Key industries
The important industries in the state include automobiles and automotive
components, readymade garments and industrial estate development.
Automobiles and Automotive ComponentsThe state produces half of the passenger cars and two-wheelers in
the country. Around 20 per cent of the workforce in the state is engaged in the
automobiles industry. The major automobile centres in the state include Gurgaon
and Faridabad.
The key competitive strength of the state in the automobiles and auto
components industries is the presence of established manufacturers. The network
of component suppliers and vendors is a critical consideration in deciding the
location of any automobile unit. Prominent automobiles and automotive components
players present in the state are Suzuki Motors (through Maruti Udyog), Honda
Motors, Hero Group, Yamaha Group and Escorts.
Maruti Udyog is assessing the feasibility of setting up a greenfield
manufacturing facility at Haryana, with a potential investment of US$ 400
million. Hero Honda Motors is planning to set up a third manufacturing unit for
two-wheelers. A number of existing auto component suppliers are expanding
capacities in their plants based in Haryana to meet the growing demand from
automobile manufacturers as well as export markets.
Wheels India, a TVS Group company, is setting up a US$ 3.3 million facility
with a capacity of 1.25 million wheels at Gurgaon. Production is expected to
commence shortly and this will primarily cater to Maruti Udyog Ltd's new
facility.
Textiles and readymade garments
The state produces textiles and readymade garments worth US$ 1 billion
annually. Almost one-third of this production is exported.
The key competitive strength of the state in the textiles and readymade
garments sector is availability of raw materials (cotton and wool) and presence
of a large number of garment manufacturing units. Gurgaon, Faridabad and Panipat
have a large number of small and medium enterprises involved in textiles and
garment manufacturing. The presence of a number of large and medium buying
houses and sourcing agents (representing foreign buyers) at Delhi and Gurgaon is
an added advantage.
Prominent garment exporters from Haryana include Orient Craft and Shahi
Exports.
IT/ITES
The state is the third largest exporter of software services from the
country. Gurgaon, on the outskirts of Delhi, is one of biggest locations for
ITES facilities in India.
India currently exports software worth over US$ 12 billion. The state's share
in this segment is approximately US$ 1 billion. The Government has undertaken a
number of initiatives to further promote the development of the IT/ITES sector
in the state. The steps include setting up of engineering colleges and
professional training institutes to create a well qualified labour force and
special incentive schemes to IT companies such as working in three shifts.
Prominent IT players present in the state include GE Capital International
Services, Wipro, Tata Consultancy Services and Flextronic Software Systems.
Investment
The state has attracted industrial investment worth over US$ 5.4 billion in
sectors such as motor vehicles & transport equipment, textiles &
readymade apparels and basic metals & fabricated metal products. These
sectors represent more than 50 per cent of the existing industrial investment in
the state.
Source: Annual Survey of Industries, 2002-03
Exports
During 1998 and 2004, exports from the state more than tripled from US$ 815
million to over US$ 2.6 billion.
Source: Industrial Assistance Group
The main components of the state's exports
include software services, basmati rice, readymade garments and handloom.
Haryana is the largest exporter of basmati rice in the country.
Source: Industrial Assistance Group 2003-04
Foreign Direct Investment performance
During 1996-2003, the state attracted over US$
720 million of foreign direct investment.
Source: Secretariat for Industrial Assistance reports
Based on the FDI approvals during 1991 and 2002, the key sectors attracting
FDI in the state have been fuels, electrical equipment including software,
transportation, paper & pulp including paper products and food processing
industies.
Source: Secretariat for Industrial Assistance newsletter, Annual
Issue 2002
Thrust sectors
The following sectors, after being analysed on the basis of their growth
potential and long-term sustainability are the thrust industry sectors.
Agro-based and Food Processing IndustryThe state is one of the largest producers of food grains (rice and
wheat) in India. Haryana is also the largest exporter of basmati rice from the
country.
Special incentives have been provided in the Industrial Policy, 2005 for the
promotion of agro-based and food processing industry. Food testing laboratories
are to be developed to facilitate production of quality food processed products.
Steps are to be initiated to suitably amend the Haryana Agricultural Produce
Marketing Act, to enable procurement of notified agricultural produce by food
processing industry and cold chains directly from the farmers.
Electronics and Information & Communications Technology The State Government aims to facilitate private sector investment by
developing Special Economic Zones exclusively for the electronics and
information and communications industry. A separate policy for facilitating the
setting up of technology parks has been proposed. A State Wide Area Network (ADHAR)
is proposed to be set up in public-private partnership to provide high speed
connectivity for delivery of services in the public and private domain. This
will also give a boost to growth in IT/ITES and e-commerce. Facility for IT
education is to be improved and the capacity of ongoing courses are to be
expanded. Software industry is to be permitted without locational restriction.
Automobiles & Automotive ComponentsIMT Manesar is fast coming up as a prominent cluster for automobiles and auto
components. Maruti Udyog Ltd is implementing an expansion project at IMT Manesar. Other MNCs have also set up their units in this complex. Bawal is
another area where a number of projects for the manufacturing of auto components
are in the pipe line. The State Government proposes to establish a national
automotive testing, research & development infrastructure project at Haryana,
with assistance from the Government of India.
Handloom, Hosiery, Textile and Garments ManufacturingAn apparel park is to be developed within the Special Economic Zone at
Gurgaon and one at Barhi under the 'Apparel Park for Exports' scheme of the
Government of India. An international trade and convention centre is proposed to
be set up at Panipat to promote handloom products.
An international trade centre is to be set up at Gurgaon for promotion of
garments. These trade centres will have global market information data and
design centre for handloom and garment industries.
Export Oriented Units (EOUs)The Government endeavours to set up Inland Container Depots in the private or
joint secto
The infrastructure facilities in the existing Inland Container Depots
are to be strengthened. Freight subsidy is proposed to be provided to exporters.
PetrochemicalsIn view of the availbaility of requisite feed stock in close proximity, there
is a proposal to develop an industrial park in and around Panipat for the
development of dowstream industries.
This petrochemical hub would be developed with all basic amenities like fully
developed roads, drains, sewerage, street lights, electricity, common effluent
treatment plant, fire fighting station, commercial and housing facilities
including development of social infrastructure like schools, hospitals, parks
etc.
The State Government in collaboration with the Central Government aims to set
up a 'Central Institute of Plastic and Engineering Technology' to undertake
R&D and create skilled manpower for the development of petrochemicals
industry.
Special incentives and concessions are to be provided to the industrial units
to attract investment into the hub.
Property Development and Retailing Gurgaon is one of the fastest developing property and retailing markets
in the country. Proximity to Delhi and presence of a large services economy has
given rise to large-scale opportunities in the property development and
retailing sectors
Gurgaon is projected to develop over 1.4 million sq ft of commercial building
space by the end of this year. Similar pace of activity is evident in the
residential category. Gurgaon accounts for more than 70 per cent of the new
commercial space coming up in the NCR.
Similarly, over a dozen shopping malls have been commissioned at Gurgaon in
the recent past. In the coming years, this number is projected to increase
significantly with over 2 million sq ft of retailing space being added annually.
The prominent Indian company, DLF has invested US$ 67 million in developing 2.4
million sq ft of commercial space, to be commissioned over the next one year.
DLF, Dabur India and Delhi based Aashlok Hospital have entered into a joint
venture to set up a 350 bed tertiary care hospital at Gurgaon with an initial
investment of US$ 50 million. It is expected to commence operations by 2006.
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