Himachal Nurturing Ground For MSMEs, Start-Ups

Having already carved out a niche in the large industrial sector, the pharmaceutical sector in particular, Himachal Pradesh is emerging as a nurturing ground for Micro, Small, and Medium Enterprises (MSMEs) and start-ups. It is capitalising on the state’s rich natural resource pool, skilled manpower, rural craftspersons, and traditional artisans.

In the three-day upcoming HIM MSME Fest 26, being held in Shimla, a first-of-its-kind mega event, the state’s industries department is expected to identify potential areas of new entrepreneurships and bring some of the stakeholders face-to-face for a meaningful dialogue, providing them with global market linkages.

State’s Industries Minister Harshvardhan Chauhan said here that the MSMEs are not new to the hill state, yet some of the young start-up founders have used their innovations to position their ventures as pioneering hubs. They have not only earned a name but also provided direct and indirect jobs to several people close to their homes. 

Himachal Pradesh’s rich traditions, vibrant culture, and distinctive way of life have, in fact, nurtured entrepreneurship across a wide range of sectors—food processing, pharmaceuticals, handlooms and handicrafts, tourism, herbal and wellness industries, as well as renewable energy.

Chauhan said the real strength of the MSME ecosystem in Himachal Pradesh has been the value addition to local produce. Apples—a popular fruit in Himachal Pradesh—are best known for having brought riches to the people, not only as a fruit but also its by-products like juice and jams.

In the early days, HPMC—the state government-owned PSU, or the state’s horticulture department—had marketed products juices, jams, and apple cider, but now private entrepreneurs are into value addition and marketing of a wide range of fruit-based products across the country, even abroad. Fruit wines are fast catching up in the market outside the state.

Herbal products, honey, mushrooms, dairy products, essential oils, and millet-based foods have created sustainable livelihoods while reducing post-harvest losses. Dr Y.S. Parmar Horticulture University, Nauni (Solan), and Agriculture University, Palampur, have played a significant role in technology transfers in this sector for new enterprises, including those promoted by women entrepreneurs. 

The state has already become the biggest manufacturing hub for a wide range of pharmaceutical products, but the MSMEs need hand-holding and interventions for their sustainability. The MSME clusters are prominent in Solan, Kangra, Shimla, Mandi, and Kullu, with Solan noted as a key hub. The metal art of Mandi and Chamba rumal, Chamba choppal, and the woollen shawls of Kullu and Kinnaur have become quite popular. 

“This is what the upcoming event proposes to do to facilitate the growth, marketing linkages, and standardisation of the products to stand out in the global markets. We will have special sessions focused on knowledge exchange, innovations, and the ease of doing business for start-ups and small business enterprises,” the industries minister told Outlook here.

The government is already working on simplification of regulatory procedures, incentives, credit facilitation, skill development programs, and infrastructure support for first-generation entrepreneurs. Special emphasis on women, youth, and rural enterprises, through self-help groups and cluster-based development, is another area to work on.

The government will also encourage discussion on digital platforms and e-commerce to enable MSMEs in remote and hill areas to access wider markets, overcoming their geographical constraints.

“At the same time, we will also emphasise green growth, natural farming and sustainable tourism, and enterprise development with environmental conservation,” he informed.

During the Fest, a networking meet has been planned exclusively for women entrepreneurs to discuss their challenges and share success stories from businesswomen in the rural industry. 

“We can safely say that the MSME sector is poised to become an economic engine of the state, fostering rural development, creating job avenues, and reducing unemployment,” Chauhan feels.