Himachal's slow growth rate 5.6%, lowest in 4-year

Shimla: Economic slowdown in the country has hit Himachal Pradesh hard slowing down hill state's steady growth process, posting negative growth in primary sectors and sharp decline in the share of agriculture in the state's income.

The Economic Survey report for year 2019-20 presented on Thursday in the state Assembly by Chief Minister Jai Ram Thakur, a day before state's Budget for 2020-21, estimated state's growth at 5.6 per cent, which is much below last year's 7.1 per cent .

The Economic survey, ironically, has no chapter on state's Excise and taxation Collections, mainly the Good and Services Tax (GST), which remains a major source of earnings for state having low – tax base.

The per capita income of the state, as par report, has increased by Rs 12,147 to Rs 1,95,255 in 2019-20 against 1.83,108 in year 2018-19 showing an increase of 6.6 per cent .

Biggest blow to the state's economic growth rate during the year, as being lowest in past four years, has come from decline in the share of the agriculture from 15.35 per cent in 2014-2015 to 12.73 in the year.

Some economic experts claim that what has really saved the state from drop in the growth, maybe to 4 per cent, is jump in the horticulture sector, especially the apple crop.

"There is an increase of 42.83 per cent in the horticulture production during the year, which helped the primary sector to grow by 9.3 per cent. The share of forestry and logging has also declined sharply," reads report.

Chief Minister termed the slow growth rate as result of similar trends in the overall economy of the country hoping that revival of the growth pace is very much possible in the coming time.

The Economic Survey report has devoted one chapter on state government's initiative on hosting Global investors' meet — Rising Himachal 2019 to boost investments and create new employment avenues for the youths. During the meet MoUs worth Rs 96,721 crore were signed.

Other highlights of the reports remains Gross State Domestic Product (GSDP) in 2019-20 estimated to show an increase to Rs 1,65,472 crore against Rs 1.53.845 in 2018-19.

Earlier, the GSDP at current prices in 2017-18 increased to Rs 1,36,542 crore from Rs 1,25,122 crore in 2016-17.

Total revenue receipts are estimated at Rs 33,747 crore in 2019-20 compared to Rs 31,189 crore in 2018-19, showing an increase of 8.20 per cent, it added.

The state's own taxes rose to 15.69 per cent in 2019-20 which is estimated at Rs 7,921 crore compared to Rs 6,847 crore in 2019-19.

The Public administrative expanses have grown by 1.3 percent due to increased salary and pension burden on the state.

The inflation fell from 4.7 per cent in 2018-19 to 1.5 per cent during 2019-20, it added.