Himachal Pradesh: A Mountain Success Story

How Himachal Pradesh achieved strong human development despite difficult terrain, through education, roads, apples, hydropower and an active state.

Himachal Pradesh is often cited as a mountain development success.

Achievements

High literacy, well above the national average.
Low poverty compared with most states.
Good health indicators.
Near-universal electrification early on.

How it happened

Education: the state invested heavily in schools in remote areas from the 1970s.
Roads: connecting villages.
Apples: horticulture gave farmers cash incomes.
Hydropower: revenue from projects on the Sutlej and Beas rivers.
Public employment: government jobs were widespread.
Social norms: relatively high women’s participation in work.

Economist’s view

Economist Jean Drèze and others described Himachal’s development as an example of an active state and social cooperation.

Challenges

Fiscal stress: high salaries and pensions, and debt.
Disasters: severe floods in 2023 caused heavy damage.
Unregulated construction on slopes.
Youth unemployment.

The village school

In the 1980s, a remote Himachal village got a school within walking distance. Girls who studied there went on to become teachers and nurses, changing the village's future.

Thinking difficult terrain rules out development

Himachal achieved strong human development with an active state.

Key takeaways

Himachal has high literacy and low poverty.
Education, roads, apples and hydropower drove progress.
An active state and social norms helped.
Fiscal stress and disasters are challenges.