The Indian economy is one of the fastest-growing economies globally, marked by its significant contributions to global GDP, dynamic reforms, and diverse sectors. With a GDP ranking as the fifth largest in the world in nominal terms and the third largest in purchasing power parity (PPP), India plays a critical role in the global economic landscape. As one of the fastest growing economies of the world, it is poised to continue on this path, with aspirations to reach high middle income status by 2047, the centenary of Indian independence.
The growth of the past two decades has also led to India making remarkable progress in reducing extreme poverty. Between 2011 and 2019, the country is estimated to have halved the share of the population living in extreme poverty - below $2.15 per person per day (2017 PPP).
Growth was spurred by public investment in infrastructure and rising household investments in real estate. A buoyant manufacturing sector grew by 9.9 per cent in FY2023-24, while services remained resilient, compensating for the underperformance in agriculture.
Government initiatives have sought to boost the manufacturing sector by improving the business environment, enhancing logistics infrastructure, improving tax efficiency and rationalizing tax rates.
Since the pandemic, urban unemployment has improved gradually, especially for female workers, falling from 14.3 per cent in FY2021-22 to 9 per cent in FY2024 25. Unemployment among urban youth, however, remained elevated at 16.8 per cent in FY2024-25.
As per Advance Estimates (AE), released by the National Statistical Office, Ministry of Statistics and Programme Implementation (MoSPI) the real Gross Domestic Product (GDP) for Financial Year (FY)2024-25 is estimated to be 6.4 per cent as compared to the growth rate of 8.2 per cent in Provisional Estimate (PE) of GDP for FY2023-24. Nominal GDP has witnessed a growth rate of 9.7 per cent in FY2024-25 over the growth rate of 9.6 per cent in FY2023-24.
Real Gross Value Added (GVA) of Agriculture and allied sector has been estimated to grow by 3.8 per cent during 2024-25 as compared to the growth of 1.4 per cent witnessed during the last year that is 2023-24.
Real GVA of ‘Construction’ sector and ‘Financial, Real Estate & Professional Services’ sector has been estimated to observe good growth rates of 8.6 per cent and 7.3 per cent respectively during the FY2024-25.
As noted by the World Bank that India with three pronged approach - further reducing trade costs, lowering trade barriers, and deepening integration into global value chains - can help India achieve its ambitious target of $1 trillion for merchandise exports by 2030. However, services activity has been steady, while growth in the agricultural sector has recovered. Private consumption growth has remained resilient, primarily driven by improved rural incomes accompanied by a recovery of agricultural output. In contrast, higher inflation and slower credit growth have curbed consumption in urban areas. Greater openness to trade will, in turn, enhance India’s technological capabilities, improve productivity, spur growth, and build long-term economic resilience.
Sector wise growth rate of Indian Economy is presented in following figure: Sector-wise, the Indian economy showed a growth rate of 3.6 per cent in FY2024-25 (AE) compared to a 2.1 per cent growth rate in the FY2023-24 in the primary sector. In the secondary sector growth has significantly reduced from 9.7 per cent in the year 2023-24 to 6.5 per cent in FY2024-25 (AE).
Real GDP or GDP at Constant Prices is estimated to attain a level of ₹184.88 lakh crore in the financial year 2024-25, against the Provisional Estimate of GDP for the year 2023-24 of ₹173.82 lakh crore. The growth rate in Real GDP during 2024-25 is estimated at 6.4 per cent as compared to 8.2 per cent in 2023-24. Nominal GDP or GDP at Current Prices is estimated to attain a level of ₹324.11 lakh crore in the year 2024-25, against ₹295.36 lakh crore in 2023-24, showing a growth rate of 9.7 per cent.
The Gross Value Added (GVA) at constant basic prices witnessed highest growth of 9.1 per cent in public administration sector during FY2024-25 which was 7.8 per cent during the previous FY2023-24. This growth has been followed by construction sector which saw an 8.6 per cent growth in FY2024-25 compared to a 9.9 per cent growth rate during the previous FY2023-24.
Agriculture, forestry and fishing sector has seen an uptick from 1.4 per cent growth rate in the FY2023-24 to 3.8 per cent in the FY2024-25. On the contrary where trade, hotels and restaurant had seen highest growth rate in the FY2022-23, now witnessed a growth rate 5.8 per cent during FY2024-25.
The lowest growth rate of 2.9 per cent has been registered in the mining and quarrying sector during FY2024-25, which was 7.1 per cent during the previous financial year.
A comparative position of National as well as State economic performance in terms of the growth rate of GDP and GSDP is presented in Figure 1.4. There was a sharp dip in the growth rates in FY2020-21, whereas a sharp recovery in the growth rate can be seen in the year FY2021-22. This was due to the bouncing back of the economy after pandemic shock. Economic activities were resuming to the normal as before the pandemic. After sudden bounce in the economy in 2021-22, a sustained trend can be seen aftermath. Per capita national Income is estimated to be ₹2,00,162 in FY2024 25 compared to ₹1,84,205 in FY2023-24 with growth rate of 8.7 per cent in FY2024 25.

Himachal Pradesh is located in the northern region of India. The State is surrounded by Jammu and Kashmir on the north, Punjab on the west and the south west, Haryana on the south, Uttar Pradesh on the south-east, and Tibet China on the east. Despite lacking rich natural resources like iron ore, and coal and being less fertile than other states in India, Himachal has progressed due to steady efforts of the hardworking people of the State and through implementation of progressive policies.
The Gross State Domestic Product (GSDP) at current prices, is estimated at ₹2,10,662 crore in FY2023-24(FR) as against ₹1,91,659 crore in Second Revised (SR) estimate in FY2022-23, showing an increase of 9.9 per cent during the year.
GSDP at constant (2011-12) prices in FY2023-24 (FR) is estimated at ₹1,37,320 crore against ₹1,28,779 crore in FY2022-23 (SR) registering a growth of 6.6 per cent during the year.
Movement of GSDP in the State has been depicted in following figure:
Also the economy which was mainly dominated by the primary sector has been largely transformed into service and manufacturing in terms of contribution to the GSDP. Though, in terms of employment still 53.98 per cent of the State population is engaged in the primary sector. The PCI at current prices as per the first revised estimates for the year FY2023-24 is ₹2,34,782 as compared to ₹2,14,489 in FY2022-23 which is an increase of 9.5 per cent. The economy of the State has shown a shift from agriculture sector to industries and services as the percentage contribution of agriculture in total Gross State Domestic Product has declined from 70.37 per cent in 1950-51 to 35.06 per cent in 1990-91, 17.16 per cent in 2011-12 and 14.74 per cent in FY2023-24.
The share of secondary and tertiary sectors which were 7.41 and 22.22 per cent respectively in 1950-51 increased to 26.50 and 38.44 per cent in 1990-91, 43.81 and 39.03 per cent in 2011-12 and 39.98 and 45.28 per cent in FY2023-24.
The declining share of the agriculture sector does not affect the importance of this sector in the State economy as the growth in the primary sector of the State economy is still determined by the trend in agriculture and horticulture production. It is one of the major contributors to the total domestic product and has an overall impact on other sectors via input linkages, employment, trade transportation etc. Due to lack of irrigation facilities, agricultural production to a large extent still depends on timely rainfall and weather conditions.
The State has made significant progress in the development of horticulture. The topographical variations and altitudinal differences coupled with deep and well drained soils favour cultivation of temperate to sub-tropical fruits. The region is also suitable for the cultivation of ancillary horticultural produce like flowers, mushrooms, honey and hops.
To conclude, the global economy has demonstrated resilience despite recent challenges like the pandemic and energy crises. Growth remained moderate in 2023 at 3.3 per cent with projections of steady growth through 2026. India is expected to lead as the fastest-growing major economy, supported by strong domestic demand, particularly in rural areas, and government stimulus measures. India’s GDP growth is forecasted to remain robust, with a 7 per cent increase in 2024, maintaining momentum through 2026.
In the Indian context, key sectors like manufacturing, services, and agriculture continue to show positive growth. Despite global shifts toward services consumption, India is poised to benefit from its dynamic economy and expansive domestic market. The government’s initiatives to boost infrastructure and trade are expected to further spur economic growth.
At the State level, Himachal Pradesh has seen a shift from agriculture dominated growth to more balanced contributions from manufacturing and services. Despite challenges like limited natural resources, the state's economy has grown steadily, with significant improvements in per capita income. Horticulture plays a vital role in the state’s growth, alongside evolving sectors like construction and services.

Gross State Domestic Product (GSDP) is the total value of all final goods and services produced within a state's geographical boundaries over a specific period, usually a year, without duplication. It is a key measure of economic growth, highlighting sectoral contributions and overall development trends. GSDP helps assess the impact of investments, policy initiatives, and economic opportunities on the state's progress.
The growth rate of GSDP indicates the state's economic performance over time, reflecting its expansion and resilience. Also known as State Income, GSDP is a crucial metric for evaluating economic development. In the context of planned growth, both State Income and Per Capita Income (PCI) play a significant role in shaping policies and guiding decisions for administrators, policymakers and planners.
For Financial Year (FY)2024-25, the outlook for the state's GSDP reflects both the ongoing challenges and opportunities in key sectors such as agriculture, industry, tourism, and services. This chapter provides an overview of the expected economic performance, analyzing trends in various sectors. Himachal Pradesh is poised to leverage its strengths while addressing emerging challenges to ensure continued prosperity in the coming fiscal year. This sets the context for the discussion in this chapter.

GSDP at Current and Constant (2011-12) Prices: According to the Advance Estimates(AE), the GSDP at current prices or nominal GSDP for the FY2024-25 is estimated to be ₹2,32,185 crore, as against ₹2,10,662 crore in the FY2023-24, exhibiting an impressive growth rate of 10.2 percent for the FY2024-25 as against 9.9 per cent for FY2023-24.
As per the AE, the GSDP at constant (2011-12) prices or real GSDP for FY2024-25 is estimated at ₹1,46,553 crore, as against ₹1,37,320 crore in FY2023 24, exhibiting a growth rate of 6.7 per cent for the FY2024-25 as against 6.6 per cent for FY2023-24 First Revised(FR). The year-wise details are shown in Figures 2.1 and 2.2.

The State Domestic Product estimates, when studied in relation to the total population of the State, indicate the level of per capita net output of goods and services available. The PCI is obtained by dividing the Net State Domestic Product by the midyear population of the State in the respective year. According to AE, the PCI at current prices for FY2024-25 is estimated at ₹2,57,212 against ₹2,34,782 in FY2023-24 showing a growth of 9.6 per cent in FY2024-25.
The PCI of State is higher than the All India figures over the years. There is a rise in the PCI of the State from ₹87,721 in the FY2011-12 to ₹2,57,212 in FY2024 25, registering a compound annual growth rate (CAGR) of 8.6 percent over 2011-12. The PCI of All India was ₹63,462 in FY2011-12 which has increased to ₹2,00,162 in FY2024-25, registering a CAGR of 9.2 percent compared to 2011-12. The PCI of Himachal Pradesh vis-à-vis All India and their growth trends at current prices are illustrated in Figures 2.3 and 2.4 respectively.

The economy is classified into three broad sectors, viz., Primary; Secondary and Tertiary. The growth rate of these sectors is measured in terms of GVA at basic prices. The basic price can be understood as the producer's price.
The constituent of these sectors are:
(i) The Primary Sector: This sector consists of sub-sectors like Crops; Livestock; Forestry and Logging; Fisheries; and Mining and Quarrying.
(ii) The Secondary Sector: This sector constitutes sub-sectors such as Manufacturing; Electricity, Gas, Water Supply and Other Utility Services; and Construction.
(iii) The Tertiary Sector: This sector includes sub-sectors, namely: Trade, Hotels, Transport, Communication and Services relating to Broadcasting, Financial services, Real Estate, and Professional Services, Public Administration, and Other Services.
Primary Sector: As per the AE, for FY2024-25, the Gross Value Added (GVA) from the primary sector is expected to grow at the pace of 3.2 per cent at constant prices.
In constant price, the GVA of primary sector registered a growth of 1.7 per cent, -1.7 per cent and 3.2 per cent in FY2022-23, FY2023-24 and FY2024-25, respectively. It is noteworthy that the primary sector which is the backbone of the State economy employs 53.98 per cent of the population of the State. Therefore, its economic success is crucial to improving the living standards in Himachal Pradesh.
Crop sector GVA for FY2024-25(AE) in real terms is estimated at ₹7,692 crore as against ₹7,573 crore in FY2023-24(FR) with an expansion of 1.6 per cent. Forestry and logging sector GVA for FY2024-25(AE) in real terms is estimated at ₹5,310 crore as against ₹5,105 crore in FY2023-24(FR) with a growth rate of 4.0 per cent. The livestock sector grew by 5.2 per cent, the fishing sector grew by 7.0 per cent and the mining and quarrying sector grew by 6.1 per cent in FY2024-25(AE). The primary sector and its sub-sectors growth trends and GVA at constant prices are depicted in Table 2.1.
Secondary Sector: As per AE, for FY2024-25 the GVA of the secondary sector is estimated at ₹65,134 crore against ₹60,238 crore for FY2023-24(FR) at constant (2011-12) prices, expected to register a growth rate of 8.1 per cent over the previous year (Figure 2.6).
As per the AE for FY2024-25 Manufacturing sector at constant (2011-12) prices is expected to register a growth rate of 7.1 per cent and is estimated at ₹44,109 crore as against ₹41,177 crore in FY2023-24(FR). Electricity, Gas, water supply and other utility services sectors, have registered an impressive growth rate of 11.5 per cent in FY2024-25(AE). The construction sector is expected to register a growth rate of 9.4 per cent and is estimated at ₹11,856 crore in FY2024-25(AE) as against ₹10,837 crore in FY2023-24 (FR) (Table 2.2.)
Tertiary or Services Sector: The services sector in the State is the highest contributor to GSVA. The AE for the FY2024-25 at constant (2011-12) prices for the services sector is estimated at ₹56,654 crore as against ₹53,481 crore in FY2023-24(FR) with a growth rate of 5.9 per cent over last year (Figure 2.7). All the key sub-sectors within the services sector depicted buoyant growth rates in FY2024-25(AE) in Himachal Pradesh. During FY2024-25, Trade, Repair, Hotel & Restaurants sector GVA grew at 8.1 per cent, Transport, Storage, Communication and Services relating to broadcasting registered a growth rate of 9.4 per cent and Real estate, Ownership of dwelling and Professional Services grew at 5.4 per cent. Table 2.3 depicts the growth of various sub-sectors within the services sector from 2020-21 to 2024-25.

The GSDP 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 the State’s GVA, followed by the secondary and primary sectors. Based on the AE of GVA for FY2024-25, the tertiary sector accounted for 45.3 per cent of the State’s GVA at current prices, followed by the secondary sector at 39.5 per cent and the primary sector at 15.2 per cent. The secondary sector in Himachal Pradesh is thriving, and the state government recognizes industrial development as a key driver of job creation and productivity growth across sectors. To ensure sustained expansion, the government has implemented several strategic measures to strengthen the industrial sector. The positive impact of these investments will become increasingly evident in the coming years, with long-term benefits continuing to unfold well into the future.
The tertiary sector's share of the State's value added is continuously increasing and is, therefore, one of the most important sectors in the State's economy. Its share in the State's nominal GVA increased from 42.0 per cent in 2018 19 to 45.3 per cent in the FY2024-25 (Figure 2.9).
As per the AE, for FY2024-25, the GVA from the primary sector in absolute terms is estimated at ₹32,868 crore at current prices, the secondary sector stood at ₹85,706 crore, while the service sector is estimated at ₹98,245 crore (Table 2.4).

The structure of the economy and workforce in Himachal Pradesh is perceptibly different from the structure of the economy and workforce in the rest of India. Agriculture and allied activities employed 53.95 per cent of total workforce of Himachal Pradesh as compared to 46.08 per cent for India. The share in GVA is 14.27 per cent as compared to 18.19 per cent in India (Table 2.5). The share of the workforce, employed in the secondary and tertiary sectors in 2023-24 (22.01 and 24.01 per cent respectively) is less than the share of GVA (39.98 and 45.28) which means fewer workers are contributing more to the GVA indicating the scope for workforce reallocation from agriculture to secondary sector so that disguised unemployment in primary sector is reduced.
In Himachal’s context, the services sector has become extremely important not only in terms of contribution to GSDP but also as a key vehicle for employment generation. Employment in the services sector in the state was estimated to be 24.01 per cent in 2023-24 as per Periodic Labour Force Survey (PLFS) estimation against 29.73 per cent for India. The sector-wise comparison of the distribution of value-added and employment is given in Table 2.5.
The estimates of the GDP of Himachal Pradesh and India from 2011-12 to 2024-25 at current and constant (2011-12) prices are given in Table 2.6. A brief analysis of the economic growth in Himachal Pradesh reveals that the State has kept pace with the Indian growth rate as shown in Table 2.7.

The state's economy is growing steadily, with strong contributions from the secondary and tertiary sectors. To sustain this growth, key areas need attention, including workforce reallocation, agricultural modernization, and reducing sectoral imbalances. Efforts should focus on skill development, transitioning workers from agriculture to manufacturing, and promoting agro-based industries. Addressing disguised unemployment and modernizing agriculture can improve productivity. To boost the secondary sector, investments in high-growth industries and infrastructure development are essential. Strengthening the tertiary sector involves promoting services exports and digital transformation. Sustainable growth in the primary sector requires agricultural diversification and modernization. Inclusive growth and poverty reduction can be achieved through expanded vocational training, improved social safety nets, and targeted poverty alleviation programs. Policy reforms, including easing business regulations and promoting sustainability, are vital for long-term economic resilience.
In conclusion, Himachal Pradesh's economy is showing strong growth, with the GSDP projected to reach ₹2,32,185 crore in FY2024-25, reflecting a 10.2 per cent growth at current prices. The state's real GSDP at constant prices is expected to grow by 6.7 per cent to ₹1,46,553 crore. The PCI for FY2024-25 is estimated at ₹2,57,212, marking a growth of 9.6 per cent. The economy is driven by the tertiary sector, contributing 45.3 per cent to GVA, followed by the secondary sector (39.5 per cent) and primary sector (15.2 per cent). The primary sector remains crucial, employing 53.98 per cent of the population. The state's industrial sector is growing, and the services sector is pivotal for both GSDP contribution and employment. The overall economic trajectory shows positive growth, particularly in sectors like manufacturing, construction and services.

Public finance is the critical framework that governs how the government raises, allocates and spends public funds to serve the collective interests of society. It involves the collection of taxes from individuals, businesses and other taxable entities within a jurisdiction, which are then channelled into providing essential public goods and services such as education, healthcare, infrastructure etc. Effective public financial management focuses on three core areas: resource generation (how funds are raised), resource allocation (how funds are distributed among competing needs) and expenditure management (how funds are spent efficiently and sustainably).
The financial resources of a state are pivotal in fostering economic growth and ensuring long-term development. Investments in both physical capital, such as infrastructure (roads, buildings, energy facilities) and human capital, such as education, healthcare and workforce training, are essential for sustained economic advancement. While geographical disadvantages may pose significant challenges— whether due to limited natural resources, remoteness, or other factors—state government often strive to maximize the utility of their fiscal resources by directing them toward key developmental sectors. Such strategic investments play a crucial role in uplifting economic standards, reducing poverty and enhancing the quality of life for citizens.
State financial resources are generally derived from a combination of tax revenues (both direct and indirect taxes), non-tax revenues (such as fees, charges and fines), the central government’s share of tax revenues and grants-in-aid provided by the central government. These resources allow the state to fund its various developmental programs, public services and policy initiatives.
The fiscal strategy of the State Government, however, reflects a mix of both positive and challenging trends. On the positive side, the state has been able to increase its tax revenues, demonstrating an improvement in its tax collection efficiency or expansion of its taxable base. However, this growth in tax revenue is offset by a reduction in grants-in-aid, which are often crucial for funding specific projects or addressing socio-economic disparities. As the state faces shrinking external financial support, it has to adopt a more disciplined and cautious approach in managing capital expenditures—limiting the scope of large infrastructure projects and focusing more on optimizing existing resources.

The fiscal profile of the State primarily includes receipts, expenditure, and debt. The State Government’s receipts consist of revenue and capital receipts from different sources, while public expenditure includes both revenue and capital outlays. Debt continues to be a significant component of the State’s fiscal profile. The budget for 2024-25 demonstrates a commitment to economic growth and fiscal prudence. The budgetary allocations and revenue projections emphasise expanding the state’s economic base and ensuring sustainable development. The enactment of the Himachal Pradesh Fiscal Responsibility and Budget Management Act of 2005 mandates that the State government manages the finances in line with its resources in a sustainable manner.
Fiscal Indicators of the State: State Government gets financial resources through direct and indirect taxes, non-tax revenue, share of central taxes, and grants-in-aid from the Central Government to meet the expenditure for administrative and developmental activities. Total revenue receipts are projected to reach ₹42,153 crore in FY2024-25 (BE), up from ₹33,438 crore in FY2020-21. Tax revenue (including central share) is estimated to grow by 14.99 per cent in FY2024-25 (BE) to ₹25,225 crore. Grants-in-aid have declined from ₹18,413 crore in FY2020-21 to ₹13,287 crore in FY2024-25 (BE). Non tax revenue is expected to increase to ₹3,641 crore in FY2024-25 (BE).
Total expenditure is budgeted at ₹58,444 crore for FY2024-25 (BE). Revenue expenditure is estimated at ₹46,667 crore, forming 79.85 per cent of total expenditure. Capital expenditure is estimated at ₹6,270 crore, contributing 10.73 per cent of total expenditure. Interest payments have increased by 10.55 per cent to ₹6,255 crore in FY2024-25 (BE). Key allocations from total expenditure of Government are ₹9,812 crore for education and ₹3,390 crore for health sector.
In the FY2024-25, revenue receipts, tax revenue and total expenditure as a percentage of GSDP is expected to be 18.15 per cent, 10.86 per cent and 25.17 per cent respectively.
a) Tax Revenue: As shown in Table 3.1, State’s tax revenue (including central taxes) is expected to reach ₹25,225 crore, a 14.99 per cent rise in FY2024-25 (BE) from ₹21,936 crore in FY2023-24 (RE), whereas it was ₹12,837 crore in FY2020-21. Figure 3.1 shows components of tax revenue as a percentage of total receipts. Percentage of State Own Tax Revenue to Total Receipts has increased from 17.5 in FY2022-23(A) to 27.4 in FY2024-25(BE). The share in Central Taxes to the Total Receipts has also increased from 13.0 in FY2022-23(A) to 18.3 in FY2024-25(BE). State’s Own Non-Tax revenue to Total Receipts percentage has increased from 4.7 in FY2022-23(A) to 6.6 in FY2024-25(BE). Grant in aid receipts to Total Receipts percentage has decreased from 27.6 in FY2022-23(A) to 24.1 in FY2024-25(BE).
b) Non-Tax Revenue: Non-tax revenue consists, mainly of interest receipts on loans, receipts from sale of power, dividends and profits from public sector undertakings and receipts from services provided by Government including those provided by Public Service Commission, social services sector as health and education and economic services. Non-tax revenue is likely to increase to ₹3,641 crore in FY2024-25 (BE) as against ₹3,325 crore in FY2023-24(RE) which is an increase of 9.50 per cent. Economic services are the highest contributor to the non-tax revenue receipts component of the total revenue receipts of the government. Figure 3.2 shows the components of non-tax revenue as a percentage of total receipts. Economic services include electricity, gas and water supply which have consistently remained the highest contributor whereas social services and interest receipts, dividends and profits are the lowest contributors in the State’s non-tax revenue receipts.
c) Grant in aid: In absolute terms, Grants in Aid to Himachal Pradesh from Government of India has reduced to ₹13,287 crore in FY2024-25(BE) compared to ₹15,185 crore in FY2023-24(RE). Figure 3.3 shows Grant in aid as a percentage of total receipts. Grant in aid contribution in total receipts is 24.1 per cent during FY2024-25 (BE) which is 3.5 percentage points lower as compared to FY2022-23 (A).
d) Non-Debt Capital Receipts: Non-debt capital receipts consist of recovery of loans and advances and disinvestment receipts. The budget estimate for FY2024-25(BE) envisages ₹28.00 crore as recovery of loans and no income from disinvestment.
Major Fiscal Indicators of the State: Table 3.2 shows that in FY2024-25(BE), in the tax revenue there is a highest growth of 14.99 per cent, followed by interest payments which is estimated at 10.55 per cent. Revenue expenditure has seen a slight growth of 1.61 per cent. There is a negative growth of 5.16 and 7.54 per cent in total expenditure and capital expenditure respectively during the FY2024-25(BE). Grant in aid has seen the highest dip of 12.50 per cent in FY2024-25(BE) compared to the dip of 5.10 per cent in FY2022-23(A).
Fiscal Indicators as a percentage of GSDP: As per budget estimates, the revenue receipts of Government for FY2024 25(BE) is estimated at 18.15 per cent of the GSDP as against 19.20 per cent in FY2023-24 (RE). Similarly, tax revenue for FY2024-25 (BE) is estimated at 10.86 per cent of GSDP as against 10.41 per cent during FY2023-24 (RE). Non-tax revenue is 1.57 per cent of the GSDP in FY2024-25 (BE) as compared to 1.58 per cent during FY2023-24 (RE). In FY2024-25 (BE), the total expenditure of the State is estimated to be 25.17 per cent of GSDP, revenue expenditure is 20.10 per cent while capital expenditure will be 2.70 per cent of the GSDP. Table 3.3 shows Fiscal Indicators as a percentage of GSDP.
Government Expenditure: The Government’s expenditure for the FY2024-25 (BE) underscores its dedication to holistic and inclusive development across critical sectors. Revenue and capital expenditure are the main components of Government expenditure. A substantial budget of ₹9,812 crore is allocated to education, while health sector has been allotted ₹3,390 crore in FY2024-25 (BE).
Figure 3.4 shows that 79.85 per cent of the total expenditure will be spent on the revenue expenditure in 2024-25 (BE), whereas, 10.73 per cent will be capital expenditure for the same year; 0.05 and 9.38 per cent will be on loans (advances) and public debt (repayments) respectively. Detailed expenditure is presented in Tables 3.1, 3.2 and 3.3. As per budget estimates of FY2024-25 (BE), the total expenditure of the State Government was estimated to be ₹58,444 crore of which ₹46,667 crore was earmarked for revenue expenditure.
a) Revenue Expenditure: The budget estimates revenue expenditure for FY2024-25(BE) to be ₹46,667 crore compared to ₹44,425 crore for FY2022-23(A) showing a growth of about 5.05 per cent. Revenue expenditure is estimated to be 20.10 per cent of GSDP for FY2024-25(BE).
b) Capital Expenditure: The budget estimates capital expenditure to be ₹6,270 crore which is 2.70 per cent of the GSDP for FY2024-25 (BE) compared to ₹6,029 crore for FY2022 23(A) showing a growth of 3.99 per cent. It is expected to be 10.73 per cent of total expenditure during 2024-25 (BE).
Composition of Revenue Expenditure: Government spends a major chunk of its expenditure on revenue expenditure. The composition of revenue expenditure is given in Table 3.4 below which shows that 57.26 per cent of total expenditure is likely to be committed expenditure which includes salary, pension, interest payment and subsidies in FY2024-25 (BE). The total committed expenditure is ₹33,463 crore which is 14.41 per cent of the GSDP for FY2024-25 (BE).

Debt of the State is an important indicator of its financial health. Financial prudence of the State depends on its debt and its repaying capacity. Table 3.5 shows that debt as a percentage to GSDP was 39.99 per cent in FY2022-23 as against 37.35 per cent in FY2021-22.

It entails analysing budgets from a gender perspective, integrating a gender viewpoint at every stage of the budgeting process, and reorganising revenues and expenditures to advance gender equality. Gender budgeting, in essence, is a plan of action and a procedure with the long-term objective of attaining gender equality. Women are the prime stakeholders of gender budget. The Nodal Department, which is in charge of advancing gender equality, is the Women and Child Development Department. The issue relating to health, education, labour and employment and gender-sensitive programme are undertaken by department of Empowerment of SCs, OBCs, Minorities and the Specially Abled. The gender budget expenditures are shown in Table 3.6 below, with category-I showing that 100 per cent of the budget was spent on women-specific programmes and category-II showing that less than 100 per cent was spent on women.

Fiscal deficit represents the gap between government expenditure and revenue. A higher deficit indicates more borrowing. Whereas, revenue deficit measures the shortfall in government revenue compared to its current expenditures. Table 3.7 shows data on the fiscal deficit and revenue deficit for the FY2020 21 to FY2024-25 (BE).

Based on the analysis of Himachal Pradesh’s public finance trends, several strategic directions to enhance fiscal sustainability and economic resilience are:
a) Enhanced Revenue Mobilization: To reduce dependence on debt financing, the state needs to focus on improving revenue streams through effective tax administration, broadening tax base, and introducing innovative revenue generation initiatives. This approach could boost revenue receipts, reducing fiscal deficit.
b) Expenditure Rationalisation: Implementing expenditure control measures is essential to align spending with revenue capabilities. This involves prioritising expenditures based on developmental needs, enhancing efficiency in public spending, and curbing unnecessary expenses to optimise resource utilisation.
c) Investment in Infrastructure and Development: Despite fiscal constraints, targeted investments in critical infrastructure projects can stimulate economic growth and productivity. Prioritising infrastructure development in industry, hydel, tourism and other sectors can attract private investments, create employment opportunities, boost economy, income and revenue of the State Government.
In conclusion, fiscal profile of Himachal Pradesh highlights a strong focus on economic growth, with a significant increase in tax revenue and a slight reduction in grants from the central government. The state’s expenditure for FY2024-25 (BE) prioritizes expenditure, especially in sectors like education and health. Despite a dip in central grants, there’s an increase in tax and non-tax revenue, contributing to overall fiscal stability. Furthermore, gender budgeting is a key component, with substantial allocations to women-specific programs aimed at advancing gender equality across various sectors. Overall, the state demonstrates a commitment to fiscal prudence, balanced development and gender inclusivity.

The chapter provides a comprehensive overview of the banking and financial inclusion landscape in Himachal Pradesh, highlighting key developments in the state's banking sector, as well as the progress of financial inclusion initiatives. It delves into the network of bank branches, the distribution of banking responsibilities, and the role played by banks in the socio-economic growth of the state. The state's banking infrastructure is analyzed, including the presence of public and private sector banks, cooperative banks, and payment banks. Additionally, it examines the state's performance in fulfilling the national banking parameters set by the Reserve Bank of India (RBI), such as advances to priority sectors, agriculture, small and marginal farmers, and micro-enterprises The chapter also highlights how banks have contributed to the socio-economic development of Himachal Pradesh, with an emphasis on credit disbursed to priority sectors, such as agriculture, micro-enterprises, and women. The state’s progress in meeting the RBI’s national parameters for lending to these sectors is analyzed. It also covers the implementation of government sponsored social security schemes, including the Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and the Atal Pension Yojana (APY). The uptake of these schemes by residents of Himachal Pradesh, especially in rural areas, is evaluated.
In Himachal Pradesh, the Lead Bank responsibility is distributed among three banks: Punjab National Bank (PNB) oversees six districts: Hamirpur, Kangra, Kinnaur, Kullu, Mandi and Una. United Commercial Bank (UCO) manages four districts: Bilaspur, Shimla, Solan and Sirmour. State Bank of India (SBI) is responsible for two districts: Chamba and Lahaul-Spiti. Additionally, UCO Bank serves as the convener bank for the State Level Bankers’ Committee (SLBC).
Over 76 per cent of the State's network of 2,352 bank branches are situated in rural regions. According to the 2011 census, the State has an average population of 2,919 per bank branch, compared to the national average of 11,000. Four Payment Banks operate within the State: India Post Payments Bank, Financial Inclusion Network and Operations (Fino) Payments Bank, Airtel Payment Bank and Paytm Payment Bank. The details of various Bank branches in the State are shown below, in Table 4.1.


Kangra district has the highest number of 431 bank branches and Lahaul-Spiti has the lowest number of 26 branches.
Banks have deployed Business Correspondent Agents (known as “Bank Mitras”) in sub-service areas to provide Banking services to the far-flung areas, where Brick and Mortar Branches are not financially viable. At present 11,340 Bank Mitras are deployed in the State by various banks for providing basic Banking services in villages. The Public sector Banks in the State namely, PNB, SBI, UCO, Canara Bank, Central Bank of India, Union Bank of India and Bank of Baroda have full-fledged Regional Zonal and Circle Offices in the State. Reserve Bank of India (RBI) has its Regional Office headed by a Regional Director and the National Bank for Agriculture and Rural Development (NABARD) has its Regional Office headed by Chief General Manager at Shimla.
The role and responsibility of banks is well recognized as a partner for accelerating the socio-economic growth of the State. Banks have achieved 5 out of the 7 National Parameters fixed by the RBI for Lending to Priority Sectors, which include Agriculture Sector, Small and Marginal Farmers, Micro Enterprises, Weaker Sections and Women. Banks have extended 59.12 per cent of their total loans to the Priority Sector Activities viz. Agriculture, Micro, Small and Medium Enterprises (MSME), Education Loan, Housing Loan, Micro Credit etc.
Agriculture loans account for 16.73 per cent of total loans given by banks as of September, 2024, compared to the RBI's national threshold of 18 per cent. Advances to Weaker Sections and Women account for 17.38 and 12.60 per cent of total lending, respectively, compared to national targets of 12 and 5 per cent. Banks in the state have a Credit Deposit Ratio (CDR) of 47.16 per cent till September, 2024.The State and National Parameters are given in Table 4.2 below:

Financial inclusion refers to providing financial services and products at affordable costs to the underprivileged and low-income segments of our society. The Government of India Financial Inclusion Campaign-"Pradhan Mantri Jan-Dhan Yojana" (PMJDY) has been in operation for more than seven years, implementing various measures to empower the most vulnerable groups, including women, small and marginal farmers, and labourers in both rural and urban areas.
Pradhan Mantri Jan Dhan Yojana (PMJDY):Banks in the state have provided each family with at least one Basic Saving Bank Deposit Account (BSBDA). As of September, 2024, banks have 18.55 lakh accounts under the initiative, 16.60 lakh of these accounts are in rural regions, while 1.95 lakh are in urban areas. Banks supplied RuPay Debit Cards to 12.69 lakh PMJDY account holders, accounting for more than 69 per cent of these accounts. Banks have taken the initiative to link bank accounts with Aadhaar and mobile numbers, and 84 per cent of PMJDY accounts have been linked as of September, 2024.
Universal Social Security Initiatives under the PMJDY Scheme:Government of India has introduced three Social Security Schemes. The following is the current status of social security schemes:
i) Pradhan Mantri Suraksha Bima Yojana (PMSBY):This scheme offers a renewable one-year accidental death cum special ability cover of ₹2.00 lakh (₹1.00 lakh for partial and permanent special ability) to all saving bank account holders between the ages of 18 and 70 for a premium of ₹20.00 per annum per subscriber, renewable on 1st June of each year. Banks have 35.22 lakh PMSBY subscribers by September, 2024.
ii) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):This policy offers a renewable one-year life cover of ₹2.00 lakh to all saving bank account holders aged 18 to 50 years, covering death due to any cause at a premium of ₹436.00 per annum per subscriber, renewable on 1st June of each year. As of September, 2024 banks have 12.67 lakh customers through this plan.
iii) Atal Pension Yojana (APY):Atal Pension Yojana focuses on the unorganized sector and provides subscribers with a minimum fixed pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 per month starting at the age of 60 years, depending contribution exercised on entering the age between 18 and 40 years. The government guarantees the minimum fixed pension provided that 20 years of consistent contributions are paid. The State Government is promoting the adoption of the APY among MGNREGA employees, Mid-Day Meal workers, Agriculture and Horticulture labourers, and Anganwari workers. Banks have prioritized an active awareness effort for the programme through camps, press, and other media. As of September, 2024 banks have registered 5.30 lakh subscribers in the APY. Additionally, the Department of Posts is also participating in implementing the Scheme.

Pradhan Mantri MUDRA Yojana (PMMY) was implemented across the country, including in Himachal Pradesh. Smaller micro firms are non-farm enterprises in Manufacturing, Trading and Services with credit demands of less than ₹10.00 lakh; all loans made to these sectors for income creation are known as MUDRA loans. Under this scheme, any advances given on or after 8th April, 2015 that fall into this category are classified as MUDRA loans.
Banks in Himachal Pradesh have sanctioned new loans totaling ₹990.31crore to 40,280 new micro-entrepreneurs under the Scheme, during 2024-25 up to September 2024. The total amount of disbursed loans stands at ₹3,409.27 crore, covering 1,76,606 entrepreneurs.

Stand Up India scheme has been launched nationwide to promote entrepreneurial culture among unserved and underserved sections of the society, including Scheduled Castes (SC), Scheduled Tribes (ST) and Women.
The Scheme facilitates loans ranging from ₹10.00 lakh to ₹1.00 crore from Banks to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a new enterprise in the field of construction, business or service sector (also termed as green field enterprise). Banks have sanctioned ₹66.13 crore to 416 new enterprises set up by SC/ST and Women entrepreneurs under the scheme during this financial year, up to September, 2024.

The Financial Literacy and Awareness campaign plays an important role in reaching target populations. In Himachal Pradesh, banks are conducting financial literacy campaigns through Financial Literacy Centers (FLCs) and bank branches.

The total deposits of all banks in the State increased from ₹1,81,021 crore in September, 2023 to ₹1,97,790 crore in September, 2024. Bank’s deposit increased by 9.26 per cent year on year. Aggregate advances increased from ₹76,188 crore in September, 2023 to ₹89,447 crore in September, 2024 indicating a 17.40 per cent year-on-year growth. The overall banking business has increased by 11.67 per cent from ₹2,57,209 crore as of September, 2023 to ₹2,87,237 crore in September, 2024. Public Sector Banks (PSBs) have the biggest market share of 62 per cent, followed by RRBs at 5 per cent, Private Banks at 13 per cent, and Co-operative Sector Banks at 18 per cent, others at 2 per cent. Table 4.3 presents the comparative statistics.

Banks have prepared an Annual Credit Plan for 2024-25 for the disbursement of fresh loans based on potential worked out for various priority sector activities by NABARD. The financial target under the Annual Credit Plan 2024-25 has been set at ₹43,179 crore, reflecting a 14.49 per cent increase over the previous year’s plan. By September 2024, banks had disbursed ₹26,665 crore, achieving 62 per cent of the annual target. Sector-wise targets and corresponding achievements as of 30th September, 2024 are given in Table 4.4.

National Rural Livelihoods Mission (NRLM): The Ministry of Rural Development launched a flagship programme of the Government of India for promoting poverty reduction through building strong institutions for the poor, particularly women and enabling these institutions to access a range of financial services and livelihood services. This scheme is implemented in the State through HP State Rural Livelihoods Mission (HPSRLM), Rural Development Department, Government of Himachal Pradesh. Banks in Himachal have been allocated annual target of ₹300.00 crore covering 24,700 beneficiaries under this Scheme. Banks have sanctioned 2,647 loan cases to the tune of ₹55.81 crore up to September, 2024 under NRLM scheme.
National Urban Livelihoods Mission (NULM): The Ministry of Housing and Urban Poverty Alleviation (MoHUPA) of the Government of India reformed the existing Swarna Jayanti Shahari Rozgar Yojana (SJSRY) and created the National Urban Livelihoods Mission (NULM). Self-Employment Programme (SEP) is one of the NULM components (Component 4) that focuses on providing financial assistance in the form of interest subsidy on loans to encourage the formation of Individual and Group Enterprises (IGEs) and Self-Help Groups (SHGs) of the urban poor. Himachal Pradesh Urban Development Department and several banks have disbursed ₹4.06 crore in NULM loans upto September, 2024.
Pradhan Mantri Employment Generation Programme (PMEGP): PMEGP is a credit-linked subsidy programme run by the Government of India's Ministry of Micro, Small, and Medium Enterprises. The Khadi and Village Industries Commission (KVIC) is the national nodal agency for the implementation of the scheme. The scheme is implemented at the state level by KVIC, Khadi and Village Industries Board (KVIB), and District Industries Centre. Banks were given a target of funding 1174 additional units under the plan in 2024-25. Under the scheme, the implementing agencies are expected to offer margin money disbursements totaling ₹32.16 crore. Banks have approved ₹18.71 crore as margin money for 495 units till September, 2024.

Banks are implementing the KCC programme through their rural branches to provide farmers with timely and adequate credit support through a single window to address short-term credit requirements for agricultural production and other needs. Banks have issued new KCCs to 1,20,367 farmers. Banks have funded 5,79,299 farmers through KCC for a total of ₹10,204 crore till September, 2024.

The Rural Self-Employment Training Institutes (RSETIs), an initiative by the Ministry of Rural Development (MoRD), aim to establish dedicated district-level infrastructure for training and skill development, empowering rural youth with the necessary tools to pursue entrepreneurship. The State's lead banks i.e. UCO Bank, PNB, and SBI, have established RSETIs in ten districts (except Kinnaur and Lahaul Spiti). These RSETIs are carrying out Electronic Data Processing (EDPs) under different government-sponsored programmes for poverty reduction and enterprise development under the PMEGP. RSETIs have a target of arranging 328 training programmes during 2024-25 and trained 4,992 youths.

NABARD has initiated broad spectrum of initiatives in recent years. These efforts include Rural Infrastructure Development, Promotion of Micro Credit, Farmer Producer Organizations, Rural Farm and Non-Farm Sector, improving the male and female workforce participation through Skill Development, Refinance, and strengthening the rural credit delivery system in the State. NABARD is also implementing or is associated with certain Centrally Sponsored Schemes of the Government of India.
Rural Infrastructure: Since its establishment in 1995-96, the Rural Infrastructure Development Fund (RIDF) has become one of NABARD's key initiatives for developing rural infrastructure in collaboration with State Governments. Under this scheme, concessional loans are given to State Government and State-owned Corporations for the completion of ongoing projects and to start new projects in certain selected sectors. Financing over the years has become broad-based covering 39 eligible activities classified into agriculture and related sectors, social sector and rural connectivity.
The State has been allocated ₹900.00 crore under RIDF-XXX (2024-25) for sanction of new projects. This allocation includes sanctions in emerging areas such as 53 Electric Vehicle (EV) Charging Infrastructure units for promotion of green mobility and cleaner transportation. Additionally, a mega project for Dairy processing in Dhagwar, Kangra, has been sanctioned to help farmers in fetching better price of milk. NABARD has also sanctioned Mata Baglamukhi Ropeway project in Mandi district, located along the Chandigarh-Manali National Highway, connecting Pandoh with the temple in Bakhli.
Since inception of the fund, ₹11,863.39 crore has been cumulatively sanctioned to the state under the RIDF as of 31st March, 2024 for projects of rural roads/bridges, irrigation, rural drinking water, etc. Under RIDF Tranche XXX for FY 2024-25, ₹903.2 crore has been sanctioned to the State and ₹526 crore has been disbursed to the State Government (position as on 14th January, 2025).
On completion of projects sanctioned under RIDF-XXX, EV Charging Infrastructure will be developed at 53 locations across Himachal, promoting green and clean transportation. Additionally, rural road projects of 208.65 KM will improve rural connectivity. Further, the sanction of water supply projects and sewerage schemes will benefit rural communities, ensuring access to clean and healthy drinking water. The Dhagwar milk plant will generate employment opportunities, provide dairy products at competitive prices, and offer remunerative prices to the rural population, contributing to self-reliance.
Technology Facilitation Fund (TFF): Technology Facilitation Fund (TFF) has been set in NABARD, with an initial corpus of ₹50 crore, to support and scale up technology adoption that benefits the agriculture and rural development space to have a nimble policy for engagement with Tech Start-ups and a dedicated funding source.
Fisheries and Aquaculture Infrastructure Development Fund (FAIDF): NABARD has extended support to the State Government for the establishment of a State of Art Fisheries Training Centre at Carp Farm, Gagret in district Una by 31st March 2025 under FAIDF (Fisheries and Aquaculture Infrastructure Development Fund).
Re-finance Support: NABARD extends Long Term Refinance for diverse activities viz. rural housing, small road transport operators, land development, minor irrigation, dairy development, self-help group, farm mechanization, poultry, plantation and horticulture, sheep/ goat/ piggery rearing, packing and grading house activity and other allied sectors. During the FY 2024-25, ₹335.99 crore has been disbursed as long term refinance to Himachal Pradesh Gramin Bank and Cooperative Banks including the State Cooperative Agriculture Rural Development Bank(SCARDB), as on 13th January, 2025. In addition, NABARD has facilitated Short-Term (ST) credit limits of ₹2,150 crore for crop loan disbursement in the State during FY2024-25. Against this limit, the Cooperative Banks and Regional Rural Banks (RRBs) have availed refinancing assistance of ₹1,788 crore by 13th January 2025, strengthening the flow of agricultural credit.
Special Refinance Schemes: To give a boost to agriculture and rural sector in the post-Covid era, NABARD launched the following new Special Refinance schemes: a) Transformation of Primary Agricultural Credit Societies (PACS) as Multi-Service Centres (MSCs): This scheme aims to convert PACS to MSCs across the country providing concessional refinance facility @ 3 per cent to the banks for extending cheaper credit to the ultimate beneficiaries. State cooperative banks lend to PACS at the rate of 4 per cent and if the project is eligible under AIF further 3 per cent subvention will be granted by GOI. This scheme is presently limited to support for creation of warehouse by PACS only. b) Schematic Refinance for Water, Sanitation and Hygiene (WASH) Activities: The scheme aims to meet out the credit requirement of banks/FIs to enable them to provide timely and hassle-free credit to eligible beneficiaries/ entrepreneurs to facilitate WASH activities. Eligible Institutions are All Commercial Banks, SFBs, RRBs, Cooperative Banks and Subsidiaries of NABARD. The Financing to WASH activities is a Thrust area under Sustainable Development Goals and will be eligible for 95 per cent of the eligible loan for refinance. NABARD will extend concessional long-term refinance to all the eligible banks @ 6 per cent p.a. at quarterly rest. Eligible activities Support to start-ups/entrepreneurs/MSMEs manufacturing/ supplying sanitary fittings, readymade toilets, etc.
Government Sponsored Scheme: a) New Agricultural Marketing Infrastructure (AMI) Scheme: The Ministry of Agriculture and Farmers' Welfare, Government of India, is implementing the new Agricultural Marketing Infrastructure (AMI), a sub-scheme of the Integrated Scheme for Agricultural Marketing (ISAM). The scheme has been extended for term loans sanctioned up to 31st March, 2026.
Micro Credit: The Self Help Group (SHG) movement has grown in Himachal Pradesh and is now firmly established. The movement has provided additional assistance in human resources and financial items. As of 15thJanuary, 2025, 6,337 SHGs have been credit linked with loans of ₹296.52 crore during the FY2024-25.
The announcement in the Union Budget 2014-15 of finance for Joint Farming Groups "Bhoomi Heen Kissan" (landless farmers) lends validity to NABARD's efforts to innovate and reach out to landless farmers through Joint Liability Groups (JLGs) form of financing. Up to 30th September, 2024, 15,765 Joint Liability Groups have received loan disbursements totaling ₹98.58 crore.
NABARD in collaboration with various NGOs/Joint Liability Promoting Institutions in the state to promote the "Joint Liability Group" scheme in the State. NABARD has sanctioned ₹8 lakh to various NGOs during FY2024-25 for promotion and credit linkage of 200 JLGs throughout three years.
Promotion of Farmers’ Producer Organization: NABARD has sanctioned a grant of ₹15.73 crore in Himachal Pradesh for the formation/promotion of 124 FPOs across all 12 districts. On an aggregate basis, these FPOs produce, process and market vegetables, medicinal and aromatic plants, milk and flowers. These FPOs with a membership of 26,332 farmers have supported members with sale of inputs and marketing of produce of ₹17.01 crore. Under Central Sector Scheme, NABARD is the implementing agency for the establishment and promotion of 10,000 FPOs under the "One District, One Product" idea. FPOs are fostered and supported in the state through Cluster Based Business Organizations (CBBOs). Under the initiative, NABARD has established 23 FPOs with a total grant of ₹10.47 crore.
Watershed Development: NABARD has sanctioned grant for 52 Watershed Development Projects (31 Watershed including JIVA, a natural farming-based initiative and 21 Spring Shed Projects) across the State's 10 districts. ₹32.65 crore has been given under these projects, covering 40,380 hectares benefiting 365 villages in 10 districts. These initiatives will improve water availability, safeguard the environment, raise farmer production and income, conserve grasslands and promote animal husbandry.
Tribal Development through the Tribal Development Fund (TDF): NABARD has approved 15 tribal development projects with a grant of ₹23.55 crore benefiting 3,982 families up to 31st December, 2024. These initiatives intend to establish WADIs (small orchards) and dairy units in selective villages covering around 2,838 acres of land for Apple, Lemon, Walnut, Pear and Wild Apricot planting.
Support through the Farm Sector Promotion Fund (FSPF): NABARD has sanctioned 42 projects totalling ₹4.80 crore under the FSPF, benefiting 20,773 farmers. The activities supported under the fund includes promotion of millets, use of IOT (Internet of Things) technology for precision farming, value chain development of Seabuckthorn, conservation of indigenous honeybee, Skill development in ornamental nursery, enhancing livelihood through Sericulture and establishment of cattle development centre in Piplughat, Solan.
Support to Rural Artisans/Weavers : NABARD has sanctioned grant assistance of ₹90.11 lakh for formation of an Off Farm Producer Organization (OFPOs) registered under the name Saroa Handloom Producer Company Ltd. The OFPO’s beneficiaries include 503 weavers of which 90 per cent are women, who are now able to produce a variety of woollen products like Pattu, Shawls, Stoles, and Muflars.

NABARD Consultancy Services (NABCONS) is a completely owned subsidiary of NABARD that provides consulting services in various areas of agriculture, rural development and allied areas. During the current fiscal year, NABCONS is participating in the following main assignments: i) Project Management Consultancy for Integrated Cold Chain Project at Parala and Kharapathar to Himachal Pradesh State Agricultural Marketing Board. ii) Setting up PMU (Project Management Unit) under the Agri-Infrastructure Fund(AIF) at the State Level in Himachal Pradesh. iii) NABCONS is the Central Technical Support Agency for DDU-GKY in Himachal Pradesh.
In conclusion, the banking sector in Himachal Pradesh plays a vital role in the economic development of the state and ongoing efforts in financial inclusion are helping to empower underserved communities, particularly in rural regions. The state has made significant strides in implementing national banking parameters and government schemes, although there remains room for improvement in certain areas.
Over 76 per cent of the total 2,352 bank branches in Himachal Pradesh are situated in rural areas, ensuring that financial services are accessible to a large rural population. The state's bank branch-to-population ratio is significantly better than the national average, with just 2,919 people per branch as compared to the national average of 11,000.
Banks in the state have made notable progress in meeting the RBI’s national parameters for lending to priority sectors, achieving 59.12 per cent of total loans directed towards sectors such as agriculture, micro, small, and medium enterprises (MSME) and women. However, the state slightly falls short of the national target for agricultural advances. The implementation of PMJDY in Himachal Pradesh has been successful, with over 18.55 lakh accounts opened by September 2024. The initiative has particularly benefited rural areas, where 16.60 lakh of these accounts are located. A significant portion of these accounts has been linked to Aadhaar and mobile numbers, enhancing financial connectivity. The adoption of government social security schemes such as PMSBY, PMJJBY and APY is progressing well, with millions of people benefitting from insurance and pension plans. The schemes are particularly significant in improving the financial security of vulnerable groups such as small farmers, workers in the unorganized sector and low-income households.

NABARD has been approved as a National Implementing Entity (NIE) for the Adaptation Fund (AF), Green Climate Fund (GCF), and National Adaptation Fund for Climate Change (NAFCC) established under the United Nations Framework Convention on Climate Change (UNFCCC) set up by Ministry of Environment, Forest and Climate Change (MoEF & CC). To meet out the future challenges of climate change, NABARD facilitated the preparation, development, and sanction of a projection titled 'Sustained Livelihoods of Agriculture Dependent Communities in Drought-Prone Districts of Himachal Pradesh through Climate Smart Solutions' in Sirmour district from the executing entity, namely the Department of Environment, Science, and Technology of the Government of Himachal Pradesh. The project has been allocated a budget of ₹ 20.00 crore by the MoEF and CC, NABARD has since released ₹19.12 crore up to 31st December, 2023. The project has been extended up to 31st March 2024.

In a dynamic world, prices do not remain constant and prices keep changing over the period of time. Changes in prices affect a wide range of economic activities and also the purchasing power of people. Price index is a statistical tool to measure relative changes in the prices of commodities with reference to time and it is one of the key indicators in the economic planning process. Rise in prices of goods and services, which is termed as inflation, is a crucial determinant in the growth of economy. Inflation is calculated using wholesale and consumer price indices. This chapter is organised broadly into four sections. The first section outlines the global inflation trends, second section focuses on the domestic inflation trends, third section outlines inflation trends in Himachal Pradesh and last section presents the public distribution system in Himachal Pradesh.
Global Inflation : Global inflation peaked at 8.7 per cent in 2022, driven by supply chain disruptions and geopolitical tensions, which come down to 5.7 per cent in 202411. In India, retail inflation moderated from 5.4 per cent in 2024 to 4.9 per cent in 2025 (April-December) despite challenging food price dynamics. Food items constitute about two-fifths of the consumer price index in India. Hence, Consumer Food Price Index (CFPI) is a significant determinant of retail inflation. In recent years, food inflation has been a major contributor to headline inflation. However, increase in prices is not widespread across all food categories. It is primarily driven by a few items.
India’s Inflation: India's headline inflation, measured by Consumer Price Index (CPI), has moderated in FY2025 (April-December) compared to FY2024. This decline is primarily due to a significant decrease in core inflation, which dropped by 0.9 percentage points between FY2024 and FY2025 (April-December). Sharp decline in core inflation was largely driven by core services inflation, which was lower than core goods inflation. A decrease in fuel prices has also contributed to the moderation in headline inflation, alleviating pressure on household budgets. In general, decline in retail inflation can be attributed to a reduction in input prices, as reflected in wholesale price inflation, which was in the deflationary zone (-0.7 per cent) in FY2024 and remained low in 2025 (April-December).
Inflation targets are set every five years. In March 2021, the government reaffirmed its target at 4 per cent for headline Consumer Price Index (CPI) inflation from April 2021 to March 2026, with an allowable range between 2 per cent to 6 per cent.
Inflation Trends in Himachal Pradesh : In Himachal Pradesh, inflation has remained relatively stable. The CPI-C inflation decreased from 5.0 per cent in FY2023-24 to 4.2 per cent in FY2024-25. CPI-Rural dropped from 5.1 per cent to 4.4 per cent, while CPI-Urban fell from 4.7 per cent to 3.3 per cent during the same period. In contrast, CPI-Industrial Worker inflation increased from 1.8 per cent to 2.2 per cent and CPI-Agriculture Labour inflation rose from 4.9 per cent to 5.7 per cent. CPI-Rural Labour inflation also increased from 5.2 per cent to 5.5 per cent from FY2023-24 to FY2024-25 (Table 5.1 and Figure 5.1). Throughout FY2024-25, CPI inflation fluctuated between 2.2 per cent and 5.7 per cent, staying within the Reserve Bank of India's upper tolerance level.


Consumer Price Index-Combined (CPI-C) Inflation among different States: The inflation trend in Himachal Pradesh, shows a fluctuating pattern throughout 2024. Starting at 5.1 per cent in January and peaking at 5.8 per cent in October, increase in inflation was primarily driven by a spike in vegetable prices. This phenomenon was due to various factors such as adverse weather conditions affecting crop yields, rising transportation costs, or other supply chain disruptions. Central banks often raise interest rates to cool down an overheating economy and control inflation. However, it is important to note that impact of interest rate changes on inflation is not immediate and takes time to materialise. The decline in inflation till August, 2024 suggests that either the measures taken, including interest rate hike, had a positive effect or that the initial factors causing spike in vegetable prices may have alleviated.
In January 2025, Himachal Pradesh recorded a CPI-C inflation rate of 4.19 per cent, which was relatively moderate compared to other states, where inflation rates ranged from 8.8 per cent to 1.8 per cent (figure 5.2).
This disparity in inflation rates among states can be attributed to various factors, including differences in economic activities, supply chains, agricultural production, and regional economic policies. The lower inflation rate in Himachal Pradesh, in comparison to most other states, indicates a relatively stable economic environment and effective measures taken by the State Government to control inflation.

Contributors to Consumer Price Index inflation (Combined) 2024 vs 2017 Figure 5.3: Figure 5.3 depicts the major contributors to consumer price index inflation in Himachal Pradesh. It has been observed that the Fuel and Light group has been the lowest contributor to overall inflation. It accounts for (-) 20.2 per cent of the total CPI C inflation which indicates that changes in fuel and energy prices significantly influence the overall inflation rate. In contrast Food and Beverages group was the largest contributor to overall inflation, with a 41.6 per cent share. Second largest contributor to overall inflation was Pan, Tobacco & Intoxicants which contributed 35.6 per cent to the total inflation, Clothing and Footwear contributed 19.0 per cent to overall inflation contribution. Miscellaneous items contributed to the overall inflation, with 23.9 per cent share.

Consumer Price Index Industrial Worker (CPI-IW): Consumer Price Index for Industrial Workers (CPI-IW) is a measure of inflation specific to the cost of living for industrial workers and is released by the Labour Bureau. The base year for CPI-IW was changed from 2001 to 2016 in September, 2020. The index covers industrial employees across various sectors such as factories, mines, plantations, railroads, public motor transport undertakings, energy generating and distributing enterprises, as well as ports and docks. This variation could be due to various factors such as regional economic conditions, differences in the composition of industries, and specific factors affecting the cost of living in Himachal Pradesh. The lower CPI-IW inflation in the state will have positive implications for purchasing power and standard of living of industrial workers compared to the national average.

Monthly Wholesale Price Index (WPI):The Department of Economics and Statistics of Himachal Pradesh collects compiles and analyses data on 160 commodities through a network of District Statistical Offices, every first Friday of each month. Prices are collected from designated shops in the districts. These rates are made available to stakeholders after being scrutinised at headquarters. The co-efficient of variation is shown in figures 5.6 and 5.7.
Monthly Wholesale Price Index, at National level for the State during January, 2024 was 151.2 which increase to 154.7 (P) in January, 2025 showing an inflation rate of 2.31 per cent. The month-wise average WPI for the year 2024-25 is given in Figure 5.1.
Figure 5.5 indicates comparison of Wholesale Price Index (WPI) inflation between two periods: January to December, 2023 and January to December, 2024. In the more recent period of April to December, 2023, WPI inflation fell into negative territory, ranging between (-) 4.2 to 4.8 per cent. Negative inflation indicates a period of deflation, where average prices received by producers for their goods and services decreased. From January to December 2024, WPI inflation ranged between 0.2 and 3.4 per cent. This suggests a relatively moderate to low level of inflation during that period.
This decline in WPI Inflation suggests that overall, wholesale prices have decreased or remained subdued, indicating potential stability or even a decrease in retail prices. The data reveals a significant decline in WPI inflation between the two periods, with the more recent period experiencing negative inflation rates. Lower wholesale prices can potentially translate into lower costs for retailers and will contribute to stability or reduction in consumer prices. The conclusion drawn is that with the significant decline in WPI inflation, retail prices in India are expected to stay steady or fall in the next months.
Wholesale Price Coefficient of Variation of 2023 and 2024: The figures, particularly Figure 5.6 and Figure 5.7 are visual representations of the coefficient of variation for the prices of fat grains and pulses, respectively. These figures provide a graphical representation of the volatility trends in wholesale prices for the mentioned commodities. The coefficient of variation is used to analyze the volatility of wholesale prices for fat grains in 2023 (April to December) and 2024 (April to December). The focus is on commodities like wheat, maize, corn flour and wheat flour which are showing increasing volatility during 2024-25.

Factors Affecting Pulse Prices: Figure 5.7 presents the coefficient of variation in pulses and it shows that prices of pulses remained subdued due to increased production, government initiatives to maintain buffer stocks, and lower import taxes and cess on pulses. Increased production levels contribute to stability of prices of pulses.
Certain pulse commodities, including Chane dal, Raj mah and Soyabean are identified as highly fluctuating based on the coefficient of variation calculations for 2023 (April to December) and 2024 (April to December). This indicates that prices of these specific pulse commodities experienced significant fluctuations during the mentioned periods. On the other hand, commodities like Kabuli chana, Arhar dal, Urd dal, Moong dal, Kulth and Malka are identified as less volatile, as their stability improved. The stability in these pulse commodities may be attributed to factors such as consistent production levels or effective market interventions.
Weekly Retail Price: District Statistical Offices which are part of the Department of Economic and Statistics are responsible for collecting and analysing data on basic goods. Every Friday, prices are gathered from participating shops in the district and, after being verified, posted at www.weeklyprices.hp.gov.in. The Department of Food Supplies and Consumer Affairs and the Economics and Statistics Department, receive a report every week detailing the previous week's pricing changes.
i) Volatility in Essential Commodity Prices: Figure 5.8 depicts that certain commodities, including Onion, Urd dal, Kerosene oil, Gur, Sugar packet, Tea loose Brooke Bond and Sugar experienced stable prices during April, to December, 2024.
Stability of prices is attributed to factors as adequate supply resulting from domestic production and maintenance of adequate buffer stocks for rice and wheat to meet food security requirements. Cement, Rice parmal, Wheat atta, Channa dal, Wheat Kalyan, Ground nuts oil, Mustard oil and Vanspati ghee experienced volatility in prices between April to December, 2024. These commodities saw fluctuations, suggesting that various factors as demand, supply chain disruptions, or external influences may have affected their prices.

Targeted Public Distribution System (TPDS): The objective of the Public Distribution System (PDS) is to provide food grains at affordable prices to the poor and to protect them from the impact of rising prices of essential commodities. Under PDS, essential commodities are distributed through a well-established network of Fair Price shops (FPS). The National Food Security Act, 2013 has widened the scope of food security by providing adequate, safe and nutritious food. One of the main constituents of the Government strategy for poverty alleviation is the Targeted Public Distribution System (TPDS) which ensures availability of essential commodities like Wheat, Wheat Atta, Rice, Sugar etc. through a network of 5,330 fair price shops. For distribution of essential items Households have been divided into two categories viz.
a) National Food Security Act (NFSA) Households :
i) Antodaya Anna Yojna (AAY)
ii) Priority Households
b) Other than National Food Security Act (OTNFSA) (Above Poverty Line) (APL) Households As on 31st December, 2024, there were 5,330 FPS in the State, of which 3387 were run by cooperative societies, 25 by panchayats,48 by HPSCSC, 1,812 by individuals, 23 by self-help group, 35 by Mahila Mandals. The number of FPS by of ownership are given in Table 5.4
In the State, the Targeted Public Distribution System has 19,32,150 ration cards. The distribution of essential commodities during 2024-25 up to December, 2024 is given as under in Table 5.5.
Presently, following food items are being distributed through TPDS and Himachal Pradesh State Specially Subsidized Scheme whose detail is as per Table 5.6.

The Himachal Pradesh State Civil Supplies Corporation Limited is the “Central Procurement Agency” for all controlled and non- controlled essential commodities in the State and for procuring and distributing food grains and other essential commodities under the TPDS, NFSA and other Govt. Schemes. During the current financial year 2024-25 up to December, 2024, the Corporation achieved a turnover of ₹1681.76 crore.
Presently, the Corporation is providing Controlled and Non-controlled commodities such as Rice, Wheat Atta, Salt, Pulses, Sugar, Edible Oils, Cooking gas, Diesel, Petrol, Kerosene Oil, Medicines and other essential commodities at reasonable rates to consumers in every nook & corner of the State. This is done through its 121 Wholesale Godowns, 47 Retail Shops, 54 Gas Agencies, 4 Petrol Pumps and 41 Medicine Shops. During the current financial year, upto December, 2024, the Corporation procured and distributed various commodities under the subsidised scheme to the tune of ₹693.06 crore to the general public in the State.
The Corporation is arranging the supplies of rice and other supplementary items under the mid-day-meal scheme to primary and upper primary schools. During 202425 (upto December, 2024) the Corporation arranged distribution of 9,789.79 MT rice under this scheme. The Corporation is also arranging supplies of subsidized items (pulses of various kinds, fortified mustard and refined oil and iodised salt) under the State Sponsored Scheme as per decisions of the purchase committee constituted by the Government. During 2024-25, (up to December, 2024) the Corporation has distributed these commodities under the said scheme to the tune of ₹454.10 crore to ration card holders. During 2024-25, for implementation of this scheme, a budget provision of ₹197.54 crore has been made as State subsidy. The corporation is expected to achieve a total turnover of about ₹2100 crore during 2024-25, compared to ₹1730.81 crore in the corresponding period of the previous year (2023-24).
Government Supplies : The Himachal Pradesh State Civil Supplies Corporation Limited is managing the procurement and supplies of ayurvedic medicines to Government hospitals, cement to Government Departments/ Boards/ Corporations and other Government institutions and galvanized iron (GI), ductile iron (DI), cast iron (CI) pipes to Jal Shakti Department. During the current financial year up to December, 2024, the position of Government supply is as under:

Mahatma Gandhi National Rural Employment Guarantee Act, (MNREGA) Cement Supplies: During 2024-25 (upto December, 2024), the Corporation managed the procurement and distribution of 32,36,660 cement bags amounting to ₹101.93 Crore to various panchayats for developmental work in the State.
Food Security in Tribal and inaccessible Areas of the State : The Corporation is committed to provide all essential commodities, petroleum products including kerosene oil and Liquefied Petroleum Gas (LPG) in tribal and inaccessible areas, where private traders do not venture to undertake these operations due to economic non-viability of the trade.
Medicines Shops: A new medicine shop has been opened at AIMSS Chamiyana in the financial year 2024-25, taking the total number of medicine shops operated by this corporation to 41. Furthermore, 12 additional Medicine Shops are proposed to be established at various locations across the State.
Paddy & Wheat procurement from farmers: As per the decision of State Government, the Corporation as nodal procurement agency has started procuring paddy and wheat directly from farmers with effect from Kharif Milling Season (KMS), 2021-22 and Rabi Milling Season (RMS), 2022-23 with the help of various Departments/Agencies i.e. Department of Food, Civil Supplies and Consumer Affairs, Department of Agriculture, Department of Land Records, Himachal Pradesh State Agriculture Marketing Board and Food Corporation of India etc. During this year, in the Rabi Milling Season (RMS) 2024-25, 2,880.25 metric ton wheat has been purchased directly from farmers by this Corporation at 10 purchase centers at a cost of ₹6.55 crore, benefiting 645 farmers across the state. During this year, in the Kharif Milling Season (KMS) 2024-25, 36,901.76 MT paddy has been purchased directly from farmers by this Corporation at 12 purchase centres at a cost of ₹85.34 crore, benefiting 5,572 farmers across the State.
Maize procurement from farmers: As per Budget announcement of Chief Minister, Himachal Pradesh, procurement of “Maize produced under natural farming” has been undertaken by the Corporation through Agriculture Department. During the current year, in the Kharif Milling Season (KMS) 2024-25, 398.97 MT maize has been purchased directly from farmers by this Corporation from 24 procurement centers at a cost of ₹1.19 crore, benefiting 1,508 farmers across the state. Maize flour under brand name “Him Bhog” in the packaging of 1 kg and 5 kg is being distributed to consumers in the State. In conclusion, inflation trends in Himachal Pradesh during FY2024-25 reflect a relatively stable economic environment, with fluctuations in consumer price indices. The CPI-C inflation decreased from 5.0 per cent in 2023-24 to 4.2 per cent in FY2024-25, with rural and urban inflation following similar patterns. Notably, CPI Industrial Worker inflation remained low at 2.2 per cent. The state's inflation was influenced by factors such as food prices, with the Food and Beverages group being the largest contributor to inflation. Comparatively, Himachal Pradesh maintained a lower CPI-C inflation rate than many other states, indicating effective economic management and policy measures.

Agriculture, as the backbone of Indian economy, plays a crucial role in the socioeconomic sphere of the country. Indian agriculture is a diverse and extensive sector involving a large number of factors. It has been one of the remarkable success stories of the post-independence era through the association of Green Revolution technologies. The Green Revolution contributed to the Indian economy by providing food self-sufficiency and improved rural welfare. The role of National Agricultural Research System (NARS) was imperative in the context of Green Revolution. India has one of the largest and institutionally most complex agricultural research systems in the world. Historically, Indian agricultural research system is the zenith of a process which started in the 19th century and which resulted in the establishment of the Imperial (now Indian) Council of Agricultural Research (ICAR) on the recommendation of a Royal Commission on Agriculture in 1929.
Agriculture in Himachal Pradesh suffers from certain limitations, especially in the production of food grains. One of the reasons is that the area under cultivation cannot be extended to any appreciable extent. Reclamation of land on slopes of hills for cultivation of food grains is neither economical nor beneficial. The farmers can profit more by raising cash crops suited to the agro-climatic conditions. Another reason is that reclamation of land from the hills increases the menace of soil erosion. This chapter explores the key trends, government policies, and programs shaping the agriculture and allied sectors in Himachal Pradesh.
Agriculture is the main occupation of the people of Himachal Pradesh and has an important role in the economy of the state. It provides direct employment to about 53.95 per cent of total workers of the State. About 14.70 per cent of the total GSVA comes from Agriculture and its Allied sectors during FY2024-25. Out of the total geographical area of 55.67 lakh hect, area of operational holding is about 9.44 lakh hect. and operated by 9.97 lakh. farmers. The average holding size is about 0.95 hect. Distribution of land holding according to 2015-16 Agriculture Census shows that 88.85 per cent of the total holdings belong to Small and Marginal farmers, about 10.85 per cent holdings are owned by Semi Medium and Medium farmers and only 0.30 per cent by large farmers.
Contribution of Agriculture and its sub-sectors: There has been a sustained growth of primary sector contribution to the State economy over the years. The contribution of agriculture and allied sector to GSVA at current prices has increased 53 per cent from ₹20,838 crore in FY2020-21 to ₹31,879 crore in FY2024-25 (Advance Estimates (AE)). There is a marked improvement in GSVA of crops at current prices between 2020-21 to 2024-25 (from ₹12,341 crore in FY2020-21 to ₹21,912 crore in FY2024-25). The contribution of the crops sector to GSVA at current prices has increased by 78 per cent in the same period.
Between 2020-21 to 2024-25 (AE), GSVA (at current prices) of Agriculture, forestry, livestock and fisheries has seen a compound annual growth rate (CAGR) of 11.22 per cent in Himachal Pradesh. The crop sector was a major driver of this growth with a CAGR of 15.43 per cent, the sector’s contribution to the GSVA of Agriculture and Allied activities has improved from 59.2 per cent in FY2020-21 to 68.7 per cent in FY2024-25. The share of agriculture and allied sector in total GSVA in the State has remained between 13-15 per cent in the last five years.
Growth of Agriculture and its sub-sectors: As per advance estimates, agriculture and allied sector GSVA is estimated to increase by 3.07 per cent at constant prices in FY2024-25 against a growth rate of 2.63 per cent realised in FY2023-24. The increase in the agriculture sector is attributed to sharp increase in the crop sub-sector (Figure 6.3).
a) Crop-sub-sector:The crop sub-sector constitutes major sub-sector within agriculture in Himachal Pradesh accounting for 68.73 per cent of agriculture and allied sector GVA and 10.1 per cent of total GSVA in FY2024-25 (Figure 6.1 & 6.2). During FY2024-25, the contribution of livestock, fishery, and forestry in agriculture and allied sector GSVA stood at 9.24 per cent, 0.94 per cent and 21.09 per cent respectively (Figure 6.1).


b) Livestock:Livestock sector is critical for the rural economy, especially the small and marginal farmers. This sector not only contributes to farmer’s income but also their best insurance against any natural calamity. The potential of crop production depends upon investment, weather and meteorological conditions. Comparatively, Livestock sector is more stable and requires less investment. It has great potential and contribution to the state economy. Further, Livestock and poultry have proved to be life saviors in many distress conditions, especially in cases of drought etc. for the rural poor. Realizing this and the growth potential of this sector, greater attention is being paid to raise investment in this sector. Livestock subsector accounts for 1.36 per cent of total GSVA and 9.24 per cent of agriculture and allied sector GSVA in FY2024-25. Livestock sub-sector is expected to grow at 5.2 per cent in FY2024-25.
c) Forestry: Forestry accounted for 3.10 per cent of total GSVA and 21.09 per cent of agriculture and allied sector GSVA at current prices in FY2024-25. Forestry sub sector is estimated to grow at 4.0 per cent in FY2024-25 against -1.5 per cent in FY2023-24.
d) Fishery: The fishery subsector constitutes only 0.14 per cent of total GSVA and 0.94 per cent of agriculture and allied sector GSVA at current prices in FY2024-25. The growth of fishery sector has been encouraging over the last ten years. The Fishery sub-sector is estimated to grow at 7.0 per cent in FY2024-25 against 6.3 per cent in FY2023-24.

Himachal Pradesh ranked 17th State in India and 126th in world with a geographical area of 55,673 square kilometres (Sq Km). Out of the total geographical area, 11.49 per cent of the area comes under Net Sown Area and around 24.55 per cent is under forest coverage, Land put to non-agriculture uses is around 7.98 per cent, fallow lands 1.53 per cent, Barren and uncultivable land 16.73 per cent Figure 6.3

Land holding pattern: Total number of operational holdings in the State is 9.97 lakh covering an area of 9.44 lakh hectare and the average size of land holding is 0.95 hectares. The size of holdings, area operated and percentage of each category of land holding pattern and area operated are indicated in Table 6.1 and Figure 6.4.

Rainfall: Himachal Pradesh received 602 millimetres (mm) of rainfall from June to September, 2024, which is 132 mm less than normal rainfall of 734 mm. Similarly, from October to December, 2024 state received 50 mm of rainfall which is 33 mm less than normal rainfall of 83 mm (Figure 6.5).
Rainfed agriculture accounts for approximately 80 per cent of the farmed land in the state. Rice, Maize and Wheat are important cereal crops of the State. Soyabean and Sunflower in Kharif and Rapeseed/Mustard and Toria are important oilseed crops in the Rabi season. Mash, Moong, and Rajmash in Kharif season and Gram and Lentil in Rabi are the important pulses crops of the State. Agro Climatically, the State can be divided into four zones viz;(i) Sub Tropical, sub mountain and low hills (ii) Sub Temperate, Subhumid mid hills (iii) Wet temperate high hills (iv) Dry temperate high hills and cold deserts. The Agro-climatic conditions in the state are congenial for production of cash crops like Seed Potato, off-season Vegetable and Ginger. The State Government is emphasizing the production of off season vegetables, potatoes, ginger, pulses and oilseeds besides increasing the productivity of cereal crops, through timely and adequate supply of inputs, demonstration and effective dissemination of improved farm technology, bringing more area under efficient use of water resources and implementation of Wasteland Development Projects. There are four distinct seasons concerning rainfall. Almost half of the rainfall is received during the monsoon season and the remaining precipitation is distributed among other seasons. The State receives an average rainfall of 1,251 mms. Kangra district gets the highest rainfall followed by Chamba, Sirmour and Mandi.

Sown Area: The Net Sown Area (NSA) has marginally increased from 527 thousand hectares in 2021-22 to 532 thousand hectares in 2022-23. Wheat, Maize, Rice, Barley, and Pulses are the major crops grown in the State. Cumulatively, the area under these crops constitutes nearly 80 per cent of the total area under cultivation. Currently, cultivated area under Wheat (35.87 per cent) and Maize (28.73 per cent) constitute 65 per cent of the total.
Production of Major Crops: Production of major crops in Himachal Pradesh from 2021-22 to 2024-25 is presented in Table 6.2. During FY2024-25, food grains contributed around 41.75 per cent and commercial crops contributed 58.25 per cent of the total crop production of the state. Small millets and bajra production is estimated to increase by 76.15 per cent in the year 2024-25, 3.33 per cent increase in maize and (-)19.76 per cent decrease in wheat are estimated.


Trends in Productivity: Agricultural productivity is driven by a host of factors such as irrigation, use of quality seeds, Fertilizers and Pesticides, Extension services, Rural infrastructure etc. The potential for expanding output through area expansion is relatively limited. In terms of cultivable land, Himachal has already reached a plateau similar to the rest of the nation. Hence, emphasis is on increasing productivity levels besides diversification towards high value crops. Due to an increasing shift towards commercial crops, the area under foodgrain production is gradually decreasing, the area which was 853.88 thousand hectares in 1997-98 has declined to 688.69 thousand hectares in 2023-24. The food grain productivity is reflected at figure 6.7.

High Yielding Varieties Programme (HYVP): In order to increase the production of food grains, emphasis has been laid on distribution of seeds of High Yielding Varieties to the farmer. Area brought under High Yielding Varieties of principal crops viz. Maize, Paddy and Wheat is given in table 6.3:

Farms / Development Stations of Agriculture Department: The Department of Agriculture has set up 20 Seed Multiplication Farms (SMF), 3 Vegetable Development Station (VDS), 12 Potato Development Stations (PDS) and 1. Ginger Development Stations (GDS) in the state. These Government Farms are for multiplication of Breeder Seed received from ICAR/State Agriculture Universities into Foundation Seed. As per the policy, the Breeder Seed has to be multiplied in the Govt. Farms under strict supervision of Agriculture Experts. The Foundation Seed produced in the Farms is given to the Registered Seed Growers for multiplication which is further procured by the Department to meet requirement of seed in the State
Plant Protection Programme: Pests and diseases if not managed at the right time can lead to catastrophe. Thus, to minimize the losses due to these pests and diseases, appropriate Integrated Pest Management (IPM) measures are required to be adopted to keep their population/incidence below economic injury level.
Consumption of Fertilizers and Subsidy: Fertilizer is a critical input, which helps in increasing production to a great extent. Starting from demonstration levels in late fifties and early sixties when fertilizer was introduced in Himachal Pradesh, the level of fertilizer consumption has increased from 23,664 M.T in 1985-86 to 51,470 M.T. in 2023-24. Gradually the use of chemical fertilizers and chemical pesticides is being discouraged as a result a downward trend in consumption has been witnessed during the year 2023-24 as evident in the table given below. In order to promote balanced use of chemical fertilizers, a subsidy of ₹1000 per M.T. on complex fertilizers has been allowed. The year-wise detail of fertilizers consumption is as under:

Soil Testing Programme: Department of Agriculture has 11 Soil Testing Laboratories, 3 each Fertilizer & Seed Testing Laboratories, 2 Bio-control laboratories, one each State Pesticide Testing Laboratory & Bio-fertiliser Production and Quality Control Laboratory in the State. For Soil health assessment, Department of Agriculture is providing free of cost facility of soil testing to the farmers. Soil health cards are being made available to farmers through online service.

State Sponsored Schemes

Mukhyamantri Krishi Samvardhan Yojana (MMKSY): On recommendations of an Expert Group, 8 ongoing schemes having similar activities and common objectives were merged in 2022-23 in the name of Mukhyamantri Krishi Samvardhan Yojna (MKSY) to avoid overlapping of activities. Under this scheme, a budget provision of ₹35.00 crore has been made for the FY2024-25
1. Cluster-based vegetable production scheme.
2. Strengthening of Seed Multiplication Chain.
3. Strengthening of Laboratories (Fertiliser Testing, Soil Testing, Biocontrol, Seed Testing, Bio-fertiliser and State Pesticide Testing Laboratory)
Under this scheme, a budget provision of ₹33.67 crore has been made for FY 2023-24.
a) Cluster-Based Vegetable Production: Recent technological breakthrough in agriculture has stressed the need for diversification which suggests that vegetables are likely to provide exceptionally good opportunities to the economy of farmers as well as the State. Agriculture Department has decided to follow “Cluster Approach” for vegetable cultivation in a phased manner covering the entire State. The overall goal is to promote production of economically competitive vegetable crops and enhancing farmer’s income.
b) Strengthening of Seed Multiplication Chain.:Government farms play a very critical role in multiplication of quality seed in the State to lessen the dependency on other agencies in the neighboring States. At present, there are 36 Departmental Farms cultivating different crops i.e. Paddy, Mash, Soybean, Wheat, Seed Potato, Rajmash etc. On these farms, approx. 17000 Quintals of Foundation Seed of different crops is produced annually which is further multiplied through the progressive farmers of the state as certified seed.
c) Strengthening of Laboratories (Fertiliser Testing, Soil Testing, Biocontrol, Seed Testing, Bio-fertiliser and State Pesticide Testing Laboratory) :The Department of Agriculture has 11 Soil Testing Laboratories, 3 Fertiliser (Shimla, Sunder Nagar and Hamirpur), 3 Seed Testing Laboratories (Solan, Palampur and Mandi), 2 Bio-control laboratories (Palampur and Mandi), one State Pesticide Testing Laboratory at Shimla and one Bio-fertiliser Production and Quality Control Laboratory at Shimla. The Department provides soil testing facilities to farmers free of cost and further recommends the doses of fertilizers to be applied by them on their crop fields so that farmers can reap a good harvest as per potential of the crop variety by judicious use of fertilizers along with maintaining the soil health of the fields. The seed testing laboratories are engaged in testing of the seeds for various quality parameters viz. physical purity, germination test so that distribution of good quality seed to the farmers is ensured.
Mukhya Mantri Krishi Utpadan Sanrakshan Yojana (MMKUSY): Budget provision of ₹40.00 crore has been made for implementation of this scheme during the current FY2024-25. The scheme has following components:
i) Monkeys and wild animals are a huge threat to the crop production because they damage the crops and thereby inflict great loss to the farmers. In view of this, the Department of Agriculture started a scheme “Mukhya Mantri Khet Sanrakhshan Yojna” w.e.f. 2016-17 to protect the crops of farmers from this menace. Now, this scheme is a component of the “Mukhyamantri Krishi Utpadan Sanrakshan Yojna” and is known by the name of Badhbandi (Fencing).
ii) Under this component, there is a provision of 70 per cent subsidy to the farmers for installation of Solar Fencing, Interlink Chain Fencing, composite Interlink Chain Solar Fencing and Barbed Wire fencing, as per their requirement.
Himachal Pradesh Crop Diversification Promotion Project (HPCDP) as per Japan International Cooperation Agency (JICA) –External Aided Project (EAP) :
JICA EAP- Phase II
The Phase-II JICA Official Development Assistance (ODA), project will be implemented in all Districts of the State with an outlay of ₹1010.13 crore for 9-year period. Memorandum of Understanding (MoU) for the implementation of the second phase has been signed between the Government of India and Japan International Cooperation Agency on 26th March, 2021. Budget provision of ₹50.00 crore has been made to implement the scheme during the FY2024-25. The following components will be covered under JICA Phase –II.
i) Infrastructure development (Minor & micro irrigation system, Farm access Road and Solar/ Electric Fencing),
ii) Farmers Support Component (capacity building programme of Engineering and Agriculture staff and vegetable promotion, Seed Production and Demonstration).
iii) Value Chain and Market Development Component.
iv) Institutional Development Component.
Mukhyamantri Kisaan Evam Khetihar Mazdoor Jeevan Suraksha Yojana: The State Government introduced a Program named "Mukhyamantri Kisaan Evam Khetihar Mazdoor Jeevan Suraksha" in 2015–16 to provide insurance coverage to Farmers and Agricultural Labourers in the event of suffering injury or death due to the operation of farm machinery. Affected farmers are given compensation in the event of a partial amputation, permanent handicap, or death for amounts of ₹10,000 to ₹40,000, ₹1.00 lakh and ₹3.00 lakh, respectively.
Agriculture Marketing: "Himachal Pradesh Agricultural and Horticultural Produce Marketing Development and Regulation Act, 2005" governs agricultural marketing. Himachal Pradesh State Agricultural Marketing Board (HPSAMB) and 10 District Agriculture Produce Marketing Committees (APMCs) are formed to market agricultural products in the state. Growers are served by 71 market yards (10 APMC and 61 sub Market Yards).
Prakritik Kheti Khushal Kisan Yojana under Zero Budget Natural Farming (PKKKY-ZBNF): The State Government has introduced the "PKKKY" initiative to promote "ZBNF" to reduce cultivation costs. The use of synthetic fertilisers and pesticides is discouraged. The funds allocated to the Department of Agriculture and Horticulture for pesticides/ insecticides are utilised to deliver bio-pesticides and bio-insecticides. Till date, 2,19,383 farmers in the state have opted for natural farming, spanning an area of 37599 hectares. An extra 5,450 hectare of land will be covered in FY2024-25. For FY2024-25, a budget provision of ₹15.00 crore has been made.
Jal Se Krishi Ko Bal Yojana: The project "Jal Se Krishi Ko Bal” has been started to provide water for irrigation. Check dams and ponds are built as part of this programme. Farmers can utilise this water for irrigation after building separate small lifting schemes or flow irrigation schemes. The Government bears the whole cost of implementing a community-based modest water-saving system under this scheme. For FY2024-25, a budget provision of ₹8.00 crore has been made.
Flow Irrigation Scheme: Under this scheme, besides renovating the source location of Kuhls, strengthening of Kuhls in the common area is undertaken. Under this scheme, 100 per cent of expenditure is borne by the Government on community-based work. Government has decided to grant a 50 per cent subsidy for construction of bore wells and shallow wells by individuals for irrigation purposes under this scheme. A budget provision of ₹8.00 crore has been kept for FY2024-25.
Rajya Krishi Yantrikaran Karykram: This year, the government is offering a 40 per cent to 50 per cent subsidy on additional equipment such as chaff cutters, maize shellers, wheat thrashers, sprayers, brush cutters, toolkits, Stainless Steel Ploughs, Mould Board Ploughs, seed bins, water tubs, and so on.
Promotion of Nutri Cereals : 2023 was celebrated as the International Year of Millets (IYOM-2023) for awareness about the health and nutritional benefits of millets. It is necessary to sensitize & incentivise the farmers about these crops and at the same time provide necessary technological inputs and market linkages to motivate these farmers to produce a market surplus. The following components have been proposed under the project to enhance the area under the cultivation of millets:
i) Distribution of Seed on Subsidy.
ii) Distribution of Minikits.
iii) Organization of Millet Food Festival
iv) Capacity Building of Farmers in Production, Post harvest technology and its uses in nutritional security.
v) Farm Gate Sale of Millets (Through Canopy).
The budget provision of ₹1.51 crore has been made for the FY2024-25, for implementation of this scheme.

Centrally Sponsored Schemes

Rashtriya Krishi Vikas Yojana (RKVY RAFTAAR): Rashtriya Krishi Vikas Yojana is helping the state expand agriculture and allied sectors. The scheme's main goals are to incentivize states to increase public investment in agriculture and allied sectors; provide flexibility and autonomy to states in planning and executing agriculture and allied sector schemes; ensure preparation of agriculture plans for districts and states based on agro-climatic conditions, technology, and natural resources; and ensure that local needs/crops/priorities are met. Along with universities, the Department of Agriculture, Himachal Pradesh State Agricultural Marketing Board (HPSAMB) and the Department of Industries and Horticulture are also involved in the implementation of this scheme. Under this scheme, a budget allocation of ₹16.23 crore has been approved for FY2024-25.
National Bamboo Mission: The main goal of this mission is to increase the area under bamboo plantation on non-forest Government and private lands to supplement farm income, contribute to climate change resilience, and make quality raw materials available for industries. The Director of Agriculture, Himachal Pradesh, has been designated as the State Mission Director, and the Department of Agriculture, as the Anchoring Department. Departments of Forestry, Rural Development, Panchayati Raj, Industries, and State Agricultural Universities are among the stakeholders.
Crop Insurance Scheme: From the Kharif 2016 season onward, the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (R-WBCIS) are in effect in Himachal Pradesh. Wheat and barley crops are covered during the Rabi season under PMFBY, while maize and paddy crops are covered during the Kharif season. This programme covers the many phases of agricultural loss risks caused by preventive planting, post-harvest losses, localised catastrophes, and losses to standing crops (from sowing to harvest). The scheme is voluntary for both loaned and unloaned farmers as of Kharif 2020. Six crops, including potatoes, ginger, tomatoes, peas, cabbage, and cauliflower, are covered under the Restructured Weather Based Crop Insurance Scheme (R-WBCIS) during the Kharif season and potatoes, tomatoes, garlic, and capsicum during Rabi season. The program's goal is to give producers insurance protection against meteorological events including rain, heat, relative humidity, hail storms, dry spells, etc. that are thought to harm crops. Under Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme during Kharif, 2024 season, 1,08,160 farmers have been covered and 1,12,055 farmers have been covered during Rabi 2024-25 season. A budget provision of ₹6.00 crore has been made for 2024-25 for payment of State share of premium subsidy.
Support to State Extension programmes for Extension Reforms/ Agricultural Technology Management Agency (ATMA): The modified Extension Reforms Scheme was introduced to strengthen the extension machinery and utilize it for synergizing the interventions in different schemes under the umbrella of ATMA. Besides Agriculture, other Departments as Horticulture, Animal Husbandry, Fisheries etc. are also stakeholders in this programme. To create competition amongst the farmers to achieve the best in the agriculture sector, the Krishak Puraskar Yojana has also been launched in the State under this scheme. A budget provision of ₹18.89 crore has been kept for FY2024-25.
Sub Mission of Seed & Planting Material (SMSP): Under the component organization of training camps at block level and distribution of wheat seed will be done. For the FY2024-25 a budget amounting to ₹7.78 crore has been allocated.
Sub Mission on Agriculture Mechanization (SMAM): The farmers of the State are given access to freshly developed equipment, contemporary machinery, and gender-sensitive equipment under this programme. According to the Government of India's authorised rules, farmers in the SC, ST Small & Marginal and women farmer groups receive a 50 per cent subsidy on agricultural equipment such as tractors, power tillers, power weeders, crop reapers, and rotavators, while other farmers receive a 40 per cent subsidy. Additionally, under this plan, Custom Hiring Centers are also being built. For FY2024-25, a budget allocation of ₹27.78 crore has been allocated.
Agro-forestry: To make agriculture less vulnerable to climatic aberrations, the Government of India launched a scheme "Agroforestry" to encourage and expand tree plantation on farmland, with the motto of "Har Med Par Ped”, along with crops/ cropping system. For FY2024-25 a budget provision of ₹1.67 crore has been allocated by the Government of India under the component.
National Mission on Sustainable Agriculture (NMSA): The National Mission for Sustainable Agriculture (NMSA) has been developed to increase agricultural output, particularly in regions that get rainwater. The program's various elements include monitoring, modelling, and networking for climate change and sustainable agriculture, as well as Rain fed Area Development (RAD), agricultural development initiatives, and Climate Change and Sustainable Agriculture: Monitoring, Modelling and Networking (CCSAMMN). ₹7.77 crore has been allocated for the FY2024-25 by Government of India for this mission.
Paramparagat Krishi Vikas Yojana (PKVY): PKVY under NMSA mobilises farmers in clusters to certify their organic goods and promote organic farming. The main components of the scheme include management cost for cluster formation & capacity building and incentives to the farmers as DBT on organic/natural farming inputs. A total budget provision of ₹8.29 crore (Center and State) has been sanctioned for FY2024-25.
Pardhanmantri Krishi Sinchai Yojana (PMKSY): This scheme's main focus is on micro-irrigation projects ("Har Khet Ko Pani") and end-to-end irrigation solutions. Water conservation and waste reduction are critical to providing irrigation to every farm in the country. This makes the introduction of sustainable water preservation practices and optimization of water resources (More Crop Per Drop) as important as the introduction of new irrigation facilities. Under this scheme, a budget provision of ₹22.22 crore has been made for FY2024- 25.
National E-Governance Plan Agriculture (now Digital India Mission) : The Government of India has sanctioned a project on ‘Transformation in Agriculture Using Emerging Technologies’ under the National e- Governance Plan on Agriculture which has now been reformed as Digital Agriculture Mission which is a component of Krishonnati Yojna. Under this mission, the Database of Farmers residing in India will be made and they will be provided unique Farmer ID like Adhaar Number. Unique ID will contain Agriculture Land holding of farmer/Global Positioning System (GPS) Coordinates of each land of farmer / Crops grown on each plot/Benefits availed by farmers. Unified Farmer Service interface (UFSI) similar to Adhaar UPI will be developed and will be regulated by AGRISTACK just as Adhaar regulator.
This centralized, interoperable digital infrastructure will facilitate access for businesses across the country to a unified agri-market, enhancing efficiency and transparency. The Digital mission in Himachal Pradesh represents a significant step forward in the digitization of agriculture, promising to empower farmers, streamline processes and bring about positive change in the state’s agricultural landscape. The Annual Allocation (Central Share) under the component Digital Agriculture amounting to ₹22.60 crore is approved for 2025-26 for Himachal Pradesh.
Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan Yojna (PM-KUSUM) : Government has introduced a new scheme viz, “Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan Yojna” with a view to provide assured irrigation to crops, enhance the production & productivity where electricity accessibility in remote areas is costly in comparison to Solar PV pumps. Under this scheme, 85 per cent assistance is provided to small and Marginal groups of farmers and 80 per cent is provided to Medium and Large groups of farmers on individual & community basis for installation of solar pumping machinery. During FY2024-25 a release of ₹3.13 crore has been received from Government of India of which ₹1.62 crore has been spent upto December 2024.

1) Himachal Pradesh State Agricultural Marketing Board (HPSAMB) is the apex body which provides agricultural marketing infrastructure in state through its Agricultural Produce Market Committees (APMCs). In addition to agricultural marketing infrastructure, HPSAMB provides modern facilities for trading, grading and storage of Agricultural /Horticultural crops.
2) Operation & management of 79 wholesale Fruits, Vegetables and Food Grain markets in the state. Out of which 10 are Principal Market Yards (PMYs) and 69 are Sub Market Yards (SMYs). These market yards are equipped with all essential facilities for facilitation of different stakeholders. 38 Markets are integrated with National Electronic Market (e-NAM).
3) Construction of Fruits & Vegetables Wholesale markets Bandrol (District Kullu), Shilaroo and Tutu (District Shimla), Jach (District Mandi) and Parwanoo (District Solan) has been completed. Construction of new wholesale Fruits & Vegetables Markets Mehandali, Thermati (District Shimla) and Patlikuhal (District Kullu) is 85 per cent completed. Process to set up first wholesale market in district Lahoul & Spiti has been initiated and work of first phase has been awarded.
4) The up-gradation work of market yards at Paonta Sahib, Khairi, Ghanduri in district Sirmour, Chauribihal and Khegsu in district Kullu, Takoli and Kangni in district Mandi, Jassur, Palampur and Passu in district Kangra and Parwanoo, Waknaghat and Kunihar in district Solan has been completed
5) APMCs are primarily constructed markets for fruits, vegetables and foodgrains. In FY2024-25 upto December 2024, 41.74 lakh quintals of fruits and vegetables were traded in different APMCs. The detail is shown in Table 6.5:
6) To provide the benefits of Minimum Support Price (MSP), procurement of food grains was done during Rabi Marketing Season (RMS) and Kharif Marketing Season (KMS) at 10 procurement centres. Total 2880 MT of wheat having value ₹6.55 crore was procured from 645 Farmers. During Kharif Marketing season, 36,901 MT paddy having value of ₹85.34 crore was procured from 5572 farmers.
7) To ensure payment of apple sale proceeds to farmers on actual weight basis, consultative meetings were convened with all stakeholders and after consideration of all suggestions/objections, notification was issued on 23rd April, 2024 for implementation of Universal Carton (Fixed Weight) for apple packaging. The decision of the Government was implemented in whole of the State, which has benefitted the farmer by ensuring payment on actual weight basis.
8) In the apple marketing season 2024, out of total 2.09 crore apple boxes, 1.17 crore boxes were traded in APMC markets. In the apple Marketing season of 2023, total traded boxes were 1.82 crore out of which 89.80 Lakhs boxes were traded in the APMC yards of HP. A total increase of 27.26 lakh boxes was observed in current financial year 2024-25.
9) HP State Agricultural Marketing Board and APMC Shimla and Kinnaur are establishing an integrated cold chain project for preservation and value addition at Parala and Kharapathar
i) This project will help farmers to avoid distress sale
ii) Total Project cost: ₹60.93 crore
iii) Project includes: CA Store of 5,600 MT Capacity (Highest in public sector in HP)
iv) Freezing Chamber: 1,500 MT
v) Grading/Sorting Line: 10MT/Hour
vi) Individual Quick Freezing Line: 1MT/Hour
vii) Farm Level Infrastructure: 60MT Pre Cooling Chamber at Kharapathar
viii) Refer Vans of 15 MT Capacity
ix) 95 per cent work of the Cold Chain Project has been completed and commissioning is due.
10) . In Himachal Pradesh 26 Markets have been integrated with electronic National Agriculture Market (e-NAM). As on 31st December, 2024, total 1,25,517 farmers are registered on e-NAM portal in Himachal Pradesh. Total registered traders are 2,322. 82 Commodities are trading on e-NAM portal in HP and transactions of ₹1,668.49 crores have taken place. The volume of total transactions is 13,445.03 MT. Amount of ₹606.72 has been directly transferred in the account of farmers since the inception of scheme in Himachal Pradesh. 123 FPO are also registered on e- NAM portal.
In current financial year 2024-25 upto 31st December 2024, e-payments of ₹129.65 crore were made directly to bank accounts of 9184 farmers through e-NAM. Total volume of transaction was 2.36 Lakhs quintals.
11) The registration/licenses of all the stakeholders are being made digitally through web portal of HPSAMB. In the financial year 2024-25, total 4128 licenses were issued digitally. E-office is being implemented in all the offices of APMCs and HPSAMB. Single Sign On (SSO) facility will soon be started for officials and other stakeholders.
12) In order to provide the market information to farmers and other stakeholders, 50 markets nodes of states are linked to agmarknet.gov.in portal. The information of daily prices and arrival is regularly uploaded on portal which is accessible to all the stakeholders over the web space.

Horticulture, is the cornerstone of the economy of the State, which has seen remarkable advancements. Introduction of universal cartons for apple growers have enhanced marketability, while ₹153.00 crore has been disbursed to clear outstanding payments under the Market Intervention Scheme.
The Government of Himachal Pradesh is committed to farmer-centric programmes and identified the Horticulture sector as one of the growth engines in the economic development of the State. In Himachal Pradesh, the area under Horticulture crops increased from 792 Hectares in 1950-51 to 2,36,950 hectares in 2023-24. The area under Horticulture in the state contributes 26 per cent of the total Agriculture area (8, 91,926 hectares), whereas the sector contributes 22 per cent in terms of the value of the produce (Agriculture crops value ₹16,076 crore including vegetables, Horticulture crops value ₹4,461.59 crore in 2023-24). Between 2007-08 and 2023-24, the area under horticulture crops has seen a growth of 17.60 per cent. Apple, Mango, Orange, Pear, Plum, Peach, Galgal and Apricot are the major horticulture crops in the state.
Apple is the most important fruit crop of Himachal Pradesh, which constitutes about 49.06 per cent of the total area under fruit crops and about 79.51 per cent of the total fruit production during FY2023-24. The area under apple has increased from 400 hectares in 1950-51 to 3,025 hectares in 1960-61 and 1,16,240 hectares in FY2023-24. Between FY2007-08 and FY2023-24, the area under apple has seen a growth of 21.4 per cent.
The fluctuations in the production of apples during the last few years have attracted the attention of the Government. The State is trying to explore and harness the vast horticulture potential of the hill State through diversified horticulture production in varied agro-ecological zones.
The area under temperate fruits other than apples has increased from 900 hectares in 1960-61 to 27,373 hectares in FY2023-24. Nuts and dry fruits have seen an increase in area from 231 hectares in 1960-61 to 9,277 hectares in 2023-24, while citrus and other sub-tropical fruits have seen an increase from 1,225 hectare and 623 hectare in FY1960-61 to 26,432 hectare and 57,628 hectare in FY2023-24 respectively.
The overall fruit output in FY2023-24 was 6.37 lakh tones. While the total fruit production in FY2024-25 up to 31st December, 2024 is 5.92 lakh tones, 1,295.61- hectare area is brought under plantation and 3.31 lakh fruit plants were distributed.
Sub-Mission of Agriculture Mechanism (SMAM):
i) Under SMAM, farmers are given support in the form of back-ended subsidies to help them acquire a variety of modern farm equipment and tools. Himachal Pradesh's State Agriculture Department is a nodal department for the Scheme. Funds of ₹1.00 crore was allotted to the Department of Horticulture for FY2024–25 of which ₹56.10 lakh were spent under this scheme, benefiting 302 farmers till 31st December, 2024.
ii) 37653.42 MT of C-grade apple fruit worth ₹45.18 crore were procured during FY2024-25.
iii) A total of 285.72-hectare area is under commercial flower cultivation during FY2023-24, to diversify horticulture, while 78.81 hectare area is under protected cultivation of flowers till 31st December, 2024
iv) To produce and market flowers in the State, 8 farmers’ cooperative societies are working in Bilaspur, Chamba, Hamirpur, Shimla and Solan Districts.
v) Beekeeping and other ancillary horticulture activities are also encouraged. 1,549.92 MT of honey has been produced under the Bee Keeping Program for FY2023-24.
vi) During the FY2023-24, 500.63 MT of pasteurized compost for mushrooms was produced and distributed through departmental offices in Solan, Rampur, , Bajoura, and Palampur and 8627.17 MT of mushrooms were produced.
Programmes/Schemes implemented for holistic development of Horticulture:

State Schemes

i) Horticulture Development Scheme (HDS):As part of the HDS, 1,005 Power Sprayers, 2,464 Power Tillers (8 Brake Horse Power) and 163 Power Tillers (>8 Brake Horse Power) were distributed on subsides to orchardists during the FY2024-25 to promote mechanized farming.
ii) Anti-Hail Nets Scheme :To safeguard fruit crops against hail storms, ₹20 crore of funds have been allotted for installation of Anti Hail Nets. Till 31st December, 2024, ₹12.42 crore has been spent and 1,594 farmers in the State have benefited.
iii) Mukhya Mantri Kiwi Protsahan Yojana:Under this scheme, ₹1.00 crore has been allocated to field functionaries during the FY2024-25, of which ₹26.00 lakh has been utilized till date, covering 4- hectare area benefitting 22 farmers.

Centrally Sponsored Schemes

i) Mission for Integrated Development of Horticulture (MIDH):The Mission was launched to promote holistic growth of the Horticulture sector through area-based regionally differentiated strategies. A Centrally Sponsored Scheme MIDH is being implemented by the State Horticulture Department. The focus of the programme is to provide comprehensive development of all the sub-sectors of Horticulture to provide additional income to Horticulture growers. The mission provides subsidies ranging from 40-85 per cent to farmers for Horticultural activities like growing Fruits, Flowers, Vegetables, Spices, New Gardens, Mushroom Production, greenhouse cultivation of high-value flowers and vegetables, Anti hail Nets, Horticulture Mechanization and Post-Harvest Management. An Annual Action Plan of ₹37.60 crore has been approved by Government of India and the 1st installment of ₹15.00 crore has been released. Under the mission total number of 2,69,060 farmers have been benefitted from the year 2003-04 to December, 2024.
ii) Pradhan Mantri Krishi Sinchayee Yojana-Per Drop More Crop (PMKSY- PDMC):PMKSY-PDMC is a unique project being implemented in Himachal Pradesh since 2015–16. Yojana was launched to enhance crop productivity by improving water use efficiency through Micro Irrigation systems for the benefit of the farmers. To encourage farmers to adopt Micro Irrigation State Government is giving top up subsidy. The PMKSY-PDMC guidelines were modified in 2017-18 to include a provision for a subsidy of 55 per cent for small and marginal farmers and 45 per cent for large farmers. The State is providing a 25 per cent additional State share to enable 80 per cent subsidy for small and marginal farmers. Government of India has approved ₹687.76 lakh for PMKSY-PDMC for FY2024–25. As of now an area of 370.42 hectare has been covered under micro-irrigation benefiting 586 farmers up to 31st December, 2024.
iii) Rashtriya Krishi Vikas Yojana-Remunerative Approaches for Agriculture and Allied Sectors Rejuvenation (RKVY-RAFTAAR):RKVY aims to increase public investment in infrastructure facilities and provide flexibility and autonomy in the process of planning and executing schemes in the Horticulture sector. During 2024-25, 150 farmers were benefitted under the scheme upto 31st December, 2024.
iv) Restructured Weather-Based Crop Insurance Scheme (R-WBCIS):In Himachal Pradesh, weather-based crop insurance was first made available in 6 blocks for apple and 4 blocks for mango crops during Rabi 2009-10. The coverage under this scheme has been extended to successive years due to the popularity of the programme. The technique is now being used in 36 blocks for apple, 56 blocks for mango, 29 blocks for plum, 16 blocks for peach, 58 blocks for citrus fruits, 21 blocks for Pomegranate, 38 blocks for litchi and 22 blocks for Guava. In addition to this Apple, Litchi and Pomegranate have been covered under the Add-on Cover to protect the fruit crops against hailstorms. R-WBCIS is the new name of the programme from 2016–17. The sum insured has been revised from 2023 and a bidding system has been implemented. 66,289 farmers have been given coverage under R-WBCIS for their Apple, Plum, Peach, Mango, Citrus, Litchi, Guava and Pomegranate fruit crops for the Rabi Season 2023-24. State Government has paid a premium subsidy of ₹20.00 crore as State share to clear the claim liabilities, under sharing pattern of 90:10 between Centre and State.

i) HPMC a State Public undertaking, was established in 1974 with the objective of marketing fresh fruits and vegetables, processing unmarketable surplus produce and marketing processed products. Since its inception, HPMC has been playing pivotal role in the life of fruit growers of the State by providing them remunerative returns for their produce.
ii) ii. During 2023-24 HPMC registered overall turnover of ₹124.03 crore. Government of Himachal Pradesh has continued the policy of Market Intervention Scheme (MIS) for mango, Apple and Citrus fruit crops with support price as under:
iii) HPMC is successfully operating 4 CA Stores in the apple growing areas of District Shimla namely Jarol Tikker (Kotgarh) 640 MT, Gumma (Kotkhai) 640 MT, Oddi (Kumarsain) 700 MT and Rohru 700 MT which are capable of storing total 2680 MT apple produce in all.
iv) HPMC has set up one modern vegetable pack house & cold store at Nadaun in district Hamirpur and another Pack House alongwith cold room for packing and grading of fruits, vegetables, flowers and culinary herb at Ghumarwin in District Bilaspur with financial assistance of ₹7.89 crore from Agricultural and Processes Food Products Export Authority (APEDA) for both the facilities.
v) Grant in aid of ₹8.00 crore for upgradation of Apple Juice Concentrate (AJC) Plant at Parwanoo has been received from APEDA and work of upgradation has been successfully completed in year 2018 by undertaking trial production in the same year. The upgraded plant has started commercial production in 2018. HPMC is also carrying out production of AJC at FPP Jarol (Sundernagar) and FPP Parala (Theog). The total AJC production of 3 plants during 5 years is shown in figure 6.10: In this year 2024 season HPMC has received the higher ever AJC production of 2000 MT through its 3 Fruit Processing Plants at Parala, Parwanoo and Jarol.
vi) A FPP Parwanoo, District Solan three types of processed products are manufactured viz. AJC, Apple Aroma, Tetrapak (200ml) and Apple Cider Vinegar (1000ml & 600ml). Further, at FPP Jarol various types of processed food products such as: Concentrates, Jams, squashes, Pickles and Wines are being manufactured.
vii) HPMC has entered into MoU with M/s PH4 for manufacturing of Apple Cider at FPP Parwanoo. Manufacturing of Red Wine and other Fruit Wines is done at FPP Jarol with M/s Mountain Barrel.
viii) HPMC plans to enhance its existing capacity of Grading, Storage and Processing of different fruits produced in the State through the World Bank funded Himachal Pradesh Horticultural Development Project (HPHDP). Under the post-harvest support infrastructure component of the said project, financial assistance of ₹266.14 crore is being provided by World Bank to HPMC. The process of enhancing the overall storage capacity of CA Stores from existing 2,680 MT to a total capacity of 7,328 MT has been completed. In addition to the above CA Stores, HPMC has set up new CA Stores at Reckong Peo, District Kinnaur and Chachyot, District Mandi under HPHDP having storage capacity respectively 250 MT and 500 MT.
ix) . New grading and packing houses have also been established at Tutupani (Shimla), Rohru (Shimla), Giabong (Kinnaur) and Chachyot (Mandi). The Capacity of all these grading and packing houses is 10,000 MT/season each. A Pomegranate grading and packing house has already been established at Bhuntar (Kullu) under HPHDP.
x) . Besides, under Horticulture Development Project, a modern AJC processing plant at Parala with a capacity to crush 200 MT Apple per day has been established. It is helping the Corporation in reducing the cost of production of AJC and boost the sales of the Corporation giving it the ability to compete in International Market for providing quality AJC. This plant is also equipped with a winery having wine production capacity of 1,00,000 ltr. per annum.
xi) Under HPHDP, the existing Fruit Processing Plants at Jarol, District Mandi and Parwanoo, District Solan have been upgraded. In addition, the capacity of winery at HPMC FPP Jarol has been upgraded from 30,000 ltr. to 70,000 ltr. per annum.
xii) HPMC has also started procurement of Apples under MIS in Plastic (PVC) Crates for its Parala FPP which has improved the quality and yield of AJC production.
In conclusion, the contribution of agriculture and allied sectors to Himachal Pradesh's GSVA has significantly increased by 53 per cent, rising from ₹20,838 crore in FY2020-21 to ₹31,879 crore in FY2024-25. The crops sector has seen a notable growth of 78 per cent, reaching ₹21,912 crore in FY2024-25. Forestry, contributing 21.09 per cent of the sector's GSVA, is expected to grow at 4 per cent in FY2024-25, recovering from a decline in the previous year. The fishery sector, though small, has experienced steady growth, projected to grow by 7 per cent in FY2024-25.
The government has launched several initiatives aimed at improving agricultural practices and farmer welfare in Himachal Pradesh. These schemes focus on crop diversification, enhancing irrigation infrastructure, promoting natural farming, and providing financial support to farmers. Notable schemes include the Mukhyamantri Krishi Samvardhan Yojana (MMKSY), the Mukhyamantri Krishi Utpadan Sanrakshan Yojna (MKUSY) and the Himachal Pradesh Crop Diversification Promotion Project (HPCDP) under JICA. Other initiatives such as crop insurance, agriculture mechanization and the Pradhan Mantri Kisan Urja Suraksha Yojna (PMKUSUM) further aim to enhance productivity, ensure financial security and reduce costs for farmers. Budget allocations for these schemes in FY2024-25 reflect the state’s commitment to sustainable agricultural development and farmer empowerment.
Horticulture plays a key role in Himachal Pradesh's economy, with significant growth in both production and area under cultivation. The state has seen a remarkable rise in horticultural crops, especially apples, which constitute a large portion of fruit production. Various schemes, such as the Horticulture Development Scheme, Anti-Hail Nets and the Mission for Integrated Development of Horticulture, aim to enhance production and support farmers through subsidies and modern farming tools. The State is further strengthening its infrastructure with financial aid from the World Bank to improve storage capacity, grading and processing of horticultural products, boosting both domestic and international market competitiveness.

Animal husbandry plays a significant role in the agrarian economy of Himachal Pradesh, contributing to livelihood of a large section of rural population. The state's diverse topography and climatic conditions provide a favorable environment for livestock farming, which is an integral part of the culture and economy. Traditionally, animal husbandry was an integral part of the subsistence farmer's way of life. It involved not only the production of food required by the family but also the provision of fuel, fertilizer, clothing, transport, and draught power. The primary focus was not on killing the animal for food; rather, it involved harvesting various products such as wool, eggs, and milk while the animal was still alive, whenever possible.
The livestock sector plays a crucial role in the economy, making a significant contribution to rural development and uplifting the poor. It enhances livelihoods, boosts farmers' income, and supports farming communities by supplementing agricultural household incomes. With minimal investment, livestock rearing holds immense potential for generating self-employment opportunities in rural areas.
Inclusive Growth through Livestock :In Himachal Pradesh, the activities under animal husbandry have been oriented towards improving the health of the livestock, increasing the production of milk, meat and eggs, and providing bullock power for agricultural operations. Several schemes have been formulated in pursuance to the national policies to improve livestock production, fight protein hunger, improve nutritional standards of the population and to also provide technical support for the maintenance and improvement of livestock breeds.
"Animals", serve as the backbone of rural households, provide nutrient-rich food products, organic manure in the form of dung, domestic fuel, hides, and skins. They function as a regular source of cash income, considered a natural capital that can be easily reproduced. Livestock operates as a living bank, with offspring serving as interest, and stands as the best assurance against the uncertainties of nature. This chapter discusses the performance of animal husbandry and fisheries, along with government initiatives for livestock and fisheries development.
Milk, Meat and Egg – Key Growth Drivers:
i) Livestock Population: Livestock industry is a major source of non-government employment in the country. Livestock farming plays a significant role in meeting the rising needs for fat and protein of people also. Domestic animal husbandry is widespread in Himachal Pradesh. Nineteen out of twenty homes have some kind of livestock, with cows and buffaloes being the most common. The livestock sector is rapidly emerging as one of the most promising and income-generating sectors for rural and semi-urban areas in the region. Common Property Resources (CPRs) in Himachal Pradesh encompass forests, water bodies, grazing pastures, and agricultural land.
As per the Livestock Census 2019, State has 0.82 per cent share of India’s total livestock and 0.16 per cent of the total poultry. The State ranks 20th in Cattle and 27th in Poultry population in the country. The total livestock population in the State stood at 44.13 lakh, and that of poultry population was 13.42 lakh. In Himachal Pradesh, cattle form the largest share of the livestock population comprising 18.28 lakh of the total population, followed by Goats, Sheep and Buffaloes (Figure-7.1). The percentage share of exotic/crossbreed cattle in total cattle population has been on an increasing trend in the State. The Crossbreed cattle population in the State rose by 8.64 per cent in 2019 Livestock Census compared to the 2012 Census. The share of crossbred cattle has reached 58.48 per cent of total cattle population. This indicates rising share of more productive animals and the same is reflected in the rising milk production in the State.
Milk Production and Per Capita Availability of Milk:Welfare schemes for dairy, sheep, and poultry units, coupled with the establishment of forward and backward linkages and organized marketing channels, have played a vital role in supporting rural communities. These efforts have not only helped bridge income gaps but have also contributed to the conservation of domestic biodiversity. Importantly, these practices offer a means of food production in arid lands without depleting groundwater resources.
Livestock insurance coverage has been extended to a significant number of families owning sheep and goats, providing a safety net for unforeseen challenges in the sector. Overall, the growth and development in Animal Husbandry have not only contributed to economic prosperity but have also aligned with sustainable practices, promoting both rural livelihoods and environmental conservation.
The increasing trend of milk production in Himachal Pradesh from 201 -1 to 2024-25 is depicted in Table 7.1. Milk production in State has grown from 11.39 lakh tonnes in FY2012-13 to 17.50 lakh tonnes in FY2024-25 (estimated), at a CAGR of 3.6 per cent. Cow milk constitutes around 71.0 per cent of total milk production while share of buffalo milk is around 26.0 per cent and share of goat milk is 3.0 per cent. Species wise share of milk production to total milk production between 2011-12 to 2024-25 is shown above in Figure 7.2.
The per capita availability of milk in the State has increased from 455 gram per day in 2012-13 to 698 gram per day in FY2024-25. This is higher than the national average of 427 gram per day in FY2024-25. There is still scope for increasing milk production and productivity through adoption of good agricultural practices to increase farmer’s incomes.


Meat and Poultry Production:Egg production in Himachal Pradesh has decreased marginally from 10.50 lakh in 2011-12 to 9.60 lakh in 2024-25 as seen in Figure 7.3. There has been an increase in meat production in the State from 39.66 thousand tonne 2011-12 to 55.50 thousand tonne in 2024-25 as seen in Figure 7.4.


Growth of Livestock sector:Livestock rearing is an important sub-sector of agriculture and allied activities. It contributes 1.36 per cent of total Gross State Value Added (GSVA) and 9.24 per cent of agriculture and allied sector GSVA in FY2024-25. In Himachal Pradesh, Gross Value of Output (GVO) created by livestock has steadily increased over the years. It has seen a marked increase from ₹5,496 crore in FY2018-19 to ₹7,326 crore during FY2024-25 Advance Estimates (AE) at current prices. The contribution of various components of Livestock sector is depicted in Figure 7.5.
The Livestock sector witnessed a growth of 5.2 per cent in 2024-25 (AE). Throughout 2018-19 to 2024-25, the livestock sector recorded an average growth of 5.7 per cent, as compared to (-) 2.4 per cent in the crop sector.

The State recognises the potential economic benefits of animal husbandry and hence devotes resources to implementing a livestock development strategy by focusing on the following areas:
i) Animal Health and Disease Control
ii) Cattle Development
iii) Sheep Breeding and Development of Wool
iv) Poultry Development
v) Feed and Fodder Development
vi) Veterinary Education
vii) Livestock Census Under Animal Health and Disease Control Programme, the total number of institutions in the state as on 31st December, 2024 is in Table 7.2.
Breeders across the State have access to enhanced Sheep Breeding Farms for improving quality of sheep and wool. Government Sheep Breeding Farms at Jeori (Shimla), Tal (Hamirpur), and Karachham (Kinnaur) are supplying improved sheep to breeders of the State. One Ram centre at Nagwain in district Mandi is also functioning where improved Rams are reared and supplied to breeders for cross breeding.
In view of the increasing demand for pure Hoggets and the established popularity of Russian Marino and American Rambouillet in Himachal, the State has switched over to pure breeding at the existing Government farms and 9 Sheep and wool Extension Centres continue to function for the welfare of shepherds. During FY2024-25, the wool production is likely to be 1,500 tonnes. Angora rabbit farms are functioning at Kandwari (Kangra) and Nagwain (Mandi) for distribution of rabbits to the breeders.

To ensure continuation of the Spiti breed of horses, a horse breeding farm has been set up at Lari in Lahaul-Spiti district. Current strength of livestock at Lari is as under:

Welfare Scheme for the Livestock Owners:
a) Scheme for General BPL Farmers:During the latter three months of pregnancy, indigenous and crossbreed cows owned by BPL families in the general category are eligible for a 50 per cent subsidy on pregnancy ration at 3 kg per day, 13,440 farmers have been benefited under this scheme. The scheme's primary purpose is to:
i) Increase the milk production.
ii) To reduce inter calving period.
iii) To improve the health of pregnant cows.
b) “Uttam Pashu Puraskar Yojana”:The Uttam Pashu Puraskar Yojana is being implemented in FY2023-24, with a provision of ₹150.00 lakh for farmers who have milch cattle/buffaloes with milk output of 15 liters or more per day. This plan provides a ₹1,000 reward per beneficiary per animal.
Poultry Development Scheme:To improve the poultry sector in Himachal Pradesh, Animal Husbandry department has implemented the following poultry development projects, particularly in rural areas:
i) Backyard Poultry Project: 10-100 numbers of chicks of 3 week old Low Input Technology (LIT) birds’ are distributed among the poultry breeders on cost price. During FY2024-25, till December 2024, under this Scheme 2,66,094 chicks were distributed among 6870 beneficiaries against the target fixed for distribution of 4,10,000 chicks.
ii) Him Kukkut Palan Yojana: A budget of ₹388.84 lakh has been set up for the establishment of 97 poultry units in the State, for FY2024-25, the beneficiaries receive three thousand day-old broiler chicks, feed, feeders, and drinkers. Beneficiaries receive 60 per cent subsidy on both capital investment (shed building, feeders and drinkers) and recurring costs (Cost of chicks, feed etc.). Up to December 2024, 32 beneficiaries have been selected. Subsidy amount of ₹126.72 Lakh will be released after distribution of all chicks to beneficiaries.
Rashtriya Gokul Mission (RGM):RGM is important for increasing milk output and bovine productivity in order to fulfill rising milk demand and make dairying more profitable for the country's rural farmers. The following RGM activities are now being pursued and implemented in Himachal Pradesh:
a) Nationwide Artificial Insemination Scheme (NAIP): The goals of the scheme are delivering quality artificial insemination services at farmer’s doorsteps, boosting milk output and bovine productivity, and to increase farmer’s revenue, and increasing farmer approval of artificial insemination services. This goal is accomplished by establishment of an organised farmer awareness programme. This component is being implemented in all districts of the state during the period, from 2021-22 to 202 -2 , and will include all breedable cattle and buffalo populations. Till date 15,88,242 Artificial inseminations have been carried out.
b) Progeny Testing (Jersey) Program in District Kangra:The initiative is being executed in about 800 revenue villages in District Kangra through a network of 115 Department’s veterinary institutions, with the following goals:
i) To achieve consistent genetic improvement in the Jersey cattle population in terms of milk, fat, solids not fat, and protein yields, reproductive qualities, and type characters.
ii) To construct a genetic assessment and selection system for bull moms and bull sires for the production of future generations of bull calves.
iii) To generate the requisite number of genetically assessed bull calves for semen stations through progeny testing.
₹616.61 lakh has been received from the Government of India (GOI) through National Diary Development Board (NDDB) for the initiative, which has been utilized on various components.
c) Strengthening of existing Semen Stations (SS): The GoI has granted ₹734.19 lakh for strengthening of SS Palampur under this component.
Provision of Subsidized Rams to Sheep Breeders of all categories in Himachal Pradesh:Under this programme, 60 per cent of the cost of breeding rams is subsidised for all Himachal Pradesh sheep producers with at least 50 sheep (limit of 2 ram per recipient). During FY2017-18 to 2024-25, ₹223.46 Lakh was allocated for this scheme. Till date 3,200 beneficiaries have been covered under this scheme.
a) Objectives of the Scheme:
i) Genetic improvement of indigenous sheep breeds and dissemination of superior Germplasm amongst the migratory flocks of sheep in Himachal Pradesh.
ii) To improve quality and quantity of meat and wool being produced in the state, ensuring better economic returns to sheep breeders.
iii) To resolve the problem of inbreeding amongst the migratory sheep flocks of sheep breeders of all categories.
Krishak Bakri Palan Yojana:Under this scheme, it is proposed to distribute units of 11 goats (10 females+1 male), 5 goats (4 female+1 male), and 3 goats (2 female+1 male) at a subsidy of 60 per cent are distributed to goat farmers to improve socio economic status of goat farmers. In addition to feed and fodder, there is a provision for insurance for goats throughout their last trimester of pregnancy. For 2017-18 to 2024-25 period budget of ₹1,428.44 lakh was allocated for the programme. 2,930 units (5,480 goats) have been distributed till date.
Control of Animal Diseases:The Government of India allocates cash on the basis of 90 per cent Central Share and 10 per cent State Share to give free immunization against infectious illnesses such as Hemorrhagic Septicemia and Black quarter (HSBQ), Enterotoxaemia, Peste des petits ruminants (PPR), Ranikhet, Marek's, and Rabies. With the scheme's execution, outbreaks of the above-mentioned illnesses are averted, protecting livestock owners from financial damage. Total number of vaccination under HSBQ 3.56 Lakh, ET 2.50 Lakh and ARV 0.51Lakh against the target of respectively 10.00 Lakh, 2.50 Lakh and 0.50 Lakh.
Integrated Sample Survey for estimation of Production of major livestock product:Since 1977-78, integrated Sample Survey has been conducted annually with the following objectives:
i) To estimate season-wise and annual milk, egg and wool Production.
ii) To work average population and yield estimates
iii) To estimate dung production
iv) To work out average feed and fodder consumption
v) To study trend of population, yield and production This survey work is carried out in the State as per the guidelines of Indian Agricultural Statistical Research Institute (AHS Division) New Delhi. It provides a reliable database relating to livestock products and livestock population.

The Dairy Development Activities in Himachal Pradesh are based on two tier structure of the Dairy Cooperatives. The basic unit of Anand Pattern is a village dairy cooperative society where surplus milk of the milk producers is collected and tested and payment made on the basis of quality. H.P. Milkfed has organized 1,148 milk cooperative societies having a membership of 47,905. The milk collected by the milk cooperative societies is transported to milk chilling centers where it is chilled. H.P. Milkfed has collected approximately 406 Lakh liters of milk during 2023-24 and 375 Lakh Liters till November, 2024 for the current financial year. For the year 2025-26, H.P. Milk federation has kept a target to procure 500 lac liters of milk from milk producers.
Milk is sent from milk refrigeration centers to milk plants where it is processed, packed in bags and sold to consumers. At present, Himachal Pradesh Milk Federation is running 10 milk plants whose capacity is 1,80,000 liters per day, in which Mandi and Duttnagar milk processing plants have the capacity of 50,000 liters per day and Kangra milk plant has the capacity of 20,000 liters and Nahan, Chamba, Lalsingi (Jhalera ) Nalagarh, Jangalbairi (Hamirpur), Rekong Peo (Kinnaur), Mouhal (Kullu) and Rohru has a capacity of 5,000 liters per day and a milk powder plant with a capacity of 5 metric tons per day is operational at Duttnagar, district Shimla. Animal feed plant with a capacity of 16 metric tons per day is also established at Bhor, district Hamirpur.
Initiative of Himachal Pradesh Milkfed:
i) H.P. Milkfed is marketing milk products in the name of Him Brand such as Ghee, Butter, Paneer, Curd and Flavoured Milk, Him Skim Milk Powder, Whole milk powder, Sweets and Bakery Biscuits.
ii) H.P. Milkfed has sold around 485 qtls. sweets for Diwali festival during 2023- 24. Milkfed has opened new Milk bars in the attractive locations so that it is easily approachable and caters to the larger consumer needs. H.P. Milkfed has imparted training to 500 farmers on the clean milk production and rearing of animals etc. during FY2024-25.
iii) MILKFED has installed 120 automated milk collection units and 32 digital milk collection units in Mandi, Kullu and Shimla districts and 19 milk collection units of various capacities in Shimla, Mandi, Kullu, Sirmaur and Kangra districts to cool milk and improve the quality of raw milk. Bulk milk cooling systems have been installed.
iv) A new milk processing plant, Dattanagar, with a capacity of 50,000 liters per day has been commissioned for dairy activities during 2024-25.
v) Milkfed has increased purchase rate of cow milk from January, 2024 of ₹31.80 per liter to ₹37 per liter and April, 2024 of ₹37 to ₹45 per liter buffalo milk rate from ₹47 per liter to ₹55 per liter. Approximate 154 societies have started the milk testing for individual farmers which shall be implemented other societies during FY2025-26 in a phased manner.
vi) MILKFED has launched Him Ganga Scheme announced by the Government of Himachal Pradesh on a pilot basis in Hamirpur and Kangra districts in the first phase. MILKFED has so far constituted 264 new committees, of which 45 new committees belong to Hamirpur district, 4 committees have been revived in Hamirpur and 219 committees belong to Kangra district.
vii) Milkfed is improving existing infrastructure of the Milk Processing Plants & in this regard strengthening/repairing existing Milk Processing Plants at Nahan, Mohal, Mandi, Duttnagar and Kangra is in progress. ₹1.30 crore has been spent in the last 6 months for improvement of basic infrastructure of 6 milk processing plants (Mandi, Duttnagar, Nahan, Mohal (Kullu), Parel (Chamba) & Dhagwar (Kangra) and 2 Milk Chilling Centers (MCC Sarahan, MCC Katuala and 1 cattle feed plant (Bhour).
viii) Milkfed has started work on the new fully automatic Milk Processing of 1.50 Lakh Litres Per Day (LLPD) expandable to 3.00 LLPD in Dhagwar, District Kangra during 2024-25 under “Him Ganga Yojana”. This Plant is being constructed by National Dairy Development Board (NDDB) under NABARD's Rural Infrastructure Scheme at a cost of ₹200.43 crore, for which ₹60.13 crore has been sanctioned by NABARD.
ix) During FY2025-26 Milkfed will implement the approved project under NPDD scheme of central Government in 90:10 ratio in the State amounting to ₹10.73 crore approved for Kangra, Mandi, Shimla, Sirmour and Solan District. The main activities of the project are installation of new Central Testing Lab at MPP Dhagwar District Kangra and training to milk producers and technical person etc. Milkfed will implement Digitalization Milk procurement & Units. Milkfed is in process to hire the marketing agency for the sale of milk and milk products outside the State. Milkfed has done Registration of Trade Mark HIM on 15th June, 2024.
x) During the last two years (2022-23 and 2023-24), H.P. Milkfed has supplied various food products to Anganwadi under the Child Development Welfare Department. A total of 31,783.11 quintals of Fortified Panjiri amounting to ₹25.43 crore, 45,882.08 quintals of Bakery Biscuits amounting to ₹46.80 crore, 17,824.12 quintals of Fortified Wheat Seviyan amounting to ₹8.82 crore, and 7,757.39 quintals of Whole Milk Powder amounting to ₹24.81 crore have been supplied during this period.
x) Himachal Pradesh is well suited to adopt Dairy Farming as a selfemployment programme because its climate is favourable for rearing cross breed animals and also because of availability of large pastures. In addition, small and medium towns provide market for locally produced milk. Milkfed is providing market to milk producers for their surplus milk at their door steps in every part of the state except District Kinnaur and Lahul-Spiti, to improve the economic conditions of the milk producers.

WPMF's primary objective is to support the growth and development of the wool industry in Himachal Pradesh and to liberate wool producers from the exploitation of middlemen/traders. WPMF is actively engaged in the acquisition of sheep and angora wool, the shearing of sheep at pasture level using imported automatic machinery, and the selling of wool. During FY2024-25 up to December 2024, 1,10,136 sheep were sheared benefiting 600 breeder families of the State.
With the assistance of the Animal Husbandry Department, the Federation is also implementing a new Centrally Sponsored Scheme for the benefit and upliftment of the sheep producers in the state. Under health care, particularly dipping and deworming, 7,20,000 sheep and goats will be covered in the districts of Chamba, Kangra, Mandi, Kullu, Shimla, and Kinnaur with an outlay of ₹2.5 crore.

Fishery is a crucial sub-sector within the primary sector of the State Economy. The government has given priority to the promotion of pisciculture, and to facilitate this, the State has introduced Himachal Pradesh Fisheries Rules 2020. The region is blessed with abundant river water, trout waters, and reservoirs, providing rich potential for fishery resources.
The State aims to significantly increase fish production through capture, culture, and culture-based capture fisheries. This expansion is intended to meet the demands of both the domestic and export markets. In addition to boosting the economy, the development of the fisheries sector is expected to create employment and income-generating opportunities particularly for the rural poor, women, and youth.
The downstream journeys of the Beas, Satluj, and Ravi rivers in the region bring in several streams that harbor valuable cold-water fish species such as Schizothorax, Golden Mahseer, and exotic Trout. The State’s coldwater resources have shown great promise, highlighted by the successful completion of IndoNorwegian trout farming project. Economically significant fish species thrive in the reservoirs of dams like Gobind Sagar, Pong, Chamera, and Ranjeet Sagar. These reservoirs have become valuable assets for the local populace. The success of the fisheries sector in these areas not only contributes to the economic well- being of the community but also showcases the potential for sustainable and profitable cold-water fish farming.
Fish production:About 6,310 fishermen in the State depend directly on reservoir fisheries for their livelihood. During FY2024-25, up to December, 2024, cumulative fish production was 12,637.12 MT valued at ₹197.10 crore. Around 13.56 tonne trout has been sold from the State farms and ₹138.66 lakh has been earned as revenue from Trout Farms during current FY2024-25 (up to December, 2024). The production and sale of fish is show in Table 7.7. There has been significant rise in total fish production in Himachal Pradesh in the last decade. Fish production more than doubled between 2012-13 and 2023-24. Registered a CAGR of 3.3 per cent to the same period. Table 7.7 shows the trend and growth of fish production in Himachal Pradesh. The overall fish production increased from 8,560.89 MT in 2012-13 to 17,721.64 MT in 2023-24 and expected to reach 18,957.23 during FY2024-25. The value of the production also increased from ₹5,818.13 lakh from 2012-13 to 27,323.87 lakh in 2023-24.
Table 7.8 shows the trend and year-wise growth rate of trout production in the State.
Export and Import of Fishery Products:The Fishery subsector shows mixed trends in exports and imports of fish as shown in Table 7.9. The total export and import of fish from all sources, increased between 2012-13 and 2023-24. Year-on-year growth rates of Export and Import of Fish production are depicted in Figure 7.6 and 7.7.
Growth and contribution of Fishery sector:The Fishery sub-sector constitutes 0.14 per cent of total Gross State Value Added (GSVA) and 0.94 per cent of agriculture and allied sector GSVA at current prices in 2024-25. The Growth of fishery sector has been encouraging over the last five years. The Fishery sub- sector is estimated to grow at 7.0 per cent in 2024-25 against 6.3 per cent in 2023-24.

To meet the needs of reservoirs, rural ponds, and commercial farms across the public and private sectors, the Department of Fisheries has established carp and trout seed production facilities in the State. The State has produced a total of 23.07 lakh fingerlings of 70 mm and above of common carp, 5.24 lakh fingerlings of Indian Major Carp (IMC) and 4.6 lakh Rainbow and Brown Trout by the end of December 2024. The total value of seeds generated is around ₹56.88 lakh.
Insurance and Welfare Schemes:The Department of Fisheries has taken proactive steps to uplift fishermen through various welfare schemes. Significant initiative involves providing insurance coverage for fishermen. Under this scheme, in the unfortunate event of death or permanent total disability, fishermen receive financial assistance amounting to ₹5.00 lakh. Additionally, the government extends support to fishermen by compensating for losses incurred to their gears and crafts. This compensation is provided to the extent of 50 per cent under the Risk Fund Scheme.
A contributory saving scheme has been initiated by the State Govt. and matching the State’s share of deposited savings is provided to them during the close season. The amount so generated is paid to fishermen. During the year 2024-25 an amount of ₹1.60 crore (₹53.30 Lakh contributed by the fishermen plus ₹106. lakh as financial assistance from the State and Centre Government) has been provided to 3,553 fishermen under Saving-Cum-Relief Fund Scheme now renamed as “Livelihood and Nutritional Support for Socio-economically Backward Active Traditional Fishers’ families for conservation of fisheries resources during fishing ban/lean period” under the Pradhan Mantri Matsya Sampada Yojana (PMMSY).
Pradhan Mantri Matsya Sampada Yojana:Under this programme, Government of India has approved various projects worth ₹26.21 crore for the FY2024-25. Table 7.10 shows the achievement of the fisheries sector for FY2024-25 (December 2024), as well as the targets fixed for FY2024-25. These welfare schemes play a crucial role in safeguarding the interests of fishermen and their families. The insurance coverage provides financial security in times of unexpected adversity, such as accidents and disabilities. The compensation for losses to gear and craft under the Risk Fund Scheme is a valuable support mechanism, acknowledging the challenges and risks faced by fishermen in their profession. By implementing these welfare measures, the Government aims to improve the socio-economic conditions of fishermen, recognizing their contribution to the fisheries sector and ensuring their well-being in the face of uncertainties inherent to their livelihoods.
To conclude, Animal Husbandry plays a vital role in the agrarian economy of Himachal Pradesh, significantly contributing to rural livelihoods. The state's favorable climate and topography support diverse livestock farming, which provides food, fuel, fertilizer, transport, and draught power. Livestock rearing also boosts farmers' income, with minimal investment needed for self-employment opportunities. The focus has been on improving livestock health and productivity, including increasing milk, meat, and egg production. The state has seen growth in milk production, with a per capita availability of 698 grams per day, higher than the national average. Overall, the sector has shown consistent growth, promoting both economic prosperity and sustainability in rural areas.

Himachal Pradesh, situated in both the Trans-Himalayan and Himalayan bio geographic regions, owes its rich diversity of flora and fauna to the existence of the Shiwaliks, Western Himalayas, and Trans-Himalayan mountain ranges within the State.
The Constitution of India through Article 48A directs the governments at all levels to “Endeavour to protect and improve the environment and to safeguard the forests and wildlife of the country”. Article 51A (g) of the Constitution imposes duty on every citizen to “protect and improve natural environment including forests, lakes, rivers, wildlife and to have compassion for living creatures”. Embracing the spirit of environmental protection under the Constitutional framework, Government of Himachal Pradesh has been taking several initiatives to protect its forests and biodiversity and minimize the harm done to the environment. In this effort, the Government focuses on striking a balance between the conservation of ecosystems and safeguarding the livelihood of the people.
Himachal Pradesh Forest Policy aims to ensure proper utilization of forests and their conservation and extension. The Forest Department aims to enhance the forest cover in the State from about 27.99 per cent (as per India State of Forest Report 2023) to 30 per cent of its geographical area, by 2030 to meet the Sustainable Development Goals (SDGs). This chapter explores the policy action agenda aimed at ensuring the proper utilization, conservation, and expansion of forests, while promoting a sustainable environment and climate action.
Forest Cover in Himachal Pradesh: 37,948 sq. km (or around 68.16 per cent) of the State's landmass is covered by officially designated forest land. According to Champion and Seth's taxonomy of forests (1968), there are 8 main categories of forests and 37 minor types of forests. Most land is covered by the Himalayan Moist Temperate forest.
Approximately 15,580.33 square kilometers (27.99 per cent) is designated as actual forested area, characterized by varying density levels ranging from 10 per cent to 70 per cent and above. This includes 3,117.60 square kilometers of highly dense forests with a crown density of 70 per cent and above, 7,280.29 square kilometers of moderately dense forests with a crown density between 40 per cent and 70 per cent, and 5,182.46 square kilometers of open forests with a crown density between 10 and 40 per cent. Additionally, 308.69 square kilometers are classified as shrubs. Table 8.1 gives an overview of the forests as per the crown density.

In FY2024-25, the forestry and logging sub-sector added ₹6,724 crore to the GSVA which accounted for 21.09 per cent of the Gross Value Added (GVA) of the Agriculture & Allied sector and 3.10 per cent of the total Gross State Value Added (GSVA) in the State (Figure 8.2 and 8.3).
The GVA at constant (2011-12) prices by forestry and logging activities grew from ₹5,105 crore in FY2023-24 to ₹5,310 crore in FY2024-25, an absolute increase of ₹205 crore.
As per advance estimates, forestry and logging sector is expected to grow by 4.0 per cent at constant prices during FY2024-25.

The planned programme taken up by the Forest Department aims at fulfilling various policy commitments. Some of the important plan programme activities are as under:
Forest Plantation: Forest plantation initiatives are underway through diverse state-level programs, including the Compensatory Afforestation Fund Management and Planning Authority (CAMPA), as well as centrally sponsored initiatives such as the "National Afforestation Programme" and the National Mission for Green India. Additionally, forest plantation efforts are being conducted through External Aided Projects.
For the FY2024-25, plantation target of 8,000 hectares including CAMPA and Centrally Sponsored schemes has been fixed out of which 6,715 hectare target stands achieved and the remaining target will be achieved by 31st March, 2025.
Forest Management: The state's forests face growing biotic pressure due to rising human populations, evolving animal husbandry practices, and developmental activities. These forests are vulnerable to risks such as fires, unauthorized logging, encroachments, and other forest-related offences.
Forest protection is being strengthened by equipping check posts at sensitive places with CCTVs to ensure electronic surveillance to curb forest offences. Firefighting equipment and improved techniques are also being introduced and made available to all the forest divisions where fire is a major destructive element. A communication network for effective management and protection of forest wealth is very important. Keeping these factors in view, Centrally Sponsored SchemeForest Fire Prevention and Management Scheme and State scheme namely “Forest Fire Management Scheme" is being implemented in the state.
Rapid Forest Fire teams are established throughout the State at circle and divisions level to control forest fires. SMSs are being sent to local community members who are registered as volunteers. In addition, fire watchers are also engaged during fire sensitive months in all sensitive beats.
Experimental Silvicultural Felling/Subsidiary Silviculture Operations: The value of Himachal Pradesh's forests is estimated at around ₹1.50 lakh crore. Supreme Court of India has allowed the State to silviculture the green felling of three species, Khair, Chil and Sal, on an experimental basis in three ranges- Nurpur range of Nurpur Forest Division, Bharari range of Bilaspur Forest Division and Paonta range of Paonta Forest Division.
The felling of trees was carried out during 2018-19 and during FY2023-24. To date, approximately 13,000 khair trees have been marked for felling and have generated 33,272 man-days of work.
New Schemes:To raise awareness among local communities, students, and the general public regarding the significance of forests and their role in environmental conservation, following new schemes have been introduced:
a) Mukhya Mantri Van Vistaar Yojana:Forests of Himachal Pradesh are recognized as lungs of Northern India and State Forest Department is committed to increase the green cover in the State. In this context, in August, 2023 Mukhya Mantri Van Vistaar Yojna has been launched with the objective to expand green cover of the state to difficult sites through integrated site specific afforestation, to provide forest ecosystem services and livelihood opportunities to local population. Under this yojna plantation over 500 hec. of barren forest land is being carried in the year 2024-25.
b) Engaging of ‘Van Mitra’:To promote Community driven Forest Management, ‘Van Mitra’ scheme has been launched. Van Mitras’ engaged would be associated with forestry operations of the Forest department. In a phased manner 01 (one) Van Mitra is being engaged per Forest Beat. The process of engagement of 2061 Van Mitra is in final stage.
Other Initiatives/Achievements:
i) Setting up of a large Zoo in Bankhandi:A large zoo at Bankhandi in District Kangra is being set up at an estimated cost of ₹600 crore which will boost tourism and provide employment opportunity to the local population. The zoo is proposed to be operational in 2024-25. The Zoo design & construction will incorporate eco-friendly technologies, renewable energy source viz. solar energy and efficient waste management systems. To minimize ecological foot print, recycling and sustainable procurement practices will be adopted.
ii) Recruitment of Forest Guards:The Government of Himachal Pradesh has given approval for filling up 100 posts of Forest Guards in the Department by way of direct recruitment.
iii) Eco-Tourism:Government has given high priority to Ecotourism. Based on the guidelines issued by MoEF&CC on sustainable ecotourism in forest and wildlife areas in 2021 and Van Sanrakshan Evam Samvardhan Adhiniyan, 2023, which is an amendment of the Forest Conservation Act, 1980, the Eco- Tourism Policy 2024 has been prepared. In eleven forest divisions Eco-Tourism chapters have been approved in the working plans of forest divisions. In nine more divisions, chapter of working plans have been submitted for final approval.
Operators for two Eco-Tourism sites in 1st phase i.e. Shoghi Camping site Shimla @ ₹37.80 lac per annum and for Potter hill site Shimla @ ₹23.19 lac per annum have been finalized with the condition of 3 per cent annual concession for each successive year. In second phase, bids for 6 sites viz. Kaisdhar @ ₹10 lacs per annuam, Solang Nallah @ ₹51.52 lacs per annum, Kasol @ ₹25 lacs per annum, Bindravani near Khirganga @ ₹10 lacs per annum, Sumaropa @ ₹31.32 lacs per annum, Bir-Billing @ ₹54 lacs per annum were finalized and now these sites are awarded to the H1 bidders of these sites.
Standard operating system for Trekking Management System for regulating Trekking Routes in Himachal Pradesh has been prepared and are shared with HPTDC. 245 Treks have been identified by HP-Forest Department. Further categorization of Treks into hard, medium and soft treks is being done. Development of Mobile App and website up-gradation is under process for registration of operators and trekkers.
100 Forest Rest Houses, Inspection Huts and Camping sites have been activated for online booking through website https://himachalecotourism.in.jects
iv) Himachal Pradesh Forest Eco-Systems Climate Proofing Project (KFW assisted):The main objective of this project is rehabilitation, protection and sustainable use of the selected forest ecosystems in Himachal Pradesh, to increase and secure the resilience of forest ecosystems against climate change. This will contribute to strengthening adaptive capacity of forest ecosystems to climate change, protection of biodiversity, stabilization of catchment areas, conservation of natural resource base and result in better livelihoods. This Project has budget of ₹308.45 crore, supported by KFW Bank (Credit Institute for Reconstruction), Germany, which is currently underway for Chamba and Kangra districts of the state.
v) Himachal Pradesh Forest Ecosystems Management and Livelihood Improvement Project: The objectives of the project are to conserve the forest and mountain ecosystem and improve livelihood of forest and pasture-dependent communities by increasing forest cover, density and productive potential using scientific and modern forest management practices, enhancing biodiversity and forest ecosystem conservation. The "Himachal Pradesh Forest Ecosystems Management and Livelihood Improvement Project, "costing ₹800 crore, is being financially supported by the Japan International Cooperation Agency (JICA). For the Financial Year 2024- 25, the Government has provided ₹55.00 crore under this project out of which ₹26.85 crore has been spent up to 31st December, 2024.
v) World Bank Aided Integrated Project for Source Sustainability and Climate Resilient Rain-fed Agriculture:World Bank has approved an additional project with a budget of $100 million (₹650 crore), known as the Integrated Project for Source Sustainability and Climate-Resilient Rain-fed Agriculture. The funding distribution for this project is set at 80:20, and its duration is 7 years. The project would be implemented in 900 Gram Panchayats in Shiwalik and Mid Hills agro-climatic zones spread across various watersheds in the state. The key outcomes under this project include:
i) Comprehensive Treatment of around 2 lakh Hectate non-arable and 0.20 lakh Hectate arable lands in the project area.
ii) Water productivity/ efficiency enhancement by 30 per cent of the project area.
iii)Production enhancement of Milk by 20 per cent
iv) 25 per cent of the vulnerable Households covered under livelihood improvement
v) Increase productivity of agricultural crops by 25 per cent
vi)Increase the income of farmers through agribusiness/ enhanced production by 30 per cent.

For 2024-25, Government has provided ₹153.79 crore under this project out of which ₹102.96 crore has been spent up to 31st December, 2024.
v) Environment Forestry and Wildlife: An important part of the forest ecosystem is the presence of trees and plants. Clean air and shelter are essential for life on the planet. Forests also aid in preservation of biodiversity. In addition to regulating global temperatures, forests protect soil from erosion and provide a haven for more than 80 per cent of the world’s animal species and biodiversity on land. The term “wildlife” refers to the non-domesticated species of animals. This means that any living creature that lives in the forest is linked to wildlife. Wild animals play an important role in the stability of our environment, either directly or indirectly, through their role in natural processes. Our ecosystem would be incomplete without the diversity and abundance that wildlife provides.
i) For their medicinal properties, wild plants account for more than a third of our pharmaceutical needs. In addition to the requirements for large-scale production of antibiotics and other medicines for therapeutic purposes, forests offer significant potential for medical science and technology breakthroughs.
ii) Contributes to the health of our environment by preventing sea levels from rising sharply by maintaining global temperatures and thus combating the greenhouse effect.
iii) The interdependence of plants and animals is critical to preserving ecological harmony.
iv) Economic value: The use of fossil fuels from forests contributes to the country’s economic growth, which in turn improves the quality of life for its citizens.
v) Thousands of species find refuge in these massive forests, which contribute in the preservation of biodiversity.
vi) Nitrogen fixation is facilitated by microorganisms in wildlife, increasing soil fertility.

Protection, improvement of environment and wildlife, creation of wildlife sanctuaries/ national parks, and enhancement of wildlife habitat are all part of the scheme with the ultimate goal of saving endangered birds and animal species.

The Department of Environment, Science, Technology and Climate Change (DEST&CC) in Himachal Pradesh is committed to advancing sustainable development by improving the effectiveness of environmental management, safeguarding vulnerable eco systems, and fostering long-term sustainability. As the primary and nodal agency for all climate change-related matters, the department plays a central role in shaping and implementing policies to address environmental challenges and climate resilience. Its efforts encompass a broad spectrum of activities, including the conservation of natural resources, biodiversity preservation, and the promotion of eco-friendly practices across sectors. The department acts as a vital bridge between the state and national or international bodies on climate change, ensuring that state-level strategies align with global commitments and best practices. By integrating science, technology, and innovative solutions, the DEST and CC drives initiatives to reduce pollution, restore ecological balance, and build community resilience to climate impacts, positioning Himachal Pradesh as a leader in environmental stewardship and sustainable development.
Initiatives of the Department:Himachal Pradesh faces environmental challenges due to the interplay between degradation and economic growth, impacting air, land, water, and biodiversity. To address this, the state is formulating policies for key sectors like environmental pollution hydropower, tourism, industry, and rural development, aiming to balance economic growth with sustainable environmental management. For the development and empowerment of the rural population in the state, comprehensive guidelines for the "Mukhya Mantri Harit Vikas Chhattravriti Yojana" have been formulated.
The department has initiated preparation of Climate Change Action Plans at the district level. These Plans will be implemented at the Panchayat level. The department has initiated Need Assessment Study (NAS) in collaboration with the Ministry of Environment, Forest and Climate Change, Government of India and the GIZ for mitigating the adverse effects of changing climate for sustainable development of agriculture and horticulture sectors.
To stop unscientific and illegal mining in the State, a proposal of ₹2.0 crore has been formulated to develop GIS based Application with the help of which the mining activities taking place in the State are closely monitored on real time basis. A proposal has been submitted to the Central Government for approval to start scheme in the State to promote Geographical Indications(GI) through which the GItagging of commercial products will be done so that the producers can get fair price for their products in the national and international markets.
Plastic Waste Management:Polythene ban is strictly implemented in the entire state under Himachal Pradesh Non-Biodegradable Garbage (Control) Act, 1995. As per the provisions of the Act, officials from several departments across the state have been authorized to inspect and impose fine to violators using plastic & thermocol items. As of now 907 violators were penalized amounting to ₹11.80 lakh in the State during 2024-25. Under the Plastic Waste Buy Back Policy about 29,385.10 kgs of plastic has been purchased @ ₹75 per kg during 2024-25 & ₹13.04 lakh has been paid to the individuals and rag pickers. A fund amounting to ₹2.00 lakh has been released to Municipal Corporation, Shimla for on spot payment against the plastic waste deposited by the rag pickers and individuals.
Environment Leadership Awards:The Himachal Pradesh Environment Leadership Awards Scheme, a flagship initiative of the Department of Environment, Science & Technology, aims to recognize and honor exemplary contributions towards environmental conservation and sustainability. This year, seven awards were conferred, celebrating innovative actions and achievements across various sectors of the economy. The awards highlight individuals, organizations, and institutions that have demonstrated outstanding commitment to sustainable practices, resource conservation, and environmental stewardship.
Implementation of Model Eco Villages Scheme:The Department of Environment, Science & Technology in Himachal Pradesh is actively implementing the Model Eco Villages Scheme, a pioneering initiative aimed at fostering sustainable and environmentally friendly living. The Model Eco Village Scheme is being implemented in 19 villages of the State. Funds amounting to ₹3.32 Crores have been released to implement the scheme.
Research and Development (R&D) Projects:To foster innovation and strengthen research capabilities, under the Himachal Pradesh Specific Research and Development Projects initiative, the department is funding academic institutions, national laboratories, and other recognized R&D organizations within the state. 100 R&D project proposals were submitted under the scheme, of which two projects have been approved for implementation.
Environment Impact Assessment and Clearance:Department of Environment, Science, Technology & Climate Change serves as the state-level secretariat for managing Environment Impact Assessments (EIA) and granting Environmental Clearances, playing a pivotal role in balancing developmental activities with environmental conservation. As part of its mandate, the department ensures that proposed projects undergo a rigorous and transparent evaluation process to assess their potential environmental impacts and compliance with sustainability norms. During 2024-25, the department, through the Environment Impact Assessment Authority, Himachal Pradesh, granted Environmental Clearance to 38 projects spanning various sectors.
Climate Change Initiatives: The State of Himachal Pradesh has been selected under Ministry of Environment, Forest & Climate Change and GIZ bilateral project on Climate Adaptation and Finance in Rural India (CAFRI). 10 million Euro is being spent on adaptive capacity development for approximately 5,000 women farmers of droughtprone and climate change areas of the State between 2023 to 2026 GIZ has extended technical support to the Government of Himachal Pradesh for implementation of the Agriculture/Horticulture Mission and Water Mission under the State Action Plan on Climate Change (SAPCC 2.0). In this regard, a stakeholder consultation was organized in the month of December 2024 at CSK HPKV Palampur.

HIMCOSTE was established in the year 1986 to lay down policies, monitoring, and implementation of programmes, transfer of technologies, pooling and exchange of knowledge for awareness, popularization, research, development and dissemination relating to science, technology and environment in the State of Himachal Pradesh.
Rajiv Gandhi Centre for Research and Development (R&D) of leaf Plates (Pattal) and other biodegradable:Established & operationalized at the Appropriate Technology Centre, Shahpur, Kangra, this initiative focuses on training Self-Help Groups (SHGs) and rural communities in eco-friendly pattal-making technologies. Supported by the HP Department of Environment, Science, Technology & Climate Change, it offers sustainable alternatives to plastic, boosts livelihoods and revives traditional practices recognized for their purity and health benefits.
Drone Based Property Tax Assessment:The Aryabhatta Geo-Informatics & Space Application Centre introduced drones with GIS capabilities to map property boundaries, identify unregistered developments and enhance transparency. This innovation, piloted in Solan Municipal Corporation, significantly increased tax revenue and improved governance, with plans for state-wide expansion and potential use of Light Detection and Ranging (LiDAR) technology.
Himachal Pradesh Children’s Science Congress: Organized in collaboration with Samagra Shiksha and the Department of Education, this event engaged 21,973 students across 12 districts in activities like quizzes, mathematical Olympiads, and skits. The district-level winners will advance to the state-level competition.
Facilitation of Geographical Indications (GI’S):HP Patent Information Centre facilitated registration of 400+ GI users and finalized applications for products such as Chamba Chukh, Bhaut Jau and Plectranthus Honey.
Biodiversity Conservation and Management Activities:HP State Biodiversity Board Biodiversity advanced conservation efforts through digitization of Biodiversity Management Committees (BMCs) and People’s Biodiversity Registers (PBRs), with over 3,775 PBRs prepared or updated. Powers for Access and Benefit Sharing (ABS) under the Biological Diversity Act, 2002, were delegated to divisional forest officers to streamline resource access.
Conservation and Awareness Campaigns: Environmental awareness was amplified through state-wide celebrations like World Environment Day 2024, involving campaigns, competitions and community participation and the "Save Wetlands Campaign," which included sensitization events and clean-up drives, engaging over 1,60,000 individuals. Educational initiatives such as the National Nature Camping Program and World Ozone Day events provided hands-on learning experiences.
Wetlands for Life Film Festival and Forum : Inaugurated by Chief Minister on August 30, 2024, at Hotel Peterhoff, Shimla, featured several impactful short films. Organized by HIMCOSTE, the HP State Wetland Authority, and CMS New Delhi. The festival showcased Guardians of Wetlands: Women as Stewards of Conservation, celebrating the pivotal role of women in wetland preservation.

The Jal Jeevan Mission, launched by the Union Government on August 15, 2019, is dedicated to achieving the objective of providing Functional Household Tap Connections (FHTC) to every rural household in India by the year 2024. The estimated nationwide cost for implementing this program is ₹3.60 lakh crore. The mission is centered on establishing a household-level service system, ensuring a consistent supply of water at the prescribed quality, with a target of 55 liters per capita per day. Out of total 17.09 lakh rural households in Himachal Pradesh, 7.63 lakh households already possessed Functional Household Tap Connections (FHTCs) prior to launch of Jal Jeevan Mission (JJM). The remaining 9.46 lakh rural households in Himachal Pradesh have been covered under the JJM and presently the state has achieved saturation in terms of providing 100 per cent FHTC’s to rural households compared to the national average of 79.56
Rural Water Supply Schemes : Under JJM, ₹6,033.21 crore has been allocated (GoI share of ₹5,429.90 crore and State Share ₹603.31 crore) out of which ₹5167.00 crore have been received. An expenditure of ₹5,154.04 crore has been incurred till date. The Annual Action Plan for the year 2024-25 has been submitted to GoI for ₹2,042.40 crore and the GoI has notionally allocated ₹916.53 Crore for the State against which State has received 1st installment of 1st tranche amounting to ₹137.48 crore with State share of ₹15.27 crore so far. Under JJM, Flexi Funds amounting to ₹96 crores were spent for restoration of damaged schemes due to heavy rainfall. 67 antifreeze Water Supply Schemes for Districts Lahual & Spiti, Kullu, Kinnaur and Chamba, amounting to ₹517.16 crore have been approved by Government of India.
Hand Pump Programme : The Government has an active programme to provide hand pumps to regions facing scarcity of water during summer season. Total 41835 hand-pumps have been installed up to December, 2024.
Urban Water Supply Schemes : The Jal Shakti Vibhag manages the water supply system for 58 Towns/ULBs. The water supply for Shimla Town is managed by Shimla Jal Prabhandan Nigam, while the water supply for Parwanoo Town is managed by HIMUDA. Water supply as per Urban Norms has been achieved in 46 towns and further up gradation and improvement in water supply is being executed in 7 towns (Chamba, Dalhousie, Mandi, Sunni, Theog, Rampur and Rajgarh) under AMRUT 2.0.
Out of 12 Towns with water supply below urban norms, the improvement of water supply schemes as per Urban Norms is in progress in 6 Towns i.e. Hamirpur, Baijnath, Jawali, Amb, Nerchowk, and Shahpur under AMRUT 2.0 under State Head. The Administrative Approval (A/A) and Expenditure Sanction (E/S) of Karsog town have been accorded under NABARD and Nirmand under the AMRUT 2.0 Detailed Project Reports (DPRs) for the improvement of water supply schemes as per Urban Norms for the remaining towns are under preparation.
Sewerage Schemes in urban sector : The sewerage system of Shimla Town is with Shimla Jal Prabhandan Nigam (SJPNL). Jal Shakti Vibhag has provided sewerage facility in 39 towns and has installed 66 STPs of 97.303 MLD capacity having sewage flow of 59.477 MLD. Towns with no sewerage facility, the work for construction of Sewerage Schemes in 6 towns (Bhota, Santokhgarh, Talai, Baijnath-Paprola, Nerchowk and Banjar) is in progress. The administrative approval & expenditure sanction for providing sewerage system in 4 Town (Nerwa, Chopal, Rajgarh, Shahpur) has been accorded under State head and for Bilaspur town it has been accorded under EAP (AFD) and proposals of 9 towns are being prepared and posed for funding under state head or Externally Aided Projects (EAP).
Sewerage Schemes in rural sector: The department has started the execution of Sewerage Schemes in rural areas. At present sewerage facility has been partially provided in 8 rural areas i.e. Sharbo (Reckong Peo), Jhakri, Kunihar, Sangla (Phase-II & III), Chintpurni (Zone-I), Hardsar, Marhi (Manali) & Sandhole (Phase-II) having installed capacity of 4.30 MLD against sewage flow of 2.61 MLD and the work of sewerage scheme in 16 rural areas is in progress.
In addition, the sewerage schemes in rural areas have also been included for funding under MLA Priority under NABARD. Till date 19 sewerage schemes have been approved under NABARD amounting to ₹295.06 crore. The work of 5 sewerage schemes (Sewerage Scheme Taklech in Tehsil Rampur, Sewerage system to GP Baranda in Tehsil Nurpur, Sewerage Scheme Chatrari in Gram Panchayat Chatrari Tehsil and District Chamba, sewerage scheme with STP and Augmentation of water supply schemes for Rehan area and Sewerage scheme to Udaipur Khas in GP Udaipur Tehsil and District Chamba) have been started.
Command Area Development (CAD) : During FY2024-25, the Government of Himachal Pradesh allocated ₹60.06 crore, for Himachal Pradesh Command Area Development (HIMCAD) activities in minor irrigation schemes to bridge the gap between potential created and utilised, and also for major/ medium and minor irrigation schemes in the remainder state, including the central share. Out of physical target to cover 2,740.00 hectares of Culturable Command Area (CCA) for delivering CAD operations, 1,002.01 hectares of land has been covered by October, 2024 at a cost of ₹11.93 crore.
Irrigation: Himachal Pradesh has a total land of 5.567 million hectares, however only 0.583 million hectares is under cultivation. It is estimated that the state irrigation potential is around 0.335 million hectares. 0.050 million hectares of land is being irrigated through major and medium irrigation projects, while the remaining 0.285 million hectares can be irrigated through minor irrigation schemes. As of October 2024, a total of 0.309-million hectares of land is irrigated.
Major Irrigation: Shahnehar Project in Kangra District is the only significant irrigation project in the state. With the completion of the Project, irrigation infrastructure for 15,287 hectare of land is now available. Until October 2024, the CAD team brought 10,042 hectares of land under CAD operation out of a total of 15,287 hectare.
Medium Irrigation: The Balh Valley Left Bank Irrigation Project covers 2,780 hectares of land, the Sidhatha Kangra Irrigation Project covers 3,150 hectares, and the Changer area Bilaspur Irrigation Project covers 2,350 hectares. As October 2024, CAD efforts have been expanded to include 2,705 hectares of land in the Sidhatha area. The Phina Singh Cultivated Command Region is 4,205 hectares, while the Nadaun area in District Hamirpur is 2,980 hectares, both of which are undergoing development as part of a medium scale irrigation project.
Minor Irrigation: in FY2024-25 ₹810.00 crore has been allocated to provide irrigation infrastructure for an area of 6275.00 hectares, and as of October 2024, ₹114.79 crore has been spent to cover 2577.88 hectare of area. In conclusion, Himachal Pradesh has a significant forest cover, with 37,948 sq. km (68.16 per cent) of its land designated as forest land. The state’s forests vary in density, with 15,580.33 sq. km covered by actual forests, including very dense, moderately dense, and open forests. The forestry sector contributes substantially to the state's economy, with a Gross State Value Added (GSVA) of ₹6,724 crore in FY2024-25. Various government initiatives focus on forest plantation, management, and protection, including schemes like Mukhya Mantri Van Vistaar Yojana and Van Mitra. Additionally, projects like Himachal Pradesh Forest Ecosystems Management and Livelihood Improvement Project and World Bank-supported initiatives aim to enhance forest cover, biodiversity, and livelihoods. The state's commitment to sustainable forestry, eco-tourism, and wildlife conservation strengthens its environmental and economic resilience.
The State Government has taken various initiative for sustainable development, addressing environmental challenges like pollution, biodiversity loss, and climate change. Key efforts include the Model Eco Villages Scheme, Plastic Waste Management, Climate Change Action Plans, and supporting eco-friendly practices.

Himachal Pradesh has remarkably transitioned from agrarian to an industry and service-led economy. State’s economy has marked a quantum jump with secondary sector contribution to State GSDP increasing from a 7 per cent in 1950-51 to 42.4 per cent in 2023-24. In the early era, Himachal Pradesh had only a few industries like Mohan Meakins, Salt Mines, Nurpur Silk, Palampur Cooperative Tea Factory etc. Today, Himachal boasts of many significant achievements in its industrial advancement. The performance and achievements across sectors such as Pharmaceuticals, Textile, Fast Moving Consumer Goods (FMCG) & Food Processing, Cement, Auto & Engineering, Electrical & Electronics etc., have put the State on industrial progress.
The industrial package of 2003 resulted in a transformative initiative which attracted major industries to the districts of Solan, Sirmour, and Una, reshaping the state’s industrial landscape.
Himachal Pradesh has emerged as a global hub for pharmaceutical manufacturing, hosting more than 600 operational pharmaceutical units, making it the world’s largest formulation hub. The state has also established itself as a key cement producer and an export hub, with an export potential of ₹19,185 crore (₹1,91,850.40 million) and trade connections spanning nearly 40 countries. This sets the context for the discussion in this chapter.
Industrial Scenario in Himachal Pradesh: Himachal Pradesh is predominantly a Micro, Small and Medium Enterprises (MSME)-driven state, with 95 per cent of its industries falling under the MSME category. This sector forms the backbone of the State’s industrial landscape, driving employment and economic growth. The supportive ecosystem ensures continued development and expansion of MSMEs.
Snapshot of Industrialization :
i) Bulk Drug Park, District Una:This upcoming Bulk Drug Park project being funded partially by Government of India (GoI) is spread over 1405 acres of land with the total project cost ₹2,071 crore As per the scheme guidelines ₹1,000 crore would be part of Government of India grant and Capital expenditure over and above this grant would be borne by State Government Recently, State Cabinet accorded approval of ₹250 crore as State share for this financial year. Projected investment is ₹8,000 to ₹10,000 crore and employment potential is 40,000 persons.
ii) Investment Scenario :Keeping in view, the changing dynamics of manufacturing sector after post covid as well as the China factor, State is committed to accelerate the tempo of Industrialisation in the State by following “Industry through Invitation” approach. In this direction, delegation led by Industries Minister Interacted with potential investors in Dubai and Mumbai during last two years. As result Memorandum of Commitment (MoC) amounting to ₹2500 crore have been signed.
a)In spite of disturbances caused by heavy rainfall and floods in 2023 and other reasons, State has accorded approval of more than 450 industrial projects with an investment of ₹9,800 Crore with employment potential of 30,000 persons.
b) Government has also identified Green Energy, Green Hydrogen, Solar, Ethanol, Dairy and Electric Vehicle sectors for attracting investment.
iii) Export Scenario in Himachal Pradesh : Himachal Pradesh has witnessed a growth in its export potential, increasing from ₹550 crore in 2003 to ₹19,185 crore in 2023-24. With annual pharma exports of approximately ₹10,000 crore, accounting for 60 per cent of the State’s total exports and 45 per cent of the Northern region’s exports, the significance of the pharma sector in the State is clearly evident.
iv) Policy Reforms for attracting Investment:Government has taken the following key Industrial Policy reforms.
a) IT Parks including Data centers.
b) Tourism and allied activities including Adventure Tourism,
c) Health, Ayush and Wellness Centers,
d) Educational Institutions,
e) Integrated Industrial Township/ Housing Projects/ Real Estate/ Integrated Residential/ Worker Hostel etc.
f) All Incidental Services related to Manufacturing and Integrated Service Cluster.
g)Net SGST rebate: Fixed capital Investment limit for Net SGST reimbursement (excluding Steel manufacturing) has been increased to the max. of 100 per cent of FCI for the period of 7 to 10 years in A, B and C category, while for anchor units, this FCI limit has been increased to 250 per cent for 10 years in B and C category.
Raising and Accelerating MSME Performance (RAMP) : The State is a MSME state as 95 per cent industries fall under MSME category. The State submitted a proposal of ₹1,642 crore for strengthening MSME’s, particularly in rural areas under RAMP scheme, Ministry of MSME, GoI has provided ₹109.34 crore for empowering the MSME ecosystem. Work on implementation of approved recommendations is in progress.
Ease of Doing Business: : Following initiatives have been taken in last two years.
a) 120 + inter department services have been integrated on single window portal.
b) To ensure minimum ground losses as well as optimal use of vertical spaces, building regulation norms have been relaxed liberally to the extent that about 70 per cent of allotted plot can be utilized for manufacturing facility. Similarly, Floor Area Ratio (FAR) have also been increased substantially.
Land Bank for Industrialisation : Government is committed to setup new Industrial Areas and Estates equipped with basic amenities for investors. In this direction State Government notified following large/ micro-Industrial areas.
a) Industrial area Bhoranj, District Hamirpur.
b) Industrial area Nanowall, District Solan.
c) Industrial area Saloori, District Una.
d) Industrial area Bhadrog, Ghumarwin, District Bilaspur.
e) Industrial area Theda, Tehsil Baddi, District Solan. Apart from above, transfer of Government land parcels measuring 1,000 bighas at Manjholi and Dhabota are at the stage of final approval.
PM Vishwakarma Scheme – Himachal Pradesh : State Government is implementing PM Vishwakarma Scheme of Government of India, with the objective to provide skilling support as well as financial assistance to artisan & crafts people. Around 6,000 artisans & crafts people have been benefited through skill trainings and toolkits, making them eligible for availing financial assistance under the scheme.
Encouragement for self-employment ventures :
a) Mukhya Mantri Swavalamban Yojana (MMSY): During last two years, 1,381 number of cases of self-employment ventures with an investment of ₹300 crore, having employment potential of 3,869 persons were sanctioned. Out of 1,381 applicants, 1,184 have set up their own ventures with a total investment of ₹284 crore generated employment to 2,846 persons.
b) Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME): The scheme aims at strengthening, empowering micro food processing enterprises through credit linked subsidy, Seed capital and training programmes. During last two years, 972 cases at cost of ₹64.56 Crore have been sanctioned. Under seed capital component, 13,427 women self-help groups have been provided seed capital amounting to ₹50.31 crore.
Mining Wing: State Government has taken strict preventive measures for curbing illegal mining, boosting scientific mining and generating revenue in the State exchequer. Last year, ₹315 crore were generated from royalty and penalty. Recently, Government has launched new Mining Policy titled “Himachal Pradesh Mineral Policy-2024” for curbing illegal mining and encouraging scientific mining so that additional revenue would be generated. It is expected that revenue proceeds to the tune of ₹450 Crore would be generated during this financial year.
Recognition of Industrial Policies:
a) Recognized as the Best Performer in the State Startup Ranking 2023.
b) Emerged as an Ease of Doing Business (EoDB) aspirer State in 2024.
c)Secured 1st position in the PMFME Scheme, achieving national acclaim for micro food processing.
Brief Indicatives of State Industrialization as under: The revised characterization of MSMEs is poised to foster their expansion and advancement. This adjustment is expected to generate economies of scale, thereby boosting productivity, while ensuring that MSMEs continue to benefit from various government incentives. The supportive framework is designed to encourage healthy competition and prevent stunted growth among MSMEs.
Government has implemented several initiatives to enhance business environment for Micro, Small, and Medium Enterprises (MSMEs), with the introduction of the Udyam Registration Portal in July 2020 being a significant step. The registration procedure is now entirely online, digital, and paperless, relying on self-declaration. This streamlined registration process has significantly improved the ease of doing business for MSMEs by reducing both transaction time and costs.
As of 10th January, 2025, 1,94,738 enterprises have registered on the Udyam portal in the state, out of which 1,90,775 (97.96 per cent) are Micro, 3,571 (1.83 per cent) are Small and 392 (0.20 per cent) are medium enterprises. District-wise data of registration on the Udyam portal including manufacturing and services enterprises is listed in table 9.3.
Raising and Accelerating MSMEs Performance (RAMP): The Ministry of Micro Small and Medium Enterprises (MoMSME), GoI has launched a new Central Sector Scheme, i.e., "Raising and Accelerating MSME Performance (RAMP)" for strengthening the MSME ecosystem of the country. The scheme aims to scale up the implementation capacity and coverage of MSMEs by fostering innovation, encouraging ideation, improving practices and processes, enhancing market access, promoting greening initiatives, scaling up guarantees to women-owned micro and small enterprises etc. The scheme is being implemented by the Ministry of Micro, Small and Medium Enterprises (MoMSME) over the five-year period 2022-23 to 2026-27.
Directorate of Industries, Himachal Pradesh has submitted SIP (Strategic Investment Plan) to Govt. of India under RAMP scheme. The SIP was approved by MoMSME, and a grant of ₹109.34 crore was sanctioned for implementation of approved projects.

The vision statement in the industrial policy 2019 is, “To create an enabling ecosystem to enhance the scale of economic development and employment opportunities; ensure sustainable development and balanced growth of industrial and service sectors to make Himachal one of the preferred destinations for investment". In 2022-23, industrial policy 2019 was extended from December, 2022 to December, 2025 to provide a favourable industrial development environment, especially for Micro, Small and Medium Enterprises. It will help accomplish its goals by
i) EoDB will be ensured by simplification of laws and processes.
ii)Building a new industrial infrastructure.
iii) The provision of reliable, cost-effective electricity.
iv) Streamlining the distribution of State-provided incentives, concessions and facilities, investment in the State may be maintained and speed up.
v) By providing incentives, facilities and concessions with the condition of employment to 80 per cent Bonafide Himachalies at all levels.
vi) Net State Goods and Service Tax (SGST) rebate: Fixed capital Investment limit for Net SGST reimbursement (excluding Steel manufacturing) has been increased to the max. of 100 per cent of Food Corporation of India (FCI) for the period of 7 to 10 years in A, B and C category, while for anchor units this FCI limit has been increased to 250 per cent for 10 years in B and C category.

To propel the growth of the manufacturing sector and catalyze employment generation in Himachal Pradesh, the state government has identified and prioritized eight key industries as focal points for development. Sector Highlights of Manufacturing and Pharmaceuticals are stated under the following points:
i) The State has 60 Industrial Areas and 17 Industrial Estates and offers market access to over 300 million customers (25 per cent population of India). It has supported development of Cremica Food Park through private sector participation. With abundant raw material and better connectivity, the State Government envisages development of more Food Parks.
ii) New Industrial parks have been proposed at various locations in the State such as Integrated Industrial Township and Software Technology Park at Kangra, Integrated Industrial Township under Modified Industrial Infrastructure Upgradation Scheme (MIIUS), Mega Food Park under Mega Food Park Scheme, Mega Textile Park at Una, Biotechnology Park at Aduwal, Bulk Drug Park at Una, Medical Devices Park in Solan Software Technology Park at Mehli in Shimla.
iii) An ultra-modern laboratory assisted by the National Institute of Pharmaceutical Education and Research (NIPER) is also proposed to be set up at Baddi. Himachal Pradesh contributes 35 per cent of pharma demand in India.
iv) Bulk Drug Park is being developed upon 1405 acres of land in Tehsil Haroli, Distt. Una with estimated cost of ₹2,071 crore.
v) Investment promotion initiatives in the State have gained remarkable momentum under the “Industry through Invitation” approach, resulting in Memorandums of Understanding (MoUs) worth ₹2,500 crore.
vi) Presently, 1,350 bighas of government land at Dhabota and Bir Plassi, Tehsil Nalagarh is at final stage of transfer for industrial use.
Present Status of ID clusters under the Micro & Small Enterprises Cluster Development (MSE-CDP) scheme: Under the MSE-CDP scheme of the Ministry of MSME, Government of India (GoI), three Infrastructure Development Clusters have been granted final approval by the GoI. The total cost of these three ID projects is ₹32.35 crore. Furthermore, the GoI has provided a Grant-in-Aid (GIA) amounting to ₹23.40 crore for these projects. The status of the project in the State is tabulated below:

Mukhya Mantri Swavalamban Yojana (MMSY): In order to provide livelihood to bonafide youth of Himachal Pradesh 18 to 45 years (18 to 50 year for women) State Government is implementing “Mukhya Mantri Swavalamban Yojana”.
The beneficiaries are availing following benefits under this scheme:
i) 35 per cent investment subsidy to women & Divyangjan led enterprises, 30 per cent for SC, ST’s & 25 per cent for others up to maximum ceiling of ₹60 lakh in plant and machinery (or equipments) with total project cost not exceeding ₹1.00 Crore
ii) Interest subsidy @ 5 per cent for 3 years on loan up ₹60 lakh.
iii) Industrial plots, sheds, shops in IAs/IEs in C category area only would be allotted @25 per cent of the prevailing premium at the time of allotment.
iv) If an entrepreneur intends to buy private land under this scheme then the stamp duty will be charged @3 per cent of applicable rate.
v) The State Government is reimbursing actual fee/expenses incurred on payment of guarantee fee of Credit Guarantee fund Trust for Micro & Small Enterprises (CGTMSE) of Government of India to provide collateral free loan.
vi) Under this scheme there is a list of 103 eligible service activities other than manufacturing sector.
State Mission on Food Processing (SMFP) : The main schemes being implemented under SMFP, the pattern of assistance, and Maximum limit of Grant-in-Aid is as under:
i) In Technology Up-gradation/ Establishment / Modernization of Foreign Portfolio Investment (FPI’s), units are provided with 33.33 per cent Grant in-Aid with maximum limit of ₹75 lacs.
ii) Units engaged in Cold Chain, Value Addition and preservation infrastructure (Non-Horticulture products) are eligible for 50 per cent of Grant-in-Aid with upper limit of ₹5 crore
iii) Grant-in-Aid of 75 per cent upto ₹2.50 crore is provided to Primary Processing Centers/Collection Centers in Rural Areas.
iv) For Modernization of meat shops, Grant-in-Aid of 75 per cent upto ₹5 lac is provided.
v) Grant-in-Aid of 50 per cent with maximum limit of ₹50 lakh is provided for the purchase of refer vehicle.
Chief Minister’s Startup/ Innovation Projects/ New Industries Scheme: Himachal Pradesh has a growing Startup ecosystem, supported by the "Chief Minister's Startup/ Innovation Projects/ New Industries Scheme". By the policy, the Department of Industries is constructing a robust ecosystem that complies with the policy requirements. The initiative envisions numerous incentives for startups to help entrepreneur's success in their enterprises, including a monthly subsistence stipend of ₹25,000 per month for one year and free incubation facilities with plug-and-play capabilities.
To further enable venture capital and seed investment in the state, the government has announced the HIMSUP (Himachal Startup) Yojana, under which a fund of ₹10 crore has been established for five years to support companies. Following are the highlights of the Chief Minister's Startup mission:
i) The State Government has authorized a total of 14 business incubators for providing Handholding support, working space and other facilities along with free-of-cost incubators for start-ups with plug-and-play facilities to operate throughout the state.
ii) 365 startups have been selected for incubation.
iii) HIMSUP Yojana has contributed around ₹2.11 crore to 09 different businesses as a form of capital assistance.
iv) A sustenance allowance of ₹81.50 lakhs has been disbursed to the selected start-ups till date in the current financial year 2024-25.
The Startup journey of the State so far as per Startup Ranking Framework circulated by Department for Promotion of Industry and Internal Trade (DPIIT), Government of India is as under:
v) The Himachal Pradesh Centre for Entrepreneurship Development (HPCED, a society under the aegis of the Department of Industries) is an agency in the State established with the primary objective to provide an impetus to entrepreneurial activities. Presently, HPCED is acting as a support centre for the start-up scheme.
vi) HPCED has conducted 21 events / programmes / workshops to sensitize people in the state regarding startup ecosystem and entrepreneurial activities during the financial year 2024-25 till date.
vii) Two new incubation centres viz. Indian Institutes of Management (IIM) Sirmaur and All India Institute of Medical Sciences (AIIMS) Bilaspur have been on- boarded to cater to challenges related to market strategies and to facilitate medical/ healthcare innovations and startups in the State.
Chief Minister’s Startup/ Innovation Projects/ New Industries Scheme: Himachal Pradesh has a growing Startup ecosystem, supported by the "Chief Minister's Startup/ Innovation Projects/ New Industries Scheme". By the policy, the Department of Industries is constructing a robust ecosystem that complies with the policy requirements. The initiative envisions numerous incentives for startups to help entrepreneur's success in their enterprises, including a monthly subsistence stipend of ₹25,000 per month for one year and free incubation facilities with plug-and-play capabilities.
To further enable venture capital and seed investment in the state, the government has announced the HIMSUP (Himachal Startup) Yojana, under which a fund of ₹10 crore has been established for five years to support companies. Following are the highlights of the Chief Minister's Startup mission:
i) The State Government has authorized a total of 14 business incubators for providing Handholding support, working space and other facilities along with free-of-cost incubators for start-ups with plug-and-play facilities to operate throughout the state.
ii) 365 startups have been selected for incubation.
iii) HIMSUP Yojana has contributed around ₹2.11 crore to 09 different businesses as a form of capital assistance.
iv) A sustenance allowance of ₹81.50 lakhs has been disbursed to the selected start-ups till date in the current financial year 2024-25. The Startup journey of the State so far as per Startup Ranking Framework circulated by Department for Promotion of Industry and Internal Trade (DPIIT), Government of India is as under:
v) The Himachal Pradesh Centre for Entrepreneurship Development (HPCED, a society under the aegis of the Department of Industries) is an agency in the State established with the primary objective to provide an impetus to entrepreneurial activities. Presently, HPCED is acting as a support centre for the start-up scheme
vi) HPCED has conducted 21 events / programmes / workshops to sensitize people in the state regarding startup ecosystem and entrepreneurial activities during the financial year 2024-25 till date.
vii) Two new incubation centres viz. Indian Institutes of Management (IIM) Sirmaur and All India Institute of Medical Sciences (AIIMS) Bilaspur have been on- boarded to cater to challenges related to market strategies and to facilitate medical/ healthcare innovations and startups in the State.
Ease of Doing Business (EoDB): Under the Business Reform Action Plan (BRAP) mandate of Ease of Doing Business (EoDB), the State has achieved an implementation score of 99 per cent with implementation of 347 out of 352 reform points under the BRAP 2022 exercise. This is the highest implementation score by the State of Himachal Pradesh since the framework was introduced by DPIIT in 2014. The State was ranked at "Aspirers Category" in the EoDB (BRAP-2022) ranking. Previously, the State had registered a quantum jump of 9 points i.e. from 16th position to 7th position in the EoDB-2019 rankings which made Himachal a "Top ranking State amongst Hilly States" of the Country.

Prime Minister Formalization of Micro Food Processing Enterprises (PMFMFPE): The scheme promotes formalization of the food processing sector of the state providing financial, technical, infrastructural and capacity building support to SHGs, FPOs, Cooperatives and individual entrepreneurs involved in the food processing sector of Himachal Pradesh.
i) Support to Individual Micro Enterprises: Individual micro food processing units are provided credit-linked capital subsidy @35 per cent of the eligible project cost with a maximum ceiling of ₹10.0 lakh per unit.
ii) Seed Capital to SHG: Seed capital @ ₹40,000 per SHG member is provided to those engaged in food processing for working capital and purchase of small tools. Achievements under PMFME Scheme w.e.f. April to December, 2024
Incubation Centre: Three Incubation Centres are being setting up in the State with a vision to encourage the micro enterprises to constantly upgrade their quality standards in products and processes. It will also promote adaptation of new technology, quality tools and energy efficient manufacturing practices. The identified incubation centres are shown in Table 9.9.
Beneficiary/ Resource Person Training: Total 4500 beneficiaries have provided training on various topics viz. Capacity Building, (EDP) Entrepreneurial Development Programme.
World Food India: Himachal Pradesh was adjudged as an Outstanding Performing State under the PMFME Scheme and received the Outstanding Performing State award at Valedictory Session of World Food India (WFI) on 5th November 2023 by Hon’ble President of India.
Prime Minister’s Employment Generation Programme (PMEGP):
i)Prime Minister's Employment Generation Programme (PMEGP) is a credit linked subsidy Programme of the Central Government.
ii) Under the scheme, maximum cost of the project in the manufacturing sector is ₹50.00 lakh and ₹20.00 lakh under the Service Sector. If the total project cost exceeds ₹50.00 lakh or ₹20.00 lakh for Manufacturing and Service/Business sectors respectively, the balance amount may be provided by Banks without any Government subsidy. General Category Candidates get 15-25 per cent subsidy depending upon the location of the proposed venture/unit and contribution towards project cost is 10 per cent. For other categories, candidates get 25-35 per cent depending upon location of the proposed venture/unit and their contribution is only 5 per cent.
iii) This scheme is being implemented by the industries department, Himachal Pradesh Khadi and Village Industries Board (HPKVIB) and Khadi and Village Industries Commission (KVIC) State Offices.
iv) During 2024-25 the following are achievements:
Pradhan Mantri Vishwakarma Yojana (PMV Scheme) : This initiative aims to empower artisans and craftspeople across 18 identified trades, focusing on improving their livelihoods and creating employment opportunities through skill development. The scheme offers financial assistance of ₹15,000 for tool kits,collateral-free enterprise development loans up to ₹3.0 at a subsidized interest rate of 5 per cent and facilitates market linkages. To promote these linkages, artisans are given opportunities to participate in state-level exhibitions and fairs. So far, two fairs have been held: the Junga Shimla Flying Festival for awareness, and the Rampur Mela, where 48 artisans from around 15 trades participated. Additionally, three artisans from Himachal Pradesh have been honoured under the scheme by MoMSME.
Major trades covered under the scheme include- Carpenter, Tailoring, Blacksmith, Goldsmith (Sunar), Locksmith, Armourer, Boat maker, Basket/Mat/Broom maker, Garland maker, Washerman (Dhobi), Barber, Potter (Kumhar), Hammer & Toolkit maker, Cobbler/Footwear artisan, Doll & Toy maker, Fish net maker, Masons, Sculptor.
Unity Mall: A Beacon of National Integration and Economic Growth : The Government of India has approved setting up of the Unity Mall at Mohal Chakvan Dhagwar in Dharamshala, District Kangra, under Part-VI of the “Scheme for Special Assistance to States for Capital Investment 2023-24”. Envisioned as a state-of-the-art commercial complex. The Ministry of Finance, Department of Expenditure, has sanctioned ₹132 crore for this transformative project, with ₹66 crore already released as the first installment to the Industries Department, Himachal Pradesh.
Its primary objectives include promoting national integration, fostering “Make in India” initiative, enhancing marketability of indigenous products under the One District One Product (ODOP) framework, and empowering rural artisans by providing a platform to showcase and sell their products. This initiative is set to bolster employment generation and support local craftsmanship while contributing to the economic vibrancy of the region.

Sericulture in the State is developing as an important rural income generating subsidiary occupation to augment the income of the agrarian community. Large numbers of people are engaged in sericulture in the state. State Government has established a separate Sericulture Wing in 1951, under the control of Director of Industries.
Sericulture provides a fairly remunerative occupation to some 10470 families in 1691 villages and its major concentration is found in Bilaspur, Mandi, Hamirpur, Kangra, Una and Sirmour Districts. Among the districts practising Sericulture, district Bilaspur is the biggest producer of silk Cocoons, sharing 35 percent of production followed by district Mandi (25 per cent), District Kangra (22 per cent) and Hamirpur (16 per cent).
The Department of Industries has set up Eight Sericulture Divisions in 11 districts in the State under which 79 Government Sericulture Centres-cum-Chawki Rearing Centres and 64 mulberry farms are functioning. These Government Sericulture centres distribute silk cocoons to farmers and provide technical guidance to the Stakeholders. The physical achievements are as under:
I. Mining and Quarrying Sector : Government has amended the Himachal Pradesh Minor Minerals (Concession) and Minerals (Prevention of Illegal Mining, Transportation and Storage) Rules, 2015, fifth amendment Rules, 2024 wherein for the revenue enhancement, following provisions have been made:
a)For the use of the material generated from other sources/non mining activities, the user agency has to pay an additional amount equivalent to 75 per cent of royalty payable as processing charges.
b)Every minerals concession holder has to pay ₹5 per tonne on EV charges, ₹5 per tonne as online charges & ₹2 per tonne as Milk cess. To encourage systematic & scientific mining in the State, the riverbed mining depth has been enhanced from existing 1 meter to 2 meters.
The Government has also notified Himachal Pradesh Mineral Policy-2024 which has been revised after a period of more than ten years so as to ensure sustainable, systematic & scientific mining in the State. Due to constant endeavours of the present Government, revenue generation from mining during the year 2023-24 has been enhanced to ₹315 crore which was ₹241 crore during 2022-23. The projected revenue for the current FY2024-25 from mining is approximately ₹400 crore.

The industry sector is crucial for boosting the state economy and in generating job. Industry Sector (including Mining and Quarrying) at current prices as per Advance Estimates (AE) for the FY2024-25 is estimated at ₹86,695 crore. The manufacturing sector contributes 65.49 per cent of the nominal Gross Value Added (GVA) to the overall value added by the industry sector, with the remaining 34.51per cent contribution coming from the sub-sectors of construction, mining and quarrying, and electricity and other utilities. The contribution of the industry sector (including Mining and Quarrying) at current prices to Gross State Value Added (GSVA) is 40.00 per cent in FY2024-25 of which 26.19 per cent comes from the manufacturing sector, 7.68 per cent form construction and 5.66 per cent in electricity, water supply and other utilities services. The contribution of mining and quarrying sector in GSVA at Current Prices has increased from 0.30 per cent in the year 2020-21 to 0.46 per cent in FY2024-25.
Growth of Industry Sector and its sub-sectors: As per the AE, the Industry sector's GSVA is expected to grow by 8.1 per cent during FY2024-25 and at the national level, the industry sector’s GVA surged by 6.5 per cent in constant terms during the same period.
Manufacturing sector : During FY2024-25, the manufacturing sector is expected to grow at 7.1 per cent which is the third highest growth rate in the industry sector (Figure 9.3). Between 2013-14 to 2024-25, manufacturing sector experienced higher CAGR of 8.3 per cent among sub-sectors of industry sector demonstrating Himachal Pradesh’s rapid manufacturing development and its capacity to draw in investment through business reforms, provision of better infrastructure and competitive financial concessions to prospective investors.
Construction sector : Growth of the construction sub-sector is critical for increasing income of organised as well as unorganised sectors and also necessary for the infrastructure development of the State. The construction sector anticipated the second highest growth rate in the industry sector during FY2024-25 which is 9.4 per cent (Figure 9.3).
Electricity, Water Supply and Other Utility Services Sector : During FY2024-25, the electricity, water supply and other utility servicessector is expected to grow at 11.5 per cent which has the highest growth rate in the industry sector (Figure 9.3).
Mining and Quarrying Sector : The mining and quarrying sector is expected to grow at 6.1 per cent in FY2024-25.
Employment Contribution : Persons who were either 'working' (or employed) or 'seeking or available for work' (or unemployed) constituted the labour force. According to the Periodic Labour Force Survey (PLFS) 2022-23, 17.18 per cent of the state's working adults were employed by the industry sector which increased to 22.04 per cent in 2023-24, PLFS. Construction and manufacturing are two sub-sectors within the industry sector that provided the largest share of employment to the workforce in the State employing 11.52 per cent and 8.60 per cent of the State's working adults respectively. The other two sub-sectors together employ 1.92 per cent of the state's workforce. From Figure 9.5, it is evident that manufacturing sector's share in employment remained at 41 per cent in 2023-24, while the share of electricity and other utilities decreased to 4 per cent in 2023-24 from 7 per cent in 2022-23.
Sector-wise distribution of Working Population : Percentage distribution of usually working persons by industry of work for Himachal Pradesh (out of the total workforce) has been presented in Figure 9.6 which shows that 53.98 per cent, 22.01 per cent and 24.01 per cent are employed in the Primary, Secondary and Tertiary sector respectively (PLFS, 2023-24). In Himachal Pradesh under secondary sector working population employed in urban and rural area is 44.3 and 19.5 per cent respectively. Figure 9.7 displays the gender-based differences in the labour force between rural and urban areas. While just 7.2 per cent of rural women are engaged in the secondary sector, 30.63 per cent of men in the labour force in rural areas are gainfully employed in this sector. Comparatively, only 28.19 per cent of women in urban areas are engaged in the secondary sector (20.99 per cent higher than in rural areas), whereas 50.63 per cent of men in urban areas are gainfully employed in the labour force.

The Khadi and Village Industries Commission (KVIC) is a statutory body instituted by the Government of India in April 1957, under the 'Khadi and Village Industries Commission Act of 1956.’ KVIC oversees operations of 13 active Khadi Institutions across the state. The current production and sales figures for KVIC affiliated/registered Societies and Institutions are presented in Table 9.13.

The HPKVIB is a statutory body created by an act of Legislative assembly (November 8 of 1966). It came into existence on 8th January, 1968. The Himachal Pradesh Khadi and Village Industries Board is presently implementing Prime Minister Employment Generation programme to assist unemployed youth and artisans to set up micro industries in rural and urban areas for generating employment opportunities to the local people at their door steps. The progress under the scheme during the last 3 years is as under:

HPSIDC has expertise in the construction of roads, bridges, stadiums, government colleges, government polytechnic colleges, school buildings, water supply, street lighting projects, sewerage infrastructure in the state, common facility centre at Bathu, skill development centre at Palkawah (Una) labour hostel Bathu and transit workers hostel Dulehar (Una) are some of the stateofart projects developed by HPSIDC. The corporation has also developed many industrial Areas/Estates/ Parks for the State Government. The Corporation has its own industrial Plots (424 Bighas) at Baddi and Davni. The Corporation has successfully executed civil works under the Modified Industrial Infrastructure Upgradation Scheme (MIIUS) and successfully built "State of the Art" Industrial areas at Kandrori and Pandora. It also owns Sheds at Paonta Sahib and Parwanoo. HPSIDC is authorized dealer of Indian Oil Corporation and M/s Bitchem Asphalt Ltd. for cold mix products and a trader in Himachal Pradesh for steel products (M/s SAIL India/TATA Steel). In addition to this, the Corporation has been appointed a state implementing agency for setting up of Medical Device Park at Nalagarh, District Solan, Himachal Pradesh The Corporation is also playing a pivotal role for creating infrastructure under "Bulk Drug Park" situated at District Una, Himachal Pradesh. The Corporation is in process to develop Unity Mall at District Kangra, Himachal Pradesh.

The Himachal Pradesh Infrastructure Development Board (HPIDB) was established on 28.01.2002 under the Himachal Pradesh Infrastructure Development Act, 2001. The main function of the HPIDB under the Act is to act as a Special Purpose Vehicle (SPV) to raise resources to finance the development expenditure on behalf of the State Government. HPIDB is also acting as a Public Private Partnership (PPP) cell of the State Government in addition to its other activities.
Physical and Financial Achievements/policy Initiatives undertaken:
i) HPIDB has successfully awarded 25 projects on Public Private Partnership (PPP) mode in different sectors i.e. 16 projects in the Urban Sector, 7 projects in Tourism Sector and one each in Environment and Science Sector.
ii) The Expression of Interest (EOI) for appointment of Consultant/ Transaction Advisor for development of Mata-Ka Bag at Kinnu, Chintpurani on PPP mode is under process.
iii) The Expression of Interest (EOI) for appointment of Transaction Advisor for development of Fossil Park, Suketi at Nahan, Sirmaur is under process.
iv) The Proposal for development of Atal Parking as Parking-cum- Commercial Complex at Sundernagar, Distt. Mandi on PPP mode is under process.
v) The proposal for Operation, Management & Maintenance of Himachal Niketan, Dwarka New Delhi is under process.
vi) Further, HPIDB is providing advisory services to different departments for development of ongoing projects which are at various stages of PPP mode etc.

IIP is a yardstick for measuring industrial growth; it includes the relative change of physical production in the field of Industry during a specific period as compared to the previous period. The main objective of this index is to estimate the contribution of the Industry sector to the Gross State Domestic Product. IIP in the State is being compiled on base year 2011-12. The IIP is estimated quarterly by collecting data from selected units of Manufacturing, Mining, Quarrying and Electricity, based on quarterly indices, annual indices have been worked out and are shown in table 9.15. The General Index has increased from 235.3 to 248.6 in the FY2022-23 and to 291.8 in the FY2023-24 showing an increase of 5.7 per cent and 17.4 per cent respectively. As regards the indices for FY2024-25, these have been worked out based on two quarters i.e. June, 2024 and September 2024. Based on these two quarters, the increase in the General Index of 7.9 per cent has been observed over the previous year, whereas on comparing the Index of these two quarters with the Index of the same quarters of the previous year i.e. 2023-24, there was an increase in the indices of all sectors i.e. General, Electricity, Mining and Manufacturing in these quarters of the year 2024-25. To conclude, Himachal Pradesh has transitioned from an agrarian to an industry-led economy, with the industrial sector contributing 40 per cent to its GSDP by 2024-25. The state is a global hub for pharmaceuticals, hosting over 600 units and has strong sectors in cement, textiles and auto manufacturing. The government has fostered industrial growth through initiatives like the Bulk Drug Park, MSME support and investment reforms. The state also focuses on green energy, self-employment and ease of doing business. With an increasing number of MSMEs and significant export potential, Himachal Pradesh's industrialization continues to thrive. The state has designated industrial areas for key sectors like IT, tourism, health and education. The manufacturing sector is the largest contributor, followed by construction, electricity and mining. The industry sector is expected to grow by 8.1 per cent in FY2024-25, with the manufacturing and construction sectors showing notable growth. Employment in the sector has risen, particularly in manufacturing and construction. Various government initiatives, like the Khadi and Village Industries Commission and Himachal Pradesh Industrial Development Corporation, are fostering growth and job creation in the state's industrial landscape.

Himachal Pradesh's abundant water resources provide a strong foundation for the development of hydroelectric power, contributing to the state's energy needs and economic growth. The state has several hydroelectric power projects that harness the energy of its rivers and contribute significantly to the region's power supply. Himachal Pradesh has a large number of hydroelectric resources, about 25 per cent of the national potential 24,000 Megawatt (MW) hydroelectric power can be generated in the state by construction of various hydroelectric projects on the five perennial river basins. Out of the total hydroelectric potential of the State, 11,290 MW has been harnessed so far. This chapter offers a comprehensive overview of the power and energy sector in Himachal Pradesh.
Table 10.1 below depicts the status of consumption of Energy by the various categories of consumers in the state: Table 10.1 indicates that industries are the largest consumers of electricity in the state, closely followed by domestic consumers. This distribution of electricity consumption suggests that electric power plays a significant role in the overall development of industrial sector.

The Directorate of Energy, Government of Himachal Pradesh (GoHP) oversees the management and optimization of the state's energy resources and is the nodal office of the Department of Multi-Purpose Project (MPP) and Power. It strives to provide efficient and timely coordination with all power utilities in the power sector. It oversees the allocation of Hydroelectric Projects with a capacity greater than 5 MW, granting of Techno Economic Clearances (TEC), issues related to Hydro Power Safety, environmental and social issues, management of Local Area Development Fund, quality control, management of power flow, sale of GoHP Power share received from various Central, State and private Hydro Electric Projects, implementation of energy conservation activities and safety aspects of all large Dams of the State.
Capacity Addition : Five projects with capacity of 40 MW namely Thuchaning Small Hydro Electric Project (SHEP) (1.5 MW) in district Kullu, Luni SHEP (4.5 MW) in district Kangra, Selti Masrang Hydro Electric Power (HEP) (24 MW) district Kinnaur, Kuwarsi HEP (9.9 MW) in district Chamba and Rudra SHEP (0.75 MW) distirct Kangra were commissioned between April, 2024 to December, 2024.
Government’s Power Entitlement : The details of various projects in Himachal Pradesh where GoHP has entitlement to power are as under: Table 10.2 shows that the Government of Himachal Pradesh has entitlement of free and equity power aggregating 1380.18 MW in various Central Sector, Joint Sector and Private Sector projects in the State. Out of 1380.18 MW, capacity aggregating to 166.37 MW is in respect of Projects which are directly connected to Himachal Pradesh State Electricity Board Limited (HPSEBL) System and its power is being utilized by HPSEBL. throughout the year. 438 MW on account of equity participation of GoHP in Satluj Jal Vidyut Nigam (SJVN) projects is being utilized by HPSEBL to provide 24X7 supply to its consumers.
GoHP has earned revenue of ₹1535 crore during the FY2024-25 (up to 31st December 2024) and anticipated revenue upto March, 2025 is as additional ₹265 crore from royalty on power sales and sale of State Government share of power in the hydel projects.

The Himachal Pradesh State Electricity Board was constituted on 01st September, 1971 by the provisions of the Electricity Supply Act (1948) and has been reorganized as Himachal Pradesh State Electricity Board Ltd. under the Company Act 1956. HPSEBL is responsible for the supply of uninterrupted and quality power to all consumers in Himachal Pradesh. Transmission lines, sub-transmission lines, and distribution lines are all part of the larger network that distributes the power. Since it was established, the board has achieved significant progress in the execution of the goals that have been entrusted to it. District wise generation of power during FY2023 24 and 2024-25 has been shown in Table 10.3. During FY2024-25 HPSEBL generated the highest number of units of electricity from its power houses situated in district Kinnaur, followed by district Mandi. HPSEBL does not have Power Houses in five districts of the State namely Solan, Una, Kullu, Hamirpur and Bilaspur.
Hydro Electricity Generation: In HPSEBL, 27 HEPs with a total installed capacity of 489.35 MW are operational. During FY2023-24, 1,664.57 MU of energy was generated by these HEPs. In FY2024-25, 1,528.11 MU of energy has been generated up to December 2024 by these HEP’s and additional 233.77 MU of generation is anticipated up to March, 2025. Uhl Stage-III (100 MW) HEP, is under construction by Beas Valley Power Corporation Limited (BVPCL), a subsidiary company of HPSEBL.
Transmission: The transmission wing of HPSEBL has installed 62 Extra High Voltage (EHV) Sub-Stations with a transformation capacity of 5,272.55 Mega Volt Ampere (MVA) and 3,693.49 Circuit Kilometres (CKM) EHV lines up to December, 2024. During FY2024-25 up to December, 2024, 6 EHV sub-station with a capacity of 76.2 MVA has been installed and 32.839 CKM EHV lines have been commissioned.
New Hydro Electric Project under HPSEBL : The Government of Himachal Pradesh has allotted 4 projects to HPSEBL i.e. Devi Kothi HEP (16 MW), Sai Kothi-I HEP (15 MW), Sai Kothi-II (18 MW), Hail HEP (18 MW) for implementation all in the Tissa region of District Chamba.
Schemes :
i)System Improvement (S.I.) : Scheme for Low Voltage Pockets in Himachal Pradesh: To address low voltage issues faced by residents in remote areas of the state, a scheme worth ₹158 crore was sanctioned during FY2019-20 and is currently being implemented state wide. The scheme includes provisions for the installation of 992 distribution transformers (DTRs), the construction of 1,133.25 km of high-tension (HT) lines, and 325 km of low tension (LT) lines in low-voltage-affected areas. As of December 2024, 988 DTRs, 648.177 km of HT lines, 413.895 km of three-phase LT lines, and 153.842 km of augmented LT lines have been successfully installed.
For the 2nd phase of scheme an amount of ₹25.08 crore has also been sanctioned, implementation of which is under progress. 60 DTR’s have been installed along with 65.421 KM HT lines and 39.365 km 3 Phase LT lines and 14.530 km LT line (Augmented) have been installed till 31st December, 2024.
i)Revamped Distribution Sector Scheme (RDSS): The objective of the scheme is to enhance the quality and reliability of power supply to consumers by promoting a financially sustainable and operationally efficient distribution sector. The scheme aims to reduce Aggregate Technical and Commercial (AT&C) losses to the pan-India target of 12-15 per cent and eliminate the ACS-ARR (Average Cost of Supply – Average Revenue Realized) gap by 2024-25.
The Revamped Distribution Sector Scheme (RDSS) consists of two main components:
Component - I
i) Metering: The sanctioned provisions under the Metering Component of the scheme for Himachal Pradesh are shared between HPSEBL and the Government of India (GoI), with HPSEBL contributing 77.50 per cent and GoI contributing 22.50 per cent. Under this component up to 31st December 2024, 88,510 meters have been installed in the South Zone and installation work in the North Zone and Central Zone is in tendering process.
Component - II
i) Loss reduction and Distribution Infrastructure Works: The revised sanction for Loss Reduction works under RDSS, of to ₹1,883.94 crore, was received from M/s PFC Ltd. in June, 2023.
ii) Vibrant Village Programme (VVP): The Government approved the Vibrant Villages Programme (VVP) as a Centrally Sponsored Scheme on February 15, 2023, aimed at the comprehensive development of select villages in the Spiti, Kalpa, and Pooh blocks of two districts along the northern border of Himachal Pradesh. The programme focuses on livelihood generation through tourism, cultural heritage, skill development, entrepreneurship and promotion of cooperative societies in agriculture, horticulture, and medicinal plant cultivation. It also includes improving road connectivity, housing, infrastructure, renewable energy, and telecom access. The primary objective is to provide incentives that encourage people to remain enunciated the villages. Following villages are covered under the Vibrant Villages Programme (VVP):
a) Villages under Kinnaur District: Thankarma (Chala Shalkhar), Sunni (Leo), Thankarma (Qungdha), Chango, Batseri (Chispan), Chhitkul, Chulling (Tashizong), Charang (Rangrik), Chango Uperla, Labrang, Hangmat and Rakcham.
b) Villages under Spiti Block in Lahaul-Spiti District: Dhar Chhochhodun, Dhar Sumdo, Gipu, Hikkim, Hull, Hurling, Kaurik, Kaza Khas, Kaza Soma, Kee, Kibber Khas, Komik, Kyamo, Lalung Khas, Lara Khas, Lidang, Lirit, Rama Khas, Samdo and Shego.
iii) Construction of 33 kV line from Tharot to Killar to supply reliable power in Pangi valley, Chamba District: HPSEBL has submitted a proposal to the Ministry of Power, Government of India, for the construction of a 33 kv line from Tharot to Killar to ensure reliable power supply in the Pangi Valley, Chamba District, Himachal Pradesh. The Monitoring Committee under RDSS has approved the proposal in July, 2024 with the following provisions:
iv) Expansion of Distribution Infrastructure for Northern Border areas of India in Himachal Pradesh: The work of electricity distribution infrastructure to identified locations and the supply of quality, reliable power to remote border areas in Himachal Pradesh is under progress. The approved budget for this scheme is ₹362.18 crore, while will be shared by Government of India and HPSEBL in the ratio of 90:10.
Power System Development Fund: The proposals for underground cabling work in Shimla, Hamirpur Town, and Nadaun has been approved by the Government with a budget provision of ₹65 crore and work is under progress.
Information Technology Initiatives : HPSEBL is committed to ensure 24x7 power distribution for 27.50 lakh consumers in Himachal Pradesh. Key achievements in computerization, metering billing-collection and consumer services are as under:
i) 100 per cent computerized billing in the State has been achieved and around 95 per cent of consumers are being provided with monthly electricity bills at their doorsteps as well as through Short Message Services (SMS) and E Mails. Also, the bills are being made available on website and Mobile App for payments through various digital and online modes.
ii) Developed and launched a dedicated Consumer Portal for electricity consumers for ensuring various consumer related services through digital and electronics platforms in a time bound and paper less manner. Services being provided include application for new connection, change of name, change of category, change of load and demand, temporary revisions of contract demand, online Programmable automation controller (PAC) application. Besides this the portal also provides basic services as payment of bill, viewing the consumption and payment history, complaint registration etc.
iii) Consumers are provided with multiple options for making electricity bill payments such as Common Services Centres (Lok Mitra Kendra), Digital Payments using Internet Banking/Credit/Debit Cards/UPI/BHIM etc., e-CMS, Mobile App etc. As a result around 92 per cent of monthly electricity bill payment is being realized via digital transactions only.
iv) HPSEBL has Launched Smart Meter Mobile App for Shimla and Dharamshala smart city consumers to monitor consumption pattern and power quality etc. on real time basis.
v) Enterprise Resource Planning (ERP) system has been successfully implemented and integrated across all locations of HPSEBL, and currently, all business transactions are exclusively processed through Systems Applications Products-Enterprise Resource Planning (SAP-ERP) across the organization.
vi) HPSEBL has developed and implemented various online utilities and modules for ensuring paperless and time bound delivery of various services in a transparent and efficient manner besides fixing the accountability across all levels. The developed utilities mainly include vendor invoice management system, online guest house booking utility, budget management and control modules, centralized security refund utility, transfer and posting utility, pension utility and online employee portal for providing various employee related services.
vii). 24x7 IVRS (Interactive Voice Response System) and Consumer Complaint Centre for registration and resolution of consumer complaints and grievances on priority. like
viii) Transitioning to an electronic office, or a digital/paperless setup, brings benefits heightened efficiency, cost-effectiveness, improved collaboration, and a more sustainable environmental impact.
ix) Real-Time Data Acquisition System (RTDAS) has been successfully implemented across 54 towns, encompassing 339 feeders, to improve supply hours and ensure effective outage monitoring. The system is seamlessly integrated with HPSEBL’s SMS gateway, enabling automated notifications to the designated Senior Executive Engineer, Assistant Engineer, and Junior Engineer for swift resolution of outages. Real-time data on outages and electrical parameters for all 339 feeders is readily accessible through the National Feeder Monitoring System (NFMS), contributing to improved operational efficiency and reliability. Additionally, an online portal has been provisioned for field offices to monitor feeder System Average Interruption Duration Index/System Average Interruption Frequency Index (SAIDI/SAIFI) metrics and supply hours, facilitating necessary actions to meet reliability index targets.
x) Implementation of Smart Metering under RDSS scheme covering 9,34,409 number Smart Meters has started in Shimla Zone. Tendering work for implementation of smart metering under RDSS in Mandi, Hamirpur and Kangra Zones is under process.

HPPCL, established in December 2006 under the Companies Act of 1956. HPPCL is tasked with planning, promoting, and managing the development of hydroelectric power generation across Himachal Pradesh. HPPCL possesses technical and organizational capabilities on lines of entities as National Thermal Power Corporation Limited (NTPC), Satluj Jal Vidyut Nigam Limited (SJVNL), and National Hydroelectric Power Corporation (NHPC).
Projects currently in operation / under execution stage:HPPCL has the following projects for hydropower:
Other areas of Power development:The Himachal Pradesh Power Corporation is strategically expanding its power development initiatives beyond hydroelectric power to encompass additional renewable sources, notably solar energy. This forward-thinking approach aims to address the escalating energy requirements for the state and contribute to the nation's overall growth.
i) Berra- Dol Solar Power Project (5 MW): HPPCL has built a 5 MW solar power facility near Shri Naina Devi Ji Shrine in the district of Bilaspur. This was the first solar power project established in the state by the government. Since its commissioning, the project has generated 48.20 MU of electricity up to December, 2024. The generation target for the project up to March, 2025 is 50.42 MU.
Pekhubella Solar Power Project (32 MW) : HPPCL has successfully commissioned the 32 MW Pekhubella Solar Power Project in the village of Pekhubella, Una District. The project commenced commercial operation in April, 2024. As of December 2024, the project has generated 42.96 MU of electricity, resulting in revenue of ₹12.46 crore and the target of generation up to March, 2025 is 62.85 MU.
Bhanjal Solar Power Project (5 MW) : HPPCL has completed the construction of the 5 MW Bhanjal Solar Power Project in Tehsil Amb, District Una. The project was successfully synchronized with the HPSEBL grid on November, 2024. Since its synchronization the project has generated 0.77 MU of electricity up to December, 2024, earning revenue of ₹0.33 crore. During the FY2024-25 (up to December, 2024), HPPCL has achieved a total generation of 49.74 MU from the aforesaid solar projects, generating a revenue of ₹15.35 crore.
Solar Power Projects: :
i) Pradesh is making significant strides in solar energy generation. The Aghlor Solar Power Project (10 MW) initiative in Una district, is nearing completion and is expected to be operational by January 2025. This project alone will generate an impressive 22.73 million units annually
ii) The Gondpur Bulla Solar Power Project (12 MW) and the Lamlehri Uparli Solar Power Project (11 MW) are slated for completion by August 2025. Additionally, Engineering Procurement and Construction EPC tenders for five more Small Power Projects (SPPs) with a combined capacity of 49 MW have been opened and are currently at various stages of evaluation, with work expected to be awarded shortly.
iii) The Detailed Project Reports (DPRs) for six projects, totalling 69 MW in capacity, are in preparation, and EPC tenders will be issued once the DPRs are finalized. Furthermore, eight Solar Power Projects, with a tentative combined capacity of around 58 MW, are in the early development phases. These projects are undergoing detailed surveys, investigations, and the preparation of Preliminary Feasibility Reports (PFRs).
iv) 200 MW solar project pre-feasibility reports for Damtal, Kangra district have been finalized. Site surveys will be done by early February 2025, the Detailed Project Report (DPR) by March 2025, and the tender process by May 2025. Commissioning is expected by March 2026.
v) Seven Solar Power Projects, with a combined capacity of approximately 173 MW, are currently undergoing the Forest Clearance Approval (FCA) process.
Development of Projects in the Alternative Energy Sector:
i) A Memorandum of Understanding (MoU) was signed on April 26, 2023, between the HPPCL and M/s Oil India Ltd. The agreement was formalized in the esteemed presence of Chief Minister. Under this partnership, the two entities have committed to jointly develop projects in the alternative energy sector in Himachal Pradesh, focusing on the following areas:
a) Solar Energy
b) Green Hydrogen
c) Compressed Biogas (CBG)
d) Geothermal Energy
e) Other potential renewable energy sectors.
ii) The process for establishing a 1 MW Green Hydrogen plant as a pilot project has been initiated. The EPC tender for the construction of 1 MW Green Hydrogen Plant was awarded to the EPC contractor by M/s Oil India Ltd. on September 9, 2024. Execution of the project is currently underway.
iii) The process for establishing a Compressed Biogas (CBG) plant with a capacity of 2 tons per day (TPD) has been initiated. The draft Detailed Project Report (DPR) for the 2 TPD CBG plant has been prepared by the consultant, and further steps in the process are now underway.
Financial Achievements in Respect of Projects under Construction/ Implementation Stage: The following table presents the achievements of the projects under construction/implementation stage of Himachal Pradesh Power Corporation Limited are hereunder:

HPPTCL focuses on expanding the transmission network and enabling seamless evacuation of power from new generating plants. The tasks assigned to the Corporation by Government of Himachal Pradesh encompass execution of all new projects, including both Transmission Lines and Sub-Stations with a voltage rating of 66 kilovolts (K.V) and above. This involves formulating, upgrading, and implementing the Transmission Master Plan of Himachal Pradesh, aimed at strengthening the transmission network and facilitating efficient evacuation of power.
HPPTCL is discharging the functions of a State Transmission Utility (STU) and coordinating transmission issues with the Central Transmission Utility, Central Electricity Authority, Ministry of Power (Government of India), Himachal Pradesh Government and HPSEB Ltd. Government of India has approved (Asian Development Bank) ADB loan for implementation of transmission projects covered in the Power System Master Plan (PSMP) of Himachal Pradesh. Table 10.8 presents the details of commissioned projects by HPPTCL up to FY2024-25. In addition to above, Green Energy Corridor Phase-I (GEC-I) has been initiated to develop an economical transmission system to encourage green renewable energy Generation. The scheme has been funded partly (40 per cent) as a grant from the Ministry of New and Renewable Energy (MNRE), Government of India and partly (40 per cent) as low fixed interest rate loan from the German Development Bank, KfW and the rest from equity. Under GEC-I, eleven projects were to be constructed by HPPTCL. Out of which, ten projects have been commissioned and one is likely to be commissioned by March, 2025. Completion of all these projects will result in addition of 846.5 MVA (Megavolt Ampere) transformation capacity and 182.08 circuit kilometres of transmission line in Himachal Pradesh.
With financial support from Rural Electrification Corporation Limited (RECL), HPPTCL has successfully commissioned ten projects, with three additional projects currently in progress. Another project is expected to be commissioned before March, 2025. The completion of these projects has significantly enhanced the state’s transmission network, adding 457.5 MVA of transformation capacity and 139.14 circuit kilometers of transmission lines in the districts of Kangra, Kullu, Sirmaur, and Kinnaur.
Major Achievements : In the FY2024-25 up to 31st December 2024, HPPTCL has completed & commissioned two substations and six transmission lines at a cost of ₹269.77 crore resulting in addition of 363 MVA transformation capacity with 91.49 circuit kilometres to the existing transmission network. HPPTCL has incurred overall capital expenditure for various transmission projects (completed and on-going) during FY2024-25 (upto 31st December 2024) to the cost of ₹58.91 crore. In addition, one Transmission line having total length of 1 circuit kilometres with approximate cost of ₹8.91 crore and 1 EHV Switching substation at cost of ₹12.82 crore are on the verge of completion and are targeted for completion by 31st March 2025. Details are shown below in Table 10.9. The commissioning of the above transmission projects shall facilitate constraint free power evacuation of several Hydro Power Projects and will also improve the quality of power supply in the State.

HIMURJA was constituted in 1989, to promote renewable energy programmes in the State with financial support from the Ministry of New and Renewable Energy (MNRE), Government of India and the State Government. The major programs being implemented in the State are solar power projects, grid-connected rooftop plants, solar photovoltaic off-grid systems, solar thermal systems and small hydroelectric projects (up to 5 MW capacities).
Achievements during the FY 2024–25 (up to December, 2024 and anticipated up to March 2025 are as follows: :
SOLAR PHOTOVOLTAIC PROGRAMME:
A) Solar Power Projects/Plants:
a) Ground Mounted Solar Power Projects: Under Phase-I, provisional registration letters have been issued to 83 Solar Power Project (SPP) developers for projects with a combined capacity of 73.6 MW. During this phase, 58 Power Purchase Agreements (PPAs) were signed, covering a capacity of 54.56 MW. Of these, 31 solar projects with a total capacity of 11.85 MW have already been commissioned. An additional 5 MW of SPP expected to be commissioned by March 2025.
b) Grid-connected Solar Roof Top Power Plants: Grid-connected solar power plants with a total capacity of 317 KW have been commissioned as of Dec, 2024. An additional 200 KW of Grid-Connected Rooftop Solar (GCRTS) plants is scheduled for installation by March, 2025.
c) Off—grid Solar Power Plants: Solar Power Plants of 4 kWp capacity have been installed upto December 2024. Another 25 KW capacity Off Grid Plants will be installed by March, 2025.
i) SPV Street Lighting System: During the FY2024-25, 14,454 Solar Photovoltaic (SPV) street lighting systems were installed under various programs as of December 2024. The anticipated achievement by March, 2025 is expected to reach approximately 16,000 installations.
ii) SPV Domestic Light: 53 Solar Home Lighting Systems have been provided to the SC BPL families in the State.
B) Solar Power Projects/Plants:
i) Solar Water Heating System: As of December 2024, solar water heating systems with a total capacity of 19,800 liters per day have been installed. The anticipated capacity is expected to reach approximately 21,000 liters per day by March, 2025.
ii) Solar Cooker: Upto December 2024, 29 box-type and dish-type solar cookers had been provided. The anticipated total is expected to reach approximately 35 solar cookers by March 2025.
C) Small Hydroelectric Projects upto 5 mw capacities : During FY2024-25, 4 Hydro Electric Projects with an aggregate capacity of 9.75 MW have been commissioned upto December, 2024. In conclusion, Himachal Pradesh is a significant player in the hydroelectric power sector, leveraging its abundant water resources to meet its energy needs and contribute to the nation's power supply. With the potential to generate 24,000 MW of hydroelectric power, the state has harnessed over 11,290 MW so far. Efforts of the State Government under Revamped Distribution Sector Scheme (RDSS), Vibrant Village Programme, and Smart Metering initiatives highlight the state's commitment to improving power quality, infrastructure, and energy efficiency. These initiatives aim to enhance power reliability, reduce losses and foster sustainable development, further strengthening the state's energy sector.

Employment has remained one of the top challenges for policy planners of the country as well for the states. This challenge has become more complex over time with the improvement in literacy and schooling, attainment of higher education and skills and vocational education. The State's planned interventions in the shape of policies and social security networks are helping provide free and secure working conditions in the State. Compared to other parts of the country, reported wage rate of workers in both agricultural and non-agricultural sectors in Himachal Pradesh is higher (Periodic Labour Force Surveys). The higher wage rates in Himachal Pradesh attract in-migrants into the State, especially from States where wage rates are low. The State now needs to create additional employment opportunities and employment-intensive growth for which labour force has to move from low-value-added to high-value-added activities. In order to generate new employment in both urban and rural parts of the State, the State Government is striving to promote job-induced inclusive growth in the economy. This chapter analyzes employment and skill development trends. The first section examines the state of employment, with a focus on sectoral and gender distribution of the workforce, along with state-wise trends. The second section highlights the government’s efforts to enhance employment opportunities and also discusses the initiatives of the Himachal Pradesh government to develop skill infrastructure, aimed at boosting both employment and self-employment opportunities, particularly for marginalized groups.

The Government of India started the Periodic Labour Force Survey (PLFS) in 2017, replacing the quinquennial employment and unemployment surveys of National Sample Survey Organization (NSSO), now National Statistical Office (NSO), as organization of Ministry of Statistics and Programme Implementation (MoSPI). The PLFS data is now the primary source of data on employment and unemployment at National and State level. Government of India issued the first Periodic Labour Force Survey (PLFS) 2017-18 report in May, 2019 based on NSO's July, 2017–June, 2018 survey and the second PLFS 2018-19 Report in June, 2020 based on NSO's July, 2018–June, 2019 survey. The Present report is the seventh annual report being brought out by NSSO based on the survey conducted during July, 2023–June, 2024.
Labour-Force-Participation Rate: Labour force and work status are generally examined based on two indicators of employment viz. Usual Status (US) which includes principal economic activity and subsidiary economic activity of employment and Current weekly status (CWS). It is important to understand the difference between the two indicators.
The economic activity status on which a person spends relatively long time (major time criterion) during the 365 days preceding the date of survey is principal activity status (PS) of the person. Such persons might have also pursued, in addition to his/her principal status, some economic activity for 30 days or more during the reference period of 365 days preceding the date of survey. Such status is known as Subsidiary Status (SS). PS+SS are together known as Usual Status which corresponds to the employment for longer duration.
Some persons who are employed for majority of the days in a year may not be employed in the period other than majority days due to various reasons. This is ascertained by looking at Current weekly activity status obtaining for a person during a reference period of 7 days preceding the date of survey. A person is considered working (or employed) as per CWS status if he/she worked for at least one hour 1 hour on at least one day during the 7 days preceding the date of the survey or if he/ she had work for at least one hour on at least one day during the seven days preceding the date of survey but did not do the work. Given the definitions of US and CWS above, it can be concluded that CWS captures current status of employment/unemployment while US captures longer duration employment.
Labour force includes persons who were either working (or employed) or those available for work (or unemployed). Some persons in the labour force abstain from work for various reasons. Subtracting that number from the labour force gives the number of actual workers. These workers are further categorized as persons who are engaged in any activity as self-employed or regular wage/salaried and casual labour. The difference between the labour force and the workforce gives the number of unemployed persons.
The situation of the labour force in Himachal Pradesh can be gauged from various indicators such as Labour Force Participation Rate (LFPR), Worker Population Rate (WPR), Daily Wage Rate and trends in industrial relations. LFPR is defined as “the percentage of persons in the labour force among the persons in the population”. The LFPR in Himachal Pradesh, Uttarakhand, Punjab, Haryana, and India in 2022-23 and 2023-24 as per the PLFS. In 2023-24, LFPR (all ages) for Himachal Pradesh (60.5) is higher than Uttarakhand (46.2), Punjab (43.7), Haryana (37.4) and India (45.1). For females, it is more than double among all these states (except Uttarakhand) (Figure 11.1). The reason that LFPR in Himachal Pradesh is higher than in other adjoining states is that agriculture is still the mainstay of State’s largely rural economy and predominantly agricultural economies tend to have higher labour force participation rates.
In 2023-24, LFPR (between 15 and 59 years of age) for Himachal Pradesh (80.0) is higher than Uttarakhand (64.4), Punjab (60.4), Haryana (55.1) and All India (64.3). For Himachal Pradesh, both rural and urban LFPR are higher than these states and also all India (Figure 11.2). The rural LFPR in Himachal Pradesh is approximately 13.4 percentage points higher than Uttarakhand and 14.2 percentage points higher than in All India, while urban LFPR in the State is approximately 14.7 percentage points higher than Uttarakhand and 11.1 percentage points higher than in All India.
Worker Population Ratio (WPR): WPR is an indicator used for analyzing the employment situation and knowing the proportion of the population actively contributing to production of goods and services in the economy. “WPR is defined as the percentage of employed persons in the population”. Worker population ratio in the Himachal Pradesh, Uttarakhand, Punjab, Haryana, and India. It is clear at all ages, the WPR of Himachal Pradesh in 2023-24 (57.2) is better than Uttarakhand (44.2), Punjab (41.3), Haryana (36.1) and India (43.7). It is evident from survey results that more women (51.8 per cent) in Himachal Pradesh are actively participating in economic activities than their counterparts, at all India level and among neighboring states (Figure 11.3).
Unemployment Rate : “Unemployment Rate (UR) is defined as the percentage of persons unemployed among the persons in the labour force”. It is measured in terms of usual status (ps+ss) and weekly status in the PLFS surveys. This represents the proportion of the labour force actively seeking or available for work. According to the PLFS 2023-24 unemployment rate in Himachal Pradesh under usual status (ps+ss) for persons of all ages was 5.4 per cent.
The unemployment rate in the usual status(ps+ss), was 3.2 per cent for males and 7.0 per cent for females in rural areas, while the rates were 4.8 per cent for males and 18.2 per cent for females in urban areas.
Distribution of workers in usual status (ps+ss) by status in employment : Employment status divides workers in usual status (ps+ss) into three basic groups. Workers might be self-employed, salaried, or casual. Two sub-categories of self-employed workers are own account workers and employers and unpaid home helpers. Table 11.1 presents the percentage distribution of workers by status in employment for Himachal Pradesh, Uttarakhand, Punjab, Haryana and India in the year 2022-23 and 2023-24. According, to the report for the year 2022-23, more females in Himachal Pradesh are self-employed as own account workers, employers (46.4 per cent), than in neighboring states and all India level, this proportion of the same activities of the females in the state has increased to 47.6 in the year 2023-24, which is again more than their counterparts. On the other hand, for the year 2022-23 only 11.9 per cent of females in Himachal Pradesh have been found to be in status of regular wage /salary earner as compared to Uttarakhand (14.6), Punjab (36.0), Haryana (30.0) and all India (15.9), the proportion of females has increased to12.6 per cent for 2023-24. In the status of casual labour, proportion of the females in Himachal Pradesh was very less (1.7 per cent) than its neighboring states and all India in 2022-23. Which increased to 2.8 per cent in 2023-24, which is less than its neighboring states and all India.

Three Regional Employment Exchanges, nine District Employment Exchanges, two University Information and Guidance Bureaus, 65 Sub Office Employment Exchanges, one Special Employment Exchange for Physically Handicapped, and Central Employment Cell all offer employment assistance and information services to job seekers. All 77 Employment Exchanges have been automated and made available online for the purpose of providing youth with vocational guidance and employment counseling as well as information about the employment market. Interested applicants can register themselves online to Employment Exchanges from anywhere without physically visiting employment exchange through EEMIS Portal.
Minimum wages: Himachal Pradesh Government has constituted a Minimum Wages Advisory Board under the Minimum Wages Act-1948 for the purpose of advising the State Government in the matter of fixing and revising the minimum rates of wages for the workers. The State Government has enhanced the minimum wages for unskilled category of workers from ₹375 to ₹400 per day or ₹11,250 to ₹12,000 per month w.e.f. 1st April, 2024, in all existing 19 scheduled employment under the provisions of Minimum Wages Act, 1948. Also, the minimum rates of other categories have been enhanced proportionately.
Employment Market Information Programme: At the district level, employment data is being collected under the Employment Market Information Programme since 1960. The total employment in the State as on 31st March, 2024 in Public Sector was 2,84,586 and in private sector it was 2,29,887. The number of establishments in Public Sector and Private Sector were 4,627 and 2,321 respectively.
Vocational Guidance: The Department of Labour and Employment provides Vocational/Career Guidance to the youth and organizes guidance camps at Schools, Colleges, ITIs and Polytechnics, among other places. Accordingly, apart from providing information about Schemes/Welfare programmes being implemented for the youth, information about skill development, career options, employment/ self-employment opportunities etc., is also provided by the department. During this Financial Year, (up to 31st December, 2024) 26,049 youth were provided vocational guidance and career counseling.
Central Employment Cell: To provide technical and highly skilled manpower to all the industrial units, Institutions and establishments, the Central Employment Cell which has been set up in the Directorate of Labour and Employment of the State remained engaged in rendering its services during the year 2024-25. Under this scheme, assistance is provided to the employment seekers, in finding suitable jobs in private sector according to their qualifications. The Central Employment Cell organizes Campus Interviews for Private Sector Employers for their requirement of unskilled labour. During this financial year, up to 31st December, 2024 Central Employment Cell has organized 3 job fairs and 297 Campus Interviews wherein 4,331 candidates have been selected.
Special Employment Exchange for Specially Abled: The special employment exchange for the placement of disabled persons (physically, visually, hearing and locomotor impaired) was set-up in the Directorate of Labour and Employment in 1976, which renders assistance to the especially abled candidates in the field of vocational guidance and also provides employment assistance in Public and Private Sector. During FY2024-25 (up to December, 2024) 809 especially abled persons were brought on the Live Register of the Special Employment Exchange bringing the total number to 16,665 and 21 especially abled persons were provided employment.
Skill Development Allowance Scheme: During this FY, provision of ₹54.00 crore has been made under Skill Development Allowance Scheme, 2013. This programme offers financial assistance to the State's qualified unemployed youths in order to help them improve their skills and increase their employability. For the length of skill development training, up to a maximum of two years, this allowance is granted at a rate of ₹1,000 per month and offered at a rate of ₹1,500 per month for those who are 50 per cent or more permanently physically handicapped. During current FY2024-25 (up to December, 2024) ₹33.16 crore Skill Development Allowance has been disbursed amongst 67,886 beneficiaries. The department is also implementing Industrial Skill Development Allowance Scheme, 2018. Under this scheme, there is a provision of allowance to eligible employed youth engaged in private industrial establishments of the State for On Job skill up gradation. The disbursement criteria under this scheme is the same as for the Skill Development Allowance Scheme, 2013. Under this head ₹8.27 lakh was disbursed among 129 beneficiaries.
Unemployment Allowance Scheme: During this FY2024-25, budgetary provision of ₹38.21 crore has been made under Unemployment Allowance Scheme. Under this scheme, there is provision of allowance to the eligible unemployed youths of the state @ ₹1,000 per month and for 50 per cent or more permanent physically challenged @ ₹1,500 per month for a maximum period of 2 years to enable them to sustain themselves for a certain period. During the period up to December, 2024, 23,579 youth have benefitted under this scheme and ₹21.58 crore has been disbursed.
Employment Exchange Information: During current FY (up to December, 2024) 94,212 applicants were registered under Employment Exchange Scheme. Of these, 1,069 (including non-notified vacancies) placements were made in Government sector against 545 notified vacancies and 4,370 placements in private sector against 11,448 notified vacancies. The consolidated number on live registers of all employment exchanges as on December, 2024 is 6,75,671. The district-wise registrations and placements done by the employment exchanges with effect from April to December, 2024 (including Special Employment Exchange) are given in Table 11.2.

HPKVN is a State Government Corporation incorporated on 14th September, 2015 under the Companies Act, 2013. It is implementing two major projects for the youths of Himachal Pradesh i.e. (i) Asian Development Bank (ADB) assisted Himachal Pradesh Skill Development Project (HPSDP) and (ii) the state managed Pradhan Mantri Kaushal Vikas Yojna (PMKVY) 4.0.
Despite complete suspension of training for more than one year during the COVID-19 pandemic more than 1,18,000 trainees have been enrolled across various training programs being implemented by the HPKVN.
Asian Development Bank (ADB) Assisted Himachal Pradesh Skill Development Project (HPSDP): HPSDP became operational in May, 2018 and will end in June, 2025. Total cost of the project is ₹827.00 crore with the following breakup:
a) Asian Development Bank (ADB) Share: ₹661.00 crore and
b) Himachal Pradesh State Government Share: ₹166.00 crore
Contracts amounting to ₹613.00 crore were awarded and an amount of ₹505.00 crore were claimed as disbursement against ADB Share and total ₹83.15crore have been utilized against the state share.
HPKVN Projects/Activities:
i) Setting up of Center of Excellence (CoE): To create an institutional framework for the long-term skill development needs of the State, a Center of Excellence (CoE) is being setup at Waknaghat, Solan with an estimated cost of ₹84.00 Crore on Civil Works which is expected to be completed by June 2025.
164 candidates have been trained in the Tourism & Hospitality domains (Food Production, F&B Operations, Hotel Operations and Management, Fitness and Wellness). The first batch consisting of 61 candidates has completed their training of which 39 have been placed. The second batch comprises 103 students and underwent internship which was completed by 31st December, 2024 and 39 students have been placed.
ii) Short Term Training Programmes through Government Industrial Training Institutions (ITIs) of Himachal Pradesh: HPKVN under its HPSDP has organized short term up skilling and multi skilling trainings in ITI’s and more than 21,000 students have been enrolled and more than 13,000 were certified in various sectors such as Automotive, Construction, Plumbing, IT-ITes, Capital Goods, Apparel & Made-ups, Electronics and Hardware etc. against training target of 21,236.
iii) Graduate Add On Training Programmes: To enhance employability of final year graduating students of 28 Government Degree Colleges, HPKVN has introduced a National Skills Qualifications Framework (NSQF) aligned graduate add on training programmes in various sectors, namely: i) BFSI (Banking Finance Securities and Insurance), ii) IT-ITeS, iii) Apparel & Made-ups, iv) Hospitality & Tourism, and v) Media & Entertainment. Against target of 7,500 students, 6,868 students have been certified.
iv) National Skill Qualification Framework (NSQF) aligned Recognition of Prior Learning (RPL) Training: Under the RPL component of HPSDP, 10,622 candidates have been enrolled and 8,181 candidates got certified.
v) Short-Term Training Programmes through Training Service Providers (TSPs): Short Term Training in industry relevant skills is being imparted across various sectors/job roles to the Himachali youth and presently more than 4832 candidates have been certified.
vi) Bachelor of Vocation (B.Voc) Degree Programme: The Program is a collaborative effort between HPKVN and the Department of Higher Education (DoHE). This three-year full-time degree program is being implemented under the state component of the HPSDP. The B.Voc. program was initially launched in 12 colleges across two sectors, Retail Management and Tourism & Hospitality, starting from the academic session 2017-18. It was further expanded in 6 colleges in 2021-22 academic session and an additional 2 colleges in the 2023-24 academic session. At present, 5,755 candidates have been enrolled against the target of 2,880, and 2,053 candidates have been certified.
vii) Skill training for Persons with Disability (PwD’s): To generate livelihood opportunities for Persons with Disabilities (PwD) candidates, 403 candidates have been certified by HPKVN in Retail and Tourism & Hospitality sectors.
viii) Up-gradation of Tools and Equipments in 50 ITIs, Women Polytechnic (Rehan, district Kangra) and Government Engineering Colleges: The HPSDP has facilitated up-gradation of 64 ITIs wherein 29 trades were converted/upgraded from State Council for Vocational Training (SCVT) to National Council for Vocational Training (NCVT) levels with funding provisions of ₹81.00 crore. This includes equipment’s for Women Polytechnic Rehan and Government Engineering Colleges. The procurement for up gradation of all the above-mentioned technical training institutes has been completed.
ix) City Livelihood Centers (CLCs), Rural Livelihood Centers (RLCs), Model Career Centers (MCC) and other aligned infrastructure: To provide institutional support for skill development activities across the State the 6 CLCs, 7 RLCs and 10 MCC are being constructed with budgetary provision of ₹153.00 crore.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY): PMKVY was launched on 2nd October 2016. HPKVN is the implementing agency for the state component of PMKVY 2.0 (2016-20), 3.0. (2020-21) and 4.0. To meet the said mandate, HPKVN has enrolled more than 16,500 youth under PMKVY 2.0 since the financial year 2018- 19 in various job roles across 22 Sectors. PMKVY 3.0 was launched in December 2020 and trainings have commenced during the financial year wherein against an enrolment of 501 candidates, 394 were certified under short term training. Similarly, under Recognized Prior Learning (RPL) 1,235 candidates were certified. PMKVY 4.0 has also been launched and against an initial target of 5,000, more than 3,000 candidates have been enrolled. The enrolments for the remaining numbers is underway. Apart from this, an additional target of 10,000 has been received from Ministry of Skill Development and Entrepreneurship.
Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP): HPKVN is implementing World Bank assisted SANKALP with sanctioned funds of ₹2.10 crore to strengthen institutional mechanism and skilling ecosystem across the state and the said project is set to close by March 2025.
MoUs with reputed Government Training Institutions: With a view to focus on high and aspirational skilling, HPKVN has signed MoU’s with various Government Institutions and Public Universities like National Institute of Electronics and Information Technology (NIELIT), Centre for Development of Advanced Computing (CDAC), Institute of Hotel Management (IHM)] Atal Bihari Vajpayee Institute of Mountaineering and Allied Sports (ABVIMAS), National Institute of Financial Management (NIFM), Himachal Pradesh University (HPU), Institute of Chartered Accountants of India (ICAI), University of Horticulture and Forestry (UHF) and National Institute of Fashion Technology (NIFT) and National Institute for Entrepreneurship and Small Business Development (NIESBUD) and Central Institute of Petrochemicals Engineering & Technology (CIPET) for imparting training to around 15,206 Himachali youth in industry driven job roles. At present around 17,817 candidates have been enrolled and 14,786 have been certified under the aforementioned programmes.
English, Employability and Entrepreneurship (EEE) Training: HPKVN, in association with the Directorate of Higher Education (DoHE), had introduced English, Employability, and Entrepreneurship (EEE) Programme in 56 Government Degree Colleges of Himachal Pradesh during the academic session 2022-23. The objective was to facilitate the development of English language speaking, employability, and entrepreneurial skills for 5,000 final-year graduating students of Government Degree Colleges. Subsequently, Memorandums of Understanding (MoUs) have been extended and an additional target of 5,000 students was allocated. Currently, 5,680 students have been certified.
Flexible Memorandum of Understanding (Flexi-MoU): Flexi-MoU is a unique initiative wherein upto 70 per cent placement (of the certified candidates) outcome is to be ensured to meet the 70 per cent payout milestone. Under this initiative, against total certification of 522 youth, 408 candidates have been successfully placed.
MoU’s with Government Industrial Training Institutes (ITIs) for Drone Service Technician Training: n view of the introduction of industry 4.0 courses, under NSQF aligned short term trainings, 249 candidates have been enrolled in Drone Service Technician Job Role in 11 Government Industrial Training Institutes(ITI’s).
Memorandum of Understanding (MoU) with 21 Sector Skill Councils: HPKVN has entered into Memorandum of Understanding with 21 Sector Skill Councils (SSC)under HPSDP to provide training and employment opportunities to the youth in futuristic skills for Industry 4.0. Against the allocated target of 10,880, 9,013 students have been enrolled, 6,823 have been certified and the result of the remaining candidates is awaited.

The Himachal Pradesh Building and Other Construction Workers Welfare Board came into existence on 2nd March, 2009. HP BOCW Welfare Board is functioning with the prime motive to extend financial benefits to all registered unorganized sector workers engaged in Building and other construction works across the State. For registration in the HP BOCW Welfare Board, every building worker who has completed 18 years of age but has not completed 60 years, is not a member in any other welfare fund and who has completed 90 days of employment as a building workers in a year is be eligible for membership in the fund.
The Board is running various welfare schemes like: Marriage Assistance Scheme, Maternity-Paternity Assistance Scheme, Education Assistance Scheme, Medical Assistance Scheme, Pension Assistance Scheme, Disability Pension Assistance Scheme, Death-Funeral Assistance Scheme, Female Child Birth Gift Scheme, Disabled Children Benefit Scheme, Widow Pension, Hostel Facility Scheme for children of construction workers for welfare of the registered workers of the Board. The Board has registered 4,57,964 workers since inception upto November, 2024. Financial benefits of ₹26.69 crore have been disbursed to 7049 beneficiaries and labour Cess amounting to ₹103.53 crore was received/collected in the year 2024-25 up to December, 2024 from various establishments. The Board since its inception has disbursed benefits amounting to ₹500.40 crore on different welfare schemes to 5,58,904 beneficiaries. The Welfare Board has developed a mobile App through the Department of Digital Technology and Governance to speed up e-KYC of its beneficiaries and the same is being used by the District Labour Welfare Officers for new registration and renewals of the beneficiaries of the Board.
The Board is organizing awareness camps through Labour Welfare Officers of Welfare Board across the State to publicize welfare schemes. Government of Himachal Pradesh has recently approved New Scheme “Mukhyamantri Widow/Single/Destitute/Divyang Mahila Awas Yojna” for registered women workers of the HP BOCW Welfare Board. Under this scheme of ₹3.00 lakh will be provided to registered women workers for construction of house, whose annual income is less than ₹2.50 lakh per annum.
Himachal Pradesh government has made significant strides in employment and skill development. According to the PLFS 2023-24, Himachal Pradesh shows a high Labour Force Participation Rate and Worker Population Ratio, particularly among women. The State has also focused on improving vocational training through initiatives like Himachal Pradesh Skill Development Project and Pradhan Mantri Kaushal Vikas Yojana. With over 1.18 lakh trainees enrolled, these programs aim to enhance employability. Additionally, employment assistance is provided through a network of Employment Exchanges, skill development allowances and job fairs. The Himachal Pradesh Building and Other Construction Workers Welfare Board has supported over 5.5 lakh beneficiaries with various welfare schemes. The State continues to invest in skill development infrastructure to boost employment and self-employment opportunities, particularly for marginalized groups.

Himachal Pradesh draws visitors from across the globe. Himachal Pradesh is famous for its Himalayan landscapes and popular hill stations. Many outdoor activities such as rock climbing, mountain biking, paragliding, trekking, rafting, ice skating and heli-skiing are popular tourist attraction in Himachal Pradesh. Himachal Pradesh tourism is fast growing, contributing a large share to the income of the State. This boom in tourism has increased the number of hotels and resorts in Himachal Pradesh boosting economy of the State.
The State is known for its snow- capped mountains, lush valleys, pristine rivers and adventure sports making it a haven for nature lovers and thrill-seekers alike. Key attractions include Shimla the “Queen of Hills” Manali, Dharamshala, Dalhousie, Spiti Valley and the great Himalayan National Park, a UNESCO World Heritage Site. Himachal Pradesh’s economy is supported by sustainable tourism practices, which not only generate employment opportunities for the local population but also promote the preservation of its natural and cultural assets. Eco-tourism, adventure tourism and wellness tourism are key focus areas for sustainable growth. The State also has a rich treasure of places of pilgrimage and of Archaeological value. At present, about 4,938 hotels having bed capacity of about 1,38,136 are registered with the department. In addition, there are about 4,905 Home Stay units registered in the State, having about 30,881 beds. This chapter examines the impact of tourism sector growth in the state and highlights key outcomes in both the tourism and transport sectors of Himachal Pradesh.
According to the latest World Tourism Barometer, international tourism virtually recovered (99 per cent) pre-pandemic levels in 2024. An estimated 1.4 billion tourists were recorded an increase of 11 per cent over 2023. Among the world’s top five tourism earners, the United Kingdom (+40 per cent), Spain (+36 per cent), France (+27 per cent), and Italy (+23 per cent) saw robust growth in the first nine to eleven months of 2024, compared to 2019. Data on international tourism expenditure reflects the same trend, especially among large source markets such as Germany, the United Kingdom (both+36 per cent compared to 2019) the United States (+34 per cent), Italy (+25 per cent) and France (+11 per cent). Expenditure from India remained high in the first half of 2024 (+81 per cent above 2019 levels), after extraordinary growth in 2023.

Tourism is one of the largest economic sector that creates jobs, drives exports, and generates prosperity. It also has the major potential to contribute to the local economy. Himachal being diverse in landscapes, cuisines, heritage, adventure, wildlife and culture is emerged as a well-known destination for both overseas and domestic travellers in recent years.
Tourism industry contributes 7.78 per cent of Himachal’s GSDP (Gross State Domestic Product). This is driven by activities related to hospitality, transportation, handicrafts and other allied industries.
Tourism and Hospitality Sectors: Tourist arrival is one of the main indicators of the demand for tourism in a particular destination. Table 12.1 presents the data on the foreign and domestic tourist arrivals in Himachal Pradesh from 2012 to 2024. After the COVID-19 pandemic, 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 and 160.05 lakh in 2023 to 181.24 in 2024 in absolute terms. It shows that the tourist arrivals are reaching pre-pandemic levels. The need of the hour, given our fragile ecosystem, is to ensure that this growth continues sustainably. Figure 12.1 shows that tourist arrival hugely improved after the lockdown of 2020 (-81.33).

Tourism being integral pillar of the economy, various development initiative has been taken up by Government of Himachal Pradesh and Government of India.
The Asian Development Bank (ADB) The Department of Economic Affairs, Government of India (GOI) has approved an ADB project for a New Project-II on 30th November, 2021 for Himachal Pradesh. The total project cost is US$291.04 Million (₹2,415.63 crore). Out of this ADB share is US$233 million (₹1,933.90 crore) and the State share is US$58.04 (₹481.73 crore). The Project will be executed in two Tranches. The ADB & State share is in the ratio of 80:20 respectively. The Department has prepared Detailed Project Reports (DPRS) of subprojects approved under Tranche-1 (Civil sub-projects, Soft Component and Goods & Equipments). Sub- projects under Tranche-1 of new ADB project will be executed in 05 Districts i.e. Shimla, Mandi, Kullu, Kangra and Hamirpur. Simultaneously, the process will also be started for preparing the list for Tranche-II sub-projects.
Swadesh Darshan Scheme 2.0 Ministry of Tourism, Government of India has revamped its “Swadesh Darshan Scheme” as Swadesh Darshan 2.0 with the vision to develop Sustainable tourism destinations in the country. Pong Dam has been selected as a Tourist Destination under Swadesh Darshan 2.0. After detailed deliberation and consultation with the District Administration and Forest Department, Master Plan Iteration-I for Nagrota Surian has been prepared by Project Development and Management Consultants (PDMC) (Voyants Solution Pvt. Ltd.) and the same has also been approved.
Challenge Based Destination The Ministry of Tourism has launched “Challenge Based Destination Development” a sub-scheme under Swadesh Darshan 2.0 and for the same guidelines have been issued. Accordingly, Tourism Department & Civil Aviation, Himachal Pradesh has identified five destinations for development under the Challenge Based Destination Development Scheme and has submitted proposals prescribed format on 10th January, 2024 to Ministry of Tourism (MOT), Government of India:
i) Tal, District Lahaul-Spiti, Himachal Pradesh
ii) Kaza, District Lahaul-Spiti, Himachal Pradesh
iii) Tandi, District Lahaul-Spiti, Himachal Pradesh
iv) Rakchham, District Kinnaur, Himachal Pradesh
v) Nako-Chango-Khab, District Kinnaur, Himachal Pradesh
Ministry of Tourism has conveyed the selection of two destinations i.e. Kaza (Culture & Haritage) and Rakchham Chhitkul (Vibrant Village Programme) under the sub-scheme. The State Government has notified Destination Management Organization (DMOs) for these destinations.
Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) Scheme The Department has sent the DPR of the said project to the Ministry of Tourism, Government of India, on 30th December, 2023 with a request to consider the request of the state to sanction ₹24.55 crore in first phase. The Ministry of Tourism, Government of India has launched the project “Development of Maa Chintpurni Temple” Amb, District Una under PRASAD Scheme of ₹24.55 crore Approximately. Due to observations made by the Ministry of Tourism, Government of India on the DPR, the department has revised the DPR to ₹57.57 crore during 2024.
Civil Aviation The State Government has 3 airports namely, Jubberhatti (District, Shimla), Gaggal (District, Kangra), Bhunter (District, Kullu). Due to shorter runways, the bigger aircrafts such as A-320 cannot be operated from these airports. As per the various studies of Airports Authority of India (AAI), the expansion of runways at Jubberhatti and Bhunter is not feasible. Hence, the Kangra Airport is the only option for expansion for which State Government is taking necessary steps. The flight operation between Shimla to Dharamshala is being operated through Alliance Air Aviation (AAA) for which Viability Gap Funding (VGF) is being borne by the State Government. Under the Regional Connectivity Scheme (RCS), UDAN, flight operations between Delhi-Shimla-Delhi, Amritsar-Shimla-Amritsar, Amritsar-Kullu-Amritsar and Dehradun-Kullu-Dehradun are also being operated by Alliance Air Aviation Ltd.
Expansion of Kangra (Gaggal) Airport The State Government is deligently striving to extend the current runway length of Kangra Airport from 1376 x 30 mtrs. to 3278 x 45 mtrs. so that bigger aircraft could be landed at Kangra Airport as per the master plan received from Airport Authority of India (AAI). Land measuring 147-75-87 hectare (out of which 122-66-23 hectare land is private land) for the expansion of the Kangra Airport has been identified. For the proposed acquisition of land, the Social Impact Assessment (SIA) was carried out through an independent agency named Social Responsibility Asia (SR ASIA). The appraisal report of the same was further approved by the cabinet after detailed deliberation. Thereafter the Government has approved Rehabilitation and Resettlement plan worth ₹3,349.00 crore for the families likely to be affected by the proposed expansion of Kangra Airport during 2024.
The draft Techno Economic Feasibility Report (TEFR) has been prepared through Water and Power Consultancy (WAPCOS) wherein the Capital Expenditure (CAPEX) has been estimated at ₹4,064.27 crore (Inclusive GST). The draft TEFR has been sent to AAI for approval. As on 31st December, 2024, the Land Acquisition Collector Gaggal Airport-cum-SDM-Kangra has passed award u/s 23 of the Right to Fair Compensation in Land Acquisition, Rehabilitation and Resettlement Act, 2013 worth ₹489.10 crore and the same amount has been released to The District Tourism Development Officer (DTDO) Kangra for further Compensation.
Heliports in Himachal Pradesh State Government has taken a big initiative for expansion for air connectivity by developing Heliports in each District Headquarter and also providing connectivity to important tribal locations in the State. Government is committed to develop 15 new Heliports in the State. In the 1st phase, Nine Heliports are being developed i.e. Rakkar and Palampur (District Kangra), Sultanpur (District Chamba), Alloo Ground Manali (District Kullu), Jaskot, (District Hamirpur), Sharbo (District Kinnaur), Jispa, Sissu and Rangrik (District Lahaul & Spiti). Dharkiyari (Nahan), Bilaspur (site is being identified), Basal (district Solan), Jankaur Haar (District Una), Holi and Pangi (District Chamba) Heliports are being developed in the 2nd phase.

The Himachal Pradesh Tourism Development Corporation (HPTDC) is a pioneer in the development of tourism infrastructure in Himachal Pradesh. It provides a complete package of tourism services, including accommodation catering, transport, conferencing and sports activities. It has the largest chain of hotels and restaurants in the State with 56 hotels, 1,111 rooms with 2,508 beds.
As the tourism industry of the state was looking to bounce back from the pandemic's aftermath, the floods and heavy rainfall in the month of July and August, 2024 not only reduced the footfall of tourists in the state but also caused severe damage to the infrastructure. HPTDC is making all-out efforts to revive from these losses.
The HPTDC has generated an income for ₹74.21 crore upto November, 2024 and the anticipated income for the period December, 2024 to March, 2025 is ₹34.90 crore against the target of ₹115.00 crore for the Financial Year (FY)2024-25.

Roads are a vital infrastructure for the rapid economic growth of the State. Development of important sectors of the economy such as Agriculture, Horticulture, Industry, Mining and Forestry depends upon an efficient road network. In the absence of any other suitable and viable modes of transportation like railways and waterways, roads play a vital role in boosting the economy of hilly States like Himachal Pradesh. Starting almost from scratch, the State Government has constructed 42,779 Kilometers (km.) of motorable roads (inclusive of jeepable and track) till December, 2024. The State Government has been assigning a very high priority to the road sector. Himachal Pradesh State has a good road network. There are 19 National Highways with a total length of 2,592 km. In 15,586 villages are connected with roads. For the State to have significant economic expansion, roads are a crucial piece of infrastructure. The target fixed for FY2024-25 and achievements made up to December, 2024 are given in table 12.5.

There are 19 National Highways with a length of 2,592 Kilometers in the State. The Himachal Pradesh Public Works Department has the responsibility for the development and maintenance of 1,008 km. and the Ministry of Road Transport & Highways (MoRTH) is upgrading 230 km. length as Green National Highways Corridor of NH-07 and NH-03. The National Highway Authority (NHA) of India is developing 5 National Highways stretch of 785 km. length and Border Road Organization (BRO) has responsibility for developing and maintaining 569 km. road length in the State.

The Transport Department functions under the provisions of section 213 of the Motor Vehicle Act, 1988. Transport Department is primarily established for enforcement of the Motor Vehicle Act, 1988, Himachal Pradesh Motor Vehicles Taxation Act, 1972 and the rules framed there under. Transport Department of Himachal Pradesh assists other organizations in the development of transport facilities and endeavours to provide an efficient, adequate and economical transport service for the movement of passengers and goods by road. The department is also a major revenue-earning department in the shape of taxes on motor vehicles.

Revenue Generation: The detail of revenue collection for the financial year 2023-24 and 2024-25 are as under:
Enforcement of Motor Vehicles Act and Rules: The Transport Department has been strictly implementing the provisions of the Motor Vehicles Act. The summery of the challans made during financial year 2024-25 is as under:
Registration of Vehicles: 23,91,265 vehicles (Transport and Non-Transport) are registered in the State. District-wise detail of vehicles registered is as under:

The Transport Department of Himachal Pradesh has made significant progress during the current financial year. Some important achievements, schemes and decisions taken by the department during the current financial year 2024-25 are as under:
i) Setting up of Inspection and Certification Centre at Baddi: The Inspection and Certification Centre at Baddi, District Solan for certification of vehicle fitness in automatic manner without human intervention was sanctioned in the year, 2019 with the project cost was ₹16.35 crore, 95 per cent of civil work has been completed. The Centre will be made operational soon.
ii) Establishment of Transport Nagars:The land for construction of Transport Nagars in 6 districts of the State i.e. Shimla, Kangra, Hamirpur, Sirmaur, Solan and Una has been identified and clearances for the same are being expedited.
iii) Driving Training School (DTS) and Pollution Check Centre (PCC): At present, 408 Driving Training Schools and 322 Pollution Check Centres are established in the State. The detail of the Driving Training Schools and Pollution Check Centres as on 31st December, 2024 is as under:
iv) Employment Generation: The Transport Department has taken steps for providing employment to unemployed youth in the State by granting contract carriage permits/stage carriage permits/Goods carriage permits and Passenger Service Vehicle (PSV) permits to 46,805 applicants during the current financial year 2024-25 up to 31st December, 2024. The permits granted by the department have enabled young unemployed youths to start their own transport business. The details are as under
v)Electric Vehicle Policy: The State has notified “Himachal Pradesh Electric Vehicle Policy, 2022” to establish Himachal Pradesh as a model State for Electric Vehicle (EV). The State has accorded top priority to the introduction of Electric Vehicles in the State.
a) Electric Vehicles: To achieve the objective of making Himachal Pradesh a pollution free State, the Transport Department has replaced its all 19 Internal Combustion Engine vehicles in the fleet with Electric Vehicles.
b) Establishment of E-Charging Stations: State Government in collaboration with various stakeholders viz. Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) etc. is progressing towards establishing Electric Vehicle Charging Stations across the State. For this purpose, the State Government has initially identified 100 locations, of which 54 are Petrol Pumps and 46 were government sites. For the current financial year, 43 more petrol pumps have been identified for establishing charging stations. The State has notified following 6 Green Corridors:
1) Parwanoo-Nalagarh-Una-Hamirpur-Dehra-Amb-Mubarikpur-Sansarpur Terrace-Nurpur.
2) Paonta-Nahan-Solan-Shimla.
3) Parwanoo-Solan-Shimla-Rampur-Peo-Pooh-Tabo-Kaza-Losar.
4) Shimla-Bilaspur-Hamirpur-Kangra-Nurpur-Banikhet-Chamba.
5) Mandi-Jogindernagar-Palampur-Dharamshala-Kangra.
6) Kiratpur-Bilaspur-Mandi-Kullu-Manali-Keylong-Zing-Zing Bar. Out of the above six green corridors, 4 Corridors i.e. 1st ,4th, 5th and 6th are operational as most of the EV Charging Stations at petrol pumps on these corridors are functional for the use of general public
Petrol Pumps: The oil companies have already deposited funds with the HPSEBL for establishment of E-Charging Stations at 38 petrol pumps and services will be made operational at the earliest.
Government Sites: Transport Department has identified 46 government sites on all green corridors for establishment of charging stations. Out of 41 government sites, department has entered into concession agreements for development/establishment of charging stations at 31 locations in Public Private Participation (PPP) mode with following E.V. companies: The Concession Agreement has been signed by the Transport department with 2 private partners i.e. M/s Jio BP and EVI Technologies for 31 locations. These private partners have now started the execution work for setting up of charging stations along with wayside amenities at above locations.
Tourism Hotels: Himachal Pradesh Tourism Development Corporation (HPTDC) intends to establish EV Charging Stations in 65 hotels in coordination with Indian Oil Corporation Limited (IOCL). In the first phase, 10 sites have been selected.
Private Hotels: The Department of Transport is promoting establishment of EV Charging Station in Private Hotels for which regular meetings are being held with Private Hotels. Presently, the following Charging Stations have been established in Private Hotels
c) E- Taxi: The Government has notified Standard Operating Procedure (SOP) on 1st September, 2023 for hiring e-taxi under Rajiv Gandhi Swarojgar Yojana, 2023. Under this scheme, the government is providing 50 per cent subsidy to the unemployed youth for purchase of e-taxi. All these e-taxis will be attached in government departments, corporations and boards. In 1st phase, 54 applicants have been selected by government for providing etaxi subsidy.
d) Automated Testing Stations (ATS): The Government of India has notified that the fitness of the vehicle will now be compulsorily done only through Automated Testing Agency (ATS). The State government has approved setting up two ATS in the government sector. These two ATS will be set up by the Transport Department and HRTC in Nadaun, District Hamirpur and in Haroli District Una respectivly. Preliminary Registration Certificate has been issued to the RTO Hamirpur and HRTC Una for setting up of ATS in Government Sector. Apart from this, the government has approved setting up of 5 ATS in the private sector. These stations will be set up in Bilaspur, Mandi, Kangra, Solan and Nalagarh. The department has issued Preliminary Registration Certificate to all the private investors for setting up these ATS and work is in progress.
v) Registered Vehicle Scrapping Facility (RVSF): Transport Department has issued preliminary consent in favour of 80 applicants for setting up of Vehicle Scrapping Facility Centres (VSCs) in the private sector in Himachal Pradesh. At present, only two applicants have started the work for setting up of VSCs at Solan and Hamirpur and these centres will be made operational at the end of February, 2025. Till date, 1,056 vehicles (496 government and 560 private) have been scrapped through VSCs in the State.
vi) Rent a Motor Cycle and Motor Cab Scheme: The rent motor bike scheme is notified under the provision of the Motor Vehicle Act, 1988. The State Transport Authority granted 3,943 permits to applicants and 3,586 motor cycle have been registered for this purpose.
vii) Fleet Strength of Private Buses and Taxies: The total strength of private stage carriage buses in Himachal Pradesh is 3,488 and the strength of taxis (Seating Capacity 4+1) is 33,822, Maxi (6+1 and above) is 14,006. The District wise and Regional Transport Office (RTO) wise Details are as under:

Himachal Road Transport Corporation (HRTC) is the main source of public transportation in the State as other means of transport namely, Railways, Airways, etc. are negligible. Therefore, Himachal Road Transport Corporation assumes paramount importance. The passenger transport services to the people of Himachal Pradesh, within and outside the State are being provided by Himachal Road Transport Corporation with a fleet strength of 3,079 buses, 110 Electric Buses, 38 Taxis, 50 Electric Taxies and 12 Tempo Travelers.
HRTC Schemes for the benefits of Passengers: For the benefit of people, the following schemes/benefits are in operation:
i) Green Card Scheme: Green cardholder is allowed 25 per cent discount in fare.
ii) Smart Card Scheme: Himachal Road Transport Corporation has introduced the Smart Card Scheme. The cost of the card is ₹100 and having its validity for one year. This is having 10 per cent discount on fare and also valid in HRTC Ordinary, Super Fast, Semi Deluxe and Deluxe buses.
iii) Samman Card Scheme for Senior Citizen: The Corporation has introduced the Samman Card Scheme for senior citizens. Under this scheme, a discount of 30 per cent on fare is allowed in ordinary buses.
iv) Free Facility to Women: Women have been allowed free travelling facility in HRTC ordinary buses on the occasion of "Raksha Bandhan" and "Bhaiya Dooj". Muslim women have been allowed free travelling facility on the occasion of "Id" and "Baker Id".
v) Discount on fare to Women: The Himachal Road Transport Corporation has also allowed a 50 per cent discount on fare in ordinary buses within the State to women.
vi) Free Facility to Students of Government Schools: The students of Government schools up to +2 classes have been allowed free travelling facility in HRTC ordinary buses from their residence to School and viceversa.
vii) Free Facility to the persons suffering from serious disease: Free travelling facility is provided to cancer, spinal injury, kidney and dialysis patients along with one attendant in HRTC buses for the purpose of medical treatment on referral slips issued by the Doctor.
viii) Free Facility to Specially abled persons: The Corporation is providing free travelling facility to specially abled persons having disability of 70 per cent or more along with one attendant within the State.
ix)Free Facility to Gallantry Awardees: The Gallantry Award winners have been allowed free travelling facility in HRTC’s ordinary buses in addition to Deluxe Buses in the State.
x) Himachal Pradesh Bus Stand Management & Development Authority (HPBSMDA) completed construction of new bus stand in Bhanjraru, District Chamba, Dhalli and Kumarsain (Rampur) District Shimla.The construction work of 4 bus stands, one car parking at bus stand Banjar and 1 bus parking at Volvo ground Manali has been completed and are ready for inauguration. The authority has fixed targets to achieve the completion of construction work of 6 bus stands during the FY2025-26. There is a proposal for construction of 3 more bus stands.
xi) The HRTC has started new bus service to religious places under “Pratham Darshan Sewa” to Sri Ayodhaya Dham.
xii) The HRTC has introduced 17 new bus services covering 2,672 kilometers (KMs) and extended/ diverted 37 services, covering 1,362 kilometers.
xiii) With an objective of having cashless transactions while buying tickets in the buses, digital fare collection system has been started by introduction of new Electrical Battery Thermal Management (EBTM) facilitated with cashless transaction through debit cards, Quick Response Code (QR) scan and National Common Mobility Card (NCMC) cards. In conclusion, Himachal Pradesh witnessed a significant influx of tourists, with 181.24 lakh visitors, including 180.41 lakh Indian tourists and 0.83 lakh foreigners in 2024. The government allocated ₹57.57 crore for the development of Maa Chintpurni Temple under the PRASAD scheme.
With 23.91 lakh vehicles registered in the state, the Transport Department generated ₹656.80 crore revenue. Additionally, the department licensed 408 Driving Training Schools and provided employment to 46,805 people. The state also identified 100 locations for Electric Vehicle Charging Stations, furthering its sustainable transport initiatives.
The State Government has made significant progress with the establishment of electric vehicle (EV) policies, inspection centers, and charging stations, aiming to make Himachal Pradesh a model state for EVs. The Himachal Road Transport Corporation (HRTC) also offers a range of passenger benefits and operates extensive bus services within and outside the state. Continued development of bus stands and the introduction of digital payment systems reflect the Government's commitment to modernization and accessibility.

Upon achieving full Statehood, the literacy rate in the State stood at a modest 31.96 per cent. The State has undergone substantial advancements in both education and the economy, primarily attributable to concerted efforts in expanding educational infrastructure. The surge in school enrollment and literacy rates is a testament to the commitment of political leadership, administrative engagement, and societal initiatives. The inclusion of Article 21A in the Indian Constitution through the 86thAmendment underscores this commitment. This article mandates that the State must provide free and compulsory education to all children aged 6 to 14, as prescribed by relevant laws. The Right of Children to Free and Compulsory Education (RTE) Act of 2009 further solidifies this commitment, ensuring that every child receives free and compulsory education until completion of elementary schooling. This chapter explores the status of education in Himachal Pradesh and the various policy initiatives aimed at making this public good accessible to all sections of society.
The literacy rate in Himachal Pradesh was 82.80 per cent in 2011, which was 8.8 per cent higher than the national average of 74.0 per cent. The male literacy rate was 89.53 per cent, while the female literacy rate was 75.93 per cent. According to the National Family Health Survey (NFHS)-5 conducted in 2019-21, the literacy rate in Himachal Pradesh has increased to 93.3 per cent. The male and female literacy rates are now 94.9 per cent and 91.7 per cent, respectively, with a 3.2 per cent gender disparity.

As on 31st December, 2024, there are 9,943 Primary Schools and 1,786 Middle Schools in Government Sector. To overcome shortage of trained teachers, efforts are being made to make fresh appointments of teachers in the schools regularly. An attempt has also been made to cater to the educational needs of specially abled children.
The policies of the Government in the field of elementary education are implemented with following aims:
i) To achieve the goal of universalization of Elementary Education.
ii) To ensure that all children have access to a high-quality elementary school education.
iii) Access to education for every child in the State.

State-Sponsored Scholarship Schemes

The following incentives were provided during 2024-25:

As on December, 2024, in Government sector there are 961 High schools, 1988 Senior Secondary Schools and 145 Degree Colleges including 09 Sanskrit Colleges, 01 State Council of Educational Research and Training (SCERT), 1 B. Ed. College and 01 Fine Art College, running in the State.

To improve the educational status of the deprived section of the society, various types of scholarships/stipends are being provided by the State/Central Government to various stages. The scholarship schemes are as under:

Continuous efforts are being made for this purpose by the State Government as well as Central Government. The details of those efforts are as under:
i) Award of scholarships to students of High/Sr. Sec. Schools studying Sanskrit.
ii) Providing Grant for the salary of Sanskrit Lecturers for teaching Sanskrit in Secondary Schools.
iii) Modernization of Sanskrit Schools.
iv) Grant to State Government for various schemes for promotion of Sanskrit and for research/ research projects

During the year 2024-25 the State Council of Educational Research and training Solan and Government College of Teacher Education Dharamshala, Himachal Pradesh organized Training Programme in which 802 teaching and nonteaching staff of schools/ colleges have been trained.

The state Government provided free text books to all the students studying in 9th and 10th classes. During 2024-25, 1,41,970 students have been benefited under this scheme.

Free and compulsory Education for Children with 40 per cent or above disabilities is being provided in the State and they have been exempted from paying fee and funds up to 10+2 level. Further, Children with special needs are exempted from paying fees up to university level.

Free education, without any tuition fee, is being provided to girl students in the State up to the University level.

IT education is being imparted in all Government Senior Secondary Schools on self-finance basis where students have opted for IT education, as an optional subject. The Department is charging IT fee @110 per month per student. The students of SC (BPL) families are getting this facility with 50 per cent fee concession of fee. In 2024-25, 68,250 students are enrolled and 4,756 students from SC (BPL) backgrounds have availed fee concession under this Scheme.

Chief Minister, Himachal Pradesh had announced in the Budget Speech for the year 2023-24 to open one “Rajiv Gandhi Government Model Day-Boarding schools” in each legislative Assembly Constituency of Himachal Pradesh having capacity to accommodate at least 900-1000 students in classes pre-primary to 12th .
Facilities like Hi-tech Smart class rooms, play fields, indoor stadium/ playgrounds and other facilities like swimming pool etc. will be made available in these schools. The construction work of five Rajiv Gandhi Government Model Day Boarding Schools namely Lahdoo and Nagrota Bagwan (Kangra), Amlehar and Bhoranj (Hamirpur) and Saghnei (Una) has been started.

The Rashtriya Ucchtar Shiksha Abhiyan has been implemented in the state to improve Higher Education System. RUSA grant is being funded to 70 colleges and Himachal Pradesh University (HPU). HPU Shimla has been selected under MultiDisciplinary Education & Research Universities (MERU), Sardar Patel University (SPU), Mandi under grants to Strengthen Universitites (GSU), 4 Colleges i.e Government College Darlaghat, Government College Bhalei, DAV Kangra, Government College Mandi under grants to Strengthen Colleges (GSC) and 04 Districts i.e Sirmour, Chamba, Una and Kangra under Gender Inclusion and Equity Initiatives (GI&EI) under Pradhan Mantri Uchchatar Shiksha Abhiyan (PM-USHA).

This scheme is to assist meritorious students of Himachal Pradesh by providing them coaching for Common Law Admission Test (CLAT)/ National Eligibility cum Entrance Test (NEET)/ Indian Institute of Technology - Joint Entrance Examination (IIT-JEE)/ All India Institute of Medical Sciences (AIIMS)/ Armed Forces Medical College (AFMC)/ National Defence Academy (NDA)/ Union Public Service Commission (UPSC)/ Staff Selection Commission (SSC)/ Banking etc. for qualifying examinations for admission in prestigious technical/ professional institutes. Meritorious students of H.P. whose families annual Income does not exceed ₹2.50 Lakh per annum, are eligible for this scheme. A proposal for merger of certain scholarships is under consideration of the Government.

Cameras are being installed in 91 Government High Schools (GHSs) and Government Senior Secondary Schools (GSSSs) of the State during the financial year 2024-25 under CCTV surveillance scheme.

During the year 2023-24 and 2024-25 Education department has provided 74 Kabbadi Mats, 08 Boxing Rings, 09 Wrestling Mats and 17 Weightlifting Platform sets to Schools and Colleges amounting to ₹255.71 lakh. Approximately 70 Schools and 20 Colleges are being covered under this scheme.

Under this scheme, the financial assistance @ ₹1.00 Lakh is provided to the top 100 meritorious students of 10th class of Government schools for undergoing coaching for admission in professional/technical courses. The Government has sanctioned an amount to ₹1 crore in this scheme during the financial year 2024-25.

Under C. V. Raman Virtual Classrooms Scheme, the procurement process has been completed for 29 GSSSs and 17 Government Colleges of state.

B.Voc Degree Program started in 20 Government colleges of the states in two sectors i.e. Retail Management (RM) and Hospitality & Tourism (H&T). Under this scheme 80 students are enrolled in a batch (40 students in RM and 40 in H&T). 3,347 students are under training/ enrolled during the academic session 2024-25.

The Government has issued guidelines that state education department adopt school cluster approach so that positive impact is brought on quality of education and overall development of the students. At present 2252 cluster schools (GHSs/GSSSs) are functioning in the state.

Under adoption of schools, scheme namely “APNA VIDYALAYA HIMACHAL SCHOOL ADOPTION PROGRAMME”, 1765 Government Sen. Sec. Schools/ High Schools have been adopted by the 2811 adopter such as Retired. Educationist/MLAs/MPs/IAS/HAS/IFS/IPS/Doctors/Social Workers/other Department Employee etc.

The main emphasis of the integrated scheme is on improving the quality of school education by focusing on the two T’s- Teacher and Technology. The strategy for all interventions under the Scheme is to enhance the learning outcomes at all levels of schooling. Samagra Shiksha is running in a sharing pattern of 90:10 (90 per cent Government of India and 10 per cent state Government).
Main schemes running under Samagra Shiksha are:

Early Childhood Care and Education: Early Childhood Care and Education (ECCE) is considered to be a precursor to school education. These preschool years impact a child’s educational life significantly and lay the foundation for effective school education in the later years. Effective ECCE leads to qualitative enrolment in higher grades, a reduction in dropout rate and also helps children to acquire foundational literacy and numeracy in early grades.
National Education Policy (NEP) 2020 has envisaged an expansion of early childhood education and lays emphasis on inclusion of economically weaker sections. The policy focuses on children’s physical and motor, cognitive, socioemotional-ethical, cultural/ artistic, communication and early language, literacy and numeracy development skills.
Emphasis on ECCE in NEP has the potential to offer wide ranging developmental benefits for early-grade learners across India.

Pre-Primary-ECCE classes were started by Government of Himachal Pradesh in 3,391 Primary Schools across the state in the financial year 2018-19 in the first phase. Over the years, schools from different districts have been added in a phased manner. Pre-Primary intervention is currently running in selected 6,202 primary schools of the state with a student strength of 66,852 children across the state.

Information and Communication Technology (ICT) Project: Information and Communication Technology (ICT) has become one of the fundamental building blocks of modern society. The three cardinal principles of access, equity, and quality can be effectively served by harnessing the immense potential of ICT. For teachers, ICT not only builds ICT skills but also enhances teaching and learning. ICT solutions have shown promise in building foundational skills, paving the way for developing important 21st-century skills such as Communication, Collaboration, Creativity, Critical Thinking, and Problem-Solving.
Vocational Education: Government of India has brought out a revised centrally sponsored scheme of Vocationalisation of Secondary and Higher Secondary Education by integrating employability education into school education in September, 2013. Now this scheme is covered under the National Skill Qualification Framework (NSQF) Progrmme implementation under Vocationalization of Schools Education in Schools of Himachal Pradesh, which established a system of clear vocational pathways from school to higher education by providing certification of vocational skills. The project has been approved for the State of Himachal Pradesh by MoE, Government of India. The aim of the project is to make students employable when they complete Higher Secondary Education.
The NSQF has been implemented in 1274 Government Senior Secondary Schools of the State in 16 different Vocational trades/ sectors, namely Healthcare, Agriculture, Retail, Tourism & Hospitality, Automobile, IT/ ITeS, Telecom, Banking, Financial Services & Insurance (BFSI), Media & Entertainment, Physical Education, Private Security, Apparels Made ups & Home furnishing, Beauty & Wellness, Electronics & Hardware, Food Processing and Plumbing.
During the session 2022-23, the total enrollment of students was 92,054 and in the year 2023-24 the total enrollment of student was 97,821.
Vocational Education: Inclusive Education for Children with Special Needs (CwSN) Inclusive Education is carried out in a common learning environment that is an educational setting where students of different abilities learn together in an inclusive environment. The Centrally Sponsored Scheme of Integrated Education for Disabled Children was introduced in the year 1992 to provide educational opportunities to children with disabilities in general schools and to facilitate their retention in the school system. Samagra Shiksha norms were further strengthened by the RPwD Act, 2016 and RTE Act, 2009 which talks about free and compulsory elementary education to children without any discrimination based on caste, gender, disability, etc.
In Himachal Pradesh, 5,700 Children with Special Needs (CwSN) have been identified in 2023-24, of which 129 CwSN at the pre-primary level and 4,013 CwSN at the elementary level and 1,558 CwSN at the secondary level have been integrated into formal schools. Home Based Education Programme was implemented for 1,464 CwSN of the severe and profound category at the elementary level.
Activities under Inclusive Education:
i) Medical Assessment Camps.
ii) Distribution of Aids & Appliances.
iii) Braille books and enlarged print books for visually impaired children.
iv) Escort allowances.
v) Home-based education programme.
vi) Stipend for girls.
vii) Environment Building Programme.
viii) Engagement of special educators.
ix) Capacity building of in-service special educators.
x) Sports event.
xi) Exposure Visit for CwSN.
xii) Day care centers for Mentally Retarded children.
xiii) Model Inclusive Schools with Hostel facility.
xiv) Orientation of Principals, Educational administrators.
Kasturba Gandhi Balika Vidyalaya (KGBV): In Himachal Pradesh, there are 14 KGBVs. Out of 14 KGBVs, eleven are in district Chamba, one in district Shimla and two in district Sirmour. All 14 KGBVs are fully functional and are being managed through Samagra Shiksha Abhiyan (SSA). Currently, 908 girls are residing in all KGBVs. All these hostels are attached to Government Senior Secondary Schools or Government High Schools. Girls belonging to SC/ST/OBC/IRDP are residing in the hostel. Girls studying in Kasturba Gandhi Balika Vidyalaya in Himachal Pradesh are mostly from Scheduled Castes, Scheduled Tribes and Backward Classes.
Unified District Information System for Education Plus (UDISE+): Ministry of Education, Government of India has replaced the offline UDISE to online UDISE+ so that in future the country is able to move towards Real Time UDISE data. UDISE+ data for the year 2022-23 was collected online and finalized and certified on 24th August, 2023. Districts have been asked to share respective UDISE reports with the schools, Cluster Resource Centre Coordinator (CRCCs), Block Resource Centre Coordinator (BRCCs), Block Primary Education Officer (BPEOs) and Deputy Directors. Further, districts undertake Social Audit by sharing & discussing UDISE-School Report Card with the Community i.e. School Management Committee/Mothers Teachers Association (SMC/MTA) etc.
Teachers and Students exchange Programme: Under Teacher and Student Exchange Programme, 240 students along with 24 teachers visited Kerala in two batches. First batch of 120 students and 12 escort teachers visited Kerala w. e. f. 20th January, 2024 to 28th January, 2024 and second batch of 120 students and 12 escort teachers visited w. e. f. 27th January, 2024 to 04th February, 2024.
Sports & Physical Education Sports and Physical Education component has been a part of Samagra Shiksha which has provision for procurement of sports equipment. Expenditure for meeting expenses on procurement of sports equipment for indoor & outdoor games is to be made from this component.
Youth & Eco Club: Participation in youth clubs, provide students with the opportunity to develop essential life skills, nurture their self-esteem, and cultivate the ability to overcome challenges and setbacks. Eco Clubs in Schools are an intervention under Samagra Shiksha to enable students to take up meaningful environment friendly activities and projects, thereby developing sensitivity and an understanding for the ongoing environmental concern.
Sanitary Napkins Vending & Incinerator Machines: In the FY2023-24, Samagra Shiksha has installed Sanitary napkins Vending & Incinerator Machines in 4,739 Government schools of Himachal Pradesh including 1,949 Middle Schools, 936 High Schools and 1,854 Sr. Sec. Schools.
Self –Defense Training Under Samagra Shiksha, all the girl students studying in Government Middle / High/ Sr. Secondary Schools of Himachal Pradesh have been trained through expert trainers in various Techniques of Self-defence Self Safety. In 2023-24, Self-defence training was imparted in 4706 Government schools and 2,58,223 girls were trained.

The Department of Technical Education came into existence in the year 1968. In July, 1983 professional and Industrial Training Institutes were brought under its ambit. Presently the department is providing technical, professional and industrial training. Interested students can take admissions in the degree course in engineering and pharmacy, diploma courses in polytechnic colleges and certificate courses in following institutions:

Ministry of Skill Development and Entrepreneurship Government of India has introduced a Central Sector Scheme (CSS) namely STRIVE assisted by the world bank with an objective for improving the relevance and efficiency of Skills training provided through ITI’s and apprenticeships. The project also covers Private ITI’s and Industrial clusters. The project commenced in December 2017 and has been completed in May, 2024.
Under the STRIVE Project, 33 ITI’s (32 Government & 01 Private) of the state have been selected to upgrade the infrastructure of these ITI’s so that quality training could be imparted to the trainees. ₹4,295 lakh have been utilized for the purpose. To promote apprenticeship training in the state, 06 Industry Clusters i.e. Baddi Barotiwala Nalagarh Industries Association (BBNIA), Baddi, Jila Laghu Udyog Sangh (JLUS), Bilaspur & Himachal Chamber of Commerce and Industry (HCCI), Paonta Sahib, Mehatpur Industrial Association, Mehatpur, Solan Industrial Association & Haroli Block Industries Association, were selected under the project.
Achievements under STRIVE Project during 2024-25:
i) Under Central Sector Schemes (CSS) for Skill Strengthening for Industrial Valve Enhancement’ (STRIVE), 25 video conferencing systems for 25 ITI’s and 6 interactive panels for 3 Government ITI’s have been purchased at a cost of ₹97.82 lakh.
ii) 120 all-in-one computers were purchased for IT and Computer Operator and Programming Assistant (COPA) labs of 10 Government ITI’s incurring a total expenditure of ₹89.05 lakh.
iii) Procurement of 10 kilo-volt-amperes (KVA) power saving inverters was made for 16 Government ITI’s with an expenditure of ₹71.95 lakh.
iv)25 kilovolt (KV) on-grid solar power plants at a cost of ₹36.75 lakh have been installed in 3 Government ITI’s Namely Government ITI Nihri, Shillai, and Garhjamulla. 100 Nos. Solar street Lights (9W) at a cost of ₹11.79 lakh have been installed in 16 Government ITI’s of the State.

Government Polytechnic Jandaur has been functional from academic session 2024-25.
i) 49 trainees under National apprentices training scheme and 94 trainees under national apprentices promotion scheme in engineering colleges, polytechnics, pharmacy colleges and Government Industrial training institutes have been engaged, wherein stipends is provided to every trainee along with training.
ii) 27 students have been trained at Government Polytechnic college Sundernagar under the Jal Urja Mitra Skill Development Program under ministry of Skill Development sponsored by IIT Rurkee.
iii) 399 Faculty and 4019 students have been registered/ attended open online course/ Swayam course.
iv) Faculty development program run by National Institute of technical teachers training and research (NITTTR) Chandigarh/ Himachal Institute of Public Administration (HIPA) has educated more than 161 faculties through online/ offline mode.
v) Notification to start new M.Tech in electrical engineering (Electrical Vehicle Technology) at Government Hydro Engineering college Bandla has been issued by the State Government.

The ASER (Annual Status of Education Report) Report for the year 2024 presents an analysis based on data collected from Rural Himachal Pradesh. The report highlights key findings through various Figures, shedding light on crucial aspects of the education status in the State. The report say that Himachal is amongst the top states who have recorded significant gains with an overall increase of more than 10 percentage points in various spheres in schools between 2022-2024. The latest Annual Status of Education Report (ASER) report for the year 2024 in which 268 rural schools were inspected indicates encouraging results for Rural Himachal Pradesh especially Government schools in several areas. Some of the indicators are shown below with tables and diagrams. The above figure illustrates the enrolment status of children of different age group in terms of percentage. The enrolment in Government schools in the age group of 7-10 years (girls and Boys both) is 55.7, whereas enrolment of girls and boys in the same age group is 57.6 and 54 per cent respectively. In the age group of 15-16 (Girls and boys) overall enrolment percentage is 71.7, whereas enrolment of girls and boys in the same age group is 73.1 and 70.2 per cent respectively. It shows that enrolment percentage of female students in Government schools is more as compared to male students. The percentages in the above figure depict the reading ability of children by standard. The above figure shows that 12.8 per cent students of Standard-I are not able to read even a letter, 29.2 per cent students can read a word. On the other hand, 14.6 per cent students of std.-I could read the Std.-I text book and 9.0 per cent students can read the Std.-II books. 0.1 per cent students of Std.- VIII are not able to read a letter. Figure 13.3 presents that 19.2 per cent students of Std.-I recognize numbers 1-9 and 62.6 per cent students recognize numbers 11-99, 6.90 per cent can subtract and 2.40 can divide the numbers. While 20.60 per cent students of Std.-VIII can subtract and 51.80 can divide the numbers. The table 13.9 below shows the access and ownership of digital devices among rural children in Himachal Pradesh in terms of the percentage. A brief analysis of the availability and use of Smart phones shows that in age of 14 years, 97.4 per cent children have their own smart phone, 94.1 per cent can use it and 83.1 per cent can put it to digital tasks. Whereas in age of 16 years 96.5 per cent children do have their own mobile, 95.7 per cent can use it and 84.3 per cent can put it to digital task. In conclusion, Himachal Pradesh has made significant strides in education with a strong focus on accessibility and quality. The state offers a wide range of educational facilities, including 9,943 primary schools, 1,786 middle schools and 1,988 senior secondary schools. The literacy rate has increased from 82.8 per cent in 2011 to 93.3 per cent in 2021, reflecting the government's commitment to education. Several state-sponsored scholarships support students across various categories, including the Medhavi Chhatarvriti Yojana, Dr. Ambedkar Medhavi Chattarvriti Yojana and the Swami Vivekanand Utkrisht Chhatervritti Yojana, benefiting thousands of students. Additionally, initiatives like the PM Poshan Scheme and the Mukhya Mantri Bal Paushtik Aahaar Yojna aim to improve student nutrition and support their educational progress. These efforts highlight Himachal Pradesh's focus on inclusive education and the overall upliftment of its student population.
The Himachal Pradesh government has implemented numerous initiatives to enhance education across the state. These include promoting Sanskrit education through scholarships and grants, providing free education for specially-abled children and girls and modernizing infrastructure in schools. Notable programs such as the Rajiv Gandhi Government Model Day-Boarding Schools and Rashtriya Uchchtar Shiksha Abhiyan aim to improve accessibility and quality in education. Samagra Shiksha, a key scheme, focuses on teacher training, inclusive education, and enhancing digital infrastructure. The government also emphasizes extracurricular activities through sports, self-defense training for girls and environmental awareness via eco-clubs.
In education, the 2024 ASER report highlights significant gains in rural schools, especially for girls, with high enrollment in government schools. The report also shows strong digital literacy, with most children aged 14-16 owning and using smartphones for educational tasks, reflecting a positive trend in rural education and digital access in Himachal Pradesh.

Department of Health and Family Welfare is responsible for implementation of National Level Programmes for control of communicable and non-communicable diseases, hospitals, and dispensaries and medical education, the Department of AYUSH takes care of promotion of indigenous systems of medicine such as Ayurveda, Homeo, Unani, Siddha and ongoing research in indigenous medicine. The Department of Medical Research constituted in 2007 is mainly concerned with research in medical and health activities. National AIDS Control Organization (NACO) is responsible for planning and implementation of programmes for prevention and control of AIDS. This chapter highlights the progress made by the state in key health indicators and wellbeing, also presenting government initiatives aimed at improving the health situation in Himachal Pradesh.
State Government of Himachal Pradesh has prioritized well-being of its citizens and has articulated a clear vision for ensuring good health. The focus on providing comprehensive health services, eliminating both communicable and noncommunicable diseases and expanding healthcare services demonstrates a commitment to improving the overall health of the population.
The Health and Family Welfare Department with the presence of a wellestablished network of healthcare facilities, including 115 Civil Hospitals, 106 Community Health Centres, 585 Primary Health Centers, 24 ESI Civil Dispensaries and 2,114 Health Sub Centres has adopted a systematic approach to delivering curative, preventive, and rehabilitative services.
Successful delivery of extensive health services has resulted significant positive outcomes. These include an increase in life expectancy, a decrease in Infant Mortality Rate, Neonatal Mortality Rate, and Under-5 Mortality Rate. Additionally, there has been notable improvement in delivery care, immunization rates and maternal health, as discussed below:
Life Expectancy at Birth – Himachal vis-à-vis India: As per SRS-based abridged life tables from 2014-18, 2015-19, and 2016-20, Life expectancy at birth in Himachal Pradesh has shown a consistent increase over the years and is currently higher than the national average. The overall life expectancy rose from 72.9 years in 2014-18 to 73.5 years in 2016-20. In 2016-20, the life expectancy for males stood at 70.3 years, while for females it was 77.5 years. This pattern of higher female life expectancy compared to males is in line with the national trend.
Infant Mortality Rate (IMR) – Himachal vis-à-vis India: The Infant Mortality Rate (IMR), Under-5 Mortality Rate (U5MR), and Neonatal Mortality Rate (NNMR) in Himachal Pradesh have been declining, indicating an improvement in child health. The IMR decreased from 36 per 1000 live births in 2005- 06 to 25.6 per 1000 live births in 2019-21. Similarly, the U5MR dropped from 42 to 28.9 during the same period. The IMR, U5MR, and NNMR in Himachal Pradesh are all lower than the national average (National Family and Health Survey) The reduction in infant and child mortality rates is mainly attributed to the state’s active interventions, including health programs like the IMR Mission (2001) and HomeBased Care for Young Child (2019). Other initiatives, such as New-born Care Corners, New-born Stabilisation Units, Sick New-born Care Units, and Nutrition Rehabilitation Centres, have also played a crucial role.
Institutional Deliveries – Himachal vis-à-vis India: Improved delivery care has led to a significant increase in institutional delivery rates. Institutional delivery is key to preventing, detecting, and managing delivery complications, as well as reducing Maternal Mortality Rate (MMR) and IMR. In Himachal Pradesh, the institutional delivery rate has grown from 43.1 per cent in 2005- 06 (NFHS-3) to 88.2 per cent in 2019-21 (NFHS-5), aligning closely with the national average.
Government initiatives like the Janani Suraksha Yojana (JSY), Janani Shishu Suraksha Karyakaram (JSSK), the Free Drug Scheme, Pradhan Mantri Surakshit Matritav Abhiyan (PMSMA), and the 108 ambulance service have contributed to the improved institutional delivery rates.
Children Aged 12-23 Months Fully Immunised – Himachal vis-à-vis India: The state has made significant progress toward achieving full immunisation for children. As of 2019-21 (NFHS-5), 89.3 per cent of children aged 12-23 months were fully immunised, up from 74.2 per cent in 2005-06 (NFHS-3). The implementation of the U-WIN platform to digitalize immunisation records has further contributed to the increase in immunisation coverage.
Total Fertility Rate (TFR) – Himachal vis-à-vis India: Total Fertility Rate (TFR) is used to measure the childbearing capacity of a woman during her fertility period. TFR in Himachal Pradesh dropped over time and is less than the national average. Himachal Pradesh has consistently had a lower TFR compared to the national average throughout the three periods. The TFR in Himachal Pradesh has shown a steady decline, from 1.9 in 2005-06 (NFHS-3) to 1.7 in 2019-21 (NFHS-5). A brief detail of Health and Family Welfare programmes during FY2023-24 is shown in Table 14.2.

Currently, the Directorate of Medical Education and Research (DME) regulates six medical colleges, one dental college, one Atal Medical and Research University, and one Atal Institute of Medical Super Specialties in the public sector, as well as one medical college and four dental colleges in the private sector. Under the Pradhan Mantri Swathya Suraksha Yojana (PMSSY), All India Institute of Medical Sciences (AIIMS) has been established in Himachal Pradesh at Bilaspur. The institution-wise budgetary allocation and expenditure of funds during FY2024-25 up to 9 th January, 2025 is given in the Table 14.4.

Academic achievements in Medical Education and Research are as follows:
i) Bachelor of Medicines and Bachelor of Surgery (MBBS) and Post Graduate (PG): During the academic session 2024-25, 870 MBBS seats were filled in the Government and Private Sector (720 in Government and 150 in Private Sector). Similarly, 339 postgraduate Doctor of Medicine / Master of Surgeon (MD/MS) seats in various specialties were allotted in Government (247 seats) and Private Medical Colleges (92 seats).
ii) Bachelor of Dental Surgery (BDS) and Master of Dental Surgery (MDS): 295 Bachelor of Dental Surgery (BDS) seats were filled in Government and private sector (75 in Government Dental College and 220 in the private sector). Similarly, 100 Master of Dental Surgery (MDS) seats were filled in both the Government and Private sectors (23 in Government Dental College and 77 in private Dental Colleges) during Academic Session 2024-25.
iii) Nursing: During the academic year 2024-25, 1,650 seats for the General Nursing and Midwifery (GNM) course, 2,014 B.Sc. Nursing, 670 Post Basic B.Sc Nursing and 216 seats for M.Sc. Nursing Degree courses have been approved in various Government and Private institutions.
iv) Scholarship/Stipend: : At present, stipend is being given to the following categories in the Government Medical Colleges and Dental Colleges of the State
v) Super Specialty Courses: During 2024-25, 7 seats in super speciality courses were filled up in different specialties in Indira Gandhi Medical College (IGMC) and Hospital Shimla and 6 seats were allotted to Dr. Rajinder Prashad Government Medical College (Dr. RPGMC) and Hospital, Kangra at Tanda under DNB super specialty courses Diplomate of National Board in Neurology 2 seats and DNB Cardiology 2 seats).
The Institution wise major achievements up to December, 2024 are given in Table 14.5.

This department includes the Ayurveda, Yoga, Unani, Siddha and Homoeopathy systems of medicines. In the state, this department is also known as AYUSH.
AYUSH Vibhag is an important part of the Himachal Pradesh Health Care System. Health care services being provided to the general public through AYUSH health infrastructure are given in Table 14.6:
Development of Herbal Resources:
i) QR Code have been developed for 198 medicinal plants, which makes all information about medicinal plants instantly available through scanning, apart from this 46,000 copies were printed to create awareness about medicinal plants.
ii) 70,000 Ashwagandha plants were distributed under Ashwagandha Campaign use of Ashwagandha was spread during the meeting of Gram sabha, Mahila Mandals/School etc. along with distribution of Information, Education & Communication (IEC) material in School & organizing Competitions.
ii) A National research project on “Withania Somnifera” titled “Ashwagandha: A Health Revolution” has been approved with funding of ₹18.90 crore from the Government of India.
AYUSH Aarogya Kalyan Nidhi: A new initiative has been taken to provide financial assistance to Ayurvedic Health Centres (AHC’s) situated all over the state through creation of AYUSH Aarogya Kalyan Nidhi to meet their small requirements.
Acharya Charak Yojana: Acharya Charak Yojana has been framed to provide free medicines and free Lab test facilities in the field AYUSH institutions.
In conclusion, the government of Himachal Pradesh implementing a variety of health programs aimed at improving the well-being of its residents. Key initiatives include disease control programs for malaria, leprosy, TB and blindness, as well as comprehensive services like the Ayushman Bharat health insurance scheme and the Himcare program, which provide cashless treatment for families. The State also focuses on non-communicable diseases through screening and treatment, cancer care and support for heart attacks and diabetes patients. Other programs address maternal and child health, menstrual hygiene and sanitation, along with specific interventions for HIV/AIDS.
Significant strides have been made in medical education, with the allocation of funds for infrastructure development and the filling of various seats in medical, dental, and nursing courses. A variety of stipends and scholarships are provided to medical students at different levels. Notable achievements include the construction of advanced facilities like cancer centers, mental health institutions and critical care blocks across medical colleges. The State has made considerable progress in AYUSH healthcare, with numerous hospitals, health centers, and initiatives aimed at promoting Ayurvedic, Unani and Homeopathy practices. Projects like the Ashwagandha Campaign and the AYUSH Aarogya Kalyan Nidhi further promote the use of herbal medicine and support local health centers.

Himachal Pradesh government is dedicated to well-being of socially and economically marginalized groups, including women, children, senior citizens, individuals with special needs, Scheduled Castes (SCs), Scheduled Tribes (STs) and Other Backward Classes (OBCs). The success of welfare agenda hinges on meticulous program implementation, tailored to the specific needs of various sections ensuring that deliverables align with the government's social objectives. This chapter examines the policy priorities for Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), women, farmers, youth, and the poor. It emphasizes that facilitating their productive and enhanced participation in economic activities is a key measure of the effectiveness of inclusive development policies.

The empowerment of the underprivileged and marginalised groups in society is the responsibility of the Directorate for Empowerment of SC's, OBC's, Minorities Affairs and the Specially Abled (ESOMSA). The department's programmes are primarily focused on enhancing these groups' socioeconomic circumstances in order to integrate them into society as a whole. The target group’s social, educational, and economic growth has been a focus of the ESOMSA's numerous programmes and plans. The well-being of these groups has significantly improved as a result. Social protection is instrumental in addressing extreme deprivation, risks, and vulnerabilities, as relying solely on market forces and economic growth does not effectively tackle inequality. Beyond addressing social hazards such as illness, old age, unemployment and social exclusion, social protection encompasses programs that offer income support for the economically disadvantaged. Various pension schemes are being actively implemented to enhance overall welfare of the population.
Details of the Social Security Pension Schemes are given in the table 15.1.
National Family Benefit Scheme: As part of this programme, Below Poverty Line (BPL) household gets ₹20,000 in the unfortunate event of the passing away of primary breadwinner, between 18 to 59 years. As of December 2024, 428 households have received financial assistance of ₹85.60 lakhs against a budget allocation of ₹4.32 crore.
The Indira Gandhi Pyari Behna Sukh Samman Nidhi Yojna: About 49 per cent of the population in Himachal Pradesh is women. Most of the State is inaccessible where living is difficult and challenging compared to other regions/states. The women of the state make a significant contribution from household work to strengthening the economy of the family. The objective of the scheme is to honour the contribution of women in the development of the State and preservation of cultural heritage and to ensure economic empowerment and selfreliance of women. The "Indira Gandhi Pyari Behna Sukh Samman Nidhi Yojna 2024" has been launched with the objective of providing ₹1500 per month to women in the state. A budget allocation of ₹27.64 crore has been made for this scheme. As of now, 30,929 women have benefited and expenditure amounting to ₹20.99 crore have been incurred.
Self-Employment Schemes: Himachal Pradesh Scheduled Castes and Scheduled Tribes Development Corporation (HPSC & STDC), Himachal Pradesh Backward Classes Finance and Development Corporation (HPBCF & DC), and Himachal Pradesh Minorities Finance and Development Corporation (HPMF & DC) are three Corporations receiving funding from the State government for various self-employment programmes for section of society covered by these corporations. The details of loans given by the Corporations up to December, 2024 are given in Table 15.2:
Scheduled Caste Development Plan (SCDP): In the State Development Plan of 2024-25, 25.19 per cent of the Development Plan allocation is earmarked for SCDP, focusing on individual beneficiary programs and infrastructure development in SC-concentrated villages. The outlay for the SCDP is ₹2483.20 crore, with an additional outlay of ₹1345.40 crore from the Central Development Budget. An estimated ₹1,422.47 crore from the State Development budget had been spent for FY2024-25, as on December, 2024. A detailed breakdown of expenditure is as under:
Scheduled Tribe Sub-Plan: The ST sub-approach plan for economic growth is area-based. For FY2024– 25, under ST Development Plan ₹899.05 crore are earmarked. Under the ST Development Plan, ₹100.47 crore was spent till September, 2024, for the welfare of STs. Figure 15.2 below shows a breakdown of expenditure year wise:
Welfare of Scheduled Castes, Scheduled Tribes, Other Backward Classes: Important schemes implemented during FY2024-25 are as under:

Himachal Pradesh government is actively implementing a range of measures designed to promote welfare and empowerment of women across various sectors. These programs are geared towards narrowing wage gap between men and women, elevating household incomes, and bolstering women's negotiating capabilities. Government has taken significant strides in empowering women through Self Help Group (SHG) organizations by providing financial assistance. Complementing these efforts, the government is also executing Centrally Sponsored Schemes, including initiatives like Beti Padhao Beti Bachao, Integrated Child Protection Services, Supplementary Nutrition Program, Poshan Abhiyaan, Construction and Renovation of Anganwadi Centers, and Ujjwala for Victims of Trafficking and Commercial Sexual Exploitation. Established in 2011, the Directorate of Women and Child Development operates as an integral part of the Department of Social Justice and Empowerment. In conclusion, the Himachal Pradesh government has implemented several welfare schemes to support marginalized groups such as women, children, elderly, individuals with disabilities and socially disadvantaged communities (SCs, STs, OBCs). These initiatives, include social security programs like pensions for the elderly, widows and specially-abled individuals, as well as financial aid for leprosy patients and transgender individuals. Additionally, self-employment schemes, such as loans and grants for disadvantaged groups, are offered to promote economic independence. The state also focuses on education and vocational training, rehabilitation services and support for families of deceased breadwinners. With substantial budget allocations, these schemes aim to improve the social, economic and educational conditions of marginalized populations in Himachal Pradesh.
The Himachal Pradesh government has launched various initiatives for the welfare and empowerment of women and children. These programs aim to close the gender wage gap, improve household incomes and enhance women’s negotiating power. Key schemes include Beti Padhao Beti Bachao, Ujjwala for trafficking victims and the Saksham Gudiya Board for adolescent girls' protection.
The Mukhya Mantri Sukh-Ashray Yojana supports orphaned and destitute women and children, while the Mission Vatsalya Scheme offers care to children in need. Additionally, initiatives like the One-Stop Centre, Poshan Abhiyaan and the Widow Re-marriage Scheme provide essential support in areas such as health, education and financial aid. These efforts are complemented by financial assistance and rehabilitation programs for vulnerable women and children, promoting social equity and empowerment.

The Rural Development Department focuses on addressing the needs of rural communities in areas such as sustainable economic development, improved shelter and hygiene, enhanced rural infrastructure and connectivity. Development Blocks are the pivot for planning and implementation of various rural development schemes. This transformation is brought about through various schemes such as Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), Deen Dyal Upadhyaya-Grameen Kaushalya Yojana (DDU-GKY), Watershed Development Programme (WDC) Pradhan Mantri Krishi Sinchayi Yojana-2.0, Swachh Bharat Mission–Gramin (SBM-G), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), Pradhan Mantri Awaas Yojana (Gramin), Mukhya Mantri Awaas Yojana (MMAY) and Matri-Shakti Bima Yojana, among other schemes.
Himachal Pradesh is predominantly rural, with around 90 percent of its population residing in rural areas, a common characteristic of hill regions. Recognizing the importance of the rural population in driving economic progress, the State Government prioritizes their welfare and active participation in development. This chapter highlights various programs and policies aimed at improving the rural economy and enhancing the well-being of rural communities.

With effect from 01st April, 2013, the Swarnjayanti Gram Swarozgar Yojana (SGSY) has been replaced in the State by DAY-NRLM. This programme is one of the flagship programmes of the Ministry of Rural Development, Government of India with the goal of reducing poverty by giving low income households access to chances for productive self-employment and skilled wage jobs for long-term subsistence. NRLM is being implemented across the state in 91 blocks.
The main features of this programme are as under:
i) The National Rural Livelihoods Mission aims to reach out to all poor families, mobilize them into Self-Help-Groups (SHGs), link them to sustainable livelihood opportunities and nurture them till they come out of poverty. This programme focuses on women empowerment hence, the rural poor Households (HHs) under NRLM are covered through their women members. These women are firstly organized into SHGs and thereafter into Village/Block/District federations so as to assist them as per guidelines of the Government of India.
ii) According to the scheme's mission in Himachal Pradesh, the State Rural Livelihood Mission would encompass all rural poor and the poorest of the poor, who would be picked using the Participatory Identification of Poor (PIP) and Socio Economic and Caste Census (SECC) data of 2011. The selected women are grouped into SHGs, and their Federated Institutions are linked with Banks for recurring micro financing. In addition to the aforementioned groups, the NRLM prioritises the coverage of single women, war widows, the disabled, and the elderly who do not have caretakers.

Deen Dyal Upadhyaya-Grameen Kaushalya Yojana (DDU-GKY) is a flagship scheme run by the Ministry of Rural Development, Government of India. It is an employment–oriented skill training programme, the main objective of which is to provide free training to rural youth aged 15-35 years through various popular trades and job roles and to provide them assured employment of more than the minimum monthly wages.
Training benefits and Rights of candidates under Deen Dyal UpadhyayGrameen Kaushalya Yojana (DDU-GKY):
i) Free training of 3-12 months in multiple popular trades and job roles.
ii) Free training, food and accommodation.
iii) Training through training partners recognized and approved by the Government of India.
iv) Free 160 hours of training in spoken English, communication skills and Information Technology.
v) For every candidate Computer labs and Digi-tables for learning.
vi) Industry experience through on-the-job training.
vii) Post-placement support for 2-6 months after getting employment as per programme guidelines i.e. ₹1270 per month.
Achievement under Deen Dyal Upadhyay-Grameen Kaushalya Yojana (DDU-GKY): In Himachal Pradesh from the inception of Deen Dyal Upadhyay-Grameen Kaushalya Yojana (DDU-GKY) (September, 2017) till 31st December, 2024, 19,442 beneficiaries were selected for training through various trades and job roles of which 17,254 beneficiaries completed their training and 11,690 youths were employed in various companies. Out of these appointed candidates, 9,656 youths have been placed. ₹130.70 lakh has been utilized under this programme.

Watershed development project is being run in the state to rehabilitate wasteland and degraded lands, drought-prone and desert areas on a 90:10 financing pattern between the Centre and the State. The project has been approved by the Government of India for the years 2021-2026. The financing was received in March 2022, following which the state's entry point activities commenced.
Objectives of Watershed Development Projects:
i) To improve the productive potential of rainfed/degraded land through integrated watershed management;
ii) To strengthen community-based local institutions for the promotion of livelihoods and watershed sustainability, and
iii) To improve the efficiency of watershed projects through cross-learning and incentive mechanism.
At a macro level, the vision of WDC-PMKSY-2.0 projects is to accelerate agricultural economic growth in the country's less-endowed rainfed areas. The development plan at the watershed level must be directed by the need to achieve greater earnings for farmers, improved livelihood possibilities for landless people, fairness in benefit sharing, community ownership and management, and an environmentally sustainable action plan.
Institution and Capacity Building (I&CB): To increase the capacity of the Junior Engineers, Agricultural Experts, Technical Assistants and GRS, Panchayati Raj Institutions (PRIs) and Other NonTechnical Staff engaged in the WDC-PMKSY 2.0 project and to strengthen their ability in execution of Watershed and Springshed Development projects in the future, the department has been organizing various training programme. The department has conducted 63 training with 1,881 personnel trained so far. Capacity building was done on the topic of “Ecology, Environment and Sustainable Ecosystem” for various stakeholders including District Development Officers, Block Development Officers, PRIs, Self Help Group Members, Junior Engineers and Agriculture Experts.
Natural Resource Management (NRM): 603 NRM works have been completed, 320 works are under progress.
Springshed Management in Himachal Pradesh: Springshed management involves analyzing springs, identifying recharge areas, and monitoring water quality, rainfall, and spring discharge. The purpose is to revive springs and ensure a reliable supply of drinking water while also supporting the local ecosystem and biodiversity.
Springshed Management Programme is operational in 23 Project Areas in Himachal Pradesh. 414 springs have been identified for revival and classified into categories based on the descending order of population dependence on each spring.
Financial Achievement of WDC-PMSKY 2.0 for the FY 2024-25:
i) FY2023-24, ₹38.25 crore has been received under WDC-PMKSY 2.0. (Central Share ₹34.42 crore and State Share ₹3.83 crore).
ii) In FY2024-25, ₹23.71 crore (centre + State) has been received.
iii) As on December, 2024 an expenditure of ₹8.68 crore has been incurred during FY2024-25.

PMAY-G seeks to offer pucca dwellings with basic facilities to all homeless and kutcha households, as well as those living in outdated structures. The cost of a unit (home) is split 90:10 between the central and state governments.
i) The State faced a disaster in 2023-24. 12,940 houses were sanctioned, out of which 6,561 have been completed and 6,379 are under construction.
ii) The State was sanctioned 69,187 houses on the basis of Awaas+ survey conducted in 2018.
iii) In FY2024-25, ₹520.44 crore has been utilized for construction of houses as on December, 2024.

As of December 2024, 351 houses have been sanctioned and ₹2.09 crore has been utilized for their construction

The scheme covers all women living below the poverty line within the age group of 10-75 years. The policy provides relief to family members/insured women in case of their death or disablement arising due to any kind of accident surgical operations like sterilization, mishap at the time of childbirth/delivery, drowning, washing away in floods, landslide, insect bite and the scheme also gives benefit to married women in case of accidental death of her husband. The compensation amount is as under:
i) Death ₹2.00 lakh.
ii) Permanent total disability₹2.00 lakh.
iii) Loss of one limb and one eye or both eyes and both limbs ₹2.00 lakh.
iv) Loss of one limb/one ear ₹1.00 lakh.
v) In case of death of husband ₹2.00 lakh. During FY2024-25, the Yojana offered financial support to 49 households totaling ₹97.00 lakh as December, 2024.

On 2nd October, 2014 the Government of India began the "SBM-G," and on 28th October, 2016, Himachal Pradesh was proclaimed an Open Defecation Free (ODF) State. The SBM-G Phase-I guidelines were operational upto 31st March, 2020 and Phase-II Guidelines have become operational w.e.f. 01st April, 2020. SBM-G is now focusing on the following activities/components:
i) No one Left Behind (Individual House Hold Latrine (IHHL), Community Sanitary Complexes (CSCs)
ii) Solid Waste Management (Non-Biodegradable & Bio-degradable)
iii) Liquid Waste Management (Grey Water and Black Water Management)
iv) Gobardhan Projects
v) Information Education & Communication (IEC)/capacity building. Physical Achievements during the year 2024-25:
i) Against a target of 17,630 villages, 16,067 villages have been declared as ODF Plus out of which 1,857 villages Aspiring, 717 villages Rising and 13,493 villages are in ODF Plus Model category.
ii) 4,104 Individual Households latrines have been constructed.
iii) 1,153 (including backlog) Community Sanitary Complexes have been constructed.
iv) 14,751 villages have been covered under Solid Waste Management.
v) 15,777 villages have been covered under Liquid Waste Management.
vi) 36 Plastic Waste Management Plants have been established.

The vision of Mahatma Gandhi NREGA is to enhance the livelihood security of rural households across the country by providing at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. Mahatma Gandhi NREGA recognizes the importance of strengthening the livelihood resource base of the poor by reaching the most vulnerable sections of rural areas, including Scheduled Castes, Scheduled Tribes, women-headed households, and other marginalized groups.
The scheme encourages a sense of community and collective responsibility by strengthening Panchayat Raj institutions. Mahatma Gandhi NREGA promotes a bottom-up approach to planning and execution, empowering local communities to take charge of their development.
Progress accomplished during FY2024-25 (upto 1 st January 2025) is as follows:

This State has 12 Zila Parishads (ZP), 81 Panchayat Samities, and 3,615 Gram Panchayats. The State Government is committed to empowering Panchayati Raj Institutions and to decentralizing power as per the provisions of Article 243-G of the Constitution. The State Government has already taken many steps and decisions to empower Panchayati Raj Institutions, enabling them to function as local selfgovernments and empowering Gram Panchayats to become more self-reliant."
i) The implementation of the 15th Finance Commission began in FY2020-21. Under this commission, ₹352.00 crore has been sanctioned for the State for FY2024-25, of which ₹229.19 crore has been issued by the Government of India and distributed to Panchayat Raj Institutions.
ii) A grant of ₹448.08 crore has been made available by the State Finance Commission (SFC) to cover the salary/wages/honorarium of workers of various categories within the Zila Parishad/Gram Panchayat cadre and Elected representatives of three tiers during FY2024-25.
iii) A new estimate and design has been prepared for the construction of Gram Panchayat Ghars, ₹39.32 crore is being issued for the construction/ upgradation/repair of Gram Panchayat Ghars for FY2024-25. Out of this, ₹13.49 crore is for construction of 115 Newly created Gram Panchayats, whereas ₹25.83 crore for construction/upgradation/repair of 166 old Gram Panchayat Ghars and ₹2.72 crore for construction of Zila Parishad Bhawans, whereas ₹1.06 crore for upgradation/repair of Panchayat Samiti office building has been released in the State.
iv) The Centrally Sponsored Scheme of Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) Grant-in-Aid of ₹100.42 crore has been sanctioned for this State for FY2024-25, of which ₹30.23 crore has been issued by the Government of India in the ratio 90:10. The following targets have been achieved:
a) 1,05,000 participants have been provided capacity building and training under RGSA scheme Funds has been released to set up video conferencing facilities in 1,130 Gram Panchayats in the first phase.
b) The Economic Enhancement and Livelihood Generation Ecotourism projects are being set up in the Gram Panchayats of Hareta (Hamirpur), Kamyana (Shimla) and Androli (Una). For these projects, in FY2024- 25, ₹5.00 crore has been issued; ₹2.00 crore for the Hareta project, ₹2.00 crore for the Kamyana project and ₹1.00 crore for the Androli project.
c) In FY2024-25, ₹5.20 crore i.e. ₹20.00 lakh per Gram Panchayat have been sanctioned for construction of 26 Gram Panchayat Bhawans of newly created Gram Panchayats.
d) ₹2.60 crore i.e. ₹5.00 lakh per Gram Panchayat have been sanctioned for construction of 52 Gram Panchayat Common Service Centres (CSCs) co-located with Gram Panchayat Bhawan.
e) Co-location process in 1160 Common Service Centres (CSCs) have been completed and thereafter, Village Level Entrepreneurs (VLEs) have been appointed in 761 Gram Panchayats.
f) Two District Panchayat Resource Centres, located at Mandi and Bilaspur have been made functional for Training purposes. Construction work has been completed in Kangra, Shimla and Sirmaur Districts. 8 Panchayat Learning Centres have been made operational for training and other replicable activities.
g) Coordination Committee at the State level under the Chairmanship of Secretary Panchayati Raj has been constituted to effectively implement and monitor the Panchayats Extension to Scheduled Areas (PESA) Act.
h) Two Gram Panchayats have been conferred with National Panchayat Awards. Gram Panchayat Thanadhar, Development Block Narkanda, District Shimla has been awarded ₹75 lakh for best performance in Theme 7: Socially Secured Gram Panchayat and ₹1.00 crore for Nanaji Deshmukh Sarvottam Panchayat Sattat Vikas Puraskar for overall Best Performance. Gram Panchayat Sikandar, Development Block Bamson, Hamirpur has been awarded ₹75 lakh for Best Performance in Theme 4: Water sufficient Gram Panchayat.
i)For FY2024-25 target of 100 per cent online audit target of Panchayati Raj Institutions has been fixed. As on 31st December, 2024, 54 per cent of this target has been achieved.
j) During the current year ₹13.75 crore has been recovered/settled as per audit recoveries in the special campaign launched at district and block level and 8,278 audit paras were settled.

The State Government has demonstrated a commitment to improving the lives of its citizens through various initiatives aimed at economic development, social empowerment and rural upliftment. The implementation of schemes like the DAYNRLM, DDU-GKY and WDC-PMKSY-2.0 project reflects a clear focus on enhancing rural livelihoods, providing training and resources to youth and boosting agricultural growth, particularly in underserved areas. The Mukhyamantri Awaas Yojana and Matri Shakti Bima Yojana showcase the State's dedication to supporting vulnerable populations, including needy families and women below the poverty line.
The empowerment of Panchayati Raj Institutions and Revamped Rashtriya Gram Swaraj Abhiyan is a significant step toward strengthening grassroots governance. These collective efforts reflect the State's strategic approach to fostering sustainable development, ensuring social welfare and promoting inclusive growth across all sections of society.

Urbanization, the shift of populations from rural to urban areas, is a global phenomenon driven by factors like economic opportunities, improved infrastructure, and access to education and healthcare. This influx of people leads to rapid city growth, often accompanied by positive developments such as job creation, economic expansion and advancements in technology and culture.
However, unchecked urbanization can also bring significant challenges. Rapid population growth can strain existing infrastructure, leading to congestion, traffic gridlock and inadequate housing. The influx of people can also put a strain on resources, leading to shortages of water, electricity and other essential services. Furthermore, the rapid pace of development can lead to environmental degradation, including air and water pollution.
Himachal Pradesh Housing Board was constituted in 1972 under Himachal Pradesh Housing Board Act 1972, with the objectives of providing houses to the needy people of the Pradesh within the affordable limits. It has been re-named as Himachal Pradesh Housing and Urban Development Authority (HIMUDA) w.e.f. 01st July, 2004. Until now 13,289 houses/flats have been constructed and 5,621 plots has been developed in various Housing Colonies in District Shimla (Shimla, Shogi, Rampur and Rohroo), in District Solan (Solan, Parwanoo, Baddi, Mandhala, Atal Nagar and Nalagarh) in District Una (Una and Bangana), in District Hamirpur (Hamirpur), in District Kangra (Kangra, Dharamsala, Palampur, Dehra, Nurpur, Indora and Kandrori), in District Sirmaur (Nahan, Poanta Sahib) and in District Mandi (Mandi and Sundernagar).
For the Financial Year (FY)2024-25, housing program budget has been kept as ₹112.09 crore. It is proposed to develop 152 flats and 183 plots. This chapter provides overview of various schemes and initiatives aimed at fostering urban development and addressing the housing needs of the people of State. As the state continues to grow and urbanize, ensuring sustainable and inclusive urban development has become a key priority. The chapter discusses government programs designed to enhance infrastructure, improve public services and create livable spaces in urban areas.

The Urban Development Department of State, in close partnership with Municipal Corporations, Municipal Councils and Nagar Panchayats (ULBs) is striving to find solutions to urban problems of the State unduly integrated urban transport, sanitation, solid waste management, urban infrastructure, urban poverty, urban housing, urban planning, financial sustainability of ULBs and general urban governance.
Himachal Pradesh has 74 ULBs, including 08 Municipal Corporations i.e. Shimla, Dharamshala, Solan, Mandi, Palampur, Una, Hamirpur and Baddi, 29 Municipal Councils and 37 Nagar Panchayats. Government is providing grants-in-aid every year to these local bodies to enable them to provide civic amenities to the general public. As per the recommendations of the State Finance Commission ₹202.25 crore (80 per cent basic and 20 per cent performance based) has been sanctioned for FY2024-25, fund amounting to ₹80.90 crore (Basic Grant) and ₹10.69 crore (Performance Grant) has been released to the ULBs during the FY2024-25 up to 31st December, 2024. Remaining amount will be released to the ULBs after fulfilling certain conditions. This includes development grant and gap filling grant between income and expenditure.
Figure 17.1 illustrates a rise in the number of ULBs across the State, reaching a figure of 74 ULBs during 2024-25 compared to 2001-02.
Maintenance of Roads in Municipal Areas: 74 ULBs manage about 5,000 km of roads, pathways, streets, and drainage. The government has allocated ₹6.00 crore for these roads in the current FY2024-25.

The primary goal of DAY-NULM is to reduce poverty among the urban poor through the promotion of diversified and gainful self-employment and skill-wage employment opportunities, resulting in significant improvement in their livelihood on a sustainable basis.

The following is the progress made in 2024-25:
i) 233 Self Help Groups (SHGs) have been formed.
ii) 30 Area Level Federations (ALFs) and 13 City Level Federations have been formed. Revolving Fund (RF) to 27 ALFs has been provided. Individual loans amounting to ₹3.11 crore have been provided to 227 beneficiaries and 367 SHGs have been provided a loan of ₹7.96 crore through banks, 4,973 street vendors were identified and Certificate of Vending has been provided. Also 46 Regular Town Vending Committees have been formed.
iii) Vendor market amounting to ₹80.00 lakh has been constructed in Municipal Corporation Solan. Also, vendor market in Municipal Corporation Una for ₹1.03 crore is being constructed.
iv)5,440 beneficiaries have been provided first term (₹10 Thousand) loans under PM SVANidhi Scheme. 3,084 beneficiaries have been provided 2nd term (₹20 Thousand) loans and 1,449 beneficiaries have been provided 3rd term (₹50 Thousand) loans.

The 15th Finance Commission has recommended two types of grants to be released to ULBs and Cantonment Boards (CBs). First is the Untied Grant (40 per cent) and the second is the Tied Grant (60 per cent), subject to fulfillment of certain conditions as laid down in the 15th Finance Commission Report. There is a budget provision of ₹181.00 crore for FY2024-25. In addition, the budget has also allocated a Health Sector Grant amounting to ₹6.23 crore under 15th Finance Commission to the ULBs of the state during the current financial year. The 2nd installment of both (Untied and Tied) grants amounting to ₹81.00 crore for the FY2023-24 has been released to the ULBs and CBs during the current FY2024-25.

AMRUT: The main objective of the AMRUT Scheme is to provide basic amenities in cities. Two cities Shimla and Kullu have been included in the scheme. The total size of the State Annual Action Plan is ₹304.52 crore, for 75 projects. Out of 75 projects, 71 worth ₹283.66 crore have been completed and the remaining 4 projects worth ₹20.85 crore are expected to be completed by March, 2025.
AMRUT 2.0: The AMRUT 2.0 Mission was launched on 1st October, 2021 by Prime Minister to make cities 'water secure' and 'self-sustainable'. The mission’s focus is on water supply, sewerage and septage management, recycle/re-use of treated waste water, rejuvenation of water bodies and creation of green spaces. The mission period is from FY 2021-22 to FY 2025-26 and the funding pattern is 90:10 ratio (Centre and State) with a proposal to cover all Statutory Towns (61 ULBs + 7 CBs). The total allocation for the project is ₹284.44 crore (₹256.00 crore from the Centre and ₹28.44 crore from the State). State Water Action Plan (SWAPs) was to be submitted in three (3) tranches. After the approval of State Level Technical Committee (SLTC) and State High Powered Steering Committee (SHPSC), 1st, 2nd and 3rd Tranche (including Operations and Maintenance (O&M)) amounting to ₹170.57 crore, ₹39.01 crore, ₹112.08 crore respectively was submitted to the Ministry of Housing and Urban Affarirs, Government of India (MoHUA, GoI) and all three tranches have been approved.
During the FY 2024-25 ₹56.79 crore (₹51.11 crore from the Centre and ₹5.68 crore from the State) have been issued by the Government and subsequently disbursed to ULBs for project implementation. Contracts have been awarded for 23 projects at a cost of ₹119.62 crore. Notice Inviting Tenders (NITs) for 07 projects worth ₹45.39 crore have been issued and 5 projects costing ₹1.34 crore have been successfully completed.

The objective of SCM is to promote cities that provide core infrastructure and give good quality of life to its citizens, through application of 'Smart' solutions. Shimla was selected in the third round of the SCM by the Government of India on 28th June, 2017. However, for the FY 2024-25, there is no allocated budget provision under this mission. Additionally, the Government of India has already issued ₹465 crore for the development of City. Shimla Smart City Limited (SSCL) has identified 28 highpriority projects from total of 53 proposed initiatives. These projects have been further divided into 204 components, of which 182 have been completed, while 22 are still in progress. Out of 80 projects in Dharamshala Smart City 56 has been completed and 24 projected are under implementation.

Swachh Bharat Mission 2.0 (Urban) is a flagship programme of the Government of India and is being implemented through the State Urban Development Department in all ULBs. The main aim of Swachh Bharat Mission (SBM) is to make cities/towns open defecation-free and provide a healthy and livable environment to all. Under this scheme, in FY 2024-25, the State Government's budget provision is ₹6.60 crore.
For different components of SBM, central assistance released in FY2024-25 is given in table 17.1.

“Housing for all” (Urban) was launched in June, 2015. This scheme aims to provide houses for slum dwellers under slum rehabilitation component providing affordable houses for Economically Weaker Sections (EWS), Low-Income Groups (LIG) and Middle-Income Groups (MIG) through the credit-linked subsidy component, and housing through the public-private partnership component. Ministry of Housing and Urban Poverty Alleviation is providing financial assistance to the State for carrying-out various activities for implementation of PMAY-HFA. The funding pattern is a 90:10 ratio (Centre and State).
Under this scheme, 479 houses have been completed with financial assistance of ₹9.64 crore.

To solve parking problem in urban areas, ₹5.00 crore has been provided during the FY 2024-25. The funds under this scheme are released in the ratio of 75:25 (i.e. 75 per cent is provided by the Government and 25 per cent by the concerned ULBs).

Government of Himachal Pradesh, during pandemic has notified the MMSAGY to enhance livelihood security in urban areas by providing 120 days of guaranteed wage employment to eligible household. Adult members of households, who register under this scheme will be eligible to work. Residents of the ULBs residing within the jurisdiction of ULB are eligible. Urban Development Department has developed online portal for MMSAGY. The beneficiary can register himself/herself without visiting the municipality office. Under this scheme, as on December, 2024 18,012 beneficiaries have benefited with a total of 6,76,846 man-days and ₹19.20 crore has been disbursed.

To ensure functional, economical, sustainable and aesthetical living environment through planned and regulated development, the Himachal Pradesh Town and Country Planning Act (HPTCP Act), 1977 has been enforced in 60 Planning Areas and 36 Special Areas.
Initiatives
i) The State Government has extended the jurisdiction of HPTCP Act, 1977 to the rapidly urbanizing towns/growth centers i.e. Rohru, Banjar, Kufri, Una, Hatkoti, Dhaulakuan-Majra, Palampur, Dharamshala, Chamba, AmbGagret, Barot, Bir-Billing, Shahpur, Nerwa, Chirgaon and Baijnath-Paprola.
ii) During monsoon season of 2023, the State experienced unprecedented rainfall, resulting in significant damage to life and property. To prevent the recurrence of such situations in the future, Structural Design Report and Geological investigation report has been made mandatory in case of high Risk classification of buildings. Also construction within 5.0 meters of a Nallah and within 7.0 meters of a Khud is prohibited. In order to protect the green cover in Shimla Planning Area, State Government has increased the Green Area from existing 17 pockets to 25 pockets.
iii) State Government has developed Web portal with E-DCR capability for Planning/Special Areas and ULBs of whole State. This enables computerized auto scrutiny of maps submitted for Planning Permission. The E-DCR based online Building Permission System web-portal has been launched by the Chief Minister in March, 2024. Now, Planning permission for Residential Use upto 500 square meter (sq.m.) plot area, is being granted by the Registered Private professionals in this new web-portal. Till date permission in 856 cases have been granted through E-DCR web portal.
iv) The GIS-based development Plan for Shimla Planning Area for the horizon year 2041 has been notified vide notification dated 20.06.2023. Supreme Court vide its judgement dated 11.01.2024 has permitted State Government to proceed with the implementation of the Development Plan. Population of the Shimla Planning Area is expected to increase from 3,11,429 in 2011 to 6,25,127 in 2041. The Development Plan has been prepared keeping in view the population in 2041.

Himachal Pradesh Real Estate Regulatory Authority started functioning from 1 st January, 2020. The objectives of HPRERA will to regulate and promote the Real Estate Sector and to ensure sale of plots, apartments or buildings, in an efficient manner and to protect interests of consumer/home buyers in Himachal Pradesh.
HPRERA achievements
i) 214 Real Estate Projects are registered to the authority. The Authority has also registered 131 Real Estate Agents.
ii) This Authority is facilitating allottees/home buyers to redress their complaints/grievances. 19 of complaints will filed with the Authority from April to December, 2024. As on April, 2024, 42 of complaints/grievances were pending with the Authority. 19 complaints have been disposed of through WebEx hearings and remaining 42 numbers of complaints are under process.
iii) HPRERA is monitor on line pending approvals of Real Estate projects with co-ordination of concerned departments to facilitate the promoters to get statutory approvals/sanctions in time.

The National Building Organization has tasked the Department of Economics and Statistics of the Government of Himachal Pradesh to compile the Building Construction Cost Index (BCCI) of the State. The department has been preparing and releasing the State level BCCI with base year 2011-12. These indices are collected and compiled every quarter and on this basis, annual indices have been worked out as shown in the Table 17.2. As per the above table, the material cost index has increased from 146.53 to 148.15 in FY2023-24 which decreased to 147.97 in FY2024-25. The labour cost index has risen from 145.99 to 148.29 in FY2023-24 and to 149.58 in FY2024-25, owing to increase in wages component. Similarly, other expenditure, which includes contractual and supervisory charges, comes under the index of other expenditure. This has increased from 148.92 to 150.92 in FY2023-24 and increased to 151.60 in FY2024-25. The rise in all these indices has led to an increase in the overall BCCI from 148.67 in 2023-24 to 148.90 in FY2024-25. Himachal Pradesh is focused on addressing urbanization challenges through various housing and urban development initiatives. The HIMUDA aims to provide affordable housing, having developed over 13,000 houses and 5,600 plots. Urban development is supported through grants to local bodies, with a budget of ₹202.25 crore for FY2024-25. Key programs include the Deendayal Antyodaya Yojana for poverty alleviation, AMRUT for city infrastructure and the Smart City Mission, with projects in Shimla and Dharamshala. The State is working on sustainable development through the Town and Country Planning Act, real estate regulation and construction cost monitoring. Efforts focus on enhancing urban infrastructure, sanitation, housing and the livelihoods of urban poor.

The Department of Digital Technologies and Governance (formerly known as Department of Information Technology) was set up in 2004 with the mandate to lay a strong foundation for development of digital technologies and Information Technology (IT) in the State. The department strives to encourage investments in IT and IT Enables Services, facilitates the establishment of IT institutes, works for improving the quality of IT education in the state and is at the forefront in promoting usage of IT Tools for ensuring a SMART (Simple, Moral, Accountable, Responsive and Transparent) Government.
The vision of the Department of Digital Technologies and Governance is to spearhead the digital transformation of the State by leveraging cutting-edge digital technologies, ensuring robust data infrastructure, and enhancing connectivity to drive effective governance and foster inclusive development.
Himachal Pradesh has made significant progress in digital technology, expanding internet connectivity, enhancing digital literacy, and promoting e-commerce. The state has invested in broadband infrastructure, enabling access to online services, e-governance, and education. Technology has streamlined governance, improved transparency, and facilitated efficient public service delivery, contributing to socioeconomic growth across urban and rural areas. Against this background this chapter explains various State achievements in digital technologies.

Mukhya Mantri Seva Sankalp Helpline @1100 (MMSS): Mukhya Mantri Seva Sankalp Helpline @ 1100 is a one stop shop for all public grievances in the State. It includes all sources of grievances like those received at call center through toll free number 1100, through paper trails, emails, CM Sankalp mobile app or the MM Seva Sankalp Portal.
MMSS Helpline has emerged as on effective platform for prompt resolution of citizen grievances in Himachal Pradesh. As of 31st December 2024, 1,21,118 complaints have been registered through the MMSS Helpline during 2024-25. Of these, 1,05,345 complaints (87 per cent) have been disposed of, with 82,237 complaints (68 per cent) being conclusively resolved and closed to the satisfaction of the concerned citizens, after receiving the feedback. Since its launch, MMSS Helpline has received 7,78,364 complaints, of which 7,57,354 (97 per cent) complaints have been disposed of. This includes 5,53,303 (71 per cent) complaints that were resolved to the satisfaction of the citizens. According to the directions of Chief Minister, MMSS Helpline serves as a centralized call center for operating various departmental helplines. The following helpline has been shifted to MMSS Helpline Call Centre.
i) The 24x7 HRTC Helpline has been integrated with the MMSS, providing immediate assistance to passengers traveling on HRTC buses, with all 18,988 registered cases successfully resolved.
ii) An alternate channel for Disaster Helpline has also been operational since 1st January 2024, integrated with MMSS Helpline.
iii) The Public Distribution System 1967 Helpline of Food and Civil Supply Department has been transferred to MMSS, where 9,045 cases have been registered, with 9,005 cases closed.
A Digital Helpline has been set up in the Department of Digital Technologies and Governance to address queries from field offices regarding departmental applications and portals. This helpline can be reached at 0177-3525101/02 during standard office hours.
To further enhance accessibility and improve the citizen experience, a WhatsApp Chatbot facility is being implemented in the MMSS Helpline system.
eOffice: The eOffice initiative marks a significant leap toward a paperless administration in Himachal Pradesh, revolutionizing governance with efficiency and sustainability. This system not only contributes to environmental conservation but also leads to substantial cost savings for organizations. Equipped with a comprehensive suite of features—including document management, file tracking, task management, workflow automation, e-signatures, and communication tools—the platform fosters seamless collaboration among government officials. Currently, following offices have been successfully on boarded onto the eOffice platform: Additionally, as a web based application, the eOffice application can be accessed from anywhere, anytime by using Saccess and Forti-client through any network. The eSign facility, which utilized Aadhaar for electronic signatures, has recently been extended to all users for signing noting and draft letters, alongside the existing Digital Signature Certificate (DSC) option. The State Government is now emphasizing that all offices should begin communicating with field offices through e office by using digital signatures (eSign/ DSC) and communication may be dispatched through intra eOffice facility of eOffice application. This initiative aims to create completely paperless offices in the State.
Himachal Online Seva (e-District) Portal: To reduce footfall in government offices and to facilitate the citizens of the state with different government services at their door steps. Himachal Online Seva Portal has been created. This portal allows citizens to access government schemes/services in an easy and transparent manner.
e-District Project aims at electronic delivery of citizen centric services at district and sub-division level. This includes automation of workflow, backend and computerization across participating departments.
During this financial year, the Department has added 77 services to the Himachal Online Seva portal for online delivery. Currently 294 online services from various departments including Revenue, Women & Child Development, Panchayti Raj, Rural Development, Urban Development etc. are being offered through this portal. There are on an average 6000 transactions for various services through the Himachal Online Seva Portal on a daily basis. In the current financial year, 15,92,958 transactions have been completed as of December 2024. Furthermore, AI has been implemented in the portal to pre-check document deficiencies when a citizen applies for services, reducing the need for human intervention.
Aadhaar: The Unique Identification Authority of India's (UIDAI) mandate is to issue every resident a unique identification number aadhaar linked to their demographic and biometric information. This number enables residents to identify themselves and access various benefits and services. 104.29 per cent (LIVE) Unique Identification (UIDs) have been generated in the State. The Aadhaar saturation level for population above 5 years is over 100 per cent. The State has attained overall 4th rank and 1st in the 0-5 year age group with regards to Aadhaar generation. To address the left-out population and facilitate currently Aadhaar updates, 215 Permanent Enrolment Centers (PECs) are operational. These centers managed by the department of digital technology and Governance in collaboration with common service Centre (CSC-SPV). Ensure comprehensive coverage across all districts and blocks in the State.
Direct Benefit Transfer (DBT): To ensure real-time delivery of financial benefits from government schemes and programmes to citizens while eliminating pilferage, the state is implementing Direct Benefit Transfer (DBT) system. The Department of Digital Technologies and Governance has identified 165 (Centre-79; State-86) schemes with concerned departments during FY2024-25, of which DBT has been implemented in 52 schemes (Centre-17; State-35). During FY2024-25, an amount of ₹1274.17 crore has been transferred through DBT to17.45 lakh beneficiaries under 52 schemes till the month of December, 2024.
Himachal Pradesh State Wide Area Network (HIMSWAN): Under the National e-Governance Plan (NeGP), secure network called HIMSWAN (Himachal Pradesh State Wide Area Network) has been created HIMSWAN provides secured network connectivity to all State Government Departments upto block level, enabling efficient electronic delivery of G2G (Government to Government), G2C (Government to Citizen) and G2B (Government to Business) services. HIMSWAN was set-up in February, 2008 and currently 1,936 Government Offices across the State are connected through this network. Considering the growing demand, the bandwidth has been upgraded using the latest Multiprotocol Label Switching (MPLS) technology. The minimum Bandwidth is now at 8 Mbps. All directorates and offices with high internet usages offices at District level have been upgraded to 100 Mbps. The category wise status is detailed below:
Himachal Pradesh State Data Centre (HPSDC): Himachal Pradesh State Data Centre (HPSDC) is a core ICT infrastructure established by the Department of Digital Technologies and Governance (DT&G) to consolidate services, applications, and infrastructure, facilitating efficient electronic delivery of Government-to-Government (G2G), Government-to-Citizen (G2C), and Government-to-Business (G2B) services. Currently, 227 websites and applications from various departments, boards, and corporations are hosted at the HP State Data Centre. All State Government websites, portals, and applications hosted at HPSDC undergo regular cyber security audits. The capacity of HP State Data Centre is being enhanced to meet the hosting requirements of various departments for next 5 years. The ‘Application and Infrastructure Hosting Policy’ has also been notified for the HP State Data center to streamline the hosting processes and ensure standardized security practices.
CM Dashboard: To monitor the progress of key projects/schemes by Chief Minister, a CM Dashboard has been developed. In the first phase, 8 departments (i.e., Revenue, Women Child and Development, Jal Shakti, PWD, Rural Department, Education, Tribal and Health Services including Directorate of Health Services (DHS), National Health Mission (NHM) and Directorate of Medical Education (DME) were identified for integration with CM Dashboard and a total of 81 Key Performance Indicators (KPIs) were determined in consultation with the concerned departments. The CM Dashboard application facilitates real time monitoring of projects, i.e., physical progress, funds utilization, departmental level monitoring, ranking of district/ field offices based on their progress etc. Each department can monitor performance down to the base level of its hierarchy. Additionally, the District Good Governance Index (DGGI) a comprehensive and implementable framework under different themes at sub state level has been developed as part of CM Dashboard Application.
HIM Parivar: Him Parivar Project is an initiative by the State Government to establish an entitlement-based, proactive service delivery to the State schemes. Him Parivar system integrates various existing databases, such as the Parivar Register and the Public Distribution System (PDS), to create a comprehensive State Social Registry. This registry aims to enable proactive, entitlement-based benefit delivery to minimize pilferage and to reduce documentary burden on citizens accessing government benefit schemes. Additionally, it will facilitate beneficiary identification and provide data to support evidence-based policymaking.
As part of this initiative, the HimAccess Single Sign-On system has been developed, offering a unified platform for citizens and government employees to access multiple government services using a single username and password. This system enhances convenience and efficiency, saving time for citizens interacting with various online platforms. To date, 1.62 lakh users have been onboarded onto the HimAccess platform to avail themselves of various services. Furthermore, the Policy Document on Digital Identity and Access Management has been notified to ensure security, privacy and effective management of digital identities within the State. Under the Him Parivar Project, a survey platform has also been developed.
Surveys conducted by the Urban Development Department for creating family registers in urban areas and by HPSEBL for linking electricity meters with families are currently in progress. As of now, 6,28,959 individuals comprising 1,99,747 families have been surveyed under the Urban Development Department’s initiative. Similarly, under the Himachal Pradesh State Electricity Board Ltd. (HPSEBL) survey, a total of 18,19,955 electricity meters have been surveyed.
Litigation Monitoring System (LMS): New modules which have been implemented recently in this application:  Integration with District Court API: Enables the automatic fetching of case details, orders, and information about connected cases.  User Cases Watchlist Module: A streamlined feature that allows users to track and monitor selected cases with real-time updates and easy access.  Daily SMS Notifications: A daily SMS notification is sent regarding weekly hearings, along with a dedicated SMS to the Chief Secretary for updates.  Updates Module: A dedicated module has been developed to provide the Chief Secretary to GoHP with updates on recently updated case hearing marked by the departments.
Revenue Court Management System (RCMS): Revenue Court Management System (RCMS) is a comprehensive software developed by the data-driven Testing Department of Digital Technologies and Governance in close coordination with the Revenue Department. As a part of this initiative revenue court processes, case management, and record-keeping have been digitised. Citizens and advocates can access all information about their cases free of cost. Including case profile, case status, interim orders, final orders, cause list etc. till date 1,21,246 cases have been registered online on RCMS, of which 61,353 cases have been disposed of.
Revenue Relief Application Portal: The Relief portal is a digital solution designed to simplify and expedite the management and disbursement of relief funds in Himachal Pradesh. It serves as a comprehensive platform for processing relief applications, tracking their progress, and ensuring transparency and accountability in relief operations. It generates insightful reports to facilitate data-driven decision-making. 69,609 applications have been received online through RMS-Relief, out of which 37,497 applications have been approved.
Policy Initiatives Undertaken:
i)Application and Infrastructu re Hosting Policy for HP State Data Centre: The Infrastructure and Application Hosting Policy for the Himachal Pradesh State Data Centre (HPSDC) was notified in August 2024. This policy establishes comprehensive guidelines and procedures to ensure the secure, reliable, and efficient hosting of government applications and infrastructure within HPSDC. It aligns with guidelines from MeitY and CERT-IN to ensure compliance with government directives and advisories, preventing the hosting of government applications and data outside of government-designated data centres. This policy aims to create awareness and provide a ready reference for Government Departments and organizations regarding the processes, procedures, and guidelines required for hosting applications and infrastructure in the HPSDC.
ii) Policy on Digital Identity and Access Management: The Digital Identity and Access Management Policy, introduced in August 2024, outline guidelines for implementing Single Sign-On across software applications developed by State Government entities. The policy aims to ensure secure, efficient, and consistent use of Him Access systems across Government Departments, Boards, Corporations, and other organizations. It applies to all employees, entities, and citizens accessing State Government services online.
iii)Document Management Policy: To address current issues of inconsistent document management, security gaps, and accessibility challenges, a Document Management System (DMS) policy was introduced on 23rdOctober, 2024. This policy mandates the use of a centralized DMS to improve document handling, security, compliance, and transparency in government operations. The DMS Portal
(https://dms.hp.gov.in/Index.aspx) has been developed as a user-friendly, integrated platform to manage storage, use, and access of all official documents in one place.
4G Saturation Project: Government of Himachal Pradesh has provided all necessary support to BSNL under 4G Saturation Project facilitating all clearances from state departments in a time bound manner. Till date, clearances for 349 forest sites, 45 government sites have been provided to the BSNL.
Funding of ₹50 crore from the Government of India under Scheme for Special Assistance to State, (Telecom Sector) during financial year 2023-24 is being utilised to provide connectivity to the uncovered villages in the Lahaul and Spiti, Chamba and Kinnaur districts. So far, 500 towers have been constructed.
Investment and Industry Promotion: (STPI-Shimla, STPI-Kangra, COE-IT Waknaghat: STPI/ Incubation) To promote IT investments, two STPI (Software Technology Parks of India) Centers are being established in the State. One STPI Centre is being setup in Shimla and the other in Kangra. The STPI Centre in Mehli, Shimla is being established in 18,000 square feet and the record at Chetru, district Kangra is being established in 35,602 square feet and aims to support 25-32 entrepreneurs, generating employment opportunities for 500-650 youth.
Himachal Pradesh Kaushal Vikas Nigam (HPKVN) has constructed a CoE-IT building at Waknaghat with a total built-up area of 47,595.85 sq. ft. Within this facility, the department of digital Technologies and governance (DDT&G), in collaboration with STPI, will establish a Centre of Excellence (CoE) in Artificial Intelligence and Machine Learning, occupying 1,800 square feet. Additionally, 10,000 square feet will be allocated for an incubation facility under the Chief Minister’s Startup/Innovation Project/New Industries initiative. The remaining raw space will be offered on a rental basis to successful startups and IT/ITeS companies for commercial use

Himachal Pradesh State Electronics Development Corporation Ltd. functions under the administrative control of the Department of Information Technology, Himachal Pradesh. The main activities of the Corporation include supplying quality computer hardware and allied services, packaged software development, website development office automation, hardware office automation and Medical, and other electronics equipment, manpower outsourcing to the various Government Departments, Board, Corporation and Public Sector Undertakings (PSUs) in HP, HPSEDC ensure maintenance of supplied hardware through respective Original Equipment Manufacturers (OEMs)/Vendors/Authorized Service Partner (ASP). In HPSEDC. Ensures procurement is carried out through GeM Portal, HP e-Procurement Portal and Tender Enquiry NIQ (Notice Inviting Quotation).
Financial Achievements: The Himachal Pradesh State Electronic Development Corporation rendered various services during the FY2024-25 and achieved the turnover as on December, 2024 as under: In conclusion, the Government of Himachal Pradesh has made significant strides in digital transformation, with a focus on improving governance, accessibility and public service delivery. Key initiatives include the Mukhya Mantri Seva Sankalp Helpline for grievance resolution, the eOffice system promoting paperless administration and the Himachal Online Seva portal providing citizens with online government services. Other notable developments include Aadhaar enrollment, Direct Benefit Transfer (DBT) for efficient financial assistance, HIMSWAN for secure government connectivity and the Himachal Pradesh State Data Centre for hosting government applications. The State is also enhancing connectivity with the 4G Saturation Project, establishing IT incubation centers and fostering investment in technology. These efforts underscore the state's commitment to efficient, transparent governance and inclusive development.