Economy of Himachal Pradesh Takes Wing: Per Capita Income Surpasses ₹2.57 Lakh
Shimla, 13th March 2025 – The State of Himachal Pradesh experienced significant economic development, improving high financial circumstances while maintaining good growth in the financial year 2024-25. As per the Economic Survey 2024-25, the state economy (State Gross Domestic Product — GSDP) is expected to surge to ₹2,32,185 crore compared to ₹2,10,662 crore in the previous year (2023-24). This is an increase of 10.2% growth on last year’s growth of 9.9%.
But the most heartening news is the marked increase in the per capita income of the state’s residents. Now, the annual per capita income of the people of Himachal Pradesh has reached over ₹2.57 lakh, as against ₹2.34 lakh in 2023-24. As an increase of ₹22,430 over the previous year, this growth of 9.6% is not only a signal of the State’s economic resilience, but also one that shows Himachal Pradesh’s economic performance outstripping the national average.
Growth Fueled by Services and Agriculture
According to the Economic Survey, the service sector continues to be the major contributor to the economic growth of Himachal. The service industry dominates the state’s economic framework and forms a major contributor segment to the state’s GDP, generating 45.3% of the total GDP. Segments like information technology, finance, and education sectors have excelled and have played a significant role in the overall economic growth.
Agriculture, on the other hand, remains an important sector, accounting for 9.24% of the state’s GDP. The share of agriculture may be small relative to services, but agriculture will continue to be the foundation of the state’s rural economy. The farming community and allied sectors still play a big part in sustaining millions in Himachal Pradesh.
And also, various branches of labor (construction, manufacturing, handicrafts, etc.) has contributed 15.2% to the state’s economy. These figures indicate that a diverse economic base across services, agriculture and work has lent a measure of stability to the economy of Himachal Pradesh while also furthering growth across sectors.
Tourism – Heart Of Himachal’s Economy
Tourism industry of Himachal Pradesh has been a key driver for its economic prosperity contributing significantly to GDP and job creation. In recent years, tourism in the state has boomed, creating thousands of new jobs and attracting business to the area.
Himachal Pradesh had 32.13 lakh tourists in 2020. In 2021 that figure soared to 56.37 lakh, with projections of continued growth. The state had registered 150.99 lakh tourists in 2022, and this number is likely to grow to 160.05 lakh in 2023 and 181.24 lakh in 2024. The uninterrupted rise in the number of tourists visiting Himachal has led the state in becoming one of India’s most popular tourist looks.
Tourism along with hospitality, transport, handicrafts contribute 7.78% to the state’s GDP. This experience with tourism has created a thriving local economy, especially in towns and districts that mostly depend on tourism-related businesses, including hotels, restaurants, and tour services.
Government Support and Infrastructure Development
A strategy focused on infrastructure development has also contributed to the economic growth of Himachal Pradesh. The road networks, communication systems, and healthcare facilities were developed with significant investment from the state government. These changes not only enhanced the living conditions for the local inhabitants but also made the state more reachable for the tourists, which positively impacted its economy.
Policies that encourage small scale industries and local businesses, coupled with a pro active approach of the government towards attracting investments, have aided in developing a favorable climate of doing business. Moreover, hydropower projects that contribute to these progress throw a spotlight on the need for renewable energy sources, and have seen to help make Himachal Pradesh a significant player in India’s energy sector.
A Bright Future Ahead
With high GSDP, per capita income and increasing tourists, the prospects of investing in Himachal Pradesh assures a brighter outlook. The state is not just on course to exceed its economic goals for the year but is also laying the groundwork for sustainable economic growth in a number of sectors for the long term ahead. Himachal Pradesh’s economy is on the rise, thanks to its diverse economy, thriving tourism industry, and strategic infrastructure investments.
Investment plans in tourism, infrastructure, and renewable energy sectors make the outlook for the next few years just as bright, says the Economic Survey. With the continuing trends of growth, Himachal Pradesh can indeed shape out to be one of the leading states in India, not only in economic growth but by being a role model for other states in various sectors.
While the state maintains a solid agricultural and tourism backbone, its capacity to diversify its economic base gives it an edge in India’s fast-changing economic environment. Himachal Pradesh is indeed amongst the most promising destination in India today as it is backed by strong government initiatives and a growing local economy.
Continuing the achievement of the journey of effectiveness and credibility of more than 10 years in the career of journalism, as a woman journalist, I am Serving as the founder, promoter and editor of DiaryTimes with the trust and support of all. My credible coverage may not have given a big shape to the numbers, but my journey presents articles that make you aware of the exact and meaningful situations of Himachal’s politics, ground issues related to the public, business, tourism and the difficult geographical conditions of the state and financial awareness. DiaryTimes, full of the experience of my precise editorial expertise, is awakening the flame of credible journalism among all of you, so that the eternal flame of meaningful change can be lit in the life of the people of the state and the atrocities being committed against the people can be brought to the fore, I am motivated for that. If even a small change comes with the power of my journalism and the whole world becomes a witness to that issues, then I will consider myself fortunate.
