📌 Agriculture & Horticulture
Despite the declining share in GSDP, agriculture and horticulture remain the backbone of Himachal Pradesh’s rural economy. Approximately 89.96% of the state’s population resides in rural areas , and agriculture provides direct employment to about 62% of the total workers. The NITI Aayog report indicates that 58.4% of the working population is engaged in Agriculture, Forestry, and Fishing.9 This high dependency on agriculture for livelihoods, even as its GSDP share decreases, suggests potential challenges related to income levels and productivity within the sector, which government initiatives aim to address.
Horticulture is a particularly significant contributor, accounting for over 20% of the state’s GDP and about 48% of agricultural GSDP. Himachal Pradesh is renowned for its production of a diverse range of fruits such as apples, pears, peaches, plums, and cherries, as well as vegetables like potatoes, tomatoes, and onions. Apple cultivation, in particular, is a major economic activity, earning the state the moniker “Apple State of India”. Fruit production was 372,820 tonnes in 2011-12 and fluctuated over the decade, while vegetable production reached 1,820.477 thousand tonnes in 2025.
The government has been actively promoting diversification into other high-value crops like olives, figs, mushrooms, and flowers. Floriculture is also gaining prominence. A notable success is the emergence of entrepreneurs like Gaurav Sabharwal, who has pioneered indoor saffron farming using aeroponics in Solan, selling saffron at premium prices. Such innovative ventures, along with the success of women agri-entrepreneurs in food processing and natural products , signal pathways for agricultural transformation and value addition. These stories can be particularly inspiring for students, showcasing how agriculture can be modernized and made more profitable.
Table 2: Major Agricultural & Horticultural Products of HP and Economic Impact
Product Category | Key Products | Production Trends/Figures (Approx.) | Economic Contribution/Significance |
Fruits | Apples, Pears, Peaches, Plums, Cherries, Apricots | Apple production is central; Fruit production overall shows upward trend with fluctuations (e.g., 555,710 tonnes in 2012-13). | Horticulture contributes over 20% to state GDP ; Apples alone generate significant income (over ₹3 billion annually). High employment potential. |
Vegetables | Potatoes, Tomatoes, Onions, Peas, Ginger | Vegetable production around 1,820.477 thousand tonnes (2025). | Important for local consumption and commercial sale; supports livelihoods of many small farmers. |
Spices | Ginger, Turmeric, Saffron (emerging) | MSP for naturally grown turmeric ; Saffron cultivation being promoted via aeroponics. | Diversification avenue; Saffron fetches high prices (₹5 lakh/kg retail for aeroponic saffron). |
Flowers & Other Crops | Marigold, Lilium, Olives, Figs, Mushrooms, Hops | Floriculture centers in Solan ; Efforts to promote cultivation of diverse crops. | Provides alternative income sources; potential for export and value addition. |