On the 10th anniversary of its formation, Uttarakhand clocked growth of 9.3 per cent (for 2009-10), against 5.5 per cent in 2001-02. However, life remains a struggle for most.
Policy makers say the outlook is positive. “Barring a few sectors like power and urban development, Uttarakhand is doing fine compared to the two other states, Chhattisgarh and Jharkhand, formed around the same time,” they say.
“The projected growth rate for 2010-11 is 9.4 per cent,” says principal secretary, finance, Alok Jain.
The annual plan size has grown 6.5 times, to Rs 6,800 crore (2010-11) from Rs 1,050 crore in 2001-02.
About 60 per cent of the population is dependent on agriculture. However, its share in the gross state domestic product (GSDP) has come down to 23.4 per cent from 38.8 per cent since the inception of the state.
Industry has made up somewhat for the loss of agriculture. The sector has emerged as the key growth driver and the biggest job provider in the state. The share in state GDP, 18 per cent in 2000, has doubled to 35 per cent. A number of big companies — Tata Motors, Nestle, Hindustan Unilever, Britannia, Mahindra & Mahindra and Hero Honda — have set up units in the hill state since the Centre announced tax incentives in 2003 for hill-based states. Government estimates suggest Rs 16,000-17,000 crore of investments after the new industrial policy was announced. An estimated Rs 20,000 crore is in the pipeline.
Bank deposits grew to Rs 32,866 crore in 2007-08 from Rs 10,587 crore in 2001-02, a 208 per cent growth in seven years. The credit-deposit ratio was 50.7 per cent this June, from 20 per cent in 2001.
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Health, education and social sectors have also shown an upward trend. “In the next one or two years, Uttarakhand will have big hospitals like the AIIMS and education institutes like IIMs,” said Chief Minister Ramesh Nishank.
Urban infrastructure has failed to make any headway, especially in Dehra Dun, the capital. With the pressure on the city growing, the government is yet to implement a master plan, giving rise to haphazard urbanisation. Central funds for urban planning have also remained mostly unutilised.
The state has also not done much to increase its revenues, especially in tourism and forests. Road, rail and air connectivity is still patchy. And, the migration from the hills to the plains in search of jobs continues to be a big worry.