Economy of Himachal Pradesh

The era of planning in Himachal Pradesh started 1948 along with the rest of India. The first five-year plan allocated 52.7 million to Himachal. More than 50% of this expenditure was incurred on road construction since it was felt that without proper transport facilities, the process of planning and development could not be carried to the people, who mostly lived an isolated existence in far away areas. Himachal now ranks fourth in respect of per capita income among the states of the Indian Union.

Agriculture contributes over 45% to the net state domestic product. It is the main source of income and employment in Himachal. Over 93% of the population in Himachal depends directly upon agriculture which provides direct employment to 71% of its people. The main cereals grown are wheat, maize, rice and barley.


Hydro Power is also one of the major source of income generation for the State. Identified Hydroelectric Potential for the state is 23,000.43 MW in five rivers basins.

Himachal is extremely rich in hydro electric resources. The state has about 25% of the national potential in this respect. It has been estimated that about 20,300MW of hydro electric power can be generated in the State by constructing various major, medium, small and mini/micro hydel projects on the five river basins. The state is also the first state in India to achieve the goal of having a bank account for every family. As per the current prices, the total GDP was estimated at 254 billion as against 230 billion in the year 2004–05, showing an increase of 10.5%. The recent years witnessed quick establishment of International Entrepreneurship. Luxury hotels, food and franchisees of recognised brands e.g. Mc Donalds, KFC and Pizza hut have rapidly spread.


Himachal has a rich heritage of handicrafts. These include woolen and pashmina shawls, carpets, silver and metal ware, embroidered chappals, grass shoes, Kangra and Gompa style paintings, wood work, horse-hair bangles, wooden and metal utensils and various other house hold items. These aesthetic and tasteful handicrafts declined under competition from machine made goods and also because of lack of marketing facilities. But now the demand for handicrafts has increased within and outside the country.

Agriculture of Himachal Pradesh

Agriculture contributes nearly 45% to the net state domestic product. It is the main source of income as well as employment in Himachal. About 93% of the state population depends directly upon agriculture.

However, agriculture in the state suffers from certain limitations, especially in the production of food grains. One of these reasons is that the area under cultivation can't be extended to an appreciable extent. Also, reclamation of land on slopes is not economical and increases environmental degradation. The state can profit more by cultivating cash crops as per the agro-climatic conditions.

The main cereals grown in the state are wheat, maize, rice and barley. Kangra, Mandi and the Paonta valley of Sirmaur (to some extent) are the major producers of the first three cereals, while barley is mostly cultivated in Shimla.

Though the state is deficient in food grains, it has gained a lot in other spheres of agricultural production such as seed potato, ginger, vegetables, vegetable seeds, mushrooms, chicory seeds, hops, olives and fig. Seed potato is mostly grown in the Shimla, Kullu and Lahaul areas. Special efforts are being made to promote cultivation of crops like olives, figs, hops, mushrooms, flowers, pistachio nuts, sarda melon and saffron. Solan is the largest vegetable producing district in the state. The district of Sirmaur is also famous for growing flowers, and is the largest producer of flowers in the state.

Fruit cultivation has also proved to be an economic boon. There are huge tracts of land suitable only for growing fruits. Fruit of all cultivation does not add to the problem of soil erosion and its employment potential is more than conventional farming. The yield per acre in terms of income is also much higher. Apple farming produces the maximum income. Fruit growing in the state is fetching over 3 billion annually.

Land husbandry initiatives such as the Mid-Himalayan Watershed Development Project, which includes the Himachal Pradesh Reforestation Project (HPRP), the world's largest clean development mechanism (CDM) undertaking, have improved agricultural yields and productivity, and raised rural household incomes.

Government of Himachal Pradesh and Himachal Pradesh Legislative Assembly

Town Hall in Shimla

The Legislative Assembly of Himachal Pradesh has no pre-Constitution history. The State itself is a post-Independence creation. It came into being as a centrally administered territory on 15 April 1948 from the integration of thirty erstwhile princely states.

Himachal Pradesh is governed through a parliamentary system of representative democracy, a feature the state shares with other Indian states. Universal suffrage is granted to residents. The legislature consists of elected members and special office bearers such as the Speaker and the Deputy Speaker who are elected by the members. Assembly meetings are presided over by the Speaker or the Deputy Speaker in the Speaker's absence. The judiciary is composed of the Himachal Pradesh High Court and a system of lower courts. Executive authority is vested in the Council of Ministers headed by the Chief Minister, although the titular head of government is the Governor. The Governor is the head of state appointed by the President of India. The leader of the party or coalition with a majority in the Legislative Assembly is appointed as the Chief Minister by the Governor, and the Council of Ministers are appointed by the Governor on the advice of the Chief Minister. The Council of Ministers reports to the Legislative Assembly. The Assembly is unicameral with 68 Members of the Legislative Assembly (MLA). Terms of office run for 5 years, unless the Assembly is dissolved prior to the completion of the term. Auxiliary authorities known as panchayats, for which local body elections are regularly held, govern local affairs.

Governments have seen alternates between Bharatiya Janata Party (BJP) and Indian National Congress (INC), no third front ever has become significant. In 2003, the state legislative assembly was won by the Indian National Congress and Virbhadra Singh was elected as the chief minister of the state. In the assembly elections held in December 2007, the BJP secured a landslide victory. The BJP won 41 of the 68 seats while the Congress won only 23 of the 68 seats. BJP's Prem Kumar Dhumal was sworn in as Chief Minister of Himachal Pradesh on 30 December 2007.

In the assembly elections held in November 2012, the Congress secured an absolute majority. The Congress won 36 of the 68 seats while the BJP won only 26 of the 68 seats. Virbhadra Singh was sworn-in as Himachal Pradesh's Chief Minister for a record sixth term in Shimla on 25 December 2012. Virbhadra Singh who has held the top office in Himachal five times in the past, was administered the oath of office and secrecy by Governor Urmila Singh at an open ceremony at the historic Ridge Maidan in Shimla.

List of districts of Himachal Pradesh

Himachal Pradesh is divided into 12 districts namely,
Kangra,
Hamirpur,
Mandi,
Bilaspur,
Una,
Chamba,
Lahaul and Spiti,
Sirmaur,
Kinnaur,
Kullu,
Solan
Shimla.
The state capital is Shimla, which was formerly British India's summer capital under the name Simla.

A district of Himachal Pradesh is an administrative geographical unit, headed by a Deputy Commissioner or District Magistrate, an officer belonging to the Indian Administrative Service. The district magistrate or the deputy commissioner is assisted by a number of officers belonging to Himachal Administrative Service and other Himachal state services. Each district is subdivided into Sub-Divisions, governed by a sub-divisional magistrate, and again into Blocks. Blocks consists of panchayats (village councils) and town municipalities. A Superintendent of Police, an officer belonging to the Indian Police Service is entrusted with the responsibility of maintaining law and order and related issues of the district. He is assisted by the officers of the Himachal Police Service and other Himachal Police officials.

Flora and fauna of Himachal Pradesh

Asian Paradise Flycatcher in Kullu

According to 2003 Forest Survey of India report, legally defined forest areas constitute 66.52% of the area of Himachal Pradesh, although area under tree cover is only 25.78%. Vegetation in the state is dictated by elevation and precipitation.

The southern part of the state, at lower elevations than the north, has both tropical and subtropical dry broadleaf forests and tropical and subtropical moist broadleaf forests. These are represented by northwestern thorn scrub forests along the border with Haryana and Uttar Pradesh and by Upper Gangetic Plains moist deciduous forests in the far southeast. Sal and shisham are found here.

Himachal is also said to be the fruit bowl of the country, with orchards being widespread. Meadows and pastures are also seen clinging to steep slopes. After the winter season, the hillsides and orchards bloom with wild flowers, while gladiolas, carnations, marigolds, roses, chrysanthemums, tulips and lilies are carefully cultivated. The state government is gearing up to make Himachal Pradesh as the flower basket of the world.

Himalayan Monal at Birds Park in Shimla

Himachal Pradesh has around 1200 bird and 359 animal species, including the leopard, snow leopard (State animal), ghoral, musk deer and Western Tragopan. It has 2 major national parks and sanctuaries — the largest number in the Himalayan region. The Great Himalayan National Park in Kullu district was created to conserve the flora and fauna of the main Himalayan range, while the Pin Valley National Park to conserve the flora and fauna of the cold desert
     .

Geography and climate of Himachal

A summer view of Khajjiar.

Himachal is in the western Himalayas. Covering an area of 55,673 square kilometres (21,495 sq mi), it is a mountainous state.

The drainage system of Himachal is composed both of rivers and glaciers. Himalayan rivers criss-cross the entire mountain chain. Himachal Pradesh provides water to both the Indus and Ganges basins. The drainage systems of the region are the Chandra Bhaga or the Chenab, the Ravi, the Beas, the Sutlej and the Yamuna. These rivers are perennial and are fed by snow and rainfall. They are protected by an extensive cover of natural vegetation.

                                                              Climate

                                            Temperature
                                           • Avg. Winter       7 °C (45 °F)
                                           • Avg. Summer    28 °C (82 °F)
Due to extreme variation in elevation, there is great variation in the climatic conditions of Himachal . The climate varies from hot and sub-humid tropical in the southern tracts to, with more elevation, cold, alpine and glacial in the northern and eastern mountain ranges. The state has areas like Dharamsala that receive very heavy rainfall, as well as those like Lahaul and Spiti that are cold and almost rainless. Broadly, Himachal experiences three seasons: Summer, Winter and rainy season. Summer lasts from mid April till the end of June and most parts become very hot (except in alpine zone which experiences a mild summer) with the average temperature ranging from 28 to 32 °C (82 to 90 °F). Winter lasts from late November till mid March. Snowfall is common in alpine tracts (generally above 2,200 metres (7,218 ft) i.e. in the Higher and Trans-Himalayan region).

History of Himachal Pradesh

Sansar Chand (c.1765–1823)

The history of the area that now constitutes Himachal Pradesh dates back to the time when the Indus valley civilisation flourished between 2250 and 1750 BCE. Tribes such as the Koilis, Halis, Dagis, Dhaugris, Dasa, Khasas, Kinnars and Kirats inhabited the region from pre-historic era. During the Vedic period, several small republics known as "Janapada" existed which were later conquered by the Gupta Empire. After a brief period of supremacy by King Harshavardhana, the region was once again divided into several local powers headed by chieftains, including some Rajput principalities. These kingdoms enjoyed a large degree of independence and were invaded by Delhi Sultanate a number of times. Mahmud Ghaznavi conquered Kangra at the beginning of the 10th century. Timur and Sikander Lodi also marched through the lower hills of the state and captured a number of forts and fought many battles. Several hill states acknowledged Mughal suzerainty and paid regular tribute to the Mughals.

The Gurkhas, a martial tribe, came to power in Nepal in the year 1768.They consolidated their military power and began to expand their territory.Gradually the Gorkhas annexed Sirmour and Shimla. With the leadership of Amar Singh Thapa, Gorkhas laid siege to Kangra. They managed to defeat Sansar Chand Katoch, the ruler of Kangra, in 1806 with the help of many provincial chiefs. However, Gurkhas could not capture Kangra fort which came under Maharaja Ranjeet Singh in 1809. After the defeat, the Gurkhas began to expand towards the south of the state. However, Raja Ram Singh, Raja of Siba State managed to capture the fort of Siba from the remnants of Lahore Darbar in Samvat 1846, during the First Anglo-Sikh War. They came into direct conflict with the British along the tarai belt after which the British expelled them from the provinces of the Satluj. The British gradually emerged as the paramount power. In the revolt of 1857, or first Indian war of independence, arising from a number of grievances against the British, the people of the hill states were not as politically active as were those in other parts of the country. They and their rulers, with the exception of Bushahr, remained more or less inactive. Some, including the rulers of Chamba, Bilaspur, Bhagal and Dhami, rendered help to the British government during the revolt.


After independence the Chief Commissioner's Province of H.P. came into being on 15 April 1948 as a result of integration of 28 petty princely states (including feudatory princes and zaildars) in the promontories of the western Himalaya, known in full as the Simla Hills States & four Punjab southern hill States by issue of the Himachal Pradesh (Administration) Order, 1948 under Sections 3 & 4 of the Extra-Provincial Jurisdiction Act, 1947 (later renamed as the Foreign Jurisdiction Act, 1947 vide A.O. of 1950). The State of Bilaspur was merged in the Himachal Pradesh on 1 April 1954 by the Himachal Pradesh and Bilaspur (New State) Act, 1954. Himachal became a part C state on 26 January 1950 with the implementation of the Constitution of India and the Lt. Governor was appointed. Legislative Assembly was elected in 1952. Himachal Pradesh became a Union Territory on 1 November 1956. Following area of Punjab State namely Simla, Kangra, Kulu and Lahul and Spiti Districts, Nalagarh tehsil of Ambala District, Lohara, Amb and Una kanungo circles, some area of Santokhgarh kanungo circle and some other specified area of Una tehsil of Hoshiarpur District besides some parts of Dhar Kalan Kanungo circle of Pathankot tehsil of Gurdaspur District; were merged with Himachal Pradesh on 1 November 1966 on enactment of Punjab Reorganisation Act, 1966 by the Parliament. On 18 December 1970, the State of Himachal Pradesh Act was passed by Parliament and the new state came into being on 25 January 1971. Thus Himachal emerged as the eighteenth state of the Indian Union.