Impacts of special industrial incentive package on the development of industrialization in Himachal Pradesh

Abstract

This study is an attempt to examine the impacts of special industrial incentive package on the industrial development in Himachal Pradesh. It further unearths the growth of industrialization with neighboring states, getting special package and inequalities in industrialization within the state. The industrial development has been analyzed by considering small, medium and large-scale industries in the state. To accomplish the objectives, study utilizes secondary data collected from Annual survey of industries, Directorate of industries, Govt. of H.P. and EPWRF dataset and covers the period from 1991-92 to 2019-20. This period is further divided into three groups: (1) before special industrial incentive packages (2) after the special industrial incentive package and (3) the overall period. Overall, study found statistically significant impacts of special industrial incentive package on the development of industries in Himachal Pradesh while industries located in B and C category i.e. industrially backward districts are least effected by the package. Therefore, in order to ensure comprehensive industrial development in the state periodic review of disbursal of the package, district specific policy to attract more investment in the districts lagging industrial spread, maintenance of data and effective monitoring system should be established by the competent authority.