Revision Series | Economy | Economic Survey | 44

Answer: (a)

• The Gross Value Added (GVA) at constant basic prices witnessed highest contraction of 20.2 per cent in trade, hotels and transport sector during the FY2020-21, followed by mining and quarrying and construction sector.
• This was due to restrictions on movement of people.
• Tourism industry was the worst hit by COVID-19 as lockdown resulting in restrictions on the movement of people.
• The same case is for mining and quarrying and construction sector as these sectors heavily relied on the availability of human resources for better performance.

Answer: (c)

Answer: (c)

Overview: Himachal Pradesh Economy

• Himachal is progressive due to steady efforts of the hardworking people of the State and by the implementation of progressive policies. Himachal Pradesh has become a fast growing economy.
• During FY2021-22 the state economy grew by 7.6 per cent and is expected to grow by 6.4 per cent during FY2022-23.
• The Gross State Domestic Product (GSDP) at current prices, is estimated at ₹1,76,269 crore in FY2021-22 (FR) as against ₹1,55,251 crore in Second Revised (SR) estimate in FY2020-21, showing an increase of 13.5 per cent during the year.
• GSDP at constant (2011-12) prices in FY2021-22 (FR) is estimated at ₹1,26,433 crore against ₹1,17,555 crore in FY2020-21 (SR) registering a growth of 7.6 per cent during the year as against the negative growth rate of 3.0 per cent for the previous year.

Answer: (d)

• GSDP at constant (2011-12) prices in FY2021-22 (FR) is estimated at ₹1,26,433 crore against ₹1,17,555 crore in FY2020-21 (SR) registering a growth of 7.6 per cent during the year as against the negative growth rate of 3.0 per cent for the previous year.
• The growth of 7.6 per cent is mainly attributed due to-
• 4.6 per cent increase in primary sector,
• 7.8 per cent increase in secondary sector,
• 15.6 per cent increase in transport, communication, trade hotel and restaurants sector
• 7.9 per cent increase in Community and personal services sector of the economy.
• Finance and real estate sector saw a marginal growth of 1.0 per cent only.

Answer: (c)

• The economy of the State has shown a shift from agriculture sector to industries and services as the percentage contribution of agriculture in total Gross State Domestic Product has declined from 57.9 per cent in 1950-51 to 55.5 per cent in 1967-68, 26.5 per cent in 1990-91 and 9.50 per cent in FY2021-22.
• The declining share of agriculture sector does not affect the importance of this sector in the State economy as the growth in primary sector of the State economy is still determined by the trend in agriculture and horticulture production.
• It is one of the major contributors to the total domestic product and has overall impact on other sectors via input linkages, employment, trade and transportation etc.
• Due to lack of irrigation facilities, agricultural production to a large extent still depends on timely rainfall and weather conditions.

Answer: (d)

• Focused Welfare Initiatives in addition to facilitating the overall economic growth, the Government has consistently undertaken initiatives to improve socio-economic outcomes of the marginalized and vulnerable groups across caste, gender, occupational and other categories.
• The success of the welfare agenda rests on ensuring that the schemes are properly implemented, with their outcomes aligning with the vision of the Government decisions.
• Himachal Government has set up Sukh-Ashray Sahayata Kosh of ₹101 crore for the needy. The Government has taken this step not out of compassion, but to help the children and youth, who have little or no family support.
• Himachal Pradesh will bear the entire cost of education of needy children who get admission in institutes like IIT, AIIMS, IIM, IIIT, Polytechnic and ITI and they will also be given pocket money.
• Under Sukh-Ashray Yojana, the State Government will play the role of guardians for the children living in old age homes and shelter homes. The government will provide clothing subsidy to single women and special children.
• Himachal government has also provided a festival allowance of ₹500 per person to the residents of Child Care Institution, Old Age Homes, Nari Seva Sadan, Shakti Sadan and Special Homes for celebrating Lohri, Makar Sakranti, Holi and other festivals.

Answer: (c)

Answer: (a)

• The PCI of State is higher than the All India figures over the years.
• There is a steep rise in the PCI of the State from ₹87,721 in the FY2011-12 to ₹2,22,227 in FY2022-23, registering a growth rate of 153 per cent over 2011-12.
• The PCI of All India was ₹63,462 in the FY2011-12, has increased to ₹1,70,620 in the FY2022-23, registering a growth of 169 per cent compared to 2011-12.
• This implies that the PCI of the State grew lesser than the All-India PCI.
• The PCI of Himachal Pradesh vis-à-vis All India and their growth trends at current prices, are illustrated in Figures 2.3 and 2.4 respectively.

Answer: (a)

• The GSDP of any State is measured in terms of the economic contributions made by three key sectors-Primary, Secondary and Tertiary.
• The tertiary sector has been the highest contributor to State’s GVA, followed by the Secondary and Primary sectors.
• The structure of the economy and workforce in Himachal Pradesh are perceptibly different from the structure of the economy and workforce in the rest of India.
• Agriculture and allied activities employed 57.03 per cent of total workforce of Himachal Pradesh as compared to 45.46 per cent for India. The share in GVA is 13.14 per cent as compared to 18.64 per cent in India.

Answer: (d)

Answer: (c)

• Non-Tax Revenue consists, mainly interest receipts on loans, receipts from sale of power, dividends and profits from public sector undertakings and receipts from services provided by the Government including those provided by the Public Service Commission, social services as health and education and economic services.
• Non-tax revenue is likely to increase to ₹2,769 crore in FY2022-23 (BE) as against ₹2,625 crore in FY2021-22 (RE) which is increase of 5.49 per cent. This is estimated to be 1.42 per cent of State Gross State Domestic Product (GSDP).
• Non-Debt capital receipts consist of recovery of loans and advances and disinvestment receipts. The budget estimate for FY2022-23 (BE) envisages ₹45.00 crore as recovery of loans and no income from disinvestment.
• As per the budget estimates the revenue receipts of the Government for the FY2022-23 (BE) were estimated at 18.62 per cent of the GSDP as against 21.17 per cent in FY2021-22 (RE).

Answer: (c)

Answer: (c)

• Himachal government has also provided a festival allowance of ₹500 per person to the residents of Child Care Institution, Old Age Homes, Nari Seva Sadan, Shakti Sadan and Special Homes for celebrating Lohri, Makar Sakranti, Holi and other festivals.
• To help poor children, steps will be taken to change education policy.
• They will be given equal opportunities to study and Rajiv Gandhi Model Day-Boarding Schools will be opened in the State

Answer: (d)

Answer: (c).

• In over the years State Government has taken several steps to provide uninterrupted power supply in the State.
• Several steps have been taken for increasing power generation, transmission and distribution.
• As a source of energy, hydro power is economically viable since it is non-polluting and is environmentally sustainable.
• To restructure this sector, the Power Policy of the State attempts to address all aspects like capacity addition, energy security, access and availability of power, affordability, environment and assured employment to the people of Himachal.
• Private sector participation in terms of investments in this sector has been encouraging.
• Smaller projects (up to 2 MW) have been reserved for investors from Himachal Pradesh and preference is given to them for projects up to 5 MW.