World Bank2012-06-122012-06-122007-07https://hdl.handle.net/10986/7788This Economic Report is the first by the World Bank on the economy of Himachal Pradesh (HP), and the first on a hill state in India. HP is a unique state in many respects-most importantly because of the enormous success it has achieved over the past three decades, despite severe structural disadvantages of relative remoteness, environmental fragility, and a difficult hill terrain, characteristic of Himalayan states in India. The study sets out to document, first, the remarkable success that the state has achieved in terms of sustained growth and human development, and the underlying reasons in terms of supportive policies and social cohesion. In this respect, HP makes an important contribution to lessons of success for the other nine Himalayan hill states in India. The second, and more extensive part of the Report, is forward-looking. It describes how it might be possible to build on the past success that HP has achieved, and, at the same time, address some crucial economic and social transitions that will be essential for the state to firmly secure its future: (i) a sustained increase in income levels along with an enabling environment for the private sector; (ii) the creation of suitable jobs based on enhanced productivity and skill s of its young labor force that can shift from public to private sector employment; and (iii) the utilization of natural resources like hydropower, forests, and water resources wisely and well. There is every reason to be confident that HP can meet these challenges. The state's past enviable track record is testimony to the ability of its people and leadership to forge a social consensus and compact necessary to achieve such goals. The Report seeks to provide an analysis of HP's current economic situation, and to lay out a menu of reform options that can help build on HP's considerable strengths and opportunities, and address some of the main challenges ahead.CC BY 3.0 IGOABSENTEEISMAIRBANK INVOLVEMENTBORROWINGBORROWINGSBUDGET FORMULATIONBUDGET PROCESSBUDGETINGBUSINESS CLIMATEBUSINESS PLANSCAPITAL EXPENDITURECAPITAL OUTLAYCONTINGENT LIABILITIESCONTRIBUTIONCONTRIBUTIONSCOST RECOVERYCROP INSURANCECURRENT EXPENDITURESDEBTDEBT CRISISDEBT STOCKDEBT SUSTAINABILITYDECENTRALIZATIONDECISION MAKINGDELIVERY MECHANISMSDIVERSIFICATIONDIVIDENDSDRIVERSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC MANAGEMENTECONOMIC PERFORMANCEECONOMIC SITUATIONELECTRICITYEMPLOYMENT OPPORTUNITIESENABLING ENVIRONMENTENVIRONMENTALENVIRONMENTAL DEGRADATIONENVIRONMENTAL ISSUESENVIRONMENTAL MANAGEMENTENVIRONMENTAL RESOURCESEVASIONEXCISE DUTYEXPENDITURESEXPLOITATIONEXTENSION SERVICESFEE STRUCTUREFINANCIAL MANAGEMENTFINANCIAL STATEMENTSFISCAL BURDENFISCAL CONSTRAINTSFISCAL DEFICITSFISCAL POSITIONFISCAL RESPONSIBILITYFISCAL SUSTAINABILITYFIXED ASSETSFORESTRYFUTURE GROWTHGOVERNMENT GUARANTEESGOVERNMENT POLICIESHUMAN DEVELOPMENTHUMAN RESOURCEHUMAN RESOURCESINCOMEINCOME LEVELSINCOMESINCREASE IN INCOMEINFRASTRUCTURAL CONSTRAINTSINFRASTRUCTURE INVESTMENTSINSURANCEINTEREST PAYMENTSINVESTMENT CLIMATEJOB CREATIONLABOR FORCELIVING STANDARDSMANAGING DEBTMARKETINGMOTOR VEHICLEMOTOR VEHICLESNATURAL RESOURCE BASENATURAL RESOURCESO&MPENSIONPENSION SCHEMESPENSIONABLE PAYPOLITICAL ECONOMYPOLLUTIONPOLLUTION CONTROLPORTFOLIOSPOVERTY RATESPRIVATE INVESTMENTPRIVATE PARTIESPRIVATE SECTORPRIVATE SECTOR PARTICIPATIONPRODUCTIVITYPUBLICPUBLIC EXPENDITURESPUBLIC PARTICIPATIONPUBLIC PRIVATE PARTNERSHIPSPUBLIC SECTORPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SPENDINGRAPID GROWTHREAL ECONOMIC GROWTHRECORD KEEPINGREPAYMENTRESEARCH ASSISTANCERESOURCE USERETURNSREVENUE PERFORMANCERIVER BASINSROADROAD TRANSPORTROADSSAFETYSAFETY NETSSALARIESSALARYSALESOCIAL PROTECTIONSOCIAL SECURITYSTAKEHOLDERSSTAMP DUTYSTATE OWNED ENTERPRISESSUSTAINABLE GROWTHTAXTAX COLLECTIONTAX INCENTIVESTAX REGIMETAX REVENUETAX REVENUESTAXATIONTEACHER TRAININGTRADINGTRANSPARENCYTRANSPORTUNEMPLOYMENTUNEMPLOYMENT RATESURBAN INFRASTRUCTUREURBAN MANAGEMENTURBANIZATIONUSER CHARGESVALUABLEWAGEWATERSHEDWorld Bank10.1596/7788