Solan Tops Himachal in Per Capita Income, Kangra Trails Behind: UNDP Credits Horticulture, Industry, and Tourism for Himachal’s Rising Prosperity

Shimla: As per the United Nations Development Programme (UNDP) Human Development Report, Himachal Pradesh has maintained a strong economic performance and achieved a per capita income higher than the national average. The hill state, long recognised for its steady economic growth, continues to perform well in comparison to larger states with more resources.

According to the report, Himachal’s per capita income in 2024–25 was recorded at ₹2,57,512, marking a 9.6 percent increase from the previous financial year. The national per capita income during the same period stood at ₹2,34,859. The report attributes this rise to the state’s growing horticulture, construction, and service sectors, particularly tourism, which continue to contribute significantly to its economy.

District-wise data presented in the Human Development Index Report 2025 shows that Solan district tops the list with a per capita income of around ₹8 lakh per person in the 2022–23 fiscal year. Solan’s strong industrial presence, along with its leading production of tomatoes and mushrooms, has been a major factor behind its high income levels.

Lahaul-Spiti and Kinnaur also rank among the top districts, largely due to their low population density and flourishing horticulture-based economy. Sirmaur district follows with a per capita income slightly above ₹2.5 lakh, while Shimla stands fifth at around ₹2 lakh per person.

In contrast, districts such as Kullu, Una, Bilaspur, Chamba, Mandi, Hamirpur and Kangra have per capita incomes below ₹2 lakh. Kangra, the state’s most populous district, ranks lowest with a per capita income just above ₹1 lakh. Experts say high population and limited industrial activity are the key reasons behind the lower income figures in these districts.

The UNDP report emphasises that per capita income depends on several factors, including industrial development, population density, tourist inflow, and access to natural resources. The findings underline the need for balanced regional growth and targeted economic interventions to reduce disparities among districts.

While the overall figures paint a positive picture for Himachal’s economy, the report also calls for sustained efforts in developing infrastructure and employment opportunities in the lower-income districts to ensure inclusive growth across the state.