Economic Development in Uttarakhand

State Economic Profile: Tapping the Vast Potential

Uttaranchal with its vast natural resource base, large forest cover and enormous power potential holds the potential of being one of the most prosperous states in the country.The state domestic product during 2001-02 was around USD 1647 millions with a per annum growth rate of 4.4 per cent during 1993-94 to 2001-02.

Sectoral Pattern: Services Holds the Key

Breakdown of the state’s latest available aggregate GDP shows clear dominance of the services sector. The sector with a buoyant per annum growth of 6.3 per cent during 1993-94 to 2001-02 pulled up the overall growth considerably.This is not surprising given the vast opportunities for tourism the state offers.Trade, hotels and restaurant contributed to bulk of the sector’s GDP- with an average share of around 18.5 per cent in the services sector during the period.

Income levels: Creditable Despite Odds

Per capita income - as approximated from the per capita GSDP, is a vital indicator of standard of living in a state.The current per capita income of Uttaranchal during 1993-94 to 2001-02 grew at an annual compounded growth rate of 3.6 per cent per annum (USD terms). During 2001-02 the per capita income of the state at USD 318.0 marginally fell short of the all-India aggregate (USD 374).

Agriculture: Pool of Immense Opportunities

Given the terrain of the state and favourable climatic conditions, agriculture continues to be the major source of income for more than three-fourths of the state’s population. Agriculture and allied activities with an average share of about 37.3 per cent during 1993- 94 to 2001-02, is a significant contributor to the state domestic product as against the national average of 27.8 per cent during the period considered.The State hosts all major climatic zones thus giving it an edge in developing activities based on floriculture, fruits and nuts, vegetables and vegetable seeds.

Given that Uttaranchal has significant area under forests, forestry and logging is a key component of the agricultural GDP (7.1 per cent of the agriculture GDP) during the period.The state outperformed the national aggregates of the yield of some of the major crops. During 2001-02, Uttaranchal posted significantly high yield of major coarse cereals.

Public Health and Family Welfare

Compares Favourably with the National Averages Uttaranchal compares favourably with the all India aggregate on the health statistics. During 1998-99 the state had an infant mortality rate of 37.6 per thousand live births as against the national average of 67.7. During 2002-03, Uttaranchal had 228 primary and additional primary health care centres, 325 state allopathic hospitals and 36 community health care centres.

Human Resources – high literacy levels and quality education

A key factor going in Uttaranchal’s favour in attracting services and industrial investments is its significantly high level of literacy.The overall rate of literacy in the state jumped up to 72.3 per cent in 2001 from 57.7 per cent in 1991.This endows it with large pool of educated labour that industry can draw from. Importantly, the spread of high level of literacy is even across the rural and urban sectors with the respective literacy rate of 68.5 and 81.5 per cent.The total school enrolment ratio for Uttaranchal for the age group of 6-17 was at 87 per cent, significantly higher than the all India ratio of 72 per cent.The high level of literacy and existence of large number of good quality educational institutions, research and training institutes and institutes of excellence indicate the abundant availability of quality human resource base.This can be supported by the facts charted hereby. During 2002-03, state of Uttaranchal was amongst the few states with 100 per cent trained teachers in all the levels of education.

Tourism Potential

The vast pool of natural resources in Uttaranchal adds considerably to it attractiveness as an investment destination particularly for tourism and forest based industry.The state has enormous resources for cultural, adventure, wildlife, nature and leisure tourism to attract both domestic and foreign tourist.

Uttaranchal is the first state in the country to have created a Tourism Development Board by legislation, as the highest body to function as a Promoter,Adviser, Regulator and Licensing authority for tourism in the state. Uttaranchal Tourism was awarded the prestigious National Tourism Award in the category of “Best Practices by a State Government” by the Government of India in October 2003.

Source: www.ibef.org