SHIMLA: Per capita income in Himachal Pradesh has exhibited a growth rate of 10.4 per cent, while the gross State domestic product has shown a growth rate of 10.9 per cent, according to the Economic Survey 2022-23.
After a gap of three years, if one goes by the Survey 2022-23, Himachal economy recovery mode has slowed down this year after it had shown higher growth rate last year after it was hit severely by the Corona pandemic in 2020.
The growth rate however was on a lower side when compared with that of previous year.
But the growth rate was expected to be less this year as compared with previous year as the economy was severely hit by the Pandemic in 2020 and hence growth rate was higher in 2021-22, comment economists.
Chief Minister Sukhvinder Singh Sukhu presented the Economic Survey report 2022-23 in the Vidhan Sabha today.
According to the Advance Estimates (AE), the Gross State Domestic Product (GSDP) of Himachal Pradesh at current prices or nominal GSDP for the 2022-23 is estimated to be ₹1,95,404 crore, says Survey Prepared by the HP Economic and Statistics Department, which is now in public domain.
It is as against ₹1,76,269 crore in the 2021-22. This shows an impressive growth rate of 10.9 per cent, says survey.
Agriculture with its allied sectors support about 57.03 per cent of the population as per Periodic Labour Force Survey of 2021-22.
As per first revised estimates for 2021-22 at constant (2011-12) prices, the Gross Value Added(GVA) of the secondary sector in the State is estimated at ₹56,408 crore against ₹52,328 crore for 2020-21.
With this, the second revised (SR) estimates has registered growth of 7.8 per cent over the previous year, says the survey report.
As per the Advanced Estimates, the gross state domestic Product at constant (2011-12) prices or real GSDP for the 2022-23 is estimated at ₹1,34,576 crore. It was ₹1,26,433 crore in 2021-22. It exhibited a growth rate of 6.4 per cent.
GVA of Primary sector for the 2022-23 (AE) at Current prices is estimated at ₹25,284 crore that contributes about 13.70 per cent.
The secondary sector is ₹78,848 crore contributing 42.73 per cent.
Tertiary sector is ₹80,379 crore, contributing 43.57 per cent.
The GVA of Primary sector for the 2022-23(AE) at Constant prices is estimated at ₹16,717 crore registering a growth of 2.0 per cent.
The Primary sector comprises agriculture, horticulture, livestock, forestry and logging, fishing mining and quarrying sub-sectors.
GVA of Secondary sector is ₹60,444 crore, registering a growth of 7.2 per cent.
The GVA of Tertiary sector was ₹49,527 crore registering a growth of 6.9 per cent.
According to Advanced Estimate, the government survey expects Per Capita Income (PCI) at current prices for 2022-23 at ₹2,22,227.
This is against PCI of ₹2,01,271 in 2021-22. Thus it has shown a growth of 10.4 per cent. India’s PCI in 2022-23 is ₹1,70,620, says Survey.
Sectoral Contribution
The GDP of any State is measured in terms of the economic contributions made by three key sectors-Primary, Secondary and Tertiary.
The tertiary sector has been the highest contributor to State's GVA, followed by the Secondary and Primary sectors.
Based on the advance estimates of GVA for Financial Year 2022-23, the Tertiary Sector accounted for 43.6 per cent of State's GVA at current prices, followed by the Secondary Sector 42.7 per cent and the Primary Sector 13.7 per cent.
Agriculture and Allied Sectors
The contribution of the Agriculture Sector to Gross State Value Added (GSVA) at Current Prices has increased 40 per cent from Rs. 17,767 crore in 2018-19 to Rs. 24,847 crore in 2022-23 (Advance Estimates (AE)).
There is a marked improvement in GSVA of crops at current prices between 2018-19 to 2022-23 (from Rs. 10,286 crore in 2018-19 to Rs. 15,561 crore in 2022-23).
As per the advance estimate, agriculture and allied sector GSVA is estimated at 2.0 per cent at constant prices in Financial Year 2022-23 against a growth rate of 4.9 per cent realised in 2021-22.
Livestock rearing is an important sub-sector under agriculture and allied activities. It contributes 1.61 per cent of total Gross State Value Added (GSVA) and 12 per cent of agriculture and allied sector's GSVA in Financial Year 2022-23.
Trends in Industrial Sector
The industry sector is crucial for boosting the state economy and generating lot of job possibilities in Himachal as well. Industry Sector (including Mining and Quarrying) at current prices as per Advance Estimates for the Financial Year 2022-23 is estimated at Rs. 79,284 crore.
The contribution of industry sector (including Mining and Quarrying) at current prices to Gross State Value Added (GSVA) is 42.97 per cent in 2022-23 in which 30.83 per cent comes from manufacturing sector, 6.28 per cent from construction, 5.62 per cent in electricity, water supply and other utilities services and 0.24 per cent from mining and quarrying.
As per the advance estimates, the Industry sector's GVA is expected to grow by 7.1 per cent during Financial Year 2022-23 and at the national level, the industry sector's GVA surged by 4.1 per cent in constant terms during the same time span.
During Financial Year 2022-23, manufacturing sector is expected to grow at 6.7 per cent which is third highest growth rate in industry sector.
Growth of construction sub-sector is critical for increasing income of organised as well as unorganised sector and also necessary for infrastructure development of the State. Construction sector anticipated highest growth rate during Financial Year 2022-23 which is 9.5 per cent.
Tourism
Tourist arrival is one of the main indicators of the demand for tourism in a particular destination. After COVID-19 pandemic the domestic tourist arrivals have increased from 32.13 lakh in 2020 to 56.37 lakh in 2021 and further to 150.99 lakh in 2022 in absolute terms.
It shows that, the tourist arrivals are reaching to the pre-pandemic levels.
Power
The state's five perennial river basins have the potential to produce about 27,436 megawatts (MW) of hydroelectric electricity. Out of total hydroelectric potential of the state, 10,519 MW is harnessed so far of which 7.6 per cent is under the control of Himachal Pradesh while the rest is exploited by the Central Government.
Current Trends in Inflation
From April through December of the current Financial Year 2022-23, the Wholesale Price Inflation (WPI) at the State level fell from 15.4 per cent to 5.0 per cent.
The Consumer Price Index (CPI) fluctuated between 3.2 and 7.2 per cent. Himachal Pradesh has moderate inflation in the current financial year, with the CPI-C at 3.9 per cent in December-2022 (P).
Social Services
The Health and Family Welfare Department in Himachal Pradesh is providing curative, preventive, and rehabilitative services through a network of 108 Civil Hospitals, 104 Community Health Centres, 580 Primary Health Centres, and 16 Civil Dispensaries.
Himachal Pradesh is the "Front Runner" in SDG Progress measurement as per NITI Aayog SDG India Index and Dashboard 2020-21.
Himachal Pradesh ranked 2nd in India in terms of Sustainable Development Goals (SDGs), after Kerala for 2020-21.
In the India Innovation Index 2021 with a score of 14.62, Himachal Pradesh ranked 5th among the North Eastern and Hill States
As per Social Progress Index (SPI) 2022, Himachal Pradesh ranks 7th and has a score of 63.28, putting it in Tier 1 (Very High Social Progress).
Himachal Pradesh ranked 2nd under Himalayan States category of Export Preparedness Index 2021 with a score of 40.43. Its overall ranking was 18th out of 36 States/UTs/Cities.
Employment Scenario
As per the Periodic Labour Force Survey (PLFS) 2021-22, Labour Force Participation Rate (LFPR) of all ages for Himachal Pradesh (58.1 per cent) is higher than Uttarakhand (40.8 per cent), Punjab (41.3 per cent), Haryana (35.4 per cent) and All India (41.3 per cent).
Worker Population Ratio (WPR) for all ages (15+) for Himachal Pradesh in 2021-22 (55.8 per cent) is better than Uttarakhand (37.6 per cent), Punjab (38.6 per cent), Haryana (32.3 per cent) and all India (39.6 per cent).
In Himachal Pradesh, more women (50.5 per cent) are actively participating in the economic activities than their at all India level and among neighboring states.
Unemployment under usual status (principal status+subsidiary status) for persons of all ages in neighboring states and all of India shows that Himachal has the lowest unemployment rate of 4.0 per cent as against all India of 4.1 per cent, Uttarakhand 7.8 per cent, Punjab 6.4 per cent, Haryana 9.0 per cent.
