Himachal Pradesh Industries and its policies

 Himachal Pradesh Industries and its policies

Industry is the production of goods or related services within an economy.The major source of revenue of a group or company is the indicator of its relevant industry. Following the Industrial Revolution, many developed countries and developing on manufacturing industry. In twentieth century when science and technology have gained unquestionable supremacy, the level of the industrial development of a country has become the yardstick to judge its actual development.

British Government never intended to develop the industries in our country during pre-independence period. After independence, Industrial Policy, 1948 and the Industries (Development and Regulation) Act, 1957 gave an idea of the attitude of the Government with regard to the development of industries. But, it was only the adoption of planning in 1951 which created a favorable atmosphere for the development of industries. Over the time different states progressed on the path of industrial development contributing to economic growth of country.


Himachal Pradesh has made significant achievements in the field of industrialisation in the past few years. As of December 2015, the state recorded 40,172 working units, of which, the large industrial units were recorded to be 138 whereas the medium scale units were 380. Out of the total allocated budget of US$ 5.23 million for the Industrial sector, an amount of US$ 3.03 million was incurred by the sector till December 2015.

The increase in total State Domestic Product is mainly attributed to 12.3 percent in Community & Personal Services sectors, 11.0 percent in manufacturing sector,9.2 percent increase in Electricity, Gas & Water Supply,

Agro-horticulture, herbal, wool, sericulture and electronics are the major industries in the state. Small-scale village based industries plays important role in employment generation.

In small scale sector, microscopes, watch parts, thermometers, hospital and heating equipments are being manufactured, whereas the village industry sector consists sheep-rearing, wood carving, blacksmith, spinning, weaving, leather tanning, pottery, handloom, handicrafts and bamboo crafts. Handloom and sericulture are the most important village industries.

One export promotion industrial park is developed in Baddi and one electronics complex is being developed in Shoghi near Shimla. Fruit processing is naturally an important element in the industrial development of the state.

One of the biggest fruit processing plants in Asia at Parwanoo is in operation. Tea is grown in Kangra and Mandi districts. Besides these, there are many mineral based industries like stone crusher, calcium carbonate units, hydrated lime units etc.

Himachal Pradesh is one of the fastest-growing regions in the pharmaceutical industry in India, driven by incentives announced by the state Government in its Industrial Policy, 2004.

The textiles industry in Himachal Pradesh is mainly focussed on spinning, with companies such as Vardhman engaged in weaving and dyeing. Raw silk production in the state has increased from 23 metric tonnes in 2012-13 to 30 metric tonnes in 2014-15. In 2015-16, production of raw silk in the state was 32 metric tonnes.

Tourism is emerging as aHimachal Pradesh Industries and its policies big industry of Himachal Pradesh. After the threat of terrorists in Jammu & Kashmir a large number of tourists moves towards this state to enjoy the same type of natural beauty.

Main tourist complexes are: Shimla, Palampur,  Dharamsala, kullu-Manali and Chamba-Dalhousi. The Chamba district has been christened as the Switzerland of Himachal Pradesh.

Main pilgrim centers are: Bhima Kali temples, Sarahan, Hatkoti, Jwalajee, Chamunda Devi, Chintpurni, Renuka, Rewalsar, Deoth Siddh and Naina Devi.

The State Tourism Development Board developed many tourist attractions like resorts, water sports complex, hang-gliding etc. The hang-gliding competition at Kangra valley, Khajjar resort at Chamba district and the water sports complex of Solang Nallah are very popular in this state.


Himachal is facing a number of difficulties in the advancement of industries. Some major ones are-

Lack of means of dependable transport and poor

Poor mineral resources,

Non-availability of infrastructure and communication facilities,

Shortage of capital and

Lack of modern skills



There is vast scope for setting up small scale industries in Himachal Pradesh. It is discussed under following heads:

Resource based Industries-State is having very limited surplus resources. However there are some surplus resources in agriculture, horticulture, forests and minerals etc. Ex- Maize base snacks, Pickle, Chutney, Squashes, Fruit canning etc.

Skill based industries- There are certain skills available in Himachal Pradesh in the form of artisans, ITI trained persons and other skill persons who are working as skilled workers in existing industries in the State as well as in neighboring States. Ex- Leather shoes Carpets Shawls/patti weaing Hosiery products etc.

Demand based industries: Demand for various items depends on social, cultural, economic, climatic conditions, policies and ongoing development programmes of the Govt. for ex- Spice Grinding, Flour Mill, Milk product etc.

Key policy initiative:

  1. IT Policy 2001- For using IT to promote world class e-tourism in HP.
  2. Industrial policy 2013- to achieve environmentally sustainable and balanced industrial growth.
  3. Himachal Pradesh state water policy 2013 – to ensure planning, development and management of water resource.
  4. Hydro policy- to focus on capacity development, energy security,and availability, affordability, efficiency and employment generation.
  5. Himachal Pradesh solar power policy 2016- to provide 24×7 power to remote and rural areas.




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