HPAS/Allied Mains 2022 Answer Writing Challenge Day 239: Model Answer

Question: Discuss the sectoral distribution of Gross State Domestic Product(GSDP) of Himachal Pradesh. (8 marks/120 words)

Answer:

The Sectoral composition of Gross State Domestic Product (GSDP) gives an idea of the relative position of different sectors in the economy over a period of time, which not only indicates structural changes taking place in the economy but also facilitates the formulation of plans for overall economic development.

The GSDP of Himachal Pradesh has registered a growth of 4.9 per cent in comparison with the All-India GDP growth rate of 4.0 per cent for 2019- 20. The economy is classified into three broad sectors:

1. Primary sector: It comprises of Agriculture, Horticulture, Livestock, Forestry & Logging, Fishing, Mining and Quarrying sub-sectors. As per 2020-21(FRE) estimates GVA contribution at current prices is 13.61%. in The Agriculture & Allied Sectors as a key sector, supporting about 60 per cent of the population. Primary Sector 2020-21 (FRE) GVA ₹ 14,411 crore, Growth (– 12.0%) (₹ in crore). The Agriculture and Animal Husbandry (-8.6%), Mining and Quarrying (-6.8%) and Forestry & Loggings (-19.6) have registered the negative growth while fishing (+9.6) has registered a positive growth in 2022-21.
2. Secondary Sector: It broadly comprises Manufacturing (Organised & Un-Organised), Electricity, Gas & Water Supply and Construction. As per 2020-21(FRE) estimates GVA contribution at current prices is 41.71%. The Secondary Sector 2020-21 (FRE) GVA ₹ 49,610 crore, Growth (-6.6%) (₹ in crore). The manufacturing (-7.3%) and Construction (-12.3%) have registered the negative growth while Electricity Gas & Water supply (+4.5%) has registered positive growth.
3. Tertiary or Services Sector: It comprises Trade, Hotels & Restaurants, Transport by other means & Storage Communications, Banking & Insurance, Real Estate & Professional Services and Community, and Social & Personal services. As per 2020-21(FRE) estimates GVA contribution at current prices is 44.68%. Tertiary Sector 2020-21(FRE) ₹ 44,198 crore, Growth (-2.1%) (₹ in crore). The Trade, Hotel & Restaurant (-2.1%) and Financial Services (-1.5%) have registered a negative growth while public administration (+2.8%) has registered a positive growth.

The government has taken various initiatives for the for the development of these sectors like in primary sector 50,000 acres land will be brought under Natural Farming by the end of 2022-23. The government has also notified Electric Vehicle Policy, 2022. So these initiatives are in line with government’s vision of the economic development of the state.