Uttarakhand Economy industry, tourism, agriculture, minerals, energy sector
Uttarakhand Economy

The Economy of Uttarakhand | quick glance at all 3 sectors

Uttarakhand is one of the fastest-growing hilly states in India, and the 6th Richest state in the country in terms of per capita income; Agriculture is considered to be the backbone of the state (as the Rural people extensively practice it) though Its contribution to the economy is far less than Manufacturing and service sector.

Uttarakhand GDP Is estimated to be Rs 2.93 lakh crore in 2020-21, which has 9.5% grown wrt  2019-20 GDP, although due to coronavirus pandemic our economy has suffered a major blow in the tourism sector,  in the rural economy.

Quick Glance — Statistics of Uttarakhand Economy

GDP 2020-21Rs 2.93 lakh crore
GDP rank20th
GDP per capita Rs 2.6Lakh
GDP% by sector (2019-20)Agriculture — 10.20%
Industry — 48.64%
Service — 41.16%
Unemployment% (June 2021)4.8%
Chart of Economy of Uttarakhand

SectorWise GDP of Uttarakhand

Quick Glance — Economic Activities in Uttarakand

Let’s see an overview of the economy of Uttarakhand, starting from different industries in Uttarakhand, tourism ( Uttarakhand attract 3x the no. Of tourists than its population), Agriculture( it is the backbone of Uttarakhand ), Mineral Resource and Energy Resources.

Uttarakhand Government Key Policies :

  • Startup Policy 2018
  • Tourism policy 2018
  • Policy for Skill Development & Entrepreneurship 2018
  • Information and Communication Technology & Electronics Policy 2016-2025
  • Solar Energy Policy -2018

Uttarakhand Government VISION :

  • promote Uttarakhand as global Tourist Destination for — spiritual, cultural and Adventure tourism.
  • building robust infrastructure (roads, multi-lane highways ) connecting villages
  • focusing on Renewable energy
  • facilating Agriculture in state by providing — irrigation facilities, latest technology , cold storages, Market intelligence and by imporoving yield.

Major Industries in Uttarakhand

Several sector-specific policies have been laid down by the UK government which help in thriving industries in Uttarakhand like —  Information Technology, film/Entertainment industry, Agriculture, Tourism, EV, BioTech, Solar, Hydro Projects etc

Industries in Uttarakhand are generally of two types — traditional industries and modern industries.

Where traditional industries are: handicrafts, handlooms and woollen based industries.

Modern industries are — IT, Biotechnology, Agro and Food processing industry, floriculture and horticulture industries, forest-based industry & industry.

The State government have termed this modern industry — sunrise industries (as they have the potential to flourish and become competitive, therefore special emphasis has been given by the policymaker)

It’s been observed over years that traditional industries like — Silk, Woolen & leather industry are being preferred by the customer, some of them are:

Silk industry

Because of Uttarakhand unique biodiversity and environmental condition, we are able to produce Mulberry silk of superior quality in Terai and plain areas; also Tassar silk in hilly areas.

Woolen industry

Uttarakhand northern cold region has the advantage of producing the finest grade wool, therefore a large section of people near border areas of the state are involved In wool rearing and production.

Angoora rabbit wool is a high-grade variety, also Harsil, belchi, merino are the other main varieties of wool produced locally.

IT and Communication industry

Uttarakhand has emerged as one of the attractive destinations for FDIs and industries. With the increase in the number of knowledgeable graduates (coming out from universities in the state), high-speed internet connectivity and having a very close border with megacities like– Delhi, gurugram, Noida. Many companies establish their branch in cities of the state.

Till now as per investUttarakhand, the state has got 49  Private industrial estates and 7385 manufacturing companies.

BioTEchnology industry

Biotechnology has been another important focus of Uttarakhand, as plays an important role in the fields of agriculture, process industries, human and animal health care, environment management.

A High-Level Biotechnology board is set up to achieve :

  • Setup an Internationally competitive business environment for biotechnology industry
  • Provide necessary training facilities and education to create a large pool of multi-skilled manpower
  •  a biotechnology park is developed at Pantnagar ; included an R&D  facility to achieve the vision of the state of the art biotechnology research in the state.

Agro & Food Processing industry

Leechi , horticulture(garden cultivation), herbs, medicinal plants and basmati rice are included under Agri export Zone, state government has given special incentives for their agro parks, food parks etc so that it could provide the infrastructure facilities for storage, processing, grading and marketing.

Also, the Ministery of food processing industry (MFPI) has considered Uttarakhand as a difficult area; hence Uttarakhand is eligible for higher incentives, given by the MFPI

Forest based industry

Out of the total area of UK, 85% is a mountainous region and significant part of the state is under forest (65%) , thereby have a rich variety of herbs, medicinal and aromatic plant species, Forest wastes such as lantana, pine needles and plant/vegetable fibres can be utilized by industries.

Also, Uttarakhand unique agro-geo climate zone makes a perfect environment for the cultivation of horticulture and horticulture.

The export zone has been set up by the state government covering 7 districts, so as to meet the demand of domestic as well as foreign markets.

Entertainment industry

Uttarakhand cinema journey began in the 80s, from Jagwaal(1983) to ghar jawain .. to Maati pechaan (2020).

Also, Uttarakhand is been blessed with rich culture; it is been showcased in its music, dance.

With new generation independent singer taking the internet by storm, by their creative work.

Some of the famous singers of Uttarakhand are — Narendra Singh Negi, Meena Rana, BK Samant, Priyanka Meher, ruhaan Bhardwaj

Tourism in Uttarakhand

Uttarakhand is known for its tourism attraction, in 2013-14(before Kedarnath flood) state generate ₹23,000 crores via tourism business; just after the 2013 flash flood the people’s fear can be seen by the 70% fall in revenue generated by the tourism industry totalling Rs.6,900 crore; after a lot of investment in roads and re-establishing important sites Uttarakhand have seen consistent growth,  the tourist arrivals in 2019 was 37.58 million, in which forest tourist crossed over— 0.15 million.  Report by ibef.org

Diff Types of Tourism in UK

The Chardham yatra is the centre of attraction among the Hindu devotees, also panch kedar, haridwar, lokpal, hemkund are some of the best known.

Apart from  pilgrimage tourism, Uttarakhand is also known for its Cultural tourism & Natural beautiful sites: Mussorie(Queen  of hIlls), Nanital (Lake district pf india), Pauri, Lansdowne, Ranikhet, Munsayari, Ranikhet, Almora …

Many tourists who aren’t in Uttarakhand for religious reasons, go for Adventure Tourism like —skiing at Auli, Dayara, Bugyal, Munsyari, Mundali skating; water sports, aero sports — hang gliding, paragliding at Pithoragarh, jolly grant, Pauri.

Uttarakhand is one of the most attractive destinations for Wildlife tourism and eco-tourism, thanks to its rare diversity of flora and fauna. Ecotourism projects like — Jungle safaris, trekking , nature.

Wildlife tourism sites— there are 12 national parks and Wildlifesantury, not to forget — World famous Corbett National park ,, totalling 13.8% of state area. Govind pashu Vihar, Asan Barrage, Chllla and saptarishi ashram are famous among birdwatchers.

World heritage sites like — Nanda Devi Biosphere reserve and Valley of Flowers National Park are also center of attraction..

Tourism Industry after COVID hit

UK tourism industry has hit hard by corona they have suffered a lot financially;

Pratik kaliya( a rafting resort owner ) said — “From March to monsoon, which is usually a period of five months, we used to do 60 per cent of the business, which came to nil this year. We are now doing nominal business on weekends”.

Also — Sudhir Roy (president of the Chardham Yatra Management Rotation Committee) said — “2020 will be remembered as a year which brought an economic crisis to Uttarakhand. Bus operators have suffered losses totalling Rs 25 crore, We haven’t received any help yet from the government

News curtailed from –> hindustan times


Agriculture is the backbone of Uttarakhand, it’s been estimated that 65% of Uttarakhand working population is direct engaged in agriculture, although a large part of the state is under forest(65%), thus out of total land area 14% of the land is suitable for cultivation. Among which 89% are small farmers having small landholding.

Most of the irrigation in the state is rainfed, while others are also dependent on alternate sources of irrigation, it can be rainwater harvesting, drip irrigation, sprinklers etc.

The crop pattern in Uttarakhand :

  • Low lying areas in the valleys has —wet rice cultivation
  • Mid slope spurs are used for dry cultivation for— rice, jhangora and mandua

important crops of Uttarakhand

  • Wheat— it’s the most dominating crop of the state, covers 42% of gross cropped area(total area sown once as well as more than once in a particular year). It’s grown generally all districts of uttarakhand. Some of the most prominent are– dehradun, Uttarkashi, pithoragarh
  • Rice— it’s a summer crop, and covers nearly 37% of gross cropped area, Nanital is famous for rice growing, followed by dehradun ad haridwar.
  • Other important crops of uttarakhand  along with are gross cropped area
    • Maize (4.8%)
    • Sugarcane (9.85%)
    • Pulses (4.19%)
    • Oilseed (3.03%)
    • Tea

Government Schemes and plans:

The government on other hand has launched several initiatives & plans to back the state agriculture growth some of them are :

  • National mission for sustainable agricultre (NMSA)
  • Crop insurance scheme
  • Distribute agricultral loan to increase the procutivity
  • Personal insurance to farmers
  • Ease of facility of fertility and pesticides
  • Promoting organic farming

Horticulture & Other

Talking about horticulture, it’s becoming popular among the masses because of government incentives and the demand from the domestic and foreign markets. Also, the government subsidy gives locals trust to give it a try and earn profit.

The higher mountainous region is suitable for the cultivation of —apple, pear, peach, plum and walnut

Whereas the terai area ( low land area of the hill) is suitable for—mango, guava, citrus fruits, litchi, jackfruit, amla and papaya

Also, Uttarakhand favourable agro-climate is best for the cultivation of off season vegetables like— spices, mushroom, flowers, herbs, silk, teas, beekeeping,, etc.

On the other hand, tea cultivation, sericulture & Animal husbandry are the other field which the state government support economically and are giving the locals the excellent opportunity to set up their business.

Mineral resources

Mineral resource of Uttarakhand plays an important role in states economy, as the state lies in the Himalayan region which is blessed with rich mineral wealth; though the most variety of minerals found here are not in very large quantity eg lead, zinc, copper, tungsten, antimony etc.

Uttarakhand magnesite production amounts to 54% of the state total mineral production and stands 2nd rank in the country ( 20%).

Other important minerals found in the state are— high-grade limestone & talk/stealite

Energy Resources

Uttarakhand state has the capacity of being developed in the energy sector, it has huge potential in its hydro electricity,

With majority hydro projects like— Tehri dam project (260m height,  6th highest dam in Asia) having generating capacity of 2400MW electricity and under construction Pancheshwar dam in champawat ( 315m height)  having capacity of whooping 5600MW, and is one of the highest in the world.

Along with that state also have small hydropower plants , some of them are:

  • Ramganga power plant in pauri garhwal  (198MW)
  • Chillla power plant ( 144MW)
  • Chibro power plant in Dakpathar, Dehradun (240MW)
  • Khofti poert plant (120MW)
  • Koteshwar plant in tehri ( 400MW)
  • Maneri bhalli plant in uttarkashi (90MW)
  • River thilot power plant (90MW)
  • Dharasu power plant in uttarkashi (304MW)

Also, government is also focussing on other Renewable energy development plans by UREDA various renewable energy programmes in the states are facilitate by their experts, also they are involved in their own projects like:

  • Wind power project at bacheli kahl, tehri district
  • State level energy park at patel nagar industrial area in dehradun
  • Solar energy projects
  • Micro hydro projects

Thanks for Reading



ibef , Invest Uttarakhand , Statistics Times , Wikiwand ,

InvestUttarakhand Sericulture, IT sector , royaldeveloper , Food processing , FlimShooting , economicstimes , dgm.uk

About the author

the pahari guy

I'm Aman - the Pahari guy,
love to write about Socio-economic issues of India, about by Home- Uttarakhand & also like to share my Experience on various Topics

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