Growth rate up, but agriculture sector a worry

SHIMLA: The economy of the hill state is expected to register a growth rate of 7.3 per cent in the current financial year 2018-19 as compared to 6.5 even though decline in revenue from agriculture and horticulture sectors remains a major cause of worry.

CM Jai Ram Thakur gives the final touches to the Budget to be presented on Saturday.

Pratibha Chauhan

Tribune News Service

Shimla, February 8

The economy of the hill state is expected to register a growth rate of 7.3 per cent in the current financial year 2018-19 as compared to 6.5 even though decline in revenue from agriculture and horticulture sectors remains a major cause of worry.

Chief Minister Jai Ram Thakur, who also holds finance portfolio, laid the Economic Survey for the financial year 2018-19 in the Vidhan Sabha today.

The Per Capita Income has increased from Rs 1,60,711 in 2017-18 to Rs 1,76, 968 in 2018-19, showing 10.1 per cent increase.

The Gross State Domestic Product (GSDP) of the economy at current prices in 2017-18 increased to Rs 1,36,542 crore from Rs 1,25,122 crore in 2016-17. As per advance estimates it is likely to be about Rs 1,51,835 crore in 2018-19.

However, the key sector of agriculture has shown a further decline which continues to remain a cause of worry. With a shift from agriculture to industry sector, the declining share of this sector to the economy has dipped from 26.5 per cent in 1990-91 to 8.8 per cent in 2017-18. The Agriculture sector generates about 9 per cent to the total Gross State Domestic Product. Fruit production, which was 5.65 lakh tonnes last year, has dipped to 4.06 lakh tonnes in 2018-19 (up to December, 2018). Apple production, which constitutes 79 per cent of the total fruit production, declined to 3.60 lakh tonnes against 4.47 lakh tonnes in 2017-18.

During the financial year 2018-19, the total revenue of Rs 4,230.42 crore has been mobilised up to November, 2018. Between November 2017 and November 2018 the All India Wholesale Price Index showed an inflation rate of 4.64 per cent. The Consumer Price Index for Himachal Pradesh increased by 2.31 per cent in November, 2018.

Out of the total assessed hydel potential of 27,436 MW, only 10,547 MW has been harnessed up to December, 2018 which is 38.44 per cent of the total potential. The revenue from power was Rs 906 crore up to November 2018 and it is expected to touch Rs 980 crore. As per the latest figures, the number of unemployed registered with various employment exchanges was 8,49,981 up to December 2018. During the current year a total of 1.64 crore tourists visited Himachal which has shown a decline from 1.96 crore in 2018. Under the Mahatma Gandhi National Rural Employment Guarantee Scheme, a total of 205.35 lakh man-days have been generated and employment has been provided to 4,79,004 households.

There are 522 medium and large scale industries and about 49,058 small scale industries presently working in the state.