Uttarakhand is one of the newest states in the country which came into existence on 9 November 2000. One of the key reasons behind the creation of the state was the lack of development, employment and enterprise opportunities in the region.
The state with hilly terrain and about 2/3 rd of its area under forest cover has been granted the status of ‘Special Category’ state, by the Central Government, due to its geographic and strategic location. The state virtually had a zero industry base at the time of its creation. Hence to catalyze the process of industrialization, the Government of India announced a Concessional Industrial Package (CIP) in 2003, granting various fiscal incentives for industry setting up operations in the state.
On the back of rapid industrial development, the state has witnessed rapid overall economic growth, 13 % annual growth over 2004 -05 and 2009-10. This growth momentum however needs to be sustained.