Dehradun, Aug 8 (KNN) Uttarakhand Government should provide investment facilitation policies like providing single window facilitation, ensuring long-term finance availability to investors especially in the micro, small and medium enterprises (MSMEs) to promote tourism, agro-processing, pharmaceuticals, biotechnology, textiles and forest-based industries, said a study.

The study conducted by Assocham titled ‘Uttarakhand on expressway to growth’ also suggested giving special thrust on improving road network to propel industrial, economic and social development across the state.

Promotion of food processing industries, bolstering sector-specific infrastructure like warehouses, cold storages and others to avoid spoilage of perishable products are other key suggestions in the study aimed at further improving industrial scenario in the state.

Uttarakhand, a northern state of India, has emerged on top by clocking highest compounded annual growth rate (CAGR) of 16.5 per cent and 12.3 per cent in industry and services sectors respectively during the decadal period between 2004-05 and 2014-15 among states across India and also much better than national average growth of about seven per cent, noted a study.

The study highlighted that the state has registered remarkable economic growth and industrial development as the state has recorded CAGR of over 12 per cent during the aforementioned period, which is highest among major states in India.

Interestingly, Uttarakhand’s contribution to India’s economy has also marginally increased from just about 0.8 per cent in 2004-05 to 1.2 per cent 2013-14, noted the study prepared by the ASSOCHAM Economic Research Bureau (AERB).

Services sector which includes hospitality & tourism, hotels & restaurants, transport, storage, communication, banking and finance and other such activities accounted for 51 per cent share in gross state domestic product (GSDP) in 2014-15 thereby increasing from 49.5 per cent in 2004-05.

“Tourism and hospitality being a major segment under services sector in Uttarakhand and also being mainstay of its economy, it is heartening to note that domestic and foreign tourists’ arrival in the state has picked up after it was hit by massive floods and landslides in June 2013, mostly due to swift action by the state government,” said Babu Lal Jain, Chairman, ASSOCHAM Uttarakhand Development Task Force.

While industrial sector accounted for about 39 per cent share in the GSDP in 2014-15 thereby increasing from 27 per cent a decade ago.

However, it is noted that Uttarakhand’s performance on agriculture and allied activities paints a grim picture as its share in the GSDP has declined sharply from over 22 per cent in 2004-05 to just over nine per cent in 2014-15.

Significant developments in terms of infrastructure development be it increase in road density, fall in power deficit which has almost halved from about three per cent in 2012-13 to 1.7 per cent in 2015-16 and high literacy rate of about 80 per cent are certain other positives for Uttarakhand.

However Uttarakhand government needs to perk up infrastructure in the health sector to facilitate state inhabitants’ access to health centres across the state.

Uttarakhand’s robust economic growth has encouraged investors to invest in the state as outstanding investments have increased to Rs 1.45 lakh crore as of 2015-16 registering year-on-year growth of about 24 per cent.

“Electricity, infrastructure, construction and real estate are top three priority sectors for investors to invest in 2015-16 with a combined share of almost 97 per cent,” noted the study.

Uttarakhand has also figured as the second best performing state in terms of project implementation.

“Projects with investment share of about 39 per cent were under implementation in various stages as of 2015-16 which shows faster implementation of projects and ease of doing business in the state.” (KNN Bureau)