Over the years, the economy ofHimachal Pradeshhas shown a shift from Agriculture-notes-for-state-psc-exams”>Agriculture sector to industries and Services as the Percentage contribution of agriculture in totalGross State Domestic Producthas declined from 57.9 per cent in 1950-51 to 55.5 per cent in 1967-68, and then from 26.5 per cent in 1990-91 to 9.64 per cent in 2020-21. During Covid pandemic, the agriculture and allied sectors were least impacted and this sector is expected to grow by 3.9 per cent in 2021-22 after growing 3.6 per cent in the previous year.
According to the latest Economic Survey report tabled in stateAssemblyrecently, the services sector was hardest hit by the pandemic, especially segments that involve human contact and this sector is estimated to grow by 8.2 per cent this financial year following last years 8.4 per cent contraction. During 2020-21, the state economy contracted by 5.2 per cent due to Covid-19 pandemic but as per current estimates, is expected to grow by 8.3 per cent during 2021-22.
The of the industries and services sectors which were 1.1 and 5.9 per cent respectively in 1950-51 increased to 5.6 and 12.4 per cent in 1967-68, 9.4 and 19.8 per cent in 1990-91 and to 28.9 and 44.7 per cent in 2020-21. However, the contribution of remaining sectors declined from 35.1 per cent in 1950-51 to 26.4 per cent in 2020-21.
The declining share of agriculture sector does not affect the importance of this sector in the state economy as the Growth in Primary Sector of the state economy is still determined by the trend in agriculture and Horticulture production. It is one of the major contributors to the total domestic product and has overall impact on other sectors via input linkages, EMPLOYMENT, trade and transportation. Report says that due to lack of Irrigation facilities, agricultural production to a large extent still depends on timely rainfall and weather conditions. High priority has been accorded to this sector by the Government.
The state has made significant progress in the development of horticulture. The topographical variations and altitudinal differences coupled with fertile, deep and well drained soils favour the cultivation of temperate to sub-tropical fruits. The region is also suitable for cultivation of ancillary horticultural produce like flowers, mushroom, honey and hops.