HP’s per capita income up, growth rate hits 3-year low
SHIMLA: The per capita income of Himachal Pradesh has gone up by 8.3% this year, crossing the 1.5-lakh mark, even as the overall state growth rate is expected to plunge to a three-year low at 6.3% in the current fiscal.
These are the findings of the 2017-18 economic survey that chief minister Jai Ram Thakur tabled in the Vidhan Sabha on Thursday. While the share of agriculture in the state economy has been shrinking, the share of the industry and the service sector has risen to 44%.
The state economy is expected to reach Rs 1.35 lakh crore in the current fiscal. Worryingly, the state’s growth rate has been below national average in the last three fiscals. The growth rate was 8.1 % in 2015-16, 6.9% in 2016-17 and is expected to remain at 6.3 % in the current fiscal.
A poor credit deposit ratio of 44.60 also indicates sluggish growth in the hill state, the survey has highlighted.
The state GDP for current fiscal is estimated to remain at Rs 1,35,914 crore. The survey projects negative growth for the primary sector, including agriculture. The share of agriculture, horticulture and animal husbandry in the gross state domestic product (GSDP) has declined from 26.86% in 1990-91 to 9.68 % in 2016-17. While the agriculture sector’s share was 10.4% in 2014-15, it fell down to 9.4% in 2015-16.
The sectoral analysis reveals that during 2016-17, the primary sector contributed 16.01% to total GSDP; the secondary sector 39.96%; transport, communications and trade 12.03 per cent; finance and real estate 15.98 per cent; and community and personal services contributed 16.02.
The primary sector, which includes agriculture, forestry, fishing, mining and quarrying, witnessed a negative growth rate of 0.7 % in 2016-17 due to decrease in apple production by nearly 40% as compared to 2015-16.
The secondary sector, which occupies the important place in the state economy, has witnessed a major improvement since 1990-91. Its contribution increased from 26.50 % in 1990-91 to 39.96 % in 2016-17, reflecting healthy signs of industrialisation in Himachal Pradesh.
Transport storage, communications and trade showed a growth of 8.2% in 2016-17. Finance and real estate sector comprising banking and insurance, real estate, ownership of dwellings and business services witnessed a growth of 5.8 % in 2016-17. Community and personal services showed 18.1 per cent growth during the same period.
In 2016-17, the estimated foodgrain production was 17.45 lakh metric tonnes (MT) against the achieved production of 16.34 lakh MT in 2015-16, registering an increase of 6.8 %. For 2017-18, the target for the same is 16.45 lakh MT. Fruit production was 5 lakh tonnes in 2017-18 (up to December 2017) against 6.12 lakh tonne in 2016-17. Apple constitutes about 85% of the total fruit production.
AGRICULTURE SHARE IN STATE’S ECONOMY SHRINKING, WHILE THAT OF INDUSTRY, SERVICES HAS GONE UP TO 44% OVER YEARS, REVEALS ECONOMIC SURVEY