By Arun Pratap Singh
Dehradun, 8 Nov: Uttarakhand was created as a separate state on 9 November 2000, after a prolonged struggle and agitation by the people of the state and after a lot of sacrifices. At the time of its creation, the state created new dimensions of development. The result of the Himalayan desire for infrastructural development like education, drinking water, electricity, health, and roads was that the economy of the state has also taken a big leap. It has grown more than 19 times since the formation of the state. The state has successfully blended its rich natural resources and cultural heritage with modern development practices. With the government focusing on sustainable growth, innovation, and industrial diversification, Uttarakhand’s economy is poised for continued growth across multiple sectors. The annual budget size of Rs 4505.75 crores at the formation of the state has now crossed Rs 88 thousand crores. The budget size increased by 13 times. Per capita income is also higher than the national average.
The economy of the state is mainly dependent on the industrial sector, which currently contributes around 52 percent of the state’s economy. This can be considered a major achievement of the state. The presence of industry was very insignificant at the time of the formation of the state, but industrialisation grew rapidly after the state’s formation. The initial push was given by the Special Industrial package announced by the then Prime Minister Atal Bihari Vajpayee. Though the package was discontinued after the Manmohan Singh-led Congress government took over at the Centre, the state’s CM Pushkar Singh Dhami and his predecessor Trivendra Singh Rawat have organised global investors’ summits and managed to attract a reasonable amount of investment. The services sector contributes almost 38 percent to the state’s economy, although it contributed around 51 percent at the time of the formation of the state, while agriculture, which contributed around 30 percent to the state’s economy, now contributes merely about 10 percent. Tourism and religious tourism also contribute significantly to the state’s economy. Forestry, transport, and the power sector also contribute. The power sector, once thought to be a key sector, has not realised its potential due to various reasons. Changing global climate and environmental restrictions have put a brake on many possible hydropower projects.
At the time of the formation of the state in 2000-01, the GSDP was only Rs 14,501 crore. The contribution of agriculture and related activities was about 30 percent, while the contribution of manufacturing-related sectors was 18.79 percent, and the contribution of the service sector or tertiary sector was 51.11 percent. In the year 2000-01, the total GSDP of the state at current prices was only Rs 14,501 crore. In 2020-21, it has reached around Rs 2,78,006 crores. At the same time, the per capita income was Rs 15,285 in 2000-01. Now it is crossing Rs 2.02 lakh crores.
Centrally funded schemes continue to have a major contribution in strengthening the state’s economy and building the infrastructure of basic facilities in remote mountainous areas. The state has received direct and net benefits in the form of special status and more assistance in centrally funded schemes.
As far as development is concerned, the state has witnessed rapid development in roads and aerial connectivity. Better road connectivity in the hills has raised the potential for development and increased economic activity in the hills, including tourism. Other basic facilities have also been significantly strengthened in the last 24 years. After the formation of the state, the expansion of roads has been very rapid. Besides major projects such as the All Weather Char Dham Road project and the National Highway projects, under the Pradhan Mantri Gramin Sadak Yojana (PMGSY), more than 25,388 km of rural roads have been constructed since the formation of the state. About 2092 km of national highways, 4511 km of state highways, and more than 2697 km of other district roads have been constructed. In the border areas of the state, the roads have been developed very rapidly. In addition, more than 885 km of motor roads have been built by BRO for strategic security and convenience of the local population in these areas.
Uttarakhand has also received big road and rail projects from the central government. The 900 km long all-weather road being built at a cost of Rs 12 thousand crores has raised new hopes in Uttarakhand and is making rapid progress.
Uttarakhand has also taken a long leap in the education sector. After the formation of the state, the number of primary schools has crossed 13,680, while there are 5,285 upper primary schools and 3,711 high schools and intermediate schools. The student strength in primary alone is 5.18 lakh, in upper primary it is 5.07 lakh, and in high school and intermediate, this number is close to 11.95 lakh. Similarly, in higher education, there are 12 state universities, while the number of private universities has increased to 20. The total number of degree and postgraduate colleges is 149. Uttarakhand continues to attract significant private investment in school as well as higher education. Including one central university and three deemed universities, the total number of students studying in higher education is 2.75 lakhs. The state has also taken several steps in vocational and technical education. There are 93 ITIs and 70 polytechnics in the state. More than nine thousand students are studying in ITIs and more than ten thousand students are studying in polytechnics.
Despite its significant progress, Uttarakhand faces many major challenges. The state’s mountainous terrain and the frequent occurrence of natural disasters, such as landslides and floods, can hinder development and disrupt infrastructure projects. Moreover, while the state has made strides in industrialisation, more needs to be done to ensure sustainable growth that does not harm its delicate ecosystems. The state has failed to realise its potential in horticulture to the hilt and in the power sectors, including the renewable energy sector. There is lot of potential in the state in the IT sector, but it has largely failed to compete with Gurugram, Bengaluru, Pune and Hyderabad. The state is yet to effectively control and prevent natural disasters and landslides, which cause huge losses of lives and economic losses. In the tourism sector, there remains a promise to develop new destinations, but that too has not really happened.
