Impact of Industrial Package on Industrial and Economic Development of Himachal Pradesh

Industrialization is the only way to solve the main problems like unemployment, poverty, regional imbalances etc. To absorb the pressure of population, it is essential to industrialize the country and that too quickly. It is the establishment of industries alone that can generate employment opportunities to an accelerated rate. To establish industries government commitment and support are key factors. Incentives and other support measures to industries play a significant role to attract new entrepreneurs to less developed industrial regions. But sometimes this support becomes the political issue. Same is the case with hill state Himachal Pradesh (H.P.) after the withdrawal of industrial package which was announced in 2003. To address this issue it is very much important to analyse the impact of this industrial package in the state. In this paper an attempt has been made to analyze the impact of this industrial package on industrial and economic development of Himachal Pradesh. This study resulted into a new model of economic development.