The era of economic planning in Himachal Pradesh started in 1948. The first five year plan allocated about Rs.5.27 crore to Himachal. More than 50% of this expenditure was spent on transport facilities as it was felt that without proper economy, the process of planning and development couldn't be carried.
Mandi and Kangra, package programmes were undertaken in collaboration with West Germany for popularising modern techniques of cultivation among the farmers. Suitable agricultural machinery and animal husbandry were introduced in these areas. Well equipped soil testing laboratories, dairy farms and agricultural workshops were set up at various centres, besides an Agriculture University at Palampur. Himachal is one of those states in India which saw advancement that brought a great transformation. At present Himachal ranks fourth in respect of per capita income among all the states of the India.
The community development programme which was launched in 1952 in Himachal, in certain selected areas was later extended to the entire rural Himachal. In Himachal education system is well established, its agriculture is enough for its self-sufficiency, its horticulture is highly impressive in the country and even in abroad, its road connectivity system has emerged as the best in the mountainous areas in India, the infrastructure for its industrial development are well laid out, its rich forest resources being augmented and above all, the increasing attention of the nation towards the exploitation of its hydel resources are the signs for its bright future. It has already started attracting in respect of development in the hill areas of the country.