February 25, 2024

HPAS/Allied Mains 2022 Answer Writing Challenge Day 04: Model Answer

Question: What are the factors responsible for the development of Industries in Nalagarh-Baddi region?           4 Marks      




1. Introduction – Nature of industries in Baddi-Nalagarh industrial regions and data like no of industrial units, their contribution in employment generation and GDP and their significance.


2. Body Part – Mention in pointers factors responsible for the development of industries in Himachal Pradesh.


3. Map


Baddi-Nalagarh industrial area is known as hub of pharmaceutical industries. This area is home to multiple pharmaceutical companies which have established manufacturing plants and R&D hubs in the town. The town is Asia’s biggest Pharmaceuticals hub and is home to some of the largest pharmaceutical companies such as Cipla, Dabur India, Colgate Cadila Healthcare, Abbott Laboratories, Ranbaxy Laboratories, etc.


  1. Government Policies and incentives to industries: Industrial licensing for the manufacture Of all drugs and pharmaceuticals has been abolished except for bulk drugs produced by the use Of recombinant DNA technology, bulk drugs requiring in-vivo use Of nucleic acids, and specific  cell/ tissue targeted formulations.  Reservation Of 5 drugs for manufacture by the public sector only was abolished in Feb. 1999, thus opening them up for  manufacture by the private sector also.  Foreign investment through automatic route was raised from to 74% in March, 2000 and the same has been raised  to 100%. The state offers a wide range of fiscal and policy incentives for businesses under the Industrial Policy, 2004.
  2. Availability of cheap power was another attraction for industries coming to the state since electricity has been expensive in the neighbouring areas of Punjab and Haryana.
  3. Facilitating infrastructure and Plain Topography – The state has well-developed social, physical and industrial infrastructure and virtual connectivity. It has a strong hydropower base because of its water resources and topography. It is supported by enabling policies.
  4. Large labour pool – The state has a large base of skilled labour, making it a favourable destination for knowledge-based sectors. Further, the state has a large pool of semi-skilled and unskilled labour.
  5. Better connectivity with nearby areas

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