Economic Survey Of Himachal Pradesh 2021-22 : Summary

Economic Survey Of Himachal Pradesh 2021-22 : Summary

WhatsApp Group Join Now
Telegram Group Join Now
Instagram Group Join Now

The State‟s Economic Survey 2021-22 reviews the economic development in the State over the past financial year by analysing and providing detailed statistical data of all the sectors-social, agricultural, industrial, construction, banking, employment, prices, etc. It covers sixteen chapters focusing attention on growth of different sectors, sections and regions along with their problems and
constraints. The Economic Survey also discusses the reforms initiated in some of the sectors and measures taken so far to improve the economic situation and pending challenges that have to be faced in coming decades to enhance growth and ensure equity. A brief summary of each chapter is presented below.

Macro overview of Indian and State’s economy :

At the National level, Gross Domestic Product (GDP) at constant (2011-12) prices or real GDP for the year 2020-21 is estimated at ₹135.58 lakh crore as against ₹145.16 lakh crore in 2019-20 with a contraction of 6.6 per cent. The GDP at current prices or nominal GDP for 2020-21 is estimated at ₹198.01 lakh crore as against ₹200.75 lakh crore in the year 2019-20. As per advance estimates for 2021-22 the Indian economy is expected to grow by 9.2 per cent. The Per Capita Net National Income at current prices is estimated at ₹1,26,855 in 2020-21 against ₹1,32,115 for the previous year 2019-20.

At State level, GDP at constant (2011-12) prices in 2020-21 is estimated at ₹1,14,814 crore against ₹ 1,21,168 crore in 2019-20 with a contraction of 5.2 per cent. The State GDP at current prices, is estimated at ₹ 1,56,675 crore in 2020-21 as against ₹1,59,162 crore in 2019-20. The per capita income at current prices for the year 2020-21 is estimated at ₹1,83,333 as compared to ₹1,85,728 in the year 2019-20.

Overview of the Himachal economy :

Advance estimates suggest that the State’s economy is expected to witness real GDP growth of 8.3 per cent in 2021-22 after contracting in 2020-21. In real terms the increase in GSDP pre-COVID and post-COVID i.e. 2019-20 to 2021-22 is 2.7 per cent. The average annual growth rate for last 8 years was 6.6 per cent. In several sectors of the economy, pre-pandemic levels of output have been crossed. Real GDP or GDP at Constant Prices (2011-12) in the year 2021-22 is estimated at ₹ 1,24,400 crore, as against the Provisional Estimate of GDP for the year 2020-21 of ₹ 1,14,814 crore. Nominal GDP or GDP at Current Prices in the year 2021-22 is estimated at ₹ 1,75,173 crore, as against the provisional estimate of GDP for the year 2020-21 of ₹ 1,56,675
crore.

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 Rs. 51,528. The growth in Per Capita Income during 2021-22 is estimated at 10.1 per cent. Agriculture and allied sectors have been the least impacted by the pandemic and the sector is expected to grow by 8.7 per cent in 2021-22. As per advance estimates the Gross Value Added (GVA) of Industry will rise by 11.0 per cent in 2021-22 after contracting 7.3 per cent in 2020-21. The Services sector has been the hardest hit by the pandemic. This sector is estimated to grow by 6.3 per cent during 2021-22..

Tourism is an important source of generation of revenue and diverse employment opportunities. A significant rise was noticed in the domestic as well as foreign tourist inflow during the last few years but due to impact of COVID-19, there was a sharp decrease of 81 per cent in tourist arrivals in 2020 However, on the positive side, there is an increase of 75.44 per cent in tourist inflow upto December 2021.

According to the budget estimates for the year 2021-22 the total revenue receipts were estimated at ₹37,028 crore as against ₹35,588 crore in 2020-21 revised estimates. For the financial year 2020-21 the State Excise and Taxation Department collected ₹7044.24 crore taxes under different heads against a target of ₹6886.13 crore which is 2.30 percent more than the target. During the current financial year 2021-22, (up to December 2021) the department has collected ₹6,232.24 crore taxes under different heads against the annual target of ₹6,964.84 crore.

As per the budget estimates the Revenue receipts of the Government for the year 2021-22 were estimated to be 21.14 per cent of the GSDP revised to 22.71 per cent in 2020-21 revised estimates. Similarly, the tax revenue for the year 2021-22 was estimated at 8.45 per cent of GSDP as compared to 7.86 per cent during 2020-21. Non-tax revenue is 1.57 per cent of the GSDP in 2021-22 as compared to 1.45 per cent during 2020-21. Fiscal deficit estimate is 4.45 per cent of the GSDP in 2021-22 as compared to 4.11 per cent in 2020-

In 2021-22, the total expenditure of the State is estimated at 28.65 percent, revenue expenditure at 21.97 percent and capital expenditure is estimated at 3.43 percent of the GSDP.

COVID-19 Impact and Recovery of Himachal Pradesh Economy

The impact of coronavirus pandemic on India has been largely disruptive in terms of economic activity as well as loss of human lives. Almost all the sectors have been adversely affected as domestic demand and exports sharply plummeted with some notable exceptions where high growth was observed. Himachal Pradesh too, like other States, resorted to lockdown and various other restrictions which curbed movement of the people and eventually resulted in contraction in GSDP. Eventually after the opening up of many economic activities, GSDP has started „V‟ shape recovery in all the sectors which saw highest contraction due to lockdown. Himachal Pradesh witnessed abundant tourist arrival which also saw a huge dip, but after relaxation of lockdown, this sector saw 75.43 per cent growth rate from the previous year.

Performance of the State in Sustainable Development Goals (SDGs), Good Governance and Multidimensional Poverty Index.

SDGs encompass all the key development sectors including education, health, sanitation, employment, infrastructure, energy, and environment – and set time-bound targets to achieve them. Himachal Pradesh is a frontrunner among the States at national level. It secured consistent top position in assessment of sustainable goals. Though in all indicators, Himachal Pradesh performed better, it secured top position in Affordable and Clean Energy. Himachal also attained lowest score in SDG-2 which is Zero hunger. There are three indicators in SDG-2 in which Himachal Pradesh needs attention namely percentage of children who are underweight, percentage of children who are stunted and percentage of women who are anaemic. State has achieved 2nd rank in overall ranking along with Tamil Nadu in current SDG 3.0. Good Governance Index has been closely related with SDGs in which Himachal
Pradesh has been assessed top performer among North East and Hill States.

To assess the reach of the Government and to create healthy competitive environment, District Good Governance Index (DGGI) has been made an annual exercise since 2019 in the State. In DGGI 2020 ranking Hamirpur was the top performer followed by Bilaspur.

In terms of Multidimensional Poverty Index (MPI), Himachal Pradesh has 0.03 percent compared to 0.118 per cent MPI at national level. State has just 7.62 per cent head count ratio compared to 25.01 per cent head count at national level.

Achievements in the financial sector

The State has a network of 2,244 bank branches of which, more than 76 per cent are in rural areas. From October, 2020 to September, 2021, 13 new branches were opened. At present 1,715 branches are located in rural areas, 414 in semi- urban areas and 115 in Shimla urban. Agriculture loans constitute 19.47 percent of total loans extended by Banks as on September, 2021 as against
the national parameter of 18 percent set by the RBI. Advances to weaker sections and women have a proportion of 17.75 and 10.48 per cent in total lending by banks as against the national parameter of 10 and 5 percent, respectively. Credit Deposit Ratio (CDR) of banks in the State stood at 38.28 per cent upto September, 2021. Under Pradhan Mantri Suraksha Bima Yojna (PMSBY), banks have 15.72 lakh subscribers upto September, 2021.

Price Movement and Food Management

In Himachal Pradesh, Inflation has been moderate since 2014, Consumer Price Index – combined (CPI-C) inflation was 4.6 percent in 2016-17 and 5.2 percent in 2020-21. In current financial year, during April–December, 2021, CPI-C was per cent as compared to 5.3 per cent for the same period in 2020-21. In 2021-22, during April-December 2021, CPI-Rural and CPI-Urban indices were and 5.2 percent, respectively, as compared to 4.8 and 7.6 per cent in the corresponding period of 2020-21.

Performance of Agriculture, Horticulture, Animal Husbandry and Allied Sectors

The share of agriculture and allied sectors in the Gross Value Added (GVA) of the State at current prices has declined from 15.33 per cent in 2016-17 to 12.44 per cent in 2021-22. This is a natural outcome of development process that leads to faster growth of non-agricultural sectors owing to structural changes taking place in the economy. However, the importance of agriculture for the livelihood of the rural population and food security of large masses is significant in the economy. The foodgrains production was 15.28 lakh MT in 2020-21 as against the food grain production of 15.94 lakh MT in the year 2019-20. The production of Potato was 1.96 lakh MT in 2020-21 as against 1.97 lakh MT in 2019-20.

The production of vegetables during the year 2020-21 was 18.67 lakh MT as against 18.61 lakh MT in 2019-20. The contribution of major livestock products during 2020-21 was 15.76 lakh tonnes milk, 1,482 tonnes wool, 1,111 million eggs and 4,306 tonnes of meat which is likely to be of the order of 16.54 lakh tonnes of milk, 1,500 tonnes of wool, 1100 million eggs and 4,500 tonnes of meat during 2021-22. Forests in Himachal Pradesh cover an area of 37,947 Sq. Km. and accounts for 68.16 per cent of total geographical area of the State. Presently 28.60 per cent of the total geographical areas support forest cover.

Performance of State Government in providing safe drinking water, irrigation facilities and environment protection.

As on December, 2021, out of 17.28 lakh households, 15.80 lakh were provided Functional Household Tap Connections. In Himachal Pradesh, 91 per cent households have been provided with domestic connection against a national average of 45.50 per cent.

Status of industralisation and Investment/Outreach initiatives

State has a well developed industry sector which has witnessed an average contribution to Gross State Domestic Product (GSDP) of around 30 per cent during the last 4 years. The growth rate of GSVA of manufacturing sector at constant prices was 10.1 per cent in 2018-19 and increased at decreasing rate of 0.88 per cent in 2019-20. After showing a negative growth rate of -7.33 per cent in 2020-21 it is expected to grow at 11.3 per cent in 2021-22. As on 31.01.2022, 33,094 enterprises have registered on the Udyam portal in the state, out of which 31,217 are Micro, 1,637 are Small and 240 are Medium enterprises. The State government amended the Industrial Policy 2004 and notified the ―Himachal Pradesh Industrial Investment Development Policy 2019‖ and ―Rules Regarding Grant of Incentives, Concessions and Facilities for Investment Promotion in Himachal Pradesh-2019‖ to promote and incentivize industry by creating a conducive environment for sustainable inclusive development that generates income and employment opportunities. The Government signed 703 Memorandum of Understanding (MoUs) in various sectors with proposed investment of ₹96,720.88 crore and proposed employment of 1,96,800 persons in the Global Investors Meet.

Periodic Labour Force Survey (PLFS) Report for 2019-20

This shows that Labour Force Participation Rate has increased from 52.8 per cent in 2018-19 to 57.7 per cent in 2019-20. A striking feature of the latest PLFS Report 2019-20 is a considerable increase in female workforce participation rate in the State from 44.6 per cent in 2018-19 to 50.3 per cent in 2019-20. Overall workforce participation rate also increased from 50.1 per cent 2018-19 to 55.6 per cent in 2019-20. The unemployment rate in the State declined from 5.2 per cent in 2018-19 to 3.7 per cent in 2019-20.

Progress made by the State in Power sector

Himachal Pradesh has an estimated Hydro Potential of 27,436 Megawatt (MW) out of which about 24,567 MW has been assessed as harness able. Himachal Pradesh recently notified Swaran Jayanti Energy Policy-2021 which envisages clean and green energy development through exploitation of full energy potential specially hydro and solar, and to add additional 10,000 MW green energy though hydro, solar and other green energy sources, by 2030.

Developments in tourism and transport sector

The contribution of the tourism sector to the State Gross Domestic Product (GDP) is about 7 per cent. Himachal Pradesh is a fast-growing tourist destination that draws visitors from across the globe. 4,011 Tourism Units, 828 Restaurants, 4,400 Travel Agents and 2,934 Home Stays are registered in the department of Tourism and Civil Aviation. As per Tourism satellite accounts, the total share of tourism in the State GVA is estimated at 7.53 per cent and the total share in the number of jobs in the State is estimated at 14.42 per cent. Starting almost from a scratch the State Government has constructed 40,020 kms. of motorable roads (inclusive of jeepable and track) till December, 2021.

In addition, the National Highway Authority of India has developed/ maintained 5 National Highway shaving length of 785 kms. and Border Road Organization has also developed/ maintained 3 National Highways covering of 569 kms.

Status of Education, Health and social Welfare sectors

In the Survey it is stated that as per Annual Status of Education Report (ASER) 2021, the percentage of children in the age group 6-14 enrolled in Government schools increased by more than 6.8 percentage points from 2020 to 2021 .The increase of 7.1 percentage points has been observed in the girls enrollment, in comparison to 6.2 percentage points increase in boys enrollment in the same age group from 2020 to 2021.

The COVID-19 pandemic put the health infrastructure of Himachal Pradesh to a great test. The pandemic brought forth the inherent strengths of the medical fraternity in effectively managing the spread of the disease. To provide quality health care to COVID-19 patients in Himachal Pradesh, oxygen cylinders and oxygen manifold were procured in a timely manner and provided to all the dedicated COVID-19 facilities. The process of COVID-19 vaccination was started on 16th Janurary, 2021 in the State. As per COVID-19 Portal as of 30th January, 2022 the total number of doses given were 1,19,20,817, of which 1st dose given to 62,77,737 and 2nd dose to 55,51,179. In addition, 91,901 doses were given as precautionary dose.

Himachal has seen significant increase in expenditure on social services. For this sector, the expenditure by the state, as a proportion of GSDP, increased to 9.72 per cent from 8.48 per cent, during the period 2016-17 to 2021-22. Expenditure on education, increased from 4.17 per cent in 2016-17 to 4.72 per cent in 2021-22, and in health from 1.42 per cent to 1.70 per cent in the same period. The share of expenditure on social services out of total budgetary expenditure has increased to 33.91 per cent in 2021-22, from 29.52 per cent in 2016-17.

Developments in rural sector

Under Pradhan Mantri Awas Yojna-Gramin (PMAY-G), in 2021-22 Government of India has allocated the target of 3,514 numbers of houses out of which department has sanctioned 1,620 numbers of houses. Under Mukhya Mantri Awas Yojna (MMAY) there is a budget provision in year 2021-22 of ₹20.93 crore and 1,257 houses of all categories are proposed to be constructed. Under Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) during 2021- 22, ₹ 857.59 crore have been utilized and 255.73 lakh mandays generated by providing employment to 6,06,182 households.

Status and progress made in Housing and Urban Development sector

During 2021-22, Himachal Pradesh Housing and Urban Development Authority, generated 6,61,330 mandays of wage through construction of different works. The Government of Himachal Pradesh, started Mukhya Mantri Shahri Ajeevika Guarantee Yojna (MMSAGY) on 16.05.2020to enhance livelihood security in urban areas by providing 120 days of guaranteed wage employment to desiring persons. All adult members of the households who register under this scheme are eligible to work.

Developments in the Department of Information Technology

IT department developed and implemented various IT Applications and solutions to facilitate the smooth operation of day to day business of administration and citizens. The State Government at various levels is using these technology platforms provided by the Department for information gathering, monitoring and decision-making as well as office working in an efficient manner. Several Government meetings with field functionaries are being held virtually. During 2021-22, 17 new Applications /Websites were hosted in HPSDC cloud. Overall, 187 Websites/ Applications have been hosted in HPSDC. Information and Communications Technology (ICT) has played a vital role during the pandemic, specifically in reducing footfall in the Government Offices by providing online services to the citizens.

Download Full Himachal Economic Survey 2021-22

Economic Survey Of Himachal Pradesh 2021-22 : Summary

Read Also : Himachal Pradesh General Knowledge

Leave a Comment