Industrial Triumphs in Himachal Pradesh: A Recap of Notable Achievements



Explain the significant achievements in the field of industrialization in Himachal Pradesh. (HPAS Mains Question Paper 2022 – GS 3, Q.25)

Himachal Pradesh has made significant achievements in industrialization in the past few years. The state has a well-developed industry sector, which has witnessed an average contribution to Gross State Domestic Product (GSDP) of around 30 per cent during the last 4 years. The state is an emerging manufacturing hub for pharmaceuticals, textiles, light engineering goods, health, power, telecom and information technology. The state has emphasized public-private partnerships for investments in hydropower projects. The state government has recently announced various measures to promote industrialization in the state. To promote Ease of Doing Business (EoDB) in the State, the State government has announced online application filing for speedy approvals. 

The State government amended the Industrial Policy 2004 and notified the “Himachal Pradesh Industrial Investment Development Policy 2019” and “Rules Regarding Grant of Incentives, Concessions and Facilities for Investment Promotion in Himachal Pradesh 2019” to promote and incentivize industry by creating a conducive environment for sustainable, inclusive development that generates income and employment opportunities and encourages skill development thereby establishing Himachal Pradesh as a model industrial hill State of India. 

Development of Industrial Areas/ Estates

  • The creation and maintenance of high-quality industrial infrastructure is a prime prerequisite for industrial development. The Industries Department has developed 62 Industrial areas and estates for industrial development in the state. During the current financial year, the State Government has notified Chak village in District Una as an industrial area. 

Ease of Doing Business (EoDB) 

  • State Government has been taking numerous steps to improve the business climate with an aim to make it more conducive to starting new businesses and creating an enabling ecosystem to operate. State Government has implemented a number of 9 Chapter 127 reforms aiming at improving the business environment and has been widely acknowledged. Himachal has embarked on a mission to leverage technology to complement the governance framework. 
  • Himachal registered a quantum jump of 9 points, i.e. from 16th position to 7th position in the rankings announced by the Department for Promotion on Industry and Internal Trade (DPIIT), Government of India (GoI) on 05th September 2020. This made “Himachal a ranking State amongst the Hilly States” of the Country. Also, Himachal was recognized as “Top Improvers since 2015” by DPIIT, GoI in this ranking.

Mukhya Mantri Swavalamban Yojana (MMSY) 

  • MMSY is one of the essential flagship programmes of the State Government. It is an ambitious scheme of the State Government to provide self-employment opportunities for the youth of Himachal Pradesh. This scheme became very popular in spite of the “COVID-19 Pandemic” with a phenomenal increase in the sanctioned cases. 129 The system has been made available online with the provision of 60 per cent “Front Loading” of subsidy. The scheme has been recently amended by adding activities related to agriculture, animal husbandry, sericulture and mining in order to provide benefits to rural youth.

Sericulture Industry 

  • Sericulture activities are providing part-time employment to the weaker section of the State. In order to promote silkworm rearing in the state, 146 community-based organizations and “Resham Sathi” have been nominated under various projects.

Status of Industrialization in Himachal Pradesh 

  • As of 31.01.2022, 33,094 enterprises have registered on the Udyam portal in the state, out of which 31,217 are Micro, 1,637 are Small, and 240 are Medium enterprises. In addition to this, 48 large industrial units are also working in the state.

Himachal Pradesh Khadi & Village Industries Board (HPKVIB) 

The HPKVIB is a statutory body created by an act of the Legislative Assembly (Number 8 of 1966). It came into existence on 8th January, 1968. The original Act of 1966 was subsequently amended during the years 1981 and 1987. The 133 department of industry is the administrative department of KVIB. 

The objectives of the board are broadly given as follows:  

  • The social aim of providing employment.  
  • The economic goal of producing saleable articles.  
  • The broader objective is to create self-reliance amongst people with low incomes and build up a strong rural community spirit.

Himachal Pradesh State Industrial Development Corporation (HPSIDC)

It is a significant agency in the state to promote the setting up of small, medium, and large-scale industrial units. The Corporation also acts as a State-level financial institution. HPSIDC is the central agency for the promotion and establishment of industrial units in Himachal Pradesh. It is also the major State-level financial Institution and provides long-term loans for industrial projects. 

The essential activities of the Corporation are:  

  • Stimulate industrialization throughout HP.  
  • Promotion, Development & Financing of Industries  
  • Development of Industrial Infrastructure  
  • Facilitator – providing guidance & assistance to entrepreneurs  
  • Marketing of Steel and bitumen as dealers of Central Public Sector Undertakings (PSUs) like Steel Authority of India Limited (SAIL)/ Rashtriya Ispat Nigam Limited (RINL) and Indian Oil Corporation Limited (IOCL).  
  • Development of industrial areas/ estates. 

Investment/Outreach initiatives  

  • To attract investment in the state, the Government organized the 1st Global Investors Meet-2019 on 07th and 08th November 2019 at Dharamshala. The objective was to attract investment in the sectors of Agriculture Business, Food Processing and Post Harvest Technology, Manufacturing and Pharmaceuticals, Tourism, Hospitality and Civil Aviation, Hydro and Renewable Energy, Wellness, Healthcare and Ayush, Housing, Urban Development, Transport, Infrastructure and Logistics, Information Technology, Information Technology Enabled Services (ITES) and Electronics, Education and Skill Development.

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