U’khand clocks the highest growth in industry, services sectors

The Dollar Business Bureau

 Uttarakhand has clocked a compounded annual growth rate (CAGR) of 16.5% in industry and 12.3% in service sectors during 2004-05 to 2014-15, noted an ASSOCHAM study.

Incidentally, the growth is highest among India states and also much higher than the national average growth of about 7%.

“Uttarakhand has registered remarkable economic growth and industrial development as the state has recorded CAGR of over 12% during the aforementioned period, which is highest among major states in India,” said ASSOCHAM in a study: ‘Uttarakhand on expressway to growth’.

Uttarakhand’s contribution to the country’s economy has also gone up marginally to 1.2% in 2013-14 from just about 0.8% in 2004-05.

The services sector consists of communication, banking and finance, hotels & restaurants, hospitality & tourism, storage, transport and other such activities. This sector’s share in GSDP, too, grew from 49% in 2004-05 to 51% share in 2014-15. “Uttarakhand holds significant potential for growth and expansion of services sector which can generate additional economic activity and employment in the state,” suggested the study.

Meanwhile, industrial sector’s contribution to the state’s GSDP increased to about 39% from 27% a decade ago.

The study also underlined Uttarakhand’s investment potential and said the state’s robust economic growth has attracted several investors in the state. The outstanding investments have escalated to Rs.1.45 lakh crore till 2015-16, thereby registering year-on-year surge of about 24%.

“Electricity, infrastructure, construction and real estate are top three priority sectors for investors to invest in 2015-16 with a combined share of almost 97%,” noted the ASSOCHAM study.

The study suggested the state government to facilitate policies such as single window facilitation and long-term finance in MSMEs to encourage agro-processing, biotechnology, forest-based industries, tourism, pharmaceuticals and textiles, while giving thrust to enhancing road network to propel industrial, social and development across the state.