Himachal Pradesh economy to shrink 6.2%, tourism 81%

Shimla, March 5

Himachal Pradesh is likely to register a negative growth of 6.2 per cent in the current financial year (2020-21) due to the adverse impact of Covid-19 pandemic, with the tourism sector contracting by over 81 per cent.

Chief Minister Jai Ram Thakur, who also holds the Finance portfolio, tabled the Economic Survey for 2020-21 in the Vidhan Sahba today. The growth rate this year is expected to plummet from 8.9 per cent in 2019-20 to minus 6.2 per cent. The per capita income at the current price is estimated to drop by 3.7 per cent to Rs 1,83,286 from previous year’s Rs 1,90,407.

While almost all revenue-generating sectors have witnessed a sharp decline, tourism sector is the worst-hit with a contraction of 81.33 per cent. The hotels and restaurants sector is likely to register a contraction of 9.2 per cent in 2020-21. The other badly hit sectors include transport, mining and quarrying, forestry and construction. The agriculture sector is set to register a contraction of 3.1 per cent due to a decrease of 43 per cent in horticulture production. Fiscal deficit is estimated to be 4.65 per cent of the GSDP in 2020-21. — TNS

Covid impact

3.7% drop expected in per capita income

9.2% contraction likely in hotel/ restaurant sector

3.1% decrease expected in agriculture sector

4.65% of the GSDP will be the state’s fiscal deficit