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Himachal economy to grow at 8.3% in 2025-26 despite financial constraints

Tabling the Economic Survey 2025–26 in the Vidhan Sabha, Sukhu said the state’s per capita income (PCI), at current prices, is estimated at Rs 2,83,626 for the FY 2025–26, up from Rs 2,58,196 in 2024–25, marking a growth of 9.8 per cent.

himachal economyGovernment initiatives in healthcare infrastructure, digital education and social security have contributed to better human development outcomes. (File)

The Himachal Pradesh economy is expected to grow by 8.3 per cent in 2025-26 at constant prices, as compared to 6.4 per cent in the previous fiscal, despite various challenges like acute financial constraints, cut in revenue deficit grants, and heavy losses due to natural calamities, Chief Minister Sukhvinder Singh Sukhu Friday said.

Tabling the Economic Survey 2025–26 in the Vidhan Sabha, Sukhu said the state’s per capita income (PCI), at current prices, is estimated at Rs 2,83,626 for the FY 2025–26, up from Rs 2,58,196 in 2024–25, marking a growth of 9.8 per cent. The national average per capita income is Rs 2,19,575.

“Over the past several years, the state’s per capita income has consistently remained higher than the national average. It has risen from Rs 87,721 in 2011–12 to Rs 2,83,626 in 2025–26, registering a compound annual growth rate (CAGR) of 8.7 per cent,” as per the survey.

The GSDP at current prices is projected at Rs 2,53,886 crore, reflecting a growth of 10.1 percent over Rs 2,30,587 crore in 2024–25, according to the Economic Survey

Highlighting the tourism sector, the report noted that tourist arrivals in state have rebounded strongly post-pandemic, with domestic footfall increasing from 32.13 lakh in 2020 to 3.11 crore in 2025. The survey emphasised that, given the state’s fragile ecosystem, ensuring sustainable tourism growth remains critical in the long run.

The services sector contributed 46.3 per cent of Gross State Value Added (GSVA) in 2025-26, becoming the leading growth driver with 8.6 per cent real growth in 2025-26, followed by the secondary sector (39.4 per cent) and primary sector (14.3 per cent). “The services sector continues to be the principal engine of growth, supported by the steady expansion of tourism, trade, transport and financial services, while industry and hydropower remain important pillars of the state’s development. Agriculture and allied sectors continue to sustain rural livelihoods and ensure food security for a large section of the population,” as per the survey.

The agriculture and allied sector witnessed a 45 per cent jump from Rs 22,428 crore (current prices) in 2021-22 to Rs 32,415 crore in 2025-26, while the crop sector went up from Rs 13,722 crore to Rs 18,515 crore in 2025-26.

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The industrial sector’s contribution to GSVA at constant prices was estimated at Rs 2,66,324 crore (39.96 per cent) in 2025-26, up 7.7 per cent over the previous year. The manufacturing sector contributed 25.32 per cent to GSVA, followed by construction (8.42 per cent) and electricity, water supply and other utilities (6.22 per cent).

On the power sector, the survey said, “The government entitlement from 143 hydropower projects totals 1,574.06 MW of saleable power. Revenue earned till December 2025 stood at Rs 1,668 crore, with an additional Rs 249 crore expected by March 2026. The Himachal Pradesh State Electricity Board Ltd (HPSEBL) operates 28 hydro projects with a total capacity of 589.35 MW, generating 1,973.64 million units (MU) up to December 2025, which is projected to exceed 2,200 MU by March 2026, ensuring sustainable and reliable power supply across the state.”

The survey also highlighted gradual improvements in social sector indicators, including health, education and welfare. Government initiatives in healthcare infrastructure, digital education and social security have contributed to better human development outcomes.

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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