Himachal Pradesh is expected to witness a sharp dip in its growth in the election year with the Economic survey for the year 2016-17, suggesting a decline of around 1.3 percent in the overall growth rate of the State.
The growth rate is expected to come down to 6.8 percent from 8.1 per cent achieved in 2015-16. The State is still expected to achieve a growth rate of 7.2 percent for the Twelfth Plan i.e., 2012-17.
However, the Government is expecting a healthy growth in per capita income in the State, and estimated the per capita income in the State will touch Rs 1,47,277 in 2016-17, which was Rs 1,35,621 in 2015-16 with a growth of 9.1 percent over the previous fiscal.
Chief Minister Virbhadra Singh, who also holds the Finance portfolio, presented the Economic Survey for the year in 2016-17 in the assembly. Although the survey prepared by Economics and Statistics Department, Himachal Pradesh does not attribute the slow down in the growth rate to the Demonetization, that was effected in the Indian economy during the third quarter of the current fiscal, yet the experts say that demonetization will have significant impact on the overall economy of the country and Himachal Pradesh will be no exception.
As per the economic survey, the Gross State Domestic Product (GSDP) of State at current prices is likely to be around Rs 1,24,570 crore in 2016-17. The GSDP had remained Rs 1,13,667 in 2015-16.
The Agriculture sector in the State generates about 10% to the total Gross State Domestic Product (GSDP). For the year 2016-17, the food grain production is anticipated to be 16 lac MT, against the 16.34 lac MT achieved during 2015-16.
The fruit production in the State has also seen a dip, with the State recording fruit production to the tune of 5.10 lac tone upto December 2016. While the State had produced 9.29 lac tonne fruit in 2015-16. Apple constitutes 84 % of the total fruit production of the state, it recorded 4.56 lac tonne production of Apple upto December 2016, while it had been 7.77 lac in 2015-16.
The secondary sector, the second largest contibutor in state economy, has witnessed a healthy improvement since 1990-91 and its contribution was recorded to be 41 percent in the GSDP, against 26.5 percent in 1990-91. The survey says, 576 medium and large-scale industries were running in the State while the State abodes 43,420 small-scale industries.
The survey says that the State has produced 10,351 MW hydro-power uto December 2016, thereby harnessing 37.73 percent of the total potential of hydropower in the State. The inflow of tourists to the State has continued to see an upswing with 184.51 lac tourists visited the State during 2016.
The annual plan for 2017-18 has been proposed at Rs 5,700.00 crore which will be 9.6 percent higher than the plan size of current year
2016-17.