Recession casts shadow over economy

Pratibha Chauhan

Tribune News Service

Shimla, March 8

The adverse impact of the economic recession seems to have dented Himachal’s growth rate, which is estimated to dip to 6.3 per cent in the current financial year as compared to 6.9 per cent registered last year.

Chief Minister Jai Ram Thakur presented the Economic Survey – 2017-18 for the state in the Vidhan Sabha today. The growth rate in 2015-16 was at 8.1 per cent. The growth rate of the state during the last three years has been below the national average.

Even as a marginal decline in the growth rate at 6.3 per cent is estimated for the financial year 2017-18, the per capita income (PCI) is expected to register a hike of almost Rs 11,000 from Rs 1.47 lakh last year to Rs 1.58 lakh. The PCI figure was Rs 1.34 lakh in 2015-16.

The Gross State Domestic Product (GSDP) at the current price is expected to be Rs 1,35,914 crore, this year as compared to Rs 1,24,236 in the last financial year. A total revenue of Rs 4,613.15 crore has been mobilised up to December 2017. The consumer price index increased by 5.3 per cent in December 2017. The credit deposit ratio stands at 44:60 with there being a network of 2,144 bank branches in the state.

An area of concern could be the estimated decline, both in agriculture and horticulture for the current year. As against the foodgrain production of 17.45 lakh metric tonnes in 2016-17, this year the figure is expected to decline to 16.45 lakh metric tonnes. This figure stood at 16.34 lakh metric tonnes in 2015-16. The agriculture sector generates about 10 per cent of the total GSDP.

The news from the horticulture sector too is not very encouraging as the fruit production this year has touched five-lakh tonnes up to December 2017 against 6.12 lakh tonnes in 2016-17. Apple, which constitutes 85 per cent of the total fruit production of the state, too faced a decline as a total of 4.28 lakh tonnes of the fruit was produced as compared to 4.68 lakh tonnes in 2016-17.

The figure of the youth seeking jobs and registered in various employment exchanges is 8.34 lakh. Of the hydropower potential of 27,436 mw, only 10,519 mw has been harnessed. The tourist arrival count also recorded a jump with 1.96 crore visiting the state as compared to 1.84 crore last year. Incidentally, this figure is three times the population of the state.

GSDP

The Gross State Domestic Product at the current price is expected to be Rs 1,35,914 crore this year as compared to Rs 1,24,236 in the last financial year. A total revenue of Rs 4,613.15 crore has been mobilised up to December 2017

Horti

The fruit production this year has touched five-lakh tonnes mark up to December 2017 against 6.12 lakh tonnes in 2016-17. Apple too faced a decline as a total of 4.28 lakh tonnes of the fruit was produced as compared to 4.68 lakh tonnes in 2016-17. 

Agri

As against the foodgrain production of 17.45 lakh metric tonnes in 2016-17, this year the figure is expected to decline to 16.45 lakh metric tonnes. This figure stood at 16.34 lakh metric tonnes in 2015-16. 

Tourism

The tourist arrival count reached 1.96 crore as compared to 1.84 crore last year.

Power

Of the hydropower potential of 27,436 mw, only 10,519 mw has been harnessed

Jobs

The figure of the youth seeking jobs and registered in various employment exchanges is 8.34 lakh.