Indian Himalayan Region: Himachal Pradesh

Himachal Pradesh's GSDP reached ₹1,37,320 crore in FY 2023-24 at constant prices, growing 6.6%. Per capita income for FY 2024-25 stood at ₹2,57,212 — up 9.6% and above the national average of ₹2,34,859.

The sectoral mix is uneven: agriculture and horticulture contribute 14% of GVA but employ 54% of the workforce. Industry, including pharmaceuticals and MSMEs, contributes 40% of GVA against 22% employment, while services contribute 45% of GVA and employ 24%. Tourism accounts for 7.8% of GSDP, and construction for 11.5% of employment. Ninety-five percent of the state's industries are MSMEs — the primary driver of local livelihoods.

Rainfall patterns are shifting toward more days of extremely heavy rainfall above 100mm, contributing to ₹46,000 crore in natural disaster losses over the last four years. Heatwaves are now occurring in valleys, with more winter heatwave days recorded than summer ones.

Glacial-lake outburst flood risk is highest in the Kullu and Kinnaur districts, and smaller glaciers are projected to shrink considerably — or disappear — by 2050, reducing meltwater available during dry seasons and deepening long-term water insecurity.

Over two-thirds of traditional water sources — springs and khuls — are dead or in serious decline. Groundwater levels are dropping and river flows are declining during dry months; in Mundaghat village, Shimla district, population has halved as local springs dried up.

Construction accounts for 11.5% of employment in FY 2023-24 and is a major source of work for women, migrants, and informal laborers.

The sector is also disproportionately exposed to climate hazards: project delays, cost overruns, and safety risks are increasing, and the 2025 monsoon season alone caused ₹4,800 crore in property damage across public and private assets. Hydropower expansion and unplanned construction are simultaneously identified as accelerants of glacial melt in the region.

The report's recommendations center on four measures: mandating climate-resilient building codes, promoting renewable energy in tourism hubs, incentivizing eco-friendly construction materials, and safeguarding the livelihoods of the informal workers the construction sector depends on.