Uttarakhand has recently been identified as having immense potential for investment in its very many active sectors.
The quality education infrastructure coupled with the presence of premier institutes like Indian Institute of Technology in the district of Roorkee provides a large literate and skilled workforce.
The ample natural resources available, such as the huge potential for Hydropower generation as a result of vast water resources provide the perfect basis for any interested business. There are many Established industrial estates like Pantnagar, Dehradun, Haridwar, Selaqui and Sitarganj with all the necessary infrastructure facilities.
The Presence of key industrial players like Tata Motors, Mahindra & Mahindra, Ashok Leyland, Hero Honda, Hindustan Lever, and HCL Info Systems is evidence of a strong, stable economy with a reliable and skilled workforce.
Tourism is an important sector for the state's GDP; the state is well known as a destination for pilgrims however the state, in 2005, registered a growth of about 18% in domestic and 24% in international tourist arrivals over the previous year.
The state government has announced a few tourism related incentives to try and boost the industry. Any new tourism units will have their luxury tax rebated or deferred for a period of 5 years. Along with this new ropeways and new amusement parks will be exempt from entertainment tax for a period of 5 years to try and encourage investors.
There are many investment opportunities in the tourism sector with a range of different aspects of the industry covered. Areas with most investment opportunities are;
- Development of facilities for providing spiritual lessons, Rieki, and other rejuvenating courses
- Eco-tourism hotels, spa, resorts, Amusement parks and Ropeways
- Winter sports at places such as Auly, which have the requisite terrain for the purpose
- Adventure tourism
Agro and Food processing
Being 64% under forest cover the state of Uttarakhand has a high bio-diversity which makes the state an attractive destination for Agro and food processing Industries. There are immense opportunities for establishing agro and food parks and the MFPI has set higher incentives for setting up units in Uttarakhand.
Floriculture and Horticulture
Recent rise in demand in the domestic and international markets has led the Indian government to make floriculture and horticulture a top priority. The state geographical location makes the state particularly conducive to commercial horticulture and floriculture this has resulted in immense opportunities for floriculture and horticulture parks in the state.
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The Indian government has announced plans to make Uttarakhand a centre of excellence in biotechnology, to encourage investment and development the government proposes to grant industry status to units coming up in the sector; provisions made for the IT sector will also be applicable to this sector. A range of rare species of plants and animals found in the state add to its natural advantage in the sector.
IT and Communication
The IT and communication sector is another sector with vast investment opportunities, having recently been accorded industry status. Uttarakhand is emerging as an ideal IT-destination with an IT park in Dehradun which offers high-speed connectivity to the majority of the state. Verification has been given for the construction of an IT-BT park in Pantnagar and several other up-coming projects.
The state has a large untapped potential for generating hydropower. With a potential to generate nearly 15000 MW of hydropower the state aims to position itself as the most competitive supplier to the Northern Grid. Over 47 locations have already been indentified for private sector.
Having a forest cover of over 64% the state purports excellent potential for the development of forest resources- based industries. There is ample scope to develop industries based on forest and agro wastes such as lantana, pine needles and plant and vegetative fibres. There are numerous opportunities for medicinal, aromatic plant and herbal export oriented units.
Along with the already established and improving sectors there are many new emerging sectors which provide ample opportunities to those businesses with more niche products or investment plans. New emerging and attractive sectors include;
- Sericulture, Muga cocoon produced in the state is comparable to the best quality available in India and so the sector has the prospect of emerging as a major sector in the years to come.
- Fisheries, Uttarakhand has large water resources and so the possibility of developing fisheries is immense. The state government declared the fisheries policy in 2002 to try and integrate development of fisheries and use of scientific techniques.
- Tea, Uttarakhand is the only state outside of the traditional tea growing area to produce organic orthodox tea. It is also proposed to bring in additional acreage under tea plantation over the next few years.
- Bamboo and Fibre Development, a bamboo and fibre development board has been instilled by the state government to further develop this sector.
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The presence of many high profile businesses in Uttarakhand vouches for its stable and improving economy. Investors present in the state include;
ITC is one of India's foremost private sector companies with market capitalisation of nearly US$15 billion and a turnover of over US$4.75 billion. Its presence in Uttarakhand is known through an established manufacturing facility for producing soaps and shampoos.
Hiltron is an independent corporation that at first worked to promote development of electronics and allied industries and services in Uttarakhand. The corporation currently functions as an IT and Communication service provider to the state under administrative control of department of IT.
Tata motors have recently set up its fourth manufacturing plant in the state. The presence of a leading automotive firm in the state shows the investment potential in Uttarakhand.
Hero Honda, one of the leading brands in India for two wheelers, has established a new manufacturing plant in Haridwar and the plant is intended to have a capacity of 500'000 units.
Ashok Leyland have started work on a state-of-the-art, integrated manufacturing plant near Pantnagar, with an investment of US$232.56 million to create assembly and cab facilities for 25000 vehicles annually in the first phase, which went into action in 2008-09, the second phase is expected to be operational by 2010.
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Mahindra & Mahindra
Mahindra & Mahindra Limited (M&M) has opened its fifth full-scale automotive plant. The plant is located in Uttarakhand and has been set up primarily for the manufacture of three-wheelers of different load capacities and range.
HLL is India's largest fast moving consumer goods company and has set up a state-of-the-art personal care factory in Haridwar, the initial investment was of US$30.23 million.
HCL infosystems is one of the largest vertically integrated IT manufacturing companies of India; it recently launched its manufacturing facility at Rudrapur, Uttarakhand in the SIDCUL Industrial Estate. The overall capacity of the facility is to produce 2 million personal computers per annum.
Nestle India Ltd
Nestle is the worlds largest and most diversified food company. Nestle India has commissioned its 7th factory at Pantnagar. The presence of such an illustrious and powerhouse organisation is again tribute to the available workforce and resources in the state.
Britannia is an Indian food company with an estimated 38% market share, the principle activity of the company is the manufacture and sale of biscuits, bread, cakes and dairy products like cheese, butter and milk. Britannia has recently established a plant in the integrated industrial estate at Pantnagar.
Foreign direct investment
Foreign direct investments (FDI) amounted to US$46.7 million from April 2000 to October 2009. Outstanding investment stood at US$14.1 billion.
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More Information on Uttarakhand
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