The 2025-2026 Uttarakhand Economic Survey indicates a rapidly growing economy, with GSDP growth estimated at 8.2% for 2026-27 and a 1st place ranking on the SDG Index. The key implications that legislators will need to discuss in the coming session of the State Assembly include accelerated development in tourism, MSMEs, and infrastructure, alongside improved social indicators like reduced mortality rates, increased life expectancy, and 100% household toilet coverage.
This implies that the state is transitioning to a higher growth trajectory, aiming to double its economy through initiatives under “Sashakt Uttarakhand @2025“. Significant growth is reported in agriculture (rice/wheat production), horticulture (medicinal plants), and fisheries.
The tourism sector is expanding, with accommodation units rising from 8,225 in 2021-22 to 10,509 in 2024-25, and homestays increasing from 3,935 to 6,161. Also, there is an Industrial Boost with the number of start-ups having increased from zero in 2017 to 1,750 in 2024-25, and MSME employment rising to 456,605 in 2025.
Also the focus on Infrastructure Development has meant that road infrastructure expanded to 51,278 km, while heliports increased from 2 to 7 between 2022 and 2025, improving connectivity. In the Energy Sector, electricity generation surged from 5,157 million units in 2021-22 to 16,500 million units in 2024-25.
The Social and Fiscal Implications of this have meant improved Health & Education. The infant mortality rate dropped to 20, and maternal mortality decreased to 91, while primary school dropout rates declined. Importantly, nominal per capita income is approximately 40% higher than the national average.
The survey also highlights the need for continued, sustainable, and diversified revenue generation to support long-term economic growth. It may also be noted that despite a 4.5% unemployment rate, which remains higher than some national estimates, there is a positive trend in female labour force participation. The report also emphasises the need for continued investment in infrastructure and sustainable development to manage the environmental risks inherent in the region. The state is targeting high growth, with GSDP estimated to grow by 7.23% in 2025–26 and 8.2% in 2026–27. Per capita income has risen significantly from Rs 1.94 lakh in 2022 to nearly Rs 2.74 lakh in 2025. This implies a massive boost in industrial activity, with MSMEs increasing from 60,000 to over 79,000, creating over 4.5 lakh jobs. Large industries also grew from 107 to 128, along with 1,750 recognised startups. Revenue receipts are projected to grow by 10.84% to Rs 60,552.90 crore, driven by better tax collection and non-tax revenues, enhancing fiscal sustainability.
Agriculture, animal husbandry, and tourism will continue to be key growth drivers. Labour force participation has improved to 64.4%, with the unemployment rate declining to 4.5%.
At the same time, the rapid infrastructure and tourism growth poses risks of environmental degradation and overstrained local infrastructure, which needs to be addressed in an intelligent and informed manner. Many of these aspects are unprecedented and the planning needs to accommodate the challenges. It must be remembered that mere numbers do not always reflect the ground reality.
