Industrial Development of Haryana
Industrialization plays a crucial role in the economic development of an economy. It accelerates economic growth of a State and thereby increases the contribution of Industry Sector in the State Domestic Product by way of increase in the production and employment.
Haryana is among the northern most states in India and adjacent to national capital Delhi. Historically an agrarian state, Haryana today is a well-developed industrial state.
The state is one of India’s largest automobile hubs and accounts for two thirds of passenger cars, 50 per cent of tractors and 60 per cent of motorcycles manufactured in the country. The state has also emerged as a base for the knowledge industry, including IT and biotechnology.
Although Haryana has an area covering just 1.3 per cent of the country, Haryana contributes nearly 3.63 per cent to India’s GSDP. During 2004-16, the state’s GSDP grew at a compound annual growth rate (CAGR) of 12.12 per cent. At current prices, the total GSDP of Haryana was about US$ 75.3 billion in 2015-16.
The state has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 62.15 billion during the period April 2000 to March 2016, according to data released by Department of Industrial Policy and Promotion (DIPP).
The state government of Haryana has been committed to creating a progressive business environment. The state offers a wide range of fiscal and policy incentives for businesses under the Industrial and Investment Policy, 2011. Haryana stands 14th among Indian states in rankings based on ease of doing business and reforms implementation, according to a study by the World Bank and KPMG.
Progress report in industries sector
The General Index for Industrial Production( IIP) with 2004-05 as base year increased from 184.0 in 2013-14 to 194.8 in 2014-15 registring an increase of 5.9 percent. The Manufacturing Sector increase from 177.8 in 2013-14 to 187.6 in 2014-15 exhibiting a growth of 5.5 percent over the previous year. The IIP of Electricity Sector indicated a growth of 9.0 percent as it rose from 252.7 in 2013-14 to 275.4 in 2014-15.
The IIP of Basic Goods Industries like scrape, iron/steel, cold rolled sheets, pipes & tubes, stainless steel, high carbon steel stainless steel, strip, plets, sheet etc. increased from 214.5 in 2013-14 to 226.4 in 2014-15 recording an increase of 5.5 percent.
The IIP of Capital Goods Industries like sugar machinery, CKD/STD telephony components, air compressor, microscope and cable all types etc. increased from 204.8 in 2013-14 to 239.1 in 2014-15 showing a increased of 16.7 percent.
Major Initiatives
Enterprises Promotion Policy
In order to increase the growth of the economy, the State has come out with a path breaking “Enterprises Promotion Policy-2015” (EPP).
This Policy envisions GSDP growing at a rate higher than 8%, an investment of 1 lakh crore, employment generation for 4 lakh persons and also to position Haryana as a pre-eminent investment destination.
The Foundation Pillars of the Enterprises Promotion Policy are
Ease of Doing business
Enhancing competitiveness of the industry by reducing cost of doing business
Balanced Regional Growth through geographical dispersal of industries
Focus and support to the MSME Sector
Implementation mechanism to ensure monitoring and implementation of policy along with the promotion, outreach, grievance redressal and
Constant engagement with the industry.
Make in India
The objectives of campaign ‘Make in India’ started by Government of India is to be included in the programme ‘Make in Haryana’ of the State Government. The Industries Department has taken major initiative for improving “Ease of Doing Business” through simplification of procedures like minimizing of waiting period, improvement of business environment and introduction of information technology to make governance more efficient and effective and to strengthen Haryana image as an investor friendly state.
For providing various industrial related clearances under one roof to the entrepreneurs a Single Window Mechanism is being made. For projects with investment more than 10 crore and involving CLU cases of more than one acre land will be cleared by the Empowered Executive Committee under PSCM. Projects with investment upto 10 crore and CLU cases up-to one acre in conforming zones will be cleared by District Level Clearance.
The department of Industries & Commerce, Haryana launched Web site of the Department www.haryanaindustries.gov.in
MSMEs Sector : To promote and make them competitive in the global market state government came with a promotion scheme. Recognizing that the MSMEs constitute the backbone of the Manufacturing Sector with huge employment potential, the Government adopted the strategy for establishment of Common Facility Centre’s (CFCs) in Public-Private Partnership mode under the Cluster Development Scheme in order to support the MSME Sector and generate employment opportunities.
To give boost to MSME Sector manufacturing & skill development, two projects of Tool Rooms/ Technology Centre’s are being set-up at IMT Rohtak (19.8 acre) and at Industrial Growth Centre Saha (10 acre).
Haryana Khadi and Village Industries Board (HKVIB)
Prime Minister’s Employment Generation Programme (PMEGP) for generation of employment opportunities through establishment of Micro Enterprises in rural as well as urban areas has been implemented by Govrnment of India. Board carrying the KVICs Prime Minister’s Employment Generation Programme (PMEGP) through Banks with one time Margin Money Assistance (Subsidy) for developing viable projects. The PMEGP programme is not only a poverty alleviation programme but a compendium of different schemes under KVI Sector.
Recent Developments
Indian Prime Minister Mr Narendra Modi and French President Mr François Hollande have announced the National Institute of Solar Energy (NISE) in Gurgaon, Haryana as the headquarter for the International Solar Alliance (ISA), which is a partnership of solar-resource rich countries, with 121 countries across Africa, Southeast Asia and Europe having agreed to become members of ISA.
Walmart India Private Limited plans to open its chain of stores in Haryana, while Micromax also has plans to set up a mobile handset manufacturing unit in the National Capital Region.
HSIIDC has developed a number of Industrial estates, Industrial model townships (IMT) and Specialised parks for cluster development. An Industrial model township is under-construction at Manesar, near Gurgaon. The region is being developed as an automotive and engineering hub.
The government is developing sector specific theme parks and sub-cities along the KMP Expressway. The state government acquired 1,000 acres of land for a dedicated pharma park in the KMP express global economic corridor.
Single-window clearance mechanism was established under the Haryana Industrial Promotion Act, 2005. It has a three-tier structure to grant exemption/relaxation from any of the provisions/rules of the Act.
The state invested in the development of world class infrastructure facilities such as special economic zones (SEZs), Kundli-Manesar-Palwal (KMP) global corridor and Delhi-Mumbai Industrial Corridor (DMIC).
The International Centre for Automotive Technology (ICAT) has been set up at Manesar as a part of the National Automotive Testing and R&D Infrastructure Project (NATRiP). It provides testing and R&D services to the industry.
As of July 2016, the state had seven operational SEZs, 23 formally approved SEZs, three SEZs with principal approval and 20 notified SEZs.
The state government has proposed a sliding railway and logistics centre in IMT Manesar for smoother transportation and more effective inventory management.
Haryana is the first state to have implemented its State Wide Area Network (SWAN) for voice, data and video transmission.
Minerals and Mines
Mines and Geology Department is responsible for systematic exploration and exploitation of the mineral resources available in the State. Haryana State is not known to have significant deposits of any major minerals and its mining operations are largely confined to the mining of minor minerals such as Stone, Boulder, Gravel, Sand, etc. which are largely used for the construction industry.
Mineral Exploration
The exercise for exploration of the minerals is carried out through three different agencies i.e. the Department itself, by the Geological Survey of India in the identified sites in accordance with the State & Central Geological Plan, and/or by way of grant of Prospecting Licenses (PLs) to private agencies.
Minor Minerals
Mining operations in the state are largely confined to the mining of minor minerals such as Stone, Boulder, Gravel, Sand, Slate Stone etc., which are used for the construction industry. After protracted litigation the state could got these matters settled in October, 2013 and has successfully auctioned its minor mineral mines during the month of December, 2013. The auctions fetched an annual bid amount of 2,133.92 crore for total of 42 mining Units in the State, which is unprecedented.
Key Sectors
Key sectors play an important and they have potential to further increase the growth and development of the state.
Haryana is a preferred destination for auto majors and auto-component manufacturers. The state is host to many large automotive players.
Gurgaon has emerged as a preferred destination for the IT industry in North India, with more than 400 IT and ITeS companies.
Haryana aggressively promotes organic farming; financial assistance is provided to farmers for production and use of vermicompost. The state government approved US$ 9.48 million for minor irrigation systems till January 2016.
Abundant availability of raw materials gives Haryana a competitive advantage in the textile sector. The total cotton production in Haryana during FY 2015-16 was around 2.6 million bales.
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