In 2010, Uttarakhand entered the seconddecade of its existence as a separate State. During thefirst decade, average individual incomes rose by eight ranksin relation to the other States in India. Although theseincomes are still below the median for India, they aregrowing significantly faster, which is leading to rapidconvergence with the richer States. Looking ahead, the Statecan build upon its existing growth momentum, the economicdiversification that has resulted from its industrialpromotion policies, its favorable location in the dynamicNorth Indian economy, and good natural resources and skillsbases to raise standards of living. This report intends toprovide inputs for development thinking that is underwayduring the Twelfth Five-Year Plan period. It covers thesubjects of growth, inclusion, sustainability, publicfinance and administration, responding to the Government srequest for a discussion of these areas. It attempts tostrike a balance between broad-brushed strategies andspecific and practical recommendations, bringing to bearexperience from other States and countries when needed. Theoverall message to policymakers is: Over the next decade,Uttarakhand should aim to become the preferred State inNorth India for (a) investing in the production of highvalue goods and in services; (b) livability; (c) greening;and (d) good government. The global community, includingIndia s multilateral and bilateral development partners canbe rich sources of knowledge about design, funds, andimplementation support for the State Government sdevelopment program. Early actions to engage a wide varietyof development partners is likely to help Uttarakhandeffectively and efficiently traverse a challenging andunique development path.