Employment generation and potential in Himachal Pradesh – HPAS Mains

By | February 13, 2022

                                                       Employment generation-

Himachal Pradesh is a major tourism destination and tourism is contributing greatly to the growth, development and economy of the State. The contribution of the tourism sector to the State GDP is about 7 per cent.

According to HP economic survey there were a total of 3213379 tourists including foreign who visited Himachal in 2019- 20.


Tourism industry has tremendous capacity to create both direct and indirect employment. 

  • Tourist guides– Tourist require guides to provide information about historical record of forts, temples, places, heritage site, art and craft of state, best cuisines of various district.
  • Transport operator– It is type of indirect employment that generated from tourism. Tourists require vehicles to reach their destination.

Example- Tourist require taxi driver from Shimla to reach their destination places such as kufri, naldhera, narkanda, kinnaur, spiti etc.

  • Hotel industry-
  1. It is type of direct employment that generated from tourism. Tourists require boarding and lodging facilities in tourist regions which generate employment in tourist industry.

Example- In HP mostly hotel and resorts lies in Shimla, chail, kufri, manali, kotgarh , kullu etc. regions

  1. The hotels require vegetable, fruit, milk, egg, cereals etc. This provide indirect employment opportunities to the people resides in adjoining areas.
  • Handicrafts and hand loom product-
  1. Another aspect of employment from tourism is shop and emporium(retail store) selling local handicrafts, hand loom products
  2. More demand of these products create employment opportunities to thousands of craftsmen, artisans, weaver etc.

Example- chamba rumal, kullu shawl, kinnauri shawl, lahauli socks and gloves etc. are major handloom products of HP.

  • Adventure tourist site-
  1. Bir billing, Kol dam, pong dam, Kufri, Chansal etc. are major adventure tourist site in HP and Dharamshala, Kullu, Kinnaur, Sirmaur region are major trekking site in HP.
  2. Every year tourism create thousands of job for paragliding trainer, river rafting trainer, skiing trainer, hiking and mountaineering trainer etc
  • Heritage site-
  1. HP is blessed with lot of heritage sites such as UNESCO-Kalka Shimla rail, great Himalayan national park, gaiety theatre, nagger, rang mahal of Chamba etc.
  2. Heritage tourism creates lot of employment opportunities for guides, transport operators and the hotel industry.
  • Religious tourism site-
  1. Mandi Shivratri, Kullu Dussehra, Lavi fair, Renuka fair and sacred shrines such as Naina devi, Chintpurni, Jawalamukhi, Masrur cut temple etc. attracts tourism every year.
  2. It creates employment opportunities for artisans, craftsmen, local shopkeepers, transport operators etc.


The rich diversity of agro-climatic conditions, topographical variation, deep and fertile soils in HP favour the cultivation of temperate and sub-tropical fruits, vegetable. The region is also suitable for ancillary horticulture produce like flowers, mushrooms, honey and hops.

Horticulture comprises 233300 hectares of land in HP till 2019-20.


The horticultural industry offers a variety of jobs, both directly and indirectly. Many jobs require knowledge and training in horticulture.

  • Horticulture cash crops-
  1. High value of crops include apple, cherry, strawberry, ginger, garlic etc. are carried high profit margin if marketed properly.
  2. Example – Apple, cherry, plum etc. are being provided better employment opportunities to people of upper Shimla areas whereas people of Sirmaur, solan region are getting better prices from ginger, garlic, capsicum etc.
  • Beekeeping-
  1. Beekeeping is a low investment and skill Industry having the potential to offer direct employment to lakhs of people especially hill dwellers, tribal and unemployed youth and farmers.
  2. It supports agricultural activities through cross pollination and increase in yield of crops.
  • Floriculture-
  1. Cultivation of flowering and ornamentals plant for sale or for use as raw materials in cosmetic and perfume industry and the pharmaceutical industry.
  2. It provides self-employment to skill and un-skill unemployed youth and promote floriculture industry in the state.
  • Mushroom
  1. It can be grown in rooms which requires small area
  2. Mushroom takes less time for production and its yield per unit area is highest of all crops and most profitable venture.
  3. Self – employment opportunity: Employment can be created for self and other persons by establishing mushroom cultivation unit.
  • Establishment of the nursery-
  1. Establishment of nursery for raising the seedling of several fruits, vegetable.
  2. It create employment opportunity for self and for other person such as nursery manager, field supervisor, salesperson, propagator (develops quality planting material).


Forest in Himachal Pradesh cover an area of 37948 sq.km and it account for 68.16% of total geographical of the state. Deodar, Chil, Sal, pines, khair are major trees of Himachal Pradesh.

During 2017-18, it was observed that value of timber provisioning services is about 0.31% of state GDP, while that of non-timer forests products (NTFP) provisioning services is 0.27% of state GDP.

  • Timber-
  1. Wood-based industry is used for making furniture products (table, chair, bed) and even timber such as red sandalwood is used for making cosmetic products and pharmaceutical products.
  2. In addition, the wood fuel industry creates jobs in the form of small-scale wood collection, charcoal production, transportation, and retail. 
  • Non timber forest product (NTFP)
  1. NTFPs include resins, forest honey, edible nuts, tamarind, tejpatta, tendu leaves, mahua flowers, buransh, bamboo, gum, fodder etc.
  2. NTFPs used for beverages, medicine, biochemical, fibre and cosmetic industry.
  3. By selling NTFPs in domestic and foreign market can create self-employment and employment for others.
  • Afforestation and reforestation-
  1. Afforestation and reforestation, including reclamation of degraded lands, offer the greatest scope for job creation, particularly where rural unemployment or underemployment is high.
  2. Land preparation, production of planting material and maintenance operations –weeding, cleaning, thinning and pruning could be important sources of employment.
  • Agroforestry-
  1. Growing of crops along with trees in order to protect crop from storm, frost, high wind velocity etc. and generate supplementary income from timber and Non timer forest product.
  2. Although this may not generate full-time employment, it will help to reduce poverty of farm households.

Read also:

  1. What is Mukhya Mantri Seva Sankalp Helpline?
  2. Aryabhatta Geo-Informatics Space Application Centre (AGISAC) – HPAS Mains
  3. Kangra Tea – Himachal Pradesh
  4. Relevance and role of Intellectual Property Rights, Geographical Indications and Traditional wisdom and knowledge in sustainable development of the State
  5. Bio Technology Policy of Himachal Pradesh – 2014
  6. Tourism Policy of Himachal Pradesh 2005
  7. Industrial Policy of Himachal Pradesh 2013

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