Economic Growth In Uttarakhand :

Uttarakhand is one of the fastest growing states in India, thanks to the massive growth in capital investments arising from conducive industrial policy and generous tax benefits. The state is situated in the foothills of Himalayas. The presence of several hill stations, wildlife parks, pilgrimage places and trekking routes make Uttarakhand an attractive tourist destination.

Uttarakhand is a well-renowned religious and wildlife tourism destination. About 21 new places in Uttarakhand that have the potential to become major tourist destinations. These places include Jageshwar, Baijnath, Saat Taal, Bhimtal, Patal Bhuvaneshwar, Chakori, Someshwar, Pithoragarh, Chakrata, Roopkund, Hanaul, Anson Barrage, Harshil, Dhanaulti and Dayara meadow. Jauljiwi in Kumaon and Tons in Garhwal division are planned to be developed as adventure tourism destinations.

In 2017, domestic tourist inflow in the state were 34.36 million and foreign tourist visits had crossed over 0.13 million.

Between 2011-12 and 2018-19AE, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 10.85 per cent to Rs 2.37 trillion (US$ 32.87 billion) whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 11.06 per cent to Rs 2.12 trillion (US$ 29.44 billion).

The state has close proximity to the national capital Delhi, a leading market of the country and excellent connectivity with neighbouring 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 favourable for hydropower.

Uttarakhand is being developed as an ‘energy state’ to tap the hydropower electric potential of over 25,000 MW. As of April 2019, hydropower generation installed capacity in the state was recorded to be 1,815.69 MW. Power generation in the state for 2018-19 (as of April) reached 1,290.04 GWH. Energy requirement in the state reached 12,778 million units (from April to February 2018).

According to the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI inflows, during April 2000 to December 2018, stood at around US$ 686 million.

Some of the major initiatives taken by the government to promote Uttarakhand as an investment destination are:

1. With Uttarakhand emerging as a hot tourist and industrial destination, the state government is focusing on upgrading the Jolly Grant airport as an international airport, in coordination with Airports Authority of India.

2. As of April 2019, 2,658 habitations were eligible under Pradhan Mantri Gram Sadak Yojana (PMGSY), out of which 1,872 were cleared and further 1,364 habitations were connected. Uttarakhand government has prepared 50 projects worth Rs 20,000 crore (US$ 2.98 billion) to attract investors during Destination Uttarakhand: Investors Summit 2018.

3. In April 2018, the second mega food park was at Mahuakhera Ganj village, Kashipur in Udham Singh Nagar district. M/s Himalayan Mega Food Park Private Ltd has been set up at Rs 99.96 crore (US$ 15.51 million) and will benefit 25,000 farmers and neighbouring districts.

4. Uttarakhand Policy for Skill Development & Entrepreneurship was launched in 2018, which aims to increase the employability of workers, competitiveness of enterprise, and inclusiveness of growth.

5. The Government of Uttarakhand announced the implementation of single window clearance system in the MSME (medium, small and micro enterprises) policy introduced in 2015.

6. With the establishment of the Software Technology Parks of India (STPI) earth station at Dehradun now offers high-speed connectivity. There are more such earth stations planned at other locations. Facilities by BSNL and Reliance are also available in the state.