Battered by nature’s fury, Economic Survey pegs Himachal Pradesh’s GDP growth at 7.1% for FY-2024

Despite the devastating monsoon, Himachal Pradesh's economy is projected to grow at 7.1% in 2023-24, with increased tourist arrivals and hydroelectric potential.

Even as a relentless monsoon in Himachal Pradesh brought the hill State to its knees this year, causing immense damage to life and property, the growth in the financial year 2023-24 is seen at 7.1%, up from 6.9% in the financial year 2022-23.

The State Economic Survey, 2023-24, which was presented by Chief Minister Sukhvinder Singh Sukhu during the ongoing Budget session of Himachal Pradesh State Assembly on Friday said despite the adverse situations arising out of the unprecedented rains and flash floods in the monsoon months of 2023, the State government has strived to put untiring efforts, and make strategic initiatives to ensure economic growth, and overall development of the State.

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“State’s Real Gross Domestic Product or GDP at constant prices will grow by over ₹9,428 crore during the current financial year 2023-24 as compared to the previous FY 2022-23. This translates into growth in real GDP during FY 2023-24 at 7.1% as compared to 6.9% in FY 2022-23, according to first advance estimates of State income,” the survey said.

The survey pointed out that tourist arrival is one of the main indicators of the demand for tourism in a particular destination. “After the COVID-19 pandemic, the domestic tourist arrivals have increased from 32.13 lakh in the year 2020 to 56.37 lakh in 2021 to 151 lakh in 2022 and further to 160.05 in the year 2023 in absolute terms. It shows that the tourist arrivals are reaching the pre-pandemic levels,” it said.

Pointing out that Himachal Pradesh has a large number of hydroelectric resources, the survey said the State has about 25% of the national potential, and about 24,000 MW of hydroelectric power can be generated in the State by the construction of various hydroelectric projects on the five perennial river basins. “Out of the total hydroelectric potential of the state, 11,209 MW have been harnessed so far, out of which only 7.6% is under the control of the Himachal Pradesh government while the rest is exploited by the Central government,” it said.