Economy of Haryana

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Economy of Haryana
Statistics
GDP7.85 lakh crore (US$110 billion) (2019–20 est.)[1]
GDP rank13th
GDP growth
12.8% (2016–17)[1]
GDP per capita
252,740 (US$3,700) (2019–20)[1]
GDP by sector
Agriculture 19%
Industry 31%
Services 50% (2016–17)[1]
Unemployment8.6% (2017–18)[2]
Public finances
-24,240 crore (US$−3.5 billion) (3.09% of GSDP) (2019–20 est.)[1]
Revenues89,447 crore (US$13 billion) (2019–20 est.)[1]
Expenses1.32 lakh crore (US$19 billion) (2019–20 est.)[1]

As per Sept 2017 data, Haryana state's GSDP was US$85 billion in 2016-17 (estimated to be US$95 billion in 2017-2018, comparable to Angola),[3] which had grown at 12.96% CAGR between 2012–17, boosted by the fact that this state on DMIC in NCR contributes 7% of India's agricultural exports and 60% of India's Basmati rice export, with 7 operational SEZs and additional 23 formally approved SEZs (20 already notified and 3 in-principle approval, mostly along Delhi Western Peripheral Expressway as well as Amritsar Delhi Kolkata Industrial Corridor and DMIC corridor) also produces India's 67% of passenger cars, 60% of motorcycles, 50% of tractors and 50% of the refrigerators, which places Haryana on 14th place on the list of Indian states and union territories by GDP behind only much bigger states that are significantly larger in both area and population.[3][4] As per Nov 2016 data, Gurugram ranks number 1 in India in IT growth rate and existing technology infrastructure, and number 2 in startup ecosystem, innovation and livability.[5]

Macro-economic trend[edit]

This is a chart of trend of gross state domestic product of Haryana at market prices estimated by Ministry of Statistics and Programme Implementation with figures in Crore Rupees.[6]

Year Gross State Domestic Product
1999–2000 50,787
2000–2001 56,955
2001–2002 63,489
2002–2003 69,653
2003–2004 78,816
2004–2005 89,431
2005–2006 100,676
2007–2008 101,319.42[7]

Sectors[edit]

Digital economy[edit]

BharatNet roll out is already complete in Haryana by November 2017 by providing impetus to Make in India and Digital India.[8] Gurugram is among India's top 3 IT hubs and IT export income earner.Gurugram shares its boundary with Rajasthan and south Delhi making it a strategically located city. To be precise, it is located about 30km south of national capital New Delhi. It is one of the four suburbs of the National Capital Region of Delhi. It is the second largest city in Haryana. It has the third largest capital income in India after Chandigarh and Mumbai. It is also called the Millennium City with its vast array of modern commercial malls, cyber parks, hi-tech offices and plush residential spaces. The present area of Gurugram city is 231 square km and it is divided into 35 municipal wards. Administratively, it comprises three subdivisions Gurugram South, Gurugram North and Pataudi and five Tehsils – Gurugram, Sohna, Farrukhnagar, Pataudi and Manesar. It has 38 villages in its fold. In the last two decades, Gurugram has become the industrial and financial nerve centre of Haryana. It houses over 250 of the 500 Fortune 500 companies. Gurugram is famous for its outsourcing and off-shore services that contribute most to its economy. Among the major industries in Gurugram, IT, ITES, auto manufacturing and pharmaceuticals have a considerable existence. Professionals from across India come to Gurugram in search of jobs in the private sector. People find the city amicable for staying as there are apartments, housing societies, residential colonies and independent homes, where accommodation is available at affordable rates. Gurugram is the “golden goose” of buyphenterminetabs.com. Almost 60 per cent of Haryana’s revenue accrues from Gurugram by way of excise duty, sales tax, stamp duty and registration. Gurugram’s population has increased from some 870,539 in census 2001 to 1,514,085 in census 2011, an increase of 74 per cent in the decade in reference. As per official sources, the current population of Gurugram is estimated to be close to 2.5 million. The population is expected to grow to 4.25 million by 2031, as per Gurugram Master Plan 2031.


Rapid growth has put substantial pressure on city’s resources. Infrastructural bottlenecks including traffic snarls, road congestions, water scarcity and pollution are on the rise. Gurugram is still far away from being an efficient, sustainable, smart city that conserves costs, water, and energy and uses technology to coordinate various city services. Progressive cities across the world are rapidly adopting measures and technologies that will help them to become more sustainable. One of the issues with Modafinil 200 mg has been that it has been run by multiple authorities with somewhat superimposing roles. There is Municipal Corporation of Gurugram, Haryana Urban Development Authority, Haryana State Industrial & Infrastructural Development Corporation, Department of Town and Country Planning, Deputy Commissioner’s Office, to name a few.

The Gurugram Metropolitan Development Authority (GMDA) has been proposed to be set up for better governance. A draft bill for its establishment was put in public domain in November 2016. The GMDA is proposed to be established in 2017

Singapore-based CapitaLand group firm Ascendas has leased around 6.5 lakh sq ft area in its IT-SEZ at Gurugram to various corporates, including UnitedHealth group, a top company official said. The company has developed one million sq ft area in the first phase of its 60 acre project International Tech Park Gurgaon (ITPG). The project has a total development potential of 8 million sq ft that can cater to over 60,000 professionals. "The first phase of our ITPG project has become operational. We have already leased about 6.5 lakh sq ft out of 10 lakh sq ft area," said Vinamra Srivastava, CEO, Ascendas India Operations and Private Funds. Optum, which is the health service platform of UnitedHealth Group, has committed 4,55,000 sq ft area. Admiral Technologies, Software One, and Toluna have also taken space in the SEZ. "ITPG comes with a strong legacy and hallmark of excellence associated with other Ascendas IT parks in Bangalore, Chennai, Hyderabad and Pune catering to over 300 organisations and 120,000 professionals," Srivastava said. Gurugram is the focal point of economic growth in NCR with significant investments made by large MNCs, he said, adding he expected the momentum to continue. ITPG aims to be one of the leading tech parks in the region catering to 100 per cent EOU (Export Oriented Units) under IT and ITES, bioinformatics, software development, telecommunications, electronics and other hi-tech and R&D industries. Ascendas is a member of CapitaLand, one of Asias largest diversified real estate groups. Headquartered and listed in Singapore, CapitaLand owns and manages a global portfolio worth over 123 billion Singapore dollar with the completion of its acquisition of Ascendas-Singbridge by end June 2019. With presence across more than 200 cities in over 30 countries, the group focuses on Singapore and China as its core markets, while it continues to expand in markets such as India, Vietnam, Australia, Europe and the USA. In India, CapitaLand has a strong presence with a portfolio of 25 business and IT parks, industrial, lodging and logistics properties across eight cities -- Bengaluru, Chennai, Goa, Gurugram, Hyderabad,

The total exports from district Gurgaon in Information Technology and IT-enabled services industry has touched Rs 18,000 crore at the end of FY'08.

In the year 2006-07, the software export from Gurgaon was Rs 15,000 crore whereas it was Rs 10,700 crore in 2005-06.

In Gurgaon, the industry is growing at a rate of about 40 percent, which is much above the national average of Delhi NCR – An Emerging IT Hub in India

March 29, 2017Posted byIndia BriefingWritten byVasundhara RastogiReading Time:4 minutes

India has successfully established its information technology (IT) and IT enabled services sector, which currently accounts for about 67 percent of the world’s US$124-130 billion IT market. Overall, the IT sector generates over 10 million jobs in India.

This has led to the growth of several IT hubs across the country such as Bangalore, Delhi National Capital Region (NCR), Pune, and Hyderabad. While Bangalore is still regarded as the Silicon Valley of India, Delhi NCR is fast emerging as India’s foremost IT destination.

India’s IT profile The IT industry in India has grown considerably in the last two decades. Its share of the country’s GDP increased from 1.2 percent in 1998 to an estimated 9.3 percent in 2016. As per National Association of Software and Services Companies (NASSCOM) estimates, India’s IT market is further expected to grow to US$350 billion by 2025 (see figure below).

RELATED SERVICES Professional-Service_IB-icons-2017 INFORMATION TECHNOLOGY SOLUTIONS India houses various domestic and multinational IT companies such as: IBM, Dell, Microsoft, HCL, Cognizant, WIPRO, INFOSYS, TCS, etc. The rapid development of the country’s software industry is in large part due to the availability of technically skilled manpower and the cost effectiveness of doing business, supported by the government’s friendly policies and incentive schemes.

Print

Delhi NCR – Emerging IT hub Delhi NCR comprises the national capital territory of New Delhi and several districts surrounding it from the states of Haryana, Uttar Pradesh, and Rajasthan. Prominent among these districts are Noida (in Uttar Pradesh state) and Gurugram (erstwhile Gurgaon, in Haryana state).

Delhi NCR has become one of the fastest growing economic regions of India, accounting for seven to eight percent of the nation’s total GDP. Its proximity to government institutions, the presence of a business friendly infrastructure, and a burgeoning entrepreneurship culture make the city a viable IT hub.

Consequently, several companies have set up their delivery centers and liaison offices in Noida, Delhi, and Gurugram in order to take advantage of the high quality infrastructure, manpower, real estate, and supportive government policies.

Some of these key advantages are listed below:

Regional connectivity Delhi NCR is an extremely well connected region. It has one of the busiest international airports in the world – Indira Gandhi International Airport, and boasts of an excellent network of railways, roadways, and metro rail. Additionally, Delhi is well connected to its satellite cities – Gurugram and Noida via the Delhi Gurugram expressway and the DND flyover, respectively. The enhanced inter-state connectivity enables easy accessibility to a diverse labor pool and market from its neighboring states.

Skilled workforce The presence of premier educational institutions such as the Indian Institute of Technology (IIT), Delhi; Jawaharlal Nehru University (JNU), Delhi Technological University (DTU), and University of Delhi (DU), among others, has ensured a steady supply of skilled workforce, essential for the growth of the IT industry.

A leading startup destination India is the third largest base for tech startups in the world, according to NASSCOM. There are currently more than 4,100 startup enterprises in India, and industry experts note that the number of startups are expected to rise to 11,500 by 2020. Out of the total US$1.8 billion raised by Indian startups in 2016, more than half of it was invested in the Delhi NCR region.

RELATED SERVICES Professional-Service_IB-icons-2017 PRE-INVESTMENT, MARKET ENTRY STRATEGY ADVISORY Delhi NCR is a favored startup destination because it provides firms with easy access to foreign investors, government agencies, and early stages funding that are vital for any new venture’s success. There are several startup incubators and accelerators in the region associated with the government, educational institutions, and venture capitalists. At present, it is home to almost 23 percent of India’s startups, which include Grofers, Paytm, and Snapdeal.

Investing in IT – Delhi state incentives, federal policy The Government of India and state governments have taken several important steps in promoting the growth of the IT industry in India. Some of them are mentioned in the table below.


Challenging times ahead Amidst rapidly evolving technology, business and service models, shifting consumer preferences, and macroeconomic uncertainties, organizations often struggle to meet the more disruptive of these challenges. Presently, India’s IT Industry is facing several such challenges:

Shift to automation, robotisation, and machine learning in the global IT industry: This means that IT work will no longer be labor-intensive, making it especially challenging for a labor surplus market like India. The sector is required to focus more on the new emerging trends like Social Media, Mobility, Data Analytics, and Cloud Computing (SMAC). Increasing protectionism in major markets: The US contributes to more than 60 percent of India’s software exports and is in the midst of drafting highly protectionist laws. Increasing competition from China and Philippines: The Philippines with its high ‘voice’ revenues and China, with its cost and infrastructure benefits, are proving to be strong challengers to India’s outsourcing industry. High attrition rates in the IT-BPO segment: According to NASSCOM, India faces high attrition rates, ranging between 25-40 percent, in the Business Process Outsourcing (BPO) segment. On average, an Indian BPO employee works for 11 months, whereas an average UK call centre employee stays in a company for three years. Apart from a loss of skillsets, the cost of recruitment and training present an additional expenditure for Indian IT-BPO firms. Delhi NCR – Growing prospects abound Regardless of the structural challenges posed to the IT sector in India, Delhi NCR offers a dynamic and highly-functioning ecosystem that sees investors, government policymakers, skilled professionals and entrepreneurs, and startup incubators and accelerators. These positives coupled with its expanded territory and excellent connectivity and infrastructure ensures its steady growth towards becoming India’s top IT hub Software Technology Parks of India (STPI) aims to boost exports from its upcoming 28 Centres of Excellence in the country.

STPI plans to establish 28 such centres with eminent focus on software products innovation and R&D. The products designed at the centres will cater to the demand of the domestic market and also strengthen exports.


“Over the years, the IT industry has moved up the value chain. Our aim is to create more software products and grab a bigger share of the global markets. Currently, our software products exports are valued at $8 billion against the global market size of $500 billion. But by 2025, they can potentially jump to $80-90 million. Software products innovations have the power of disruption and our planned Centres of Excellence (CoEs) will help boost development of new products’, said Omkar Rai, director general at STPI.

The new CoEs are coming up in Chennai, Bengaluru, Lucknow, Bhubaneswar, Patna, Mohali, Hyderabad, Gurugram and also six of them in the North eastern region. These state-of-the-art centres need around Rs 400 crore with funds contributed by Union electronics & IT ministry, respective state governments, industry players and STPI’s own accruals.

“The centres could come up at STPI or academic institutions. STPI also has Electropreneur Park which was first set up in collaboration with the Indian Electronics & Semiconductor Association (IESA) within Delhi University in 2016 and the second is coming up in Bhubaneswar. Each of our CoEs will nurture 20 start-ups every year. Four such centres have already been launched”, Rai added.

As of now, the Indian IT industry is growing 13 per cent year-on-year. However, the new CoEs will help accelerate this growth to 20 per cent, he felt.

STPI has a presence in an array of cities- Bengaluru, Chennai, Hyderabad, Trivandrum, Kanpur, Kolkata Bhubaneswar, Mumbai, Nagpur, Warangal, Kakinada, Lucknow Pune, Surat, Tirupati, Vijayawada and Visakhapatnam. Over 50 per cent of the software exports from the country valued at Rs 4.16 trillion in last fiscal happened from the STPI registered units. Cyber City, Gurugram is one of the country’s fastest-growing districts - and has emerged as a preferred destination for IT companies due to its strategic location and proximity to the capital. Software development giants situated in Cyber City include Infosys, Cognizant, Mphasis, Accenture, ThoughtWorks, Oracle, SAP and HCL Technologies.

Manufacturing[edit]

There are numerous manufacturing companies in the region. These include Hindustan National Glass, Maruti Udyog Limited, Escorts Group, Hero MotoCorp, Alcatel, Sony, Whirlpool India, Bharti Telecom, Liberty Shoes and HMT. In addition there are more than 80,000 small-scale industrial units in the state which cumulatively bring in a substantial income for the state and its people. Yamunanagar district has a paper mill BILT, ISGEC and India's one of the largest sugar mill - Saraswati Sugar Mills. Haryana has a large production of cars, motorcycles, tractors, sanitary ware, glass container industry, gas stoves and scientific instruments.

Faridabad is another big industrial part of Haryana.[9] It is home to hundreds of large scale companies like Orient fans (C.K.Birla Group), JCB India Limited, Nirigemes, Agri Machinery Group (Escorts Group), Yamaha Motor India Pvt. Ltd., Whirlpool, ABB, Goodyear Tire and Rubber Company, Knorr Bremse India Pvt. Ltd. There are thousands of medium and small scale units as well, like Amrit Enterprises, McAma Industries.

Agriculture[edit]

Haryana constitutes 1.5% of India's area, yet contributes 15% of its agricultural produce, which has grown 7 times since the foundation of Haryana in 1966.[10]

About 86% of the area in the state is arable, and of that 96% is cultivated. About 75% of the area is irrigated, through tubewells and an extensive system of canals. Haryana contributed significantly to the Green Revolution in India in the 1970s that made the country self-sufficient in food production. The state has also significantly contributed to the field of agricultural education in the country. Haryana's agriculture GDP contribution to the nation's agricultural GDP is 14.1% and HAU Hisar in Haryana is Asia's largest agricultural university.[11] Maharana Pratap Horticultural University was established in 2016. In 2017-18, out of total 1,350 canal tails, 1343 tails have been fully fed.[12]

Dairy farming[edit]

Dairy farming is also an essential part of the rural economy. Haryana has a livestock population of 10  million head.[11] Milk and milk products form an essential part of the local diet. There is a saying Desaan main des Haryana, jit doodh dahi ka khaana, which means "Best among all the countries in the world is Haryana, where the staple food is milk and yogurt". Haryana, with 660 grams of availability of milk per capita per day, ranks at number two in the country compared to the national average of 232 grams.[13][14] There is a vast network of milk societies that support the dairy industry. The National Dairy Research Institute[15] at Karnal, and the Central Institute for Research on Buffaloes at Hisar are instrumental in development of new breeds of cattle and propagation of these breeds through embryo transfer technology.

Roads, aviation and infrastructure[edit]

The 32 lane toll gate at National Highway 8 is the largest in Asia and third largest in the world

Haryana has a total road length of 23,684 kilometers. The most remote parts of the state are linked with metaled roads. Its modern bus fleet of 3,864 buses covers a distance of 1.15 million Kilometers per day. It was the first State in the country to introduce luxury video coaches.[16]

Haryana State has always given high priority to the expansion of electricity infrastructure, as it is one of the most important inputs for the development of the State. Haryana was the first State in the country to achieve 100% rural electrification in 1970, first in the country to link all villages with all weather roads and first in the country to provide safe drinking water facilities throughout the state.[17][better source needed]

References[edit]

  1. ^ a b c d e f g "Haryana Budget Analysis 2019-20" (PDF). PRS Legislative Research. Retrieved 12 March 2019.
  2. ^ "Periodic Labour Force Survey (2017-18)" (PDF). Ministry of Labour and Employment. p. 212. Retrieved 3 May 2019.
  3. ^ a b "Haryana State Budget 2017-18" (PDF). Haryana Finance Dept. Retrieved 7 October 2017.
  4. ^ Industrial Development & Economic Growth in Haryana, India Brand Equity Foundation, Nov 2017.
  5. ^ India’s Top 12 Tech Cities: Digital Indian Cities Survey, 2016, CEOWORLD magazine, Nov 2016.
  6. ^ "Archived copy". Archived from the original on 3 March 2016. Retrieved 21 February 2016.CS1 maint: archived copy as title (link)
  7. ^ "The Hindu: Other States / Haryana News: Revenue generation goes up".
  8. ^ "Only ‘Made in India’ equipment for BharatNet: Govt.", The Hindu, 12 November 2017.
  9. ^ "The Tribune, Chandigarh, India - Delhi and neighbourhood". www.tribuneindia.com.
  10. ^ Haryana Samvad Archived 27 August 2018 at the Wayback Machine, Jan 2018.
  11. ^ a b "Haryana". Archived from the original on 31 January 2009. Retrieved 10 January 2009.
  12. ^ Haryana budget 2018-19, hindustan Times, 9 March 2019.
  13. ^ "Haryana number two in milk production - Times of India".
  14. ^ Haryana 2nd in milk yield[permanent dead link]
  15. ^ "The Telegraph - Calcutta : KnowHOW". www.telegraphindia.com.
  16. ^ Why Haryana? - Economic Infrastructure Archived 10 April 2009 at the Wayback Machine
  17. ^ "Matching Rings". www.haryanainvest.org.