Economy of Himachal Pradesh

Agriculture contributes nearly about 45% to the net state domestic product. It is the main source of income as well as employment in Himachal. About 93% of the state population depend directly upon agriculture. The main cereals grown in the state are wheat, maize, rice and barley. Kangra, Mandi and Paonta valley of Sirmaur district (to some extent) are the major producers of the first three cereals, while barley is mostly cultivated in Shimla. Fruit cultivation has also proved to be an economic boon to the state. There are huge tracts of land suitable only for growing fruits. Fruit of all cultivation does not add to the problem of soil erosion and its employment potential is more than the conventional farming. The yield per acre in terms of income is also much higher. Apple produces the maximum income. Fruit growing in the state is fetching over Rs. 3 billion annually. Special efforts are being made to promote cultivation of crops like olives, figs, hops, mushrooms, flowers, pistachio nuts, sarda melon and saffron. The state has also earned the name of the Apple State of India.[3]

Ecology has been given importance in the state during the last few years. Industries becoming the cause of water or air pollution are not encouraged. Every industrial project has to be passed by the clearance of the Environment Protection Organization before its establishment. Himachal is facing a number of difficulties in the advancement of industries. Lack of means of dependable transport and poor accessibility was one of the major drawbacks. Other problems faced by the state were the poor mineral resources, non-availability of infrastructure and communication facilities, shortage of capital and lack of modern skills. The only advantage of the state was the ample availability of electricity. Parwano, Barotiwala, Baddi, Paonta Sahib, Mehatpur, Shamshi, Nagrota Bagwan, Bilaspur, Reckong Peo and Sansar Pur Terrace are some of the industrial areas of the state at present. As the dust free climate of Himachal is extremely suitable for the setting up of electronic industries, many electronic complexes have been established at Solan, Mandi, Hamirpur, Shoghi, Raga-Ka-Bagh, Chamba, Ambi, Taliwala and Keylong.[4] Moving one step further to its growth Baddi, Barotiwal & Nalagarh Industrial area have made its presence online with a domain name baddionline.com. And other Industrial Areas of Himachal Pradesh will be covered soon.[5]