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HARYANA April 2010 HARYANA April 2010 HARYANA April 2010 HARYANA April 2010 Investment climate of a state is determined by a mix of factors • Skilled and cost-effective labour • Procedures for entry and exit of firms • Labour market flexibility • Industrial regulation, labour regulation, other • Labour relations government regulations • Availability of raw materials and natural • Certainty about rules and regulations resources • Security, law and order situation Resources/Inputs Regulatory framework Investment climate of a state Incentives to industry Physical and social infrastructure • Condition of physical infrastructure such as • Tax incentives and exemptions power, water, roads, etc. • Investment subsidies and other incentives • Information infrastructure such as • Availability of finance at cost-effective terms telecom, IT, etc. • Incentives for foreign direct investment (FDI) • Social infrastructure such as educational and • Profitability of the industry medical facilities 2 HARYANA April 2010 Contents Advantage Haryana State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Haryana 3 ADVANTAGE HARYANA Haryana April 2010 Haryana – State profile • Covering an area of 44,212 sq km, Haryana surrounds the national capital city, New Delhi, from three sides. • Chandigarh is Haryana’s capital city. Punjab also has its administrative capital in Chandigarh. Haryana has 21 administrative districts. • The Yamuna river flows along Haryana’s eastern boundary. Other important seasonal rivers flowing through the state are the Ghaggar and Markanda. • Haryana has, predominantly, extreme and dry climatic conditions, with temperature reaching up to a high of 45- 50ºC in the summer months (April-June) and falling to about 1ºC in winter (December-January). • Gurgaon, Faridabad, Karnal, Ambala, Panipat and Kurukshetra are the key districts of the state. • The most commonly spoken languages are Hindi and Punjabi. In most schools, the medium of education is English. Source: Maps of India 4 ADVANTAGE HARYANA Haryana April 2010 Advantage Haryana … (1/2) Industrial state Haryana is an industrial state and in recent years, has emerged as a base for the knowledge-industry including IT and biotechnology. It is also a leading agricultural state of the country. Many large Indians and multi-national companies have set-up offices in the state because of its infrastructure and proximity to Delhi. Policy and fiscal incentives The state offers a wide range of fiscal and policy incentives for businesses under the Industrial Policy, 2005. Additionally, the state has sector-specific policies, particularly, on IT and tourism. Rich labour pool The state has a large base of skilled labour, making it an ideal destination for knowledge based and manufacturing sectors. Further, the state has a large pool of semi-skilled and unskilled labour for support services. Source: Maps of India 5 ADVANTAGE HARYANA Haryana April 2010 Advantage Haryana … (2/2) Facilitating infrastructure The state has well-developed social and industrial infrastructure and virtual connectivity. It is among the states with good physical infrastructure such as power, road and railways. Strategic location Around 40 per cent of the National Capital Region (NCR) of Delhi falls in Haryana. The NCR Board, under the Ministry of Urban Development, Government of India, decides on common development of cities falling in the region, thereby, facilitating seamless trade and commerce. Stable political environment The state has a stable political environment with a single party State Government. Successive State Governments have been committed to creating a progressive business environment. Source: Maps of India 6 ADVANTAGE HARYANA Haryana April 2010 Haryana in figures … (1/2) Parameter Haryana All-states Source Economy GSDP as a percentage of all states’ 3.6 100.0 CMIE, 2006-07, current prices GSDP Average GSDP growth rate (%) 15.1 7.5 CMIE, 1999-2000 to 2007-08 Per capita GSDP (US$) 1606.5 998.1 CMIE, 2007-08 Physical infrastructure Central Electricity Authority, Installed power capacity (MW) 3,099.4 98,996.4 as of March 2009 Cellular Operators Association of GSM cellular subscribers (No) 8,112,867 367,328,179 India, as of November 2009 Broadband subscribers (No) 88,558 4,981,976 As of October 2008 Ministry of Road Transport & National highway length (km) 1,512 70,548 Highways, 2007-08 Airports (No) 3* 133 Industry sources Social indicators Literacy rate (%) 67.9 64.8 Census of India, 2001 Central Bureau of Health Birth rate (per 1,000 population) 23.9 23.3 Intelligence, 2007 *Civil aerodromes 7 ADVANTAGE HARYANA Haryana April 2010 Haryana in figures … (2/2) Parameter Haryana All-states Source Ease of doing business Department of Industrial Policy and Promotion, FDI inflows (US$ billion) 19.3* 102.1 April 2000 to October 2009 Outstanding investments (US$ billion) 76.5 1,709.7 CMIE, as of December 2008 Industrial infrastructure PPP projects (No) 6 460 www.pppindiadatabase.com Functional as of August, 2009, SEZs (No) 3 98 www.sezindia.com PPP: public private partnership, SEZ: special economic zone, *FDI inflows for RBI’s New Delhi region, which includes Delhi, parts of Uttar Pradesh and Haryana Parameter Haryana Government Policy support Sectors with specific policies Industry (overall), IT and ITeS, Tourism Availability of labour Adequate skilled labour available 8 ADVANTAGE HARYANA Haryana April 2010 Key industries with policy thrust and factor advantages Industry attractiveness matrix High IT and ITeS Food Petrochemicals Processing Auto- Biotechnology components Medium Real estate Policy thrust and construction Textile Low Medium High Factor advantage *Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital 9 HARYANA April 2010 Contents Advantage Haryana State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Haryana 10 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010 Socio-economic snapshot of Haryana Parameters Haryana Capital Chandigarh Geographical area (sq km) 44,212 Administrative districts (no) 21 Population density (persons per sq km) 478 Total population (million)* 21.0 Male population (million) 11.3 Female population (million) 9.7 Decadal population growth rate (%)* 28.4 Sex ratio (females per 1,000 males)* 861 Literacy rate (%) 67.9 Male (%) 78.4 Female (%) 55.7 Average life expectancy (years) 67.7 *As per Census 2001 Source: Economic Survey of Haryana, 2008-09 11 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010 Haryana’s GSDP • At current prices, the total Gross State Domestic Haryana’s GSDP (US$ billion) Product (GSDP) of Haryana was about US$ 39.2 2008-09 39.2 billion in 2008-09. 2007-08 38.1 2006-07 31.0 • The state’s GDP grew at a CAGR of 15.2 per 2005-06 23.7 cent between 1999-2000 and 2008-09. 2004-05 20.8 2003-04 19.0 CAGR: 2002-03 15.9 15.2% 2001-02 13.6 2000-01 12.0 1999-2000 11.0 0.0 10.0 20.0 30.0 40.0 50.0 Source: CMIE 12 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010 Haryana’s NSDP • At current prices, the Net State Domestic Haryana’s NSDP (US$ billion) Product (NSDP) of Haryana was about US$ 2008-09 36.05 36.0 billion in 2008-09. 2007-08 34.94 2006-07 28.33 • Haryana’s NSDP grew at a CAGR of 15.1 2005-06 21.60 per cent between 1999-2000 and 2008-09. 2004-05 18.99 2003-04 17.38 CAGR: 2002-03 14.56 15.1% 2001-02 12.51 2000-01 11.08 1999-2000 10.16 0.00 10.00 20.00 30.00 40.00 Source: CMIE 13 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010 The tertiary sector has an increasing share in Haryana’s economy • In 2008-09, the tertiary sector contributed 43 per cent to the GSDP. It was followed by the primary sector with a contribution of 33 per cent and the secondary sector at 22 per cent. • At 18 per cent, the tertiary sector had the highest growth of all three sectors in the period 1999-2000 to 2008-09. It was followed by the secondary sector at 14.5 per cent and the primary sector at 10 per cent. 23% 35% Primary 43% Primary Secondary Secondary Tertiary 55% Tertiary 22% 22% 1999-2000 2008-09 Source: CMIE 14 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010 Per capita GSDP • The per capita GSDP of Haryana increased almost 2.9 times from US$ 541.1 in 1999-2000 to US$ 1606.5 in 2008-09. • The per capita NSDP increased from US$ 498.5 in 1999-2000 to US$ 1475.9 in 2008-09, registering an average growth of 12.8 per cent during this period. Per capita GSDP 1800.0 1606.5 1600.0 1586.9 1400.0 1313.6 1200.0 1025.0 1000.0 914.0 727.9 851.6 800.0 (US$) 575.9 541.1 635.2 600.0 400.0 200.0 0.0 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Source: CMIE 15 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Haryana April 2010 Key industries in Haryana • The natural resources, policy incentives and Key industries in Haryana infrastructure in the state support investments in sectors such as automobiles and auto- • Automotive components, IT/I Te S , textiles, agro-based • Agro-based industry industries, business tourism and commerce. • IT/ITeS • Textiles • Forming industrial clusters and developing infrastructure has been a key strategy of the state • Oil refining to attract investments in various industries. • Bicycles • Sanitary-ware • Gurgaon, Faridabad, Sonepat, Panchkula, Ambala, Ya muna Nagar are the key industrial districts of • Scientific instruments Haryana. • Tourism • Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC) is the state's premier industrial promotion agency, responsible for providing reliable and efficient facilities for entrepreneurs investing in the state.
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