Himachal Pradesh is regarded as one of the most dynamic hill states of India which is high on human development indices. The major focus industries in the State are agro based and agro processing industries, horticulture, cement and tourism. Besides these the State has also attracted investment in the pharmaceuticals, IT and engineering industries. The state has strong hydro-power base because of its rich water resources and topography and accounts for 25 percent of the Country’s hydro power potential. The State was successful in attracting foreign investment close to Rs. 47,000 million during the period from April 2000 to April 2011. The GSDP at constant prices (2004-05) of the state has also shown a CAGR of 8.42 percent in the period from 2004-05 to 2010-11. The topographical variations and altitudinal, differences coupled with rich pool of semi skilled and unskilled labour aids investment in the State. The report details the same.