Last updated: Jan, 2024
Introduction
Uttarakhand is located in the foothills of the Himalayan mountain range. The state shares borders with China (Tibet) in the north, Nepal in the east, and inter-state boundaries with Himachal Pradesh in the west and northwest and Uttar Pradesh in the south. It has almost all agro-geo climatic zones, which provide commercial opportunities for floriculture and horticulture. The state is home to more than 175 species of rare medicinal, aromatic & herbal plants. The state has proximity to the national capital, Delhi, a leading market of the country and excellent connectivity with neighboring states. Uttarakhand has abundant natural resources due to hills and forests. Its agro-climatic conditions support horticulture-based industries. The vast water resources available in the state are also favorable for hydropower. The presence of several hill stations, wildlife parks, pilgrimage places and trekking routes make Uttarakhand an attractive tourist destination.
Uttarakhand is one of the fastest growing states in India, thanks to the massive growth in capital investment arising from conducive industrial policy and generous tax benefits.
At current prices, Uttarakhand’s GSDP is projected to be Rs. 3.33 trillion (US$ 40.34 billion) in FY23. Between 2018-19 and 2023-24, GSDP of the state is estimated to increase at a CAGR of 7.06%.
The state offers a wide range of benefits in terms of interest incentives, financial assistance, subsidies, and concessions. Uttarakhand has a robust social and industrial infrastructure, virtual connectivity with over 39,000 km of road network, two domestic airports, 345.23 km of rail routes.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), between October 2019-June 2023, FDI inflow in Uttarakhand stood at US$ 147.98 million.
As of May 2022 (Upto December), 30 Industrial Entrepreneurs Memorandums (IEMs) worth US$ 209.30 million) have been filed in Uttarakhand.
In FY23, the total exports from the state stood at US$ 1.77 billion while FY24 (upto July 2023) US$ 0.76 billion.
Recent Development in Key Sectors
- As of September 2023, the state had a total installed power generation capacity of 4,396.98 MW. Of this, hydro power accounted for 2,095.89 MW, followed by thermal power at 1,335.76 MW, renewable power at 934.09 MW, nuclear power at 31.24 MW.
- In the State Budget 2023-24,
- Rs. 1,408 crore (US$ 170.78 million) has been allocated for capital outlay on roads and bridges.
- Uttarakhand has allocated 1.8% of its total expenditure towards energy.
- Rs. 1,125 crore (US$ 136.47 million) has been allocated towards integrated development of small and medium towns.
- Rs. 10,907 crore (US$ 1.32 billion) has been allocated to Education, Sports, Arts, and Culture
- Rs. 3,300 crore (US$ 400.25 million) has been allocated to government secondary schools.
- Rs. 1,101 crore (US$ 133.5 million) has been allocated to Urban Health Services.
- Rs. 1,418 crore (US$ 172 million) has been allocated to Rural Health Services-Allopathy.
- Production of loose flowers in the state stood at 3.02 thousand tonnes in 2021-22 as per first advance estimates.
- With the establishment of the Software Technology Parks of India (STPI) earth station at Dehradun, Uttarakhand now offers high-speed connectivity.
- Information Technology is an enabling sector that provides underpinning of smooth connectivity throughout the state in various departments, businesses, and homes, thereby improving productivity and efficiency across sectors. Given the high literacy rate of 78.82% in the state, employment opportunities for educated youth can be generated by encouraging ICT, ITES and electronics manufacturing units to establish their enterprises in Uttarakhand.
- Uttarakhand Policy for Skill Development and Entrepreneurship was launched in 2018, which aims to increase the employability of workers, competitiveness of enterprise, and inclusiveness of growth.
- Under the State’s Vision 2030, the processing capacity of horticulture produce will be enhanced from 7.5% to 15% of the total horticulture production by 2030.
- The MSME sector envisages massive expansion in the future, which would increase employment from the existing 2.58 lakh people to 8.5 lakh people by 2030.
- The tourism sector is accepted as a growth driver for inclusive social economic progress through its forward and backward linkages and the ability to create employment in the economy. The state is considering development of spiritual and religious theme-based circuits for tourism. Under the Swadesh Darshan scheme of the central government, Uttarakhand is a site for eco-tourism. Other themes may involve treks/hikes/tours to view famous Himalayan peaks or treks along the course of the Ganga river, places of culinary interest, or villages where communities maintain traditional lifestyles that tourists may find interesting.
- Sonprayag-Gaurikund-Kedarnath ropeway project undertaken by National Highways Logistics Management Limited (NHLML) will be 13 km in length and the estimated cost of the project will be over Rs. 985 crore (US$ 126.77 million).
- Empyrean Skyview Projects, will develop two more ropeway systems in Mussoorie and Yamunotri with an investment of Rs. 700 crore (US$ 90.09 million)
