HP economy registers 8.3 % growth, per capita income `2.01L

Shimla: Showing a positive turn in the recovery of the state's economy, after a massive down turn due to Covid pandemic, Himachal Pradesh is heading for growth rate of 8.3 per cent during 2021-22 –an encouraging trend in the election year for the BJP government ,which has entered fifth year of its rule.

The economic Survey report of 2021-22, tabled in the state assembly on Thursday by Chief Minister Jai Ram Thakur , ahead of the state's budget for 2022-23, clearly shows a reversal of the trend, which was a negative growth of 6.2 per cent in 2020-21 –worst hit by the pandemic.

Before the pandemic ,the growth was 8.9 per cent in 2019-20--higher than the 2018-19's rate of 7.1 percent.

There is also another good news as the per-capita income during 2021-22 has also shown a quantum jump and is likely to be 10.1 per cent from Rs 1.83 lakh to 2.01 lakh during the past one year. This is also more than the estimated national per-capita income for 2020-21 by Rs 51,528.

"In real terms, the increase in gross state domestic product (GSDP) pre-COVID and post-COVID that is from 2019-20 to 2021-22 is 2.7 per cent", the Chief Minister stated.

The recovery in respect of the growth is also indicated by the revival of the tourism activities. The tourism sector was so badly hit that it has reported a contraction by over 81.33% in the arrival of the domestic and foreign tourists arrivals. Trade, hotel and restaurants also slipped down by 9.2 percent during the year while it was up by 4.2 percent in the previous year, reads

the report.

It also says "Nominal GDP at current prices in the year 2021-22 is estimated at Rs 1,75,173 crore, as against the provisional estimate of GDP for the year 2020-21 of Rs 1,56,675 crore,"

it added.

Significantly, the agriculture and allied sector have been the least impacted sector by the pandemic and the sector is expected to grow by 8.7 percent in 2021-22. This is despite the fact that 80 percent of the state's agriculture area is rainfed. The agro climatic conditions in the state are congenial for production of cash crops and thus, the farmers are reaping a good harvest.

As per advance estimates the Gross Value Added (GVA) in the manufacturing sector will rise by 11.3 percent in 2021-22 after contracting by 7.3 percent in 2020-21.

The contribution of the Primary sector for the year 2020-21 First Revised Estimated (FRE) is 13.61 percent and the contribution of the Secondary sector for the same period is 41.71 percent and remaining 44.68 percent is contributed by the Tertiary sector.

As per advanced estimates, the industry's gross value added (GVA) will rise 11 per cent in 2021-22 after contracting by 6.6 per cent in 2020-21.

The services sector has been the hardest hit by the pandemic. This sector is estimated to have grown 6.3 per cent during 2021-22, following last year's 2.1 per cent negative growth, it added.

The economic survey further stated that tourism is an important source of revenue and diverse employment opportunities.