Deputy Chief Minister Mukesh Agnihotri emphasized the urgent need for special financial provisions for hilly states like Himachal Pradesh, stating that the unique geographical and economic challenges of the region make it difficult to achieve self-reliance under the same parameters as larger states. Speaking at the inauguration of the three-day ‘Samriddh Himachal 2045’ brainstorming exercise at Dr. Manmohan Singh Himachal Pradesh Institute of Public Administration (HIPA) in Shimla, he highlighted the necessity of a long-term economic development strategy tailored specifically for the state’s topography and limited resources.
Reflecting on the historical journey of Himachal Pradesh, Agnihotri acknowledged the visionary leadership of former Prime Minister Indira Gandhi, who understood the challenges faced by the region and prioritized the aspirations of its people by granting full statehood. Despite its small size and tough terrain, the state has consistently worked towards development, yet financial constraints remain a major hurdle. The symposium aimed at formulating a 20-year roadmap for sustainable economic growth, with experts deliberating on innovative solutions to ensure prosperity while maintaining ecological balance.
Agnihotri pointed out that unlike major industrialized states such as Delhi, Rajasthan, Madhya Pradesh, and Maharashtra, Himachal Pradesh has limited revenue sources. While larger states benefit from extensive industrial networks and multiple streams of income, Himachal primarily relies on tourism, agriculture, and hydroelectric power. He stressed that when the central government mandates the implementation of national policies at the state level, it should consider the specific needs and constraints of smaller hilly states. Uniform policy application without flexibility can hinder development, making it imperative for the Centre to provide dedicated financial assistance to states like Himachal for executing centrally sponsored projects effectively.
Addressing critical issues such as housing for the underprivileged, water and power projects, railway expansion, and infrastructure development, he asserted that such decisions should be determined by the state government rather than being dictated by central authorities. He urged policymakers to recognize that Himachal’s environmental stewardship benefits the entire country and should be adequately compensated.
Himachal Pradesh is blessed with rich natural resources, including glaciers, perennial rivers, and vast forest cover, all of which play a crucial role in supporting ecological stability and water security at a national level. However, in the global fight against climate change, the state has taken responsible measures to curb deforestation and preserve its green cover. While these efforts contribute significantly to maintaining environmental balance and mitigating global warming, the economic sacrifices made by Himachal Pradesh remain unaddressed. He warned that if glaciers continue to recede at the current rate, major rivers across India will face depletion, triggering a severe water crisis. Despite its pivotal role in forest conservation, the state receives no financial reimbursement for the economic setbacks it endures in preserving the environment.
The Deputy CM called for a reevaluation of the financial policies concerning ecologically rich but economically constrained states. He appealed to those who consider Himachal Pradesh their second home to reflect on these issues and support the demand for equitable financial support. Ensuring that the state’s natural wealth is harnessed responsibly while compensating for environmental conservation costs is essential for both regional and national sustainability. By recognizing these challenges and implementing special financial provisions, the central government can empower Himachal Pradesh to achieve long-term economic stability without compromising its environmental commitments.
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