Industrial Development of Haryana | HPSC Preparation: All subjects - HPSC (Haryana) PDF Download

The Importance of Industrialization in Economic Development

• Industrialization is a vital component in the economic development of any country, as it speeds up the growth of the economy and enhances the contribution of the industry sector in the state's domestic product. This is achieved through an increase in production and employment opportunities.
• Haryana is a northern state in India and shares its border with the national capital, Delhi. Historically, it was an agrarian state, but now it has developed into an industrial state.
• The state is a major automobile hub, producing two-thirds of passenger cars, 50% of tractors, and 60% of motorcycles in India. It has also emerged as a base for the knowledge industry, including IT and biotechnology.
• Haryana's contribution to India's GSDP is 3.63%, while its area is just 1.3% of the country. From 2004-2016, the state's GSDP grew at a CAGR of 12.12%. Its total GSDP was around US$ 75.3 billion in 2015-16.
• Haryana has attracted FDI equity inflows worth US$ 62.15 billion between April 2000 to March 2016.
• The state government has been committed to creating a favorable business environment by offering fiscal and policy incentives under the Industrial and Investment Policy, 2011. According to a study by the World Bank and KPMG, Haryana ranks 14th among Indian states based on ease of doing business and reforms implementation.

Progress report in industries sector

• The General Index for Industrial Production (IIP) based on 2004-05 increased by 5.9 percent, from 184.0 in 2013-14 to 194.8 in 2014-15.
• The Manufacturing Sector IIP grew by 5.5 percent from 177.8 in 2013-14 to 187.6 in 2014-15.
• The IIP of the Electricity Sector grew by 9.0 percent, from 252.7 in 2013-14 to 275.4 in 2014-15.
• The IIP of Basic Goods Industries, such as scrap, iron/steel, pipes & tubes, stainless steel, and high carbon steel, increased by 5.5 percent, from 214.5 in 2013-14 to 226.4 in 2014-15.
• The IIP of Capital Goods Industries, such as sugar machinery, telephony components, air compressor, microscope and cable, increased by 16.7 percent, from 204.8 in 2013-14 to 239.1 in 2014-15.

Major Initiatives

Enterprises Promotion Policy

• The State has launched the "Enterprises Promotion Policy-2015" (EPP) to boost economic growth.
• The EPP aims to achieve a GSDP growth rate of over 8%, attract investments of 1 lakh crore, create jobs for 4 lakh people, and establish Haryana as a top 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 government of Haryana aims to incorporate the goals of the 'Make in India' campaign initiated by the Government of India into its own program named 'Make in Haryana'. The Industries Department has taken significant steps towards enhancing the ease of doing business, which includes reducing the waiting period, improving the business environment, and introducing technology to make governance more efficient and effective. These efforts are intended to boost Haryana's reputation as an investor-friendly state.
• A single window mechanism is being developed to provide entrepreneurs with various industrial-related clearances in one place. The Empowered Executive Committee under PSCM will clear projects involving CLU cases of more than one acre land and investments exceeding 10 crore. District Level Clearance will be responsible for clearing projects with investments of up to 10 crore and CLU cases of up to one acre in conforming zones.
• The department of Industries & Commerce, Haryana launched Web site of the Department www.haryanaindustries.gov.in

MSMEs Sector

• The state government introduced a promotion scheme to enhance the competitiveness of MSMEs in the global market. Recognizing that MSMEs have a large employment potential and constitute the backbone of the Manufacturing Sector, the government adopted a strategy to establish Common Facility Centers (CFCs) in partnership with the private sector under the Cluster Development Scheme. This was done to support the MSME sector and create employment opportunities.
• To further boost the MSME sector in manufacturing and skill development, two projects of Tool Rooms/Technology Centers are being established at IMT Rohtak (19.8 acres) and Industrial Growth Centre Saha (10 acres).

Haryana Khadi and Village Industries Board (HKVIB)

• The Government of India has implemented the Prime Minister's Employment Generation Programme (PMEGP) to create jobs by establishing micro-enterprises in rural and urban areas.
• A board manages the KVIC's PMEGP through banks and provides one-time margin money assistance (subsidy) to develop viable projects.
• The PMEGP is not just a poverty alleviation program, but a collection of various schemes under the KVI sector.

Recent Developments

• The National Institute of Solar Energy (NISE) in Gurgaon, Haryana was announced as the headquarters for the International Solar Alliance (ISA) by Indian Prime Minister Mr Narendra Modi and French President Mr François Hollande. The ISA is a partnership of solar-resource rich countries with 121 countries across Africa, Southeast Asia and Europe as members.
• Walmart India Private Limited is planning to open stores in Haryana and Micromax is planning to set up a mobile handset manufacturing unit in the National Capital Region.
• Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) has developed industrial estates, Industrial model townships (IMT) and specialized parks for cluster development. An IMT is being constructed in Manesar near Gurgaon for automotive and engineering industries.
• The state government is developing sector-specific theme parks and sub-cities along the Kundli-Manesar-Palwal (KMP) global corridor, including a 1,000-acre pharma park. The Haryana Industrial Promotion Act, 2005 established a three-tier structure for granting exemptions/relaxations from its provisions/rules.
• Haryana has invested in world-class infrastructure such as Special Economic Zones (SEZs), KMP global corridor, and Delhi-Mumbai Industrial Corridor (DMIC). The International Centre for Automotive Technology (ICAT) in Manesar provides testing and R&D services to the industry.
• The state has seven operational SEZs, 23 formally approved SEZs, three SEZs with principal approval, and 20 notified SEZs. The government has proposed a sliding railway and logistics centre in IMT Manesar for smoother transportation and 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

The Mines and Geology Department of Haryana is responsible for the organized exploration and utilization of the State's mineral resources. Haryana has no significant deposits of major minerals, and the majority of its mining activities focus on minor minerals such as Stone, Boulder, Gravel, and Sand, which are mainly used in the construction industry.

Mineral Exploration

Mineral exploration is undertaken by three entities: the Department, the Geological Survey of India in areas specified in accordance with the State and Central Geological Plan, and private companies granted Prospecting Licenses (PLs).

Minor Minerals

The state mostly focuses on mining minor minerals, like Stone, Boulder, Gravel, Sand, Slate Stone, etc., which are mainly utilized in the construction industry. The state had legal issues regarding these minerals, but they were resolved in October 2013. In December of the same year, the state successfully auctioned its minor mineral mines, earning a total annual bid of 2,133.92 crore for 42 mining units in the state. This amount is unparalleled.

Key Sectors

• The state's key sectors are important for its growth and development, and have potential for further growth.
• Haryana is a favored location for both automobile majors and auto-component manufacturers, with many large automotive players based in the state.
• Gurgaon is now considered one of the top IT destinations in North India, with over 400 IT and ITeS companies located there.
• Haryana is promoting organic farming, and farmers are given financial assistance for producing and using vermicompost. The state government approved approximately US$ 9.48 million for minor irrigation systems until January 2016.
• Haryana has a competitive advantage in the textile sector due to the abundant availability of raw materials. The state produced around 2.6 million bales of cotton during FY 2015-16.