Himachal Pradesh

Recent Developments in Key Sectors

• Under the State Budget FY27:
  • Rs. 2,910.50 crore (US$ 316.4 million) has been allocated towards public works, including roads and bridges, in FY27.
  • Rs. 1,022.75 crore (US$ 111.2 million) has been allocated for water supply and sanitation, while Rs. 381.66 crore (US$ 41.5 million) has been earmarked for irrigation and flood control.
  • Rs. 9,805.89 crore (US$ 1.07 billion) has been allocated towards education, sports, arts and culture, reinforcing the state's focus on human capital development and educational infrastructure.
  • Rs. 3,149.47 crore (US$ 342.3 million) has been earmarked for health and family welfare to strengthen healthcare infrastructure and public health services across the state.
  • Rs. 1,713.76 crore (US$ 186.3 million) has been allocated towards agriculture, while the government has also announced enhanced support for natural farming, crop diversification and agricultural value-chain development initiatives.
  • Rs. 2,050.17 crore (US$ 222.8 million) has been allocated for rural development programmes aimed at improving rural infrastructure, livelihoods and local governance.
  • Rs. 1,918.89 crore (US$ 208.6 million) has been earmarked for social welfare services to strengthen social protection and welfare support across the state.
  • Rs. 712.55 crore (US$ 77.5 million) has been allocated towards housing and urban development to support urban infrastructure and service delivery improvements.
• Railway infrastructure development in Himachal Pradesh received a significant boost with the Central Government allocating Rs. 2,911 crore (US$ 316.4 million) in FY27 for the expansion, modernisation and electrification of railway projects across the state.
• The Bulk Drug Park is being developed at Haroli in Una district under the Government of India’s Bulk Drug Parks Scheme. The project has a revised cost of Rs. 2,071 crore (US$ 230 million), including Rs. 996.45 crore (US$ 111 million) from the Government of India and Rs. 1,074.55 crore (US$ 119 million) from the State Government.
• The Himachal Pradesh government is planning to develop a 300-acre industrial belt in Nalagarh (Solan district) equipped with power, water and modern infrastructure to attract new industries.
• In October 2025, Chief Minister Mr. Sukhvinder Singh Sukhu announced plans to develop a Cyber City over 650 bighas in Waknaghat, Solan district, featuring AI labs, data centres, and IT enterprises, while directing the timely completion of IT Parks in Kangra and Shimla by December 2025.
• In October 2025, the state approved 28 new industrial projects with an investment of Rs. 1,734.65 crore (US$ 200.61 million), expected to create around 5,388 jobs.
• In August 2025, the state launched India’s first state-supported biochar programme, installing a plant in Neri (Hamirpur district) to convert biomass such as pine needles and bamboo into biochar, generating around 28,800 carbon credits over ten years and 50,000 person-days of income annually.
• On June 30, 2025, The Union government approved an annual plan of Rs. 3,667 crore (US$ 440.39 million) for 2024-25 to develop roads, bridges and tunnels in Himachal Pradesh, including the Rs. 1,452 crore (US$ 166.34 million) Jalori Jot tunnel and Rs. 1,385 crore (US$ 158.67 million) Kala Amb to Paonta Sahib four-laning projects.
• The National Highways Authority of India (NHAI) has given in-principle approval for two major four-laning projects in Himachal Pradesh, including the Rs. 10,000 crore (US$ 1.16 billion) Shimla–Mataur stretch and the Rs. 12,000 crore (US$ 1.39 billion) Pathankot–Mandi corridor.
• The Himachal Pradesh Government announced the allocation of 22 new hydropower projects totalling 828 MW on a 40-year lease, expected to generate Rs. 82.8 crore (US$ 9.58 million) in upfront premiums while boosting state revenue, employment, and regional development.
• Himachal Pradesh is set to introduce robotic surgery at the Atal Institute of Medical Super Specialities in Chamiyana, Shimla, with Rs. 28 crore (US$ 3.56 million) equipment, marking the state’s first such facility, which will later be expanded to other government medical colleges to enhance advanced healthcare access.
• The State Government has launched the Rajiv Gandhi Self-Employment Start-up Scheme with an outlay of Rs. 680 crore (US$ 78.64 million).
• The state government has committed to establishing Integrated Public Health Labs in all districts by 2026, covering children's transportation costs to primary schools, and appointing 6,000 nursery teachers in 2024-25, showcasing its focus on healthcare, education, and human resource development.
• The state has allocated Rs. 2,457 crore (US$ 294 million) towards Women and Child Development and will cover educational expenses of children of widows with annual income below Rs. 1 lakh (US$ 1,197) under the Mukhya Mantri Sukh Shiksha Yojana, demonstrating its commitment to empowering women and supporting the welfare of weaker sections.
• The state will increase MGNREGA daily wages by Rs. 60 (US$ 0.72) and provide up to Rs. 3 lakh (US$ 3,591) assistance to build houses for widowed, single, and destitute women workers.
• The tourism sector of Himachal Pradesh contributes 7% to the state GDP. In 2024, Himachal Pradesh recorded its highest-ever tourist footfall with 1.80 crore domestic visitors and 83,000 foreign tourists, marking a record high for the state’s tourism sector. As of December 2024, there were 9,843 registered hotels in the state.
  • In September 2025, the 13.79 km ropeway project in Shimla worth Rs. 1,734.70 crore (US$ 224.67 million) has received Stage-I approval from the Ministry of Environment, Forest and Climate Change for 6.19 hectares of forest land use and aims to ease traffic congestion, promote sustainable urban mobility and create local employment opportunities.

Himachal Pradesh is steadily strengthening its economic and investment profile, supported by robust infrastructure development, rising industrial activity, and a strong focus on renewable energy and sustainability. The state’s natural advantages in hydropower, growing exports in pharmaceuticals and engineering goods, and proactive policy framework are enhancing its competitiveness. Increased public spending on roads, healthcare, education, and rural development, along with targeted initiatives in IT, tourism, bioenergy, and industrial clusters, are creating new employment opportunities and improving regional connectivity. Backed by stable governance and a clear focus on inclusive growth, Himachal Pradesh is well positioned to attract sustained investments and drive long-term economic development.