal Pradesh, they stated. The GSVA of sub sector “Trade, Repair, Hotel & Restaurants” GVA grew at 4.8 per cent in 2022-23 and 8.4 per cent in 2023-24. “Transport, Storage, Communication and Services relating to broadcasting” registered a growth rate of 11.4 per cent and “Real estate, Ownership of dwelling and Professional Services” grew at 7.8 per cent in 2023-24(AE), claimed the State government.
The report claims that after COVID-19 pandemic the domestic tourist arrivals have increased from 32.13 lakh in 2020 to 56.37 lakh in 2021 to 151 lakh in 2022 and further to 160.05 in 2023 in absolute terms. This revival signals a promising outlook for the state’s tourism industry and underscores its enduring appeal as a tourist destination.
In the realm of power, Himachal Pradesh’s hydroelectric projects continued to play a pivotal role in meeting regional energy demands. With vast untapped potential in hydroelectric resources, the state stands poised for further growth and development in the power sector. The media note stated that Himachal Pradesh has a large number of hydroelectric resources, about 25 per cent of the national potential. About 24,000 MW of hydroelectric power can be generated in the state by the construction of various hydroelectric projects on the five perennial river basins. Out of the total hydroelectric potential of the state, 11,209 MW have been harnessed so far, out of which only 7.6 per cent is under the control of the Himachal Pradesh Government while the rest is exploited by the Central Government.
In Himachal Pradesh industrial sector is the largest consumers of electricity (59.40 per cent) followed by domestic consumption (23.45 per cent). Government Irrigation and water supply scheme consumes 6.39 per cent of the total consumption.
Livestock rearing is an important sub-sector under agriculture and allied activities. It contributes 1.31 per cent of total Gross State Value Added (GSVA) and 9.6 per cent of agriculture and allied sector’s GSVA in FY 2023-24.
Talking about Industry, during FY 2023-24, manufacturing sector is expected to grow at 8.9 per cent which is second highest growth rate in industry sector, they claimed. Adding, the industry sector is crucial for boosting the state economy and generating lot of job possibilities in Himachal as well. Industry Sector (including Mining and Quarrying) at current prices as per Advance Estimates for the Financial Year 2023-24 is estimated at 182,658 crore.
The contribution of industry sector (including Mining and Quarrying) at current prices to Gross State Value Added (GSVA) is 42.80 per cent in 2023-24 in which 29.25 per cent comes from manufacturing sector, 7.44 per cent from construction, 5.76 per cent in electricity, water supply and other utilities services and 0.36 per cent from mining and quarrying.
Favorable employment trends and a notable decline in multidimensional poverty were among the key highlights of the Economic Survey. As per the Periodic Labour Force Survey (PLF5) 2022-23, Labour Force Participation Rate (LFPR) of all ages for Himachal Pradesh (61.3 per cent is higher than Uttarakhand (42.5 per cent), Punjab (42.3 per cent), Haryana (36.3 per cent and All India (42.4 per cent).
Worker Population Ratio (WPR) for all ages for Himachal Pradesh in 2022-23 (58.6 per cent) is better than Uttarakhand (40.6 per cent), Punjab (39.7 per cent). Haryana (34.1 per cent) and all India (41.1 per cent).
In Himachal Pradesh, more women (54.8 per cent) are actively participating in the economic activities than neighbouring states and at all India level (27.0 per cent).
Unemployment under usual status (principal status+ subsidiary status) for persons of all ages in neighboring states shows that Himachal has lowest unemployment rate of 4.4 per cent as against Uttarakhand 4.5 per cent, Punjab and Haryana 6.1 per cent, stated the State government.
On poverty front the economic survey highlighted that Multidimensional poverty in Himachal Pradesh was found to decline from 10.14 per cent in 2013-14 to 3.88 per cent in 2022-23 with about 4.67 lakh people escaping poverty during this period.
Explaining, the survey stated that recent report on National Multidimensional Poverty Index (National MPI) was based on National Family Health Surveys 4 (2015-16) and 5 (2019-21). Owing to a lack of data for the years between 2005-06 and 2015-16 and after 2019-21 concerning the incidence of poverty at National and sub-national levels, headcount poverty ratios for 2013-14 and 2022-23 have been estimated based on the compound growth rate of the reduction in the incidence of poverty levels between 2005-06 and 2015-16 and 2015-16 and 2019-21 respectively.
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