Economy of Uttarakhand
Uttarakhand's gross state domestic product for 2004 is estimated at $6 billion in current prices. Born out of partition of Uttar Pradesh, the new state of Uttarakhand produces about 8% of the output of the old Uttar Pradesh state. Consolidated Finvest and Holdings, a S&P CNX 500 conglomerate has its corporate office in Uttarakhand. It reported a gross income of Rs.137 million for 2005.[citation needed]
In 2003, a new industrial policy for the state with generous tax benefits for investors was initiated that has led to a massive upsurge of capital investment. SIDCUL, the State Industrial Development Corporation of Uttarakhand has established seven industrial estates in the southern periphery of the state, while dozens of hydroelectric dams are being built in the upper reaches. However, hill development remains an uphill challenge as out migration of local peoples continues from the highland hinterlands.