The Himachal Pradesh Human Development Report of 2002 is the first Human Development Report for the state. The Report focuses on poverty reduction, governance, sustainable livelihoods, and issues of HIV/AIDS. The Report outlines factors contributing to previous successes, particularly in the areas of health, education, and infrastructure, as well as persistent development challenges. Issues of health, education, income, and natural resources are specified in different chapters. Challenges of inequality pertaining to gender cut across all issues and are also dealt with in specific detail. Himachal Pradesh has made considerable progress since its recognition as a state in 1971, but the state recognizes that major development concerns persist. Poverty, environment, and gender remain among the primary development concerns for Himachal Pradesh. This Report serves to emphasize the future direction of development in the context of the state’s successes.