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

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.”