The Aryavarth Express Himachal Pradesh has reported robust economic growth for FY2025–26, even as concerns mount over tightening fiscal space due to reduced central assistance. The Economic Survey, tabled in the state विधानसभा by Chief Minister Sukhvinder Singh Sukhu, highlights both strong sectoral performance and emerging financial challenges.
According to advance estimates, the state’s Gross State Domestic Product (GSDP) is projected to grow by 10.1% at current prices, reaching ₹22.54 lakh crore. In real terms (constant prices), growth is estimated at 8.3%, a notable improvement over 6.4% recorded in FY2024–25.
The services sector continues to anchor the economy, contributing 46.3% to Gross State Value Added (GSVA), followed by the secondary sector at 39.4% and the primary sector at 14.3%. Growth remains broad-based, with services expected to expand by 8.6%, agriculture and allied sectors by 8.4%, and industry by 7.7%.
Agriculture has shown steady progress, with GSVA from the sector rising to ₹18,824 crore (constant prices). At current prices, it has expanded significantly over recent years, driven by strong gains in crops and livestock. The crops segment alone has seen substantial growth, while livestock continues to play a supportive role in rural income.
The industrial sector is also on a stable growth path, with manufacturing, construction, and utilities contributing significantly. Construction is expected to lead growth within the sector, benefiting from ongoing infrastructure development.
Services remain the primary growth engine, supported by a strong rebound in tourism. Tourist inflows have surged sharply in recent years in Himachal Pradesh, with domestic arrivals rising dramatically since the pandemic, boosting local businesses and employment. Tourism now contributes nearly 7.8% to GSVA.
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The state’s hydropower sector continues to generate steady revenue, while public infrastructure—particularly healthcare and transport—remains well developed. Per capita income is estimated at ₹2,83,626, reflecting a healthy 9.8% increase and staying above the national average. Inflation has also eased significantly, with Consumer Price Index levels nearing 1% by late 2025.
Despite these positive indicators, the survey flags growing fiscal stress. A major concern is the reduction in Revenue Deficit Grants (RDG) by the Government of India, which affects 17 states, including Himachal Pradesh. The state government has warned that these cuts are constraining its ability to fund development projects and welfare schemes.
Looking ahead, the survey emphasizes the need to balance growth with fiscal discipline. Key priorities include sustainable tourism, infrastructure expansion, rural development, and job creation. It concludes that while the state’s economic outlook remains strong, managing financial constraints and ensuring environmentally sustainable growth will be crucial for long-term stability.
