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In 7 decades, agriculture’s share in Himachal’s GSDP falls from 70% to 14%: Economic Survey

Himachal Pradesh has seen a significant shift from agriculture to industries and services in the last seven decades.

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The agriculture sector’s share of the GSDP has declined from 70.37 percent in the financial year (FY) 1950-51 to merely 14.74 percent in FY 2023-24. (Representational Image)

Himachal Pradesh’s economy, once primarily dependent on agriculture, has undergone a significant transformation over the last seven decades, with a marked shift towards the service and manufacturing sectors in terms of their contribution to the Gross State Domestic Product (GSDP). The agriculture sector’s share of the GSDP has declined from 70.37 percent in the financial year (FY) 1950-51 to merely 14.74 percent in FY 2023-24.

However, the Economic Survey 2024-25, released on Thursday, highlights that despite this decline, 53.98 percent of the state’s population remains engaged in the primary sector for employment. Agriculture, horticulture, and tourism form the backbone of this sector, with agriculture continuing to employ a large portion of the workforce and playing a crucial role in the state’s economy.

According to the survey report, “Himachal Pradesh has witnessed a shift from agriculture to industries and services, as the percentage contribution of agriculture to the total GSDP declined from 70.37 per cent in 1950-51 to 35.06 per cent in 1990-91, 17.16 per cent in 2011-12, and 14.74 per cent in FY 2023-24. The share of the secondary and tertiary sectors, which stood at 7.41 per cent and 22.22 per cent, respectively, in 1950-51, increased to 26.50 per cent and 38.44 per cent in 1990-91, 43.81 per cent and 39.03 percent in 2011-12, and 39.98 percent and 45.28 percent in FY 2023-24.”

The tertiary sector, or service sector, includes activities such as trade, hotels and restaurants, transport, storage, communication, banking, real estate, and professional services, contributing significantly to the state’s Gross State Value Added (GSVA). The secondary sector comprises industries such as textiles, food processing, and chemicals.

Rishiraj Pathania, a retired officer from the state agriculture department, said, “There are multiple ways to interpret this shift from the primary sector to the secondary and tertiary sectors. While it is true that many people have moved from agriculture to modern jobs and industries, several professions remain closely tied to the primary sector, particularly agriculture and rural life. For instance, food processing — though categorized under the secondary sector — is deeply linked to agriculture, especially in rural areas of Himachal Pradesh and other hilly states like Uttarakhand.”

The report further states, “The declining share of agriculture does not diminish its importance to the state’s economy, as growth in the primary sector is still influenced by trends in agriculture and horticulture production. Agriculture remains a key contributor to the total domestic product and has a cascading effect on other sectors through input linkages, employment, trade, and transportation. Due to inadequate irrigation facilities, agricultural production continues to depend heavily on timely rainfall and favourable weather conditions.”

A senior officer from the finance department, requesting anonymity, said, “This shifting trend has multiple implications. First, the younger generation is increasingly uninterested in agriculture as a profession. Second, despite a large share of the population being engaged in agriculture and horticulture, incomes from these sources may be insufficient. This is why subsidies, special schemes, and new technologies are being introduced to support and promote agriculture in the state.”

Saurabh Parashar

Saurabh Parashar is an Assistant Editor at The Indian Express, primarily responsible for the publication’s coverage of Himachal Pradesh. He is a seasoned journalist with over 17 years of experience in print media, specializing in crime, legal affairs, and investigative reporting. Professional Background Education: He holds a Master’s degree in Mass Communication from Guru Jambheshwar University of Science & Technology (Hisar) and a Law degree from Himachal Pradesh University (HPU), Shimla. This legal background significantly informs his reporting on complex judicial and administrative matters. Career Path: Before joining The Indian Express in 2017, he spent 12 years with The Times of India. Core Beats: His primary focus is the socio-political landscape of the hill state, with a specific emphasis on the environment, forest conservation, drug menace (specifically "Chitta"), affairs related to tribal and archaeology and the unique challenges of governance in high-altitude regions. Recent Notable Articles (Late 2025) His recent reporting highlights the critical intersection of policy, law, and social safety in Himachal Pradesh: 1. "Himachal’s battle against Chitta: Why the border areas are most vulnerable" (Late 2025): An investigative look at the transit routes from Punjab and the impact on local youth. 2. "Shimla ropeway clears key hurdle as 820 trees face the axe :According to the Forest Survey of India’s 2021 assessment, 47.21 percent of Shimla’s 5,131 sq km geographical area is under forest cover (Nov 17, 2025). 3. "Himachal to handover 2.7427 ha of non-forest land for Shimla Ropeway: Given the land’s non-forest nature, RTDC and the state will not require permission from MoEFCC" (Nov 18, 2025) 4. "How the centuries-old Jodidara tradition is fading in Himachal’s Trans-Giri region: Jodidara: a form of fraternal polyandry—has long been part of Hatti tribal culture in the Trans-Giri region of Himachal Pradesh and adjoining Uttarakhand. It is believed to have evolved to prevent division of ancestral land and maintain unity among brothers in the harsh, mountainous terrain" (Aug 18, 2025) Legal & Agricultural Affairs "Kisan Sabha hails SC’s setting aside Himachal HC order to remove orchards from forest land" (Dec 18, 2025): Covering a major Supreme Court victory for farmers, where a High Court order to remove fruit-bearing apple orchards was overturned. "Himachal Cabinet nod to new tourism policy; focus on home-stays in tribal areas" (Dec 11, 2025): Detailing the legislative push to decentralize tourism and bring economic benefits to Lahaul-Spiti and Kinnaur. 3. Governance & Environment "Forest rights and development: Why Himachal is seeking more leeway from Centre" (Dec 19, 2025): Reporting on the legal hurdles faced by the state in infrastructure projects due to the Forest Conservation Act. "Cloudbursts and resilience: How Himachal’s remote villages are building back better" (Nov 2025): Following up on the long-term rehabilitation efforts after monsoon-related disasters. Crime especially cyber crimes, crypto currency etc: crypto currency: "Agents in uniform, motivational speeches, lavish parties: How a Himachal crypto con went unnoticed:A serial conman, a ‘Nelson Mandela Nobel Peace Award winner', and retired policemen got together to pull off a Rs 1,740-crore fraud" (Nov 10, 2023) Signature Beats Saurabh is recognized for his tenacious reporting on the state's drug epidemic. His deep familiarity with the topography and tribal culture of Himachal allows him to report from remote locations like Spiti, Pangi, Shillai, which are often overlooked by national media. His legal expertise makes him a primary choice for covering the Himachal Pradesh High Court on issues ranging from local body elections to environmental PILs. X (Twitter): @saurabh_prashar . ... Read More

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