Himachal Pradesh

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Indian Subcontinent >> India >> Himachal Pradesh >> Economy of Himachal Pradesh

Economy of Himachal Pradesh

The economy of Himachal Pradesh is based mainly on agriculture and food processing. Terraced farmlands cover the lower slopes, while fruit orchards can be seen in the temperate regions. The famous red Himachali apple and apple juice are supplied to markets all over India. Life is, however, difficult in the hills and fragmentation of land holdings has forced male members to migrate to cities. Many people also join the army, and several households in the villages are sustained by a "money-order" economy – remittances sent back home by migrant workers.

Tourism is a major economic activity in Himachal, attracting both domestic and foreign travellers. Due to its mountainous terrain and temperate climate, there is substantial stress on agriculture, floriculture, sericulture, forestry and tea plantations. Himachal also has several fast flowing rivers that provide good potential for hydroelectric power generation. Other areas of industrial investment are food products, beverages, textiles, chemicals, engineering, minerals, electronics, steel products, paper products, cement, leather products, ceramics and plastic products. In the half century after independence, Himachal Pradesh has grown from a subsistence agrarian economy to a leading fruit-growing state with associated food processing units.

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