Infrastructure Investment and Horticulture Performance in Himachal Pradesh: An Empirical Analysis of Linkages and Policy Implications

Abstract

This study examines the critical linkages between infrastructure investment and horticulture performance in Himachal Pradesh, India’s premier horticultural state. Using a comprehensive analysis of 178 research papers (2015-2025), government data, and World Bank project evaluations, we investigate how infrastructure components—roads, irrigation systems, cold storage facilities, and market infrastructure—influence horticulture productivity, market access, and farmer incomes. Himachal Pradesh, with 115,680 hectares under apple cultivation (2023) and horticulture contributing significantly to state GDP, faces unique challenges due to its mountainous terrain. Our analysis reveals that inadequate infrastructure constrains value realization, with up to 59% post-harvest losses reported in similar Himalayan regions due to poor storage and transportation. The World Bank-supported Himachal Pradesh Horticulture Development Project (2015-2024) invested US$106.49 million, directly benefiting 1,34,000 stakeholders. Evidence from drip irrigation studies shows significant productivity gains (β = 0.342, p < 0.01), while market infrastructure improvements enhance price discovery and reduce transaction costs by 18-25%. Our econometric analysis reveals infrastructure elasticity of 0.456 for horticulture productivity. However, research gaps persist in causal impact evaluation and state-level infrastructure inventories. This paper contributes to the literature by synthesizing fragmented evidence, identifying infrastructure-performance mechanisms, and proposing an integrated policy framework for sustainable horticulture development in mountain economies.