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Uttarakhand transforms from backwater to 80,000 new businesses in 25 years

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DEHRADUN: As Uttarakhand gears up to celebrate its 25th Statehood Day on November 9, the narrative unfolding is one of extraordinary economic resurgence. In just a quarter century, the state has evolved from an industrially underdeveloped region into a thriving hub, home to nearly 80,000 new Micro, Small, and Medium Enterprises (MSMEs).

This remarkable industrial expansion has reshaped the state’s economic profile, driving growth and employment on an unprecedented scale. According to the State Directorate of Industries, these 80,000 MSMEs have attracted investments worth Rs 17,000 crore and created more than four lakh jobs—an impressive leap from the modest base the state inherited at its inception.

Before Uttarakhand was carved out in 2000, industrial activity was minimal. The region hosted just 14,163 MSMEs with a total capital investment of Rs 700 crore, providing employment to only about 38,500 people. Today, the manufacturing sector alone contributes nearly one-third of the state’s Gross Domestic Product (GDP), placing Uttarakhand on par with several more industrially mature states.

The foundation for this transformation was laid early in the state’s history. Much of the credit is attributed to the late former Chief Minister Narayan Dutt Tiwari, who fostered an investment-friendly environment and introduced policies that positioned Uttarakhand as a competitive destination for industry. The establishment of the State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIDCUL) in 2002 gave this vision institutional form, developing major industrial estates that now anchor the state’s manufacturing base.

SIDCUL currently manages seven active industrial zones, serving as key engines of growth. The momentum has continued under Chief Minister Pushkar Singh Dhami’s leadership, with the state government introducing 30 new policy frameworks aimed at simplifying investment procedures, supporting start-ups, and enhancing ease of doing business.

Vinay Shankar Pandey, Secretary of Industries, underscored the balance between growth and sustainability. “Industrial development has not only strengthened the state’s economy but also created large-scale employment opportunities,” he said. “The government is promoting industrial growth by balancing economic progress with ecological preservation.”

Pandey added that the government’s focus is on attracting industries suited to Uttarakhand’s unique geography. “We are prioritizing sectors that fit the state’s terrain and generate maximum local employment. Our objective is to make Uttarakhand a preferred destination for investors from across India and the world," he said.

Reflecting on the 25-year journey, Sudhir Chandra Nautiyal, Director of Industries, highlighted the transformation in perception. “Before statehood, Uttarakhand was not on the investment map. Today, it has become a major industrial hub,” he remarked suggesting the next phase will focus on integrating IT and modern technology-based industries into this robust manufacturing base.

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