Himachal Pradesh Economy

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Himachal Pradesh Economy has been rapidly transformed from one of the most backward in the country to one of most advanced, ranking fourth in respect of per capita income. The economy of Himachal Pradesh is developed in all aspects, from its self-sufficient agriculture to the infrastructure built for its industrial development, along with the horticulture, transport, forest, and hydel resources.

Agriculture :
The agricultural sector of the Himachal Pradesh Economy contributes over 45% to the net state domestic product and nearly the entire population of the state depends directly upon agriculture. The Himachal Pradesh Economy make a lot of profit from raising cash crops. The main food crops grown are wheat, maize, rice, barley, seed-potato, ginger, vegetables, vegetable seeds, mushrooms, chicory seeds, hops, olives, and fig. Fruit cultivation also provides an economic boon to the farmers and Himachal Pradesh is known as the Apple State of India. An efficient irrigation system, availability of cheap credit, and organized marketing facilities are very important for the development of agriculture in Himachal Pradesh Economy.

Forests :
Another important sector in the Himachal Pradesh Economy is the forests that cover about 38.3% of the total area of the state. A Social Forestry Project assisted by the World Bank has been launched and this aims at producing fuel, fodder, and small timber species.

The industries that play significant role in the Himachal Pradesh Economy are:
1. Electronics
2. Watches
3. Thermometers, microscopes, hospital and laboratory equipment
4. Furniture, rope making, bamboo products, specialized wood based industrial units
5. Vanaspati ghee plants
6. Cement
7. Sericulture, handloom, silk industry, and tea

Other important aspects of Himachal Pradesh Economy are handicrafts, mining, hydel resources, tourism, and animal husbandry.