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General Information

Himachal Pradesh came into being on 15th April 1948 as a centrally administrative territory by the integration of 30 princely states. On 1st November 1966, its area was increased by merger of districts of Kangra, Shimla, Kullu, Lahaul-Spiti and some other areas from Punjab and Haryana. On 15th January 1971, Himachal Pradesh attained Statehood and today it has twelve districts.

The State's announcement of a new industrial policy in December 2004 has marked a watershed in its efforts to open its economy, moving to the centre stage of national and international business. The State Government is currently bringing about further changes to accelerate the process of administrative and economic reforms and strengthen the in flow of domestic and foreign investment into the state.

Fact File

Geographical Area 0.56 (lakh sq. km)
Capital Shimla
Population (2001 Census) In lakhs 60.78
Gross State Domestic Product (GSDP) at current prices in 2004-2005 (as of Feb 2006) 20093 (Rs. Crore)
Gross State Domestic Product (GSDP) at constant price (1993-94) in 2004-2005 (as of Feb 2006) 9879 (Rs. Crore)
Net State Domestic Product at Current Prices (2004-05) 17884 (Rs.Crore)
Net State Domestic Product at Constant Prices (1993-1994) for (2004-05) 8765 (Rs. Crore)
Per Capita Income at current prices (2004-2005) Rs 27486
Percentage of State Population to All India Population 0.59
Literacy Rate (2001 Census)
Principal languages Hindi, English and Pahari

Source: CSO Estimates

Advantage Himachal Pradesh

Strong support system conducive for the development of well-developed industrial areas, industrial centres and specialized complexes.

  • Comfortable power situation in terms of generation and supply at moderate rates.
  • Abundant water resources suitable for the growth of industrial units.
  • Favourable agro-climatic conditions for a wide variety of crops-vegetables, fruits, flowers, rice, plantation and commercial crops.
  • Ideal environment for the setting up of agro-based, forest based, food processing, beverages, electronic and hi tech industries.
  • Peaceful industrial conditions with a minimal degree of strikes and labour unrest. Prompt measures for reconciliation of any disputes.
  • Attractive tax and fiscal benefits offered by the Government of Himachal Pradesh.
  • Favourable investment destination
  • High potential for the development of tourism and related activities.
  • Provision of packaged assistance to prospective entrepreneurs and investors.

Economic Infrastructure


The Himachal Pradesh State Industrial Development Corporation Limited (HPSIDC) is the major agency for promotion and establishment of industrial units in Himachal Pradesh. Registered under the Companies Act 1956, HPSIDC is fully owned by the Government of Himachal Pradesh. HPSIDC is the major state level financial institution and provides long-term loans for industrial projects. The important activities of the Corporation are:

  • Provision of term-loans.
  • Development of industrial areas/ estates
  • Provide escort services to entrepreneurs including Non-Resident Indian (NRIs) for such matters as securing registrations/ licences/ clearances from the statutory/other authorities


Himachal Pradesh has vast hydel potential. It has been estimated that about 20,386 MW of hydel power can be generated in the state by constructing various major, medium, small and mini/micro hydel projects on the five river basins. In addition a large number of unidentified areas have still been left in the river basins, which can contribute substantially to the power potential of Himachal Pradesh by way of mini/ micro, medium, and large projects. Further, in view of the rising cost of thermal and nuclear generation, many identified projects, which have been excluded from the above mentioned hydel potential on account of non-suitability due to high cost of generation, will also become viable in future. On these two considerations, a conservative estimate of the total potential in Himachal Pradesh can be put up at 25,000 MW or even more.

Civil Aviation

There are three airports in the state namely Shimla at Jubbar Hatti, Kangra at Gaggal and Kullu at Bhuntar.

Social Infrastructure


According to 2001 census, Himachal Pradesh has a literacy rate of 76.5 per cent. The literacy rate for males stood at 85.3 per cent and at 67.4 per cent for females.

High/Senior Secondary Education

During the year 2005-06, up to December, 2005, there were 2193 notified middle, 953 high and 709 senior secondary schools out of which 2,165 middle schools, 937 High and 701 senior secondary schools were functioning in the state, under the state government management.

University and Higher Education

There were 44 Degree colleges in the state up to December 2005.

Private State University Act (.pdf)

The Himachal Pradesh Private Universities (Establishment and Regulation) Bill 2006 has been passed to provide for establishment, incorporation and regulation of private universities in the state for higher education and to regulate their functioning and for matters connected there with or incidental thereto.


In Himachal Pradesh, Health and Family Welfare Department is providing curative, preventive, promotive and rehabilitative services through a network of 50 civil hospitals, 66 community health centres, 439 primary health centres, 22 civil/ESI dispensaries and 2069 sub-centres. To provide better health services to the people, the government is strengthening the existing infrastructure by providing modern equipments, specialised services, increasing the strength of the medical and paramedical staff in the medical institutions and upgrading the status of the existing medical institutions.

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