E-Paper
Himachal’s economy likely to grow by 8.3% in 2021-22: Survey
On recovery path after being hit by pandemic, Himachal’s economy is likely to grow by 8.3%, advanced estimates show, according to Economic Survey 2021-22 presented by CM Jai Ram Thakur in assembly
On the recovery path after being hit by the Covid-19 pandemic, Himachal Pradesh’s economy is likely to grow by 8.3%, advanced estimates show, according to the Economic Survey 2021-22 presented by chief minister Jai Ram Thakur in the assembly on Thursday.
State’s economy shrunk by 6.2% in last fiscal
In real terms, the increase in the gross state domestic product (GSDP) pre-Covid and post-Covid are 2.7% pre-pandemic levels of output have been crossed in several sectors of the economy, an annual document of the state government asserts.
The GDP at constant prices (2011-12) in 2021-22 is estimated at ₹1, 24,400 crore, as against the provisional estimate of the GDP for 2020-21 of ₹1,14,814 crore.
The nominal GDP or GDP at current prices in 2021-22 is estimated at 1,75,173 crore, as against the provisional estimate of the GDP for 2020-21 of ₹1,56,675 crore.
The per capita income at current prices is estimated at ₹2,01,854 which is more than the estimated national per capita income for 2020-21 by ₹51,528.
The growth in per capita income in 2021-22 is estimated at 10.1%.
8.7% growth estimated in agri & allied sectors
The agriculture and allied sectors were the least impacted by the pandemic and the sector is expected to grow by 8.7% in 2021-22. And the gross value added (GVA) of industry will rise by 11.0% in 2021-22 after contracting by 6.6% in 2020-21.
Hardest hit by the pandemic, the services sector will grow by 6.3% against last year’s -2.1% growth.
The agriculture and livestock sector registered a negative growth of 8.6% in 2020-21 at constant prices with a GAV of ₹9,930 crore as compared to ₹10,870 crore for 2019-20. However, the growth was 11.9% in 2021-22 due to an increase in horticulture production.
Industrial sector also soars
The manufacturing sector showed a growth of 11.3% during 2021-22 as against a negative growth rate of 7.3% in the last fiscal. The mining and quarrying sector showed a negative growth of -3.2% during 2021-22 as against -6.8% in 2020-21.
At constant prices, the GVA of this secondary sector is estimated at ₹2,55,089 crore against ₹2,49,610 crore last year.
The services Sector registered 6.3% growth in 2021-22 over the previous year.
Tourism limping back to normalcy
Tourism, the mainstay of the state’s economy, registered a sharp decline of 81% in tourist arrival during the pandemic. However, this year up to December 2021 there was an increase of 75.44% in tourist inflow.
Moderate inflation
Inflation has been moderate in Himachal since 2014, consumer price index combined (CPI-C) inflation was 4.6% in 2016-17 and 5.2% in 2020-21.
In the current financial year (April-December) CPI-C was 6.0% as compared. CPI-rural and CPI-Urban indices were 6.1% and 5.2%, respectively.
State excels in SDGs
The state has achieved 2nd rank in the overall ranking along with Tamil Nadu in current SDG 3.0. The Good Governance Index has been closely related to SDGs in which Himachal Pradesh has been assessed top performer among north-east and the hill states.
Employment scenario
As per the Periodic Labour Force Survey (PLFS) Report 2019-20, the labour force participation rate has increased from 52.8% in 2018-19 to 57.7 % in 2019-20. A striking feature of the PLFS is a considerable increase in the female workforce participation rate in the state from 44.6% in 2018-19 to 50.3% in 2019-20. The overall workforce participation rate also increased from 50.1% 2018-19 to 55.6% in 2019-20. The unemployment rate in the state declined from 5.2% in 2018-19 to 3.7% in 2019-20.
