- Sunday, April 20, 2025
The Bharatiya Janata Party government of Uttarakhand is prioritising eco-friendly economic development to provide employment opportunities to youth in order to prevent brain drain.
By: Prof Prem Lal Joshi
UTTARAKHAND, also called ‘Devbhoomi’ or ‘Land of the god’ is a beautiful state in northern India, known for its tall mountains and picturesque landscapes. Located in the Himalayan foothills, it offers hill stations, wildlife parks, pilgrimage sites, and trekking routes, making it a popular destination for tourists.
Uttarakhand was established as a new state in 2000 and covers 5.35 million hectares, with 86 per cent mountainous. It has 13 administrative districts and a population of 12.7 million. Key sectors include agriculture, horticulture, manufacturing, forestry, tourism, etc.
The current chief minister of the state, Pushkar Singh Dhami, aims to accelerate growth and establish Uttarakhand as a major economic force.
Economic Growth
Historically, planning strategies were implemented without full consideration of community requirements, leading to underdevelopment in the state due to the failure to consider economic sectors’ potential. The Bharatiya Janata Party government of Uttarakhand is prioritising eco-friendly economic development to provide employment opportunities to youth in order to prevent further migration. The following metrics highlight the economic growth of the state since 2011–12:
Source: Data from 2011-12 to 2019-20 extracted from here, here (*), here (**) and here (***).
From the above economic indicators, the Gross State Domestic Product (GSDP) at current prices in Uttarakhand state increased by over 2.4 times between 2011–12 and 2022–23. The average GDP grew by 8.76 per cent during the same period. The state’s per capita income also increased by 2.06 times, from Rs 113,466 in 2011–12 to Rs. 2,33,565 in 2022–23. Per capita income increased steadily, with the exception of 2020–21 because of the Covid-19 pandemic. These parameters show good achievement despite the fact that the world economy was seriously hampered due to Covid-19.
The GSDP of Uttarakhand state for 2023–24 (at current prices) is projected to be Rs 3.33 lakh crore, amounting to a growth of 10 per cent over 2022–23.
Uttarakhand’s economy, despite its 65 per cent reliance on the primary sector for livelihood, is primarily shaped by the secondary sector, with a significant contribution from agriculture (10.2 per cent), manufacturing (48.6 per cent), and services (41.16 per cent) in 2019–20.
Uttarakhand’s 2023–24 income receipts are expected to be Rs 57,057 crore, a 10 per cent increase from the revised forecast. The state will contribute 43 per cent of this, with the central government providing the remaining 57 per cent.
The budget aims to spend Rs 66,179 crore, with a 2.7 per cent budget deficit. Key initiatives include road and bridge development, energy, education, sports, the arts, and rural health services. The Uttarakhand state budget includes a number of new initiatives that are aimed at promoting education, helping deserving students, and developing skills.
Uttarakhand has made significant policy decisions, including enforcing strict anti-copying legislation, implementing the National Education Policy, implementing a 30 per cent horizontal reservation system for women, launching the ‘Corruption-Free Uttarakhand App-1064’, planning to implement the Uniform Civil Code, making it a leader in policy implementation.
Developmental priorities and the ‘Investor Summit’
Prime minister Narendra Modi has targeted Uttarakhand to become a development leader and self-sufficient by 2025-2026. Therefore, the Dhami administration prioritizes tourism and hospitality, ayush and wellness, food processing, cars, medicines, renewable energy, film production, the IT industry, and infrastructure expansion. To attract capital investment from India and abroad in order to support the growth potentials, the state organised an investors’ summit on December 8–9, 2023, in state capital Dehradun.
Against a target of Rs 2 lakh crore investment, the Dhami administration was able to attract a commitment of Rs 3.5 lakh crore at the summit.
PM Modi suggested that Uttarakhand has unrealized potential for a “Wed in India” movement, urging wealthy young people to marry in the state. The unique topographical features of the state, well-known places, hotels, and resorts present unique opportunities for this movement, which could create thousands of jobs, boost local income, and accelerate the state’s economy. However, this could also hinder the movement of educated people.
Tourism
One of the industries with the quickest rate of growth is tourism, which is essential to the economy since it generates income, jobs, and reverse migration. It generates more than eight per cent of jobs and adds roughly six per cent to the GDP.
Many unique tourism attractions, such as lakes, deep woods, snow-capped Himalayan peaks, and other natural features, may be found in Uttarakhand. Many of the popular tourist spots, including Mussoorie, Rishikesh, Pauri, Auli, and Nainital, provide travelers with unique experiences and are referred to as “little Switzerland” or “slices of heaven.” The state is well-known for its adventurous and mystical travel spots, such as Haridwar, Gangotari, Kedarnath, Badrinath, and Rishikesh.
Uttarakhand’s Tourism Policy 2030 aims to realize the destination’s potential as a diversified tourist spot, offering a blend of heritage, religion, nature, wildlife, health, wellness, and all-weather destinations. The policy uses a hub-and-spoke approach, modeled after Himachal Pradesh, and focuses on offline, internet, social media, and big events to reach potential tourists.
The Uttarakhand Tourism Development Board provides incentives to new tourism businesses, including tax breaks, interest subsidies, stamp duty exemptions, and capital subsidies. Special schemes are available for women entrepreneurs. The state’s new tourism strategy aims to attract more investment, with up to 50 per cent subsidy for unknown destinations and 100 per cent for adventure, caravan, heli-tourism,and taxi operators.
Uttarakhand’s tourism industry is expected to double in number from 39.2 million in 2018-19 to 74 million by 2024, generating Rs 14,000 crore and a 12-15 per cent annual growth rate. The state plans to undertake 70 public-private partnerships and attract Rs 30,000 crore in tourism investments.
A “Manaskhandmala Mission” is also initiated to lure pilgrims to the Kumaon region by the construction of a robust road network, theme-based tourism attractions, and the connection of sixteen prominent temples. Some of the following measures are suggested for tourism faster growth:
* Uttarakhand is gaining momentum in ecotourism, religious tourism, and wildlife tourism, but cultural tourism is still in its infancy. To boost tourism, the government should establish a “Tourist Village” in selected districts, promoting local music, art, culture, and handicrafts. The government should also guide rural and semi-urban areas on designing and building residences reflecting tourism promotion. Novel products like eco, religious, cultural, community-based, spiritual, wellness, rural, agri, and gastronomy tourism could benefit Uttarakhand highlands.
*The concept of “smart tourism” in Uttarakhand is essential for its development, based on effective communication, networks, and technology.
*The “Hub and Spoke” model, which encourages visitors to stay active and engaged in various activities, is suggested.
* The creation of “Tourism Village” and “Uttarakhand: Exploring Uttara” needs to be the tagline for tourism promotion.
* The viability of building “funicular” infrastructure in particular districts—a tactic employed by nations like Malaysia, Norway, the USA, the UK, and China to draw sizable tourist populations.
*Non-resident Uttarakhandis can serve as Uttarakhand’s tourist ambassadors by planning and promoting it in “Kautik” and other “Mahautsav” festivities both domestically and overseas.
* The government should launch new eco-tourism projects to promote sustainable post-modernist social phenomena, combining NGO operations with tour companies to transport visitors to popular destinations and neighboring villages, thereby supporting socioeconomic development and promoting volunteer work.
* The tourism department and the Directorate of Culture may collaborate on a talent hunt for singers and artists, aiming to attract fresh talent, offer employment opportunities, and enhance the state’s cultural branding.
* In Bhutan, all tourists must make reservations for guides, and those traveling inside Uttarakhand should also be required to do so. Though in a controlled manner, this might improve cultural tourism.
* Establish a corpus fund to encourage Uttarakhandis living in other cities and abroad to invest in the state’s tourism industry.
* As part of their corporate social responsibility (CSR), encourage the corporate houses to back the establishment of “Toursim Villages” in Uttarakhand so they may contribute to these well-developed tourist amenities.
* Tourists expect safe routes, all road defects repaired, signage at dangerous intersections, junctions where colorful flowers can be planted to enhance the area, stunning views of the rivers moving, lovely horticultural plants at all significant road crossings, and others. The neighbouring state of Himachal Pradesh has also started taking these kinds of approaches.
* The state of Uttarakhand could hold a national or international “painting competition” in memory of well-known Uttarakhandi painters like Maula Ram or Surinder Pal Joshi. Such occasions have the potential to significantly increase tourism.
* To find out which regions of India and which nations send the majority of their tourists to Uttarakhand, a survey study might be conducted. The results suggest that private tour operators and travel agencies in these nations could be contacted to increase the number of tourists visiting Uttarakhand.
* Today’s star hotels in India have included amenities like spas to help guests unwind and relieve tension. Could the state government consider creating these SPA tourism centers?
* Uttarakhand ought to enhance its brand equity through the airing of videos on YouTube and television that feature, among other things, breathtaking scenery, snow-capped mountains, temples, institutions, traditional dance performances, Kautik festivals, trekking routes, horticultural sites, and floriculture.
Rich culture and attractive sites for film shootings
Uttarakhand is known for its rich cultural traditions, including folk songs, dancing, and music derived from nature. The culture is centered on moral principles, nature purity, mythology, and traditional ethics. Famous dances include Bhotiya, Choliya, Ramola, Barada Nati, Chancheri, and Langvir, etc. Also, both resident and non-resident Uttarakhandis host “Uttarakhand Mahotsava” and “Maha Kauthig Mela” in several Indian and foreign locations to highlight the state’s delectable folk dance, song, and music traditions in addition to its cuisine.
The Bollywood industry relies on the efforts of hundreds of Uttarakhandi performers and personalities. Uttarakhand offers a plethora of chances and resources for film production due to its breathtaking settings and natural beauty. Known for being the most film-friendly state in India,
Uttarakhand provides a range of sites for motion pictures and television shows, as well as financial advantages and easy permissions. The state served as the backdrop for recent Bollywood films, including “Kabir Singh” and “Student of the Year”. Films such as “Batti Gul” and “Kedarnath” have also starred residents of the state.
Infrastructure connectivity
It is to be noted that ecology is an important field, and bridging the divide between development and conservatism is never easy. The Uttarakhand government has chosen ecologically-oriented development as its development paradigm. Uttarakhand offers good connectivity with an extensive road network spanning over 39,000 km, three domestic airports, and 339.80 km of rail routes. According to the Public Works Department (PWD), there are 15,745 villages, of which 75–80 per cent are connected to roads.
The Uttarakhand government is bidding for the completion of two ropeway projects in Uttarakhand: the 12.44-km Govind Ghat-Ghangaria-Hemkund Sahib project and the 9.7-km Gaurikund-Kedarnath project. The Railway Development Corporation (RDC) has proposed a proposal to connect Gangotri, Yomunotri, Badrinath, and Kedarnat temples in Chardham. The Rishikesh-Neelkanth Mahadev Ropeway, estimated to cost around Rs 455 crore, is expected to revolutionize tourism by making the 5.5-kilometer trip easier with two stopovers.
PM Modi’s Vande Bharat Express project operating in Uttarakhand, connects New Delhi to Dehradun. It is suggested that other Uttarakhandi-populated areas should be connected to Dehradun via the Vande Bharat expressway, potentially linking Kotdwar and Kathgodam in Haldwani.
Uttarakhand faces challenges in infrastructure development due to its hilly terrain, with significant costs compared to plain areas. Despite expanding roadways, Himalayan routes remain dangerous. Despite this, the state is becoming more connected through air, rail, road, and ropeways in previously unimaginable areas.
Horticulture and agrarian resources
Uttarakhand has a wealth of resources for horticulture and agriculture, and it contributes more than 10.5 per cent to SGDP as per the 2019-20 report. However, only about 14 per cent of the geographical area is cultivable, which is mainly attributed to the topography of the state.
Growing in acceptance are organic agricultural methods, which support sustainable agriculture in the area. The state is well-known for its plentiful horticultural products, which include mango, apples, pears, citrus, peach, plum, cherries, apricots, lichi, guava, walnuts, etc. In addition, Uttarakhand produces the most plums (0.362 lac MT), apricots (0.282 lac MT), peaches (0.788 lac MT), and pears (0.579 lac MT) in the nation, ranking second for walnuts (0.19 lakh MT).
Furthermore, the state grows a variety of important crops, including potatoes, cauliflower, tomatoes, onions, brinjal, peas, cabbage, etc., growing veggies in hilly regions during the off-season, which sells at a good price. Ginger, garlic, turmeric, and chilies are important spices. The state has established tea plantations and factories in various locations, including Kausani, Berinag, Chaukori, Jaurasi, Champawat, Chorakhat,
Nauti, and Pauri. The government promotes organic tea cultivation, turning 218 hectares of land into tea. Uttarakhand’s tea tourism industry could be expanded.
Industries and MSMEs
Despite the state’s abundant natural resources, industrial development has not kept pace with its needs, despite the manufacturing sector accounting for over 48 per cent of the GDP. The state has few notable sectors, with ONGC headquartered in Dehradunue due to strategic and historical factors, and BHEL having two manufacturing facilities in Haridwar. There are cement, edible oils, oleo-chemicals, vanaspati, mineral processing, electrical engineering, textiles, pharmaceuticals, agro-based, food processing, arms and ammunition, biotechnology, pulp and paper, FMCG, automobile production, and flour products units in the state.
Khatima Fibres Limited and the Birla Group Century Pulp & Paper are factories situated in Lalkuan, adjacent to Pantnagar. A few industrial houses, including TATA, Bajaj, Hero Honda, Hindustan Liver Ltd., Nestle, Britannia, ITC, Birla Tyres, Asahi Glass, and many more, are located in the districts of Uttarakhand.
Patanjali Ayurved Ltd., owned by yoga celebrities Baba Ramdev and Balkrishna, is Uttarakhand’s largest manufacturer and supplier of natural products, herbal treatments, and pharmaceuticals, employing nearly 200,000 people. The pharmaceutical giant Dabur Group has also established an oxygen-generating factory in the state.
Furthermore, after the introduction of the new Industry Policy, seven integrated industrial estates have been developed through SIDCUL, with locations including Dehradun (Pharma city), Pantnagar, Haridwar, Sitargung, etc., expected to be home to more than 200 pharmaceutical businesses at Integrated Industrial Estates (IIEs). The pharmaceutical industry, which includes bulk drugs, APIs, PPEs, medical devices, etc., is anticipated to increase dramatically and need large expenditures as a result of the focus being placed nationwide on strengthening healthcare systems. In light of this, the Uttarakhand government has suggested building Pharma City Phase II in Charba, Selaqui, and Dehradun Dehradun has become a hub for numerous IT and software companies along with an IT park.
The state government’s MSME Policy 2015 has replaced the Special Integrated Industrial Promotion Policy 2008 for Uttarakhand’s hilly and remote areas. Furthermore, the state has promulgated the Mega Industrial and Investment Policy 2015 to promote large-scale investments above Rs. 75.00 crore.
Uttarakhand’s MSMEs are crucial for the state’s investment, output, exports, job creation, and migration problem mitigation. With over 4.17 lakh registered and unregistered units, the state employs 6.60 lakh labourers. With a total investment of Rs 20,516,541,539, there are 66,917 registered MSMEs, with 217 closed down and 361,895 people employed.
Financial and non-financial programs are available to support MSMEs’ growth and prosperity. There are five centrally supported programs: the Mahila Udhyami Vishesh Protsahan Yojna, the Chief Minister Self-employment Scheme, and the Purchase Preference Policy. However, MSMEs often face challenges such as a lack of storage facilities, financing, marketing, technology, skilled human resources, and socio-economic issues.
Given the enormous potential that the state of Uttarakhand offers to entrepreneurs, it is said that there are many opportunities to launch new projects in the areas of agro- and food processing, biotechnology, hydropower, mineral tourism, waste management and recycling, pulp and paper, etc.
Forestry and natural resources
Uttarakhand is a state rich in forests and natural resources, with about 65 per cent forest cover. The state has a variety of flora and animals, including teak, sal, oak, eucalyptus, poplar, resin, and timber plantations. Non-timber forest products like bamboo, domestic fuel, and resin from economically valued Chir Pine are abundant in the state. Uttarakhand also has reserves of magnesite, limestone, gypsum, and dolomite, which are used in cement production.
Gems such as emerald, sapphire, and garnet are also found in the state, with cultural and commercial value. National parks and wildlife sanctuaries are established to conserve wildlife and preserve “wild nature” for future generations. Some of the state’s well-known national parks and wildlife sanctuaries include Rajaji National Park, Nandadevi Devi National Park, Valley of Flowers National Park, Gangotri National Park, etc., as well as Askot, Govind, and Kedarnath wildlife sanctuaries.
Renewable energy
Uttarakhand is utilizing its hydroelectric potential to generate electricity. The state has 43 microhydropower projects scattered across its rivers and basins, and has approved over a dozen hydroelectric projects (HEPs) between 2005 and 2010. The state also has 17 significant HEPs, including the Tehri HEP on the Bhagirathi, India’s tallest dam.
The Jamrani Dam, expected to cost Rs. 2,584.10 crore by March 2028, is being built in Nainital. The Jal Vidut Nigam is actively exploring the state’s hydroelectric potential, with over 14 projects in various phases and 33 operational projects with a combined capacity of over 1400 MW.
The state produces power from biomass, microhydropower projects, and solar energy under the Jawaharlal Nehru National Solar Mission. It has approved several solar power plants to promote green energy in Uttarakhand state (energyworld.com, 4 November 2023). Furthermore, the state is working to provide 24-hour electricity to the entire state and promote renewable energy sources, including hydroelectricity, solar and wind power.
Health Care
Uttarakhand has 225 hospitals, with a focus on improving healthcare access, especially in rural and hilly areas. The state has allocated over five per cent of its budget to healthcare over the past five years, surpassing other states. Universal Health Coverage programs like Ayushman Pradhan Mantri Bharat, SGHS, AB-PMJAY, and AAUY have been introduced to cover households and beneficiaries. The Mukhyamantri Swasthya Bima Yojana (MSBY) offers affordable medical treatment and insurance to underprivileged families. The government also managed efficiently the COVID-19 pandemic with a 24-hour helpline, facilities, and plans for food and rations.
Banking structure
The institutional framework of banking and finance seems to be progressing toward advancing financial inclusion in the state. For banking and other financial institutional structures, there are currently around 749 branches of various banks, including development banks, commercial nationalized banks, private banks, cooperative banks, and regional rural banks, that cater to the credit needs of different societal segments.
The 17,000 residents of the state are served by an average of one bank branch However, lack of awareness of financial products; poor governance of complaints; poor time management; poor proximity to banks, and no proper networking are several barriers as per a study in 2017. On the supply side issues and lack of awareness make banks plans and products unsuitable for hilly areas like Uttarakhand. Inappropriate financial products and documentation processes are the primary causes of financial exclusion from the supply side.
The establishment of a “Hill Area Development Bank (HADB)” is to satisfy medium- and long-term financing demands in the hilly region of Uttarakhand, enabling customization of financial instruments, guidance, flexible terms and conditions, regulations, and monitoring systems.
The role of women in development and their empowerment
Uttarakhand has a high rate of female economic engagement, with 84.4 per cent of women working in agriculture and 64 per cent as farmers. These women have historically been the foundations of the rural economy, contributing to forest conservation, cattle care, tourism, and social initiatives. Empowering women is crucial for societal development. A law was recently issued by the Dhami that grants 30 per cent horizontal reservation to state-domiciled women working in public services with the proper attitude and guidance.
Additionally, for women’s development and empowerment, there are 14 central government schemes and 11 state-sponsored schemes, while one is jointly by the central and state governments. The state-initiated welfare and development schemes include the Chief Minister’s Minority Meritorious Scheme, Nanda Gaura Matrivandana Scheme, Chief Minister Women Empowerment Scheme, Chief Minister Mahalakshmi Scheme, Lakhpati Didi Scheme, Chief Minister Aanchal Amrit Scheme, Chief Minister Self-Employment Scheme, among others.
Currently, Uttarakhand has 7485 Gram Panchayats and perhaps is one of the Indian states that has enacted legislation granting women 50 per cent of the seats available to them as Sarpanches (i.e., heads of village government). Although it appears that the Uttarakhand governments, from time to time, have made several efforts and arrangements to improve the status of rural women generally and women from the hills specifically, they continue to live in substandard conditions.
Uttarakhand, after getting separated from Uttar Pradesh, has experienced positive growth but lacks profitable employment and income prospects. The state government has set aside a 6,000-acre land bank for enterprise establishment and implemented special policies to encourage investments in various sectors. The strong investment climate is shaped by legislation prioritizing investors, large infrastructural expenditures, skilled manpower, and sound governance.
The Dhami administration created the State Institute for Empowering and Transforming Uttarakhand to enhance planning frameworks, facilitate efficient policymaking, promote innovation, and supervise development projects. These measures aim to break the state’s economic development free from poverty, provide local employment opportunities for the next generation, and prevent brain drain.
The Uttarakhand government’s responsibility is to generate livelihood opportunities for the returning population, ensuring access to basic necessities. The initiative aligns with prime minister Modi’s Aatmanirbhar Bharat-3 concept, aiming to create opportunities and resources in every state.
Prof. Prem Lal Joshi is a former NRI accounting professor and is currently the editor-in-chief of the International Journal of Auditing and Accounting Studies (IJAAS). The views expressed in this piece are the personal views of the author. He is thankful for the useful suggestions provided by Prof. Govindan Marathandan, Dr. Shilpa Nag Joshi, and others on this piece. Dr Joshi can be reached at [email protected].
