Challenges and the Way Forward

Main problems

• Dependence on Central grants: 56-66% of the budget; committed expenditure 59% of revenue receipts.
• Small holdings: 0.59 ha average; 84% marginal.
• Weak processing and storage: 2% processing, CA storage half of need.
• Tourism swings: 2.36 crore (2024) to 1.78 crore (2025) after security and flood shocks.
• Unemployment and low productivity: 43% of workers produce 20% of output.
• Low credit-deposit ratio: about 63%.
• Disasters and climate: floods, cloudbursts, landslides, snowfall; glacier stress.
• Industrial base: small; NCSS units in production are 292 against 918 registered.

Way forward

• Finish hydro projects (3,014 MW) and sell surplus power.
• High-density orchards, CA stores, processing (NITI 2047 roadmap: Rs 10,000 crore to Rs 60,000 crore).
• Year-round tourism: winter, golf, rural, homestay, pilgrimage and autumn products.
• Value addition and branding: GI, QR labels, ODOP and export hubs.
• Jobs: Mission YUVA, skill centres, startups, PMEGP.
• Resilience: flood control, early warning, disaster-proof roads and bridges.