Since its statehood in 1975, the status of the state in the Indian Constitution is quite different from the rest of the country. This paper discusses growth performance and structural changes in the Himalayan state during last three decades in the context of its distinct historical background. It examines sectoral share of gross state domestic product for the period 1980–81 to 2010–11, income inequality, povertyand unemployment position of the state and attempts to identify areas of main concerns for the state in its development strategy.