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Economy of Uttranchal

The state of Uttaranchal has tremendous potential for developing tourism, agro based industries, and forest based industry. About 80% of the people of Uttaranchal are dependent either on agriculture or on horticulture to earn their livelihood. The regions like Doon Valley, Nainital district, Udham Singh Nagar and Haridwar district are famous for their food grain production. The state has immense potential in developing horticulture crops like apples, oranges, pear, malta, litchi, guava, mango and grapes etc.

The state is blessed with a good amount of resources for developing herbal pharmaceutical industry owing to the abundant medicinal plants that grow in the region. The share of the industrial sector in the state is almost insignificant. The State Government hopes to overcome the economic backwardness in the field of industries by rapid development and proper exploitation of its natural resources. Uttaranchal is not very rich in mineral resources. The chief minerals of the state include gypsum, limestone, graphite, copper, and iron.

However, the state is blessed with huge water resources generating several mega watts of power annually. Presently, it is producing 500 MW of power. There are 17 functional hydro-electric projects in the state and many ambitious power projects including Tehri Dam are under construction.

Uttaranchal's gross state domestic product for 2004 was estimated at $6 billion at current prices. Carved out from the state of Uttar Pradesh, the new state of Uttaranchal produces about 8% of the output of the old Uttar Pradesh state. The state registered a gross income of Rs.137 million for 2005. The per capita income of the people of the state is estimated at Rs.16982.
   
 
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