Shimla: Chief Minister Sukhvinder Singh Sukhu placed the Economic Survey 2025–26 before the Himachal Pradesh Vidhan Sabha on Friday, putting out a reality check—numbers show growth, but the stress lines in the state’s economy are getting harder to ignore.
The survey projects the state economy to grow in the range of 9–10%, largely powered by the services sector. Tourism continues to drive this momentum, contributing the biggest share to the economy, followed by industry, while agriculture and horticulture account for a much smaller slice.
But scratch beneath the surface, and concerns emerge. The state’s debt burden remains heavy, crossing 40% of GSDP, while a significant portion of borrowings is being used to repay past loans rather than build new assets.
The looming phase-out of central revenue deficit grants is expected to further squeeze finances in the coming years.
The government has, however, pointed to improved internal revenue mobilisation, with earnings crossing ₹26,000 crore in the past two-and-a-half years, thanks to policy tweaks and better tax collection. Still, the gap between income and expenditure continues to be a concern.
In rural Himachal, agriculture and horticulture—especially the apple economy—remain the backbone. Yet, the survey flags climate change, erratic weather patterns, and rising input costs as serious threats to sustainability and productivity.
On the infrastructure front, the state is pushing development through externally aided projects, including dozens of NABARD-backed schemes worth over ₹700 crore, focusing on roads and water supply in rural areas.
A key highlight is the state’s shift towards a green growth model. With a large share of power already coming from renewable sources, Himachal is now eyeing expansion in hydropower, electric mobility, and hydrogen-based energy projects.
Social sector spending continues to remain a priority, with investments in health, education, and welfare schemes aimed at inclusive growth.
However, the survey also acknowledges challenges like unemployment and migration, particularly among the youth.
Himachal’s economy is moving forward, but on a fragile footing—leaning heavily on tourism, government spending, and borrowings.
The coming years, the survey will test how long this balance can hold.
