Haryana is surrounded by Uttar Pradesh in the east, Punjab in the west, Himachal Pradesh in the north and Rajasthan in the south. The state surrounds the national capital city, New Delhi, from 3 sides. The most commonly spoken languages are Hindi and Punjabi. English is the medium of education in most schools. Gurgaon, Faridabad, Karnal, Ambala, Panipat & Kurukshetra are some of the key districts of the state. The state has three major seasons, viz., summer (April-June), monsoon (July-September) and winter (October-March).

Advantage Haryana :

Leading business hub :

• Haryana is one of the leading states in terms of industrial production, especially passenger cars, two-wheelers, mobile cranes & tractors. The Gurgaon-Manesar-Bawal belt is the auto hub of India. Haryana has emerged as a base for the knowledge industry, including IT & biotechnology. Many large Indian & multinational companies have set up offices in the state due to its high-quality infrastructure & proximity to Delhi.

Attarctive Investment Avenues :

• Haryana has emerged as a manufacturing hub, with immense scope for development of micro, small & medium enterprises (MSMEs) sector. The state adopted a cluster-based development approach to promote industries such as IT, textiles, food & handloom. The state’s real estate market is attractive and it is a preferred automotive hub. Of the total 250 large & medium OEMs, about 50 are located in Haryana.

Policy & infrastructure support :

• With a stable political environment, successive governments have been committed to creating a progressive environment. The state offers a wide range of fiscal & policy incentives for businesses under the Industrial & Investment Policy, 2011. It also has sector-specific policies, particularly for IT & tourism. Haryana has well-developed infrastructure like power, roads & railways. For trade promotion, the state has planned several projects.

Rich labour pool :

• Haryana has a large base of skilled labour, making it an ideal destination for knowledge-based & manufacturing sectors. It also has a large pool for support services. The state has set up various national level institutions such as Indian Institute of Management (IIM), Indian Institute of Corporate Affairs (IICA), Central Institute for Plastics Engineering & Technology (CIPET) & National Institute of Food Technology & Entrepreneurship & Management (NIFTEM).

Haryana State Vision 2030 :

GSDP of Haryana at current prices :

• At current prices, the total GSDP of Haryana reached Rs 6.08 trillion (US$ 94.41 billion) in 2017-18 (A). The state’s GSDP increased at a Compound Annual Growth Rate (CAGR) (in Rs) of 12.66 per cent between 2011-12 and 2017-18.

Per Capita GSDP of Haryana at current prices :

• The state’s per capita GSDP in 2016-17 (P) was Rs 199,612 (US$ 2,975.29). The per capita GSDP (in Rs) increased a CAGR of 11.39 per cent between 2011-12 and 2016-17.

NSDP of Haryana at current prices :

• At current prices, the net state domestic product (NSDP) of Haryana was about Rs 4.94 trillion (US$ 73.65 billion) in 2016- 17. The state’s NSDP (in Rs) expanded at a CAGR of 12.75 per cent between 2011-12 and 2016-17.

NSDP per capita of Haryana at current prices :

• The state’s per capita NSDP in 2017-18 (A) reached Rs 196,982 (US$ 3,056.35), one of the highest in all Indian states. Per capita NSDP (in Rs) increased at an average rate of 10.87 per cent between 2011-12 and 2017-18.

GSVA Composition by Sector at constant(2011-12) prices :

• Services sector at constant (2011-12) prices, was the largest contributor to Haryana’s Gross State Value Added (GSVA) in 2017- 18 (A) with a share of 50.83 per cent. The sector has grown at a CAGR of 9.79 per cent between 2011-12 and 2017-18.
• Industry sector contributed 31.57 per cent to the state’s GSVA in 2017-18 at constant (2011-12) prices. The sector has grown at a CAGR of 7.50 per cent between 2011-12 and 2017-18.
• The agriculture & allied sector contributed 17.6 per cent to the GSVA in 2017-18 at constant (2011-12) prices and grew at a CAGR of 2.43 per cent between 2011-12 and 2017-18.

FDI Inflows & Investments :

• According to the Department of Industrial Policy & Promotion (DIPP), cumulative foreign direct investment (FDI) inflows in Haryana1 from April 2000 to December 2017 were recorded at US$ 74.15 billion.
• The services sector accounted for a major share in FDI followed by real estate & electricity.
• In May 2018, Government of Haryana signed 10 memoranda of understanding (MoUs) with UK for various projects requiring investment of around Rs 1,500 crore (US$ 232.74 million).
• In 2017, the government allocated substantial investment for digitization and development of power sectors of Gurugram, in lieu of the steadfast growth of the state and the role of Gurugram towards its development.

Export Trends :

• The setting up of SEZs in sectors like IT/ITeS, biotechnology, handicrafts, etc., has helped increase exports in the state.
• At US$ 7.2 billion, the state accounted for 6.2 per cent of India’s software exports in 2016-17.
• Haryana is amongst the biggest producers of food grains in India. More than 60 percent export of Basmati Rice is taking place from Haryana alone. The state exported agricultural products worth US$ 1.17 billion in 2017-18.

Physical Infrastructure :

Roads :

• As of December 2017, the state had a road network of 26,131 km. During 2017-18, 206.55 km of national highways were constructed in the state.
• Haryana is among the states having almost 100 per cent connectivity to rural areas with metalled roads. Haryana Roadways, with its fleet of nearly 4,215 buses, is one of India’s biggest state road transport undertakings which operate across 12.70 lakh km everyday.
• In June 2017, Haryana received an award from Ministry of Rural Development for completing more than 95 per cent of its PMGSY targets. In 2017-18, five road works were sanctioned in the state under PMGSY-II.
• Under State Budget 2018-19, 4.73 per cent of the total expenditure was allocated to roads & bridges.

Railways :

• Haryana has a 1,710.49 km long rail route. Kalka, Kurukshetra, Rohtak, Jind, Hisar, Ambala, Panipat, Gurgaon & Jakhal are some of the important railway stations. There is a railway workshop at Jagadhari.
• Government of Haryana has formed a joint venture with the Indian Railways named ‘Haryana Rail Infrastructure Development Corporation Limited (HRIDC)’ to undertake railway projects in the state.
• As per State Budget 2018-19, work on elevation of Rohtak-Gohana- Panipat line and Rohtak-Meham-Hansi railway lines are in progress.
• Elevation of the Rohtak–Panipat railway line has also been approved.

Airports :

• There is a domestic airport at Chandigarh and civil aerodromes at Pinjore, Karnal, Hissar, Bhiwani and Narnaul. The state has a total of eight airports, which includes both operational and non- operational airports.
• In September 2015, a new terminal at Chandigarh airport was inaugurated. The terminal is capable of handling both domestic and international flights. The cost incurred in the construction of the airport by AAI is US$ 155.77 million. A stake of 51 per cent was taken by the AAI and shares of 24.5 per cent each were held by the state’s of Punjab and Haryana.
• Hisar civil aerodrome will be upgraded into an international airport. Under the first phase of construction, the aerodome would be converted into a domestic airport. In the second phase, the airstrip will be expanded and in the third phase, an aerotropolis comprising of an international airport would be developed. The airport will also be covered under the regional connectivity scheme of UDAAN. As of March 2018, the project is being developed on fast track.
• Under State Budget 2018-19, Rs 201.27 crore (US$ 31.23 million) was allocated for civil aviation.
• The Chandigarh airport handled 2,137,739 passengers, 5,650 metric tonnes of freight and saw 18,715 aircraft movements in 2017-18.

Power :

• As of April 2018, Haryana had a total installed power generation capacity of 11,242.01 MW; of which, 4,013.81 MW was contributed by the state, 4,628.23 MW by the private sector and 2,599.98 MW by the centre.
• Energy requirement in Haryana in March 2018 was 3,987 million units. The total number of electricity consumers in the state increased from 35,44,380 in 2001-02 to 59,40,158 in 2016-17.
• Under State Budget 2018-19, Rs 15,372.16 crore (US$ 2.39 billion) was allocated for power department and Rs 112.85 crore (US$ 17.51 million) for non-conventional energy department.
• Between 2015-17, 73 sub-stations have been established to strengthen the transmission and distribution system in the state.

Urban Infrastructure :

• The state government has provided an impetus & would continue to the financial status of urban local bodies & provide adequate funds for improving civic amenities in urban areas. There are 77 urban local bodies in the state, consisting of 9 municipal corporations, 19 municipal councils & 50 municipal committees.
• Under State Budget 2018-19, Rs 5,626.84 crore (US$ 873.96 million) has been allocated for urban development.
• Swachh Bharat Mission (Urban) has been implemented in all 80 statutory towns & cities in Haryana. The state has been declared Open Defecation Free.
• The state’s 20 cities & towns are included in the AMRUT Mission. As of April 2018, Rs 2,565.74 crore (US$ 398.1 million) has been allocated to cities in Haryana under the AMRUT scheme.

Social Infrastructure :

Education :

• The state has a strong primary education infrastructure, with a primary school located within a 1.03-km radius of each village AND a middle school within a 1.07-km radius.
• Under State Budget 2018-19, Rs 13,978.22 crore (US$ 2.17 billion) has been allocated for education.
• The major flagship programmes being undertaken in the state include Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and Sarv Shiksha Abhiyan (SSA). Other programmes for the upgradation of education sector in the state include Beti Bachao Beti Padhao (B3P), Haryana Ek Khoj under SSA, etc.
• During 2016-17, 33 government run middle and high schools were upgraded to senior secondary schools and two news schools were also opened.

Health :

• As per state’s Economic Survey 2017-18, the state government is providing services through 60 hospitals, 124 Community Health Centres, 500 Primary Health Centres and 2,630 Sub-Health Centres.
• Under ‘Mukhya Mantri Muft Ilaj Yojana’ seven types of medical services are being provided for free in Haryana.
• Allocation for health and family welfare in State Budget 2018-19 is Rs 4,769.61 crore (US$ 740.05 million).
• Further, the state government has also decided to set up an AYUSH University as well as AYUSH Cell across every PHC of the state.

Industrial Infrastructure :

• Historically an agrarian state, Haryana today is a well-developed industrial state. HSIIDC is the state’s premier industrial promotion agency. It is responsible for providing reliable and efficient facilities to entrepreneurs investing in the state.
• HSIIDC has developed a number of industrial estates, industrial model townships and specialised parks for industrial cluster development.
• As of December 2017, the state had 7 operational SEZs, 23 formally approved SEZs, 3 SEZs with principal approval & 20 notified SEZs.
• The government is developing sector specific theme parks and sub- cities along the Kundli-Manesar-Palwal (KMP) expressway. The 135- km KMP expressway will act as a Delhi bypass and provide seamless connectivity across NH-1, NH-2, NH-8 and NH-10. Total cost of the project is US$ 414.73 million.

Mega Projects of Haryana :

• Kundli-Manesar-Palwal (KMP) Expressway on Build-Operate-Transfer (BOT) basis.
• Delhi-Mumbai Industrial Corridor (DMIC) Project.
• Manesar Bawal Investment Region (MBIR).
• Early Bird Projects (Global City Project, Integrated Multimodal Logistics Hub (IMLH), Mass Rapid Transit System Between Gurgaon-Manesar- Bawal (MRTS).

Key Sectors :

Agricultural and Allied Industries :

• Agriculture is one of the biggest employment generators in rural Haryana, with strong potential in value addition & exports. Haryana is self- sufficient in food production and the 2nd-largest contributor of food grains to the central pool. The Department of Horticulture encourages a cluster approach for the development of fruit cultivation. Wheat, sugarcane, rice, cotton, rapeseed and mustard are key agricultural products of the state.
• Haryana aggressively promotes organic farming; financial assistance is provided to farmers for production and use of vermicompost.
• Under its’ ‘Horticulture Vision’ the state government aims to double the area of under horticulture from 7.5 per cent to 15 per cent and triple the horticulture production by 2030.
• Total foodgrain production in Haryana in 2017-18 was 17.48 million tonnes, while total horticulture production was 9,118** thousand metric tonnes.

Automotives Cluster :

• Haryana is a preferred destination for auto majors and auto- component manufacturers. The state is host to many large automotive players.
• The state produces two-thirds of passenger cars, 50 per cent of tractors and 60 per cent of motorcycles manufactured in the country.
• A significant percentage of the state’s workforce is engaged in the automotive industry; Gurgaon & Faridabad are important automobile centres.
• The International Centre for Automotive Technology (ICAT) has been set up at Manesar as a part of the National Automotive Testing & Research & Development (R&D) Infrastructure Project (NATRiP). It provides testing & R&D services to the industry.
• The state government has proposed a sliding railway & logistics centre in IMT Manesar for smoother transportation & more effective inventory management.

IT & ITeS Clusters :

• Gurugram has emerged as a preferred destination for the IT industry in North India. As per Haryana’s economic survey 2017-18, licenses of 49 IT parks have been granted while there are six IT/ITeS SEZs operational in the state.
• Haryana is among the leading states in terms of IT exports. At US$ 7.2 billion, the state accounted for 6.2 per cent of India’s software exports in 2016-17.
• Haryana is the first state to have implemented its State Wide Area Network (SWAN) for voice, data & video transmission. The SWAN vertical connectivity – at the State Network Management Centre (SNMC), District Network Management Centre (DNMC) & Block Network Management Centre (BNMC) – is completed & now operational.
• The state government has notified following policies for creating an ecosystem to take Haryana on the path of digital revolution : IT & ESDM Policy 2017,
• Entrepreneur & Start up Policy 2017, Communication & Connectivity Infrastructure Policy 2017, Cyber Security Policy 2017.

Petrochemicals :

• Panipat Refinery, which is a unit of Indian Oil Corporation Limited (IOCL), was commissioned in 1998. The refinery has a capacity of 15.000 MMTPA. As per refinery operations data for FY2016, the refinery produces diesel and gasoline which are compliant to BS-IV specifications.
• Total consumption of petroleum products in Haryana reached 10.97 million metric tonnes in 2017-18.
• For leveraging the establishment of a petrochemical plastic park and hub at Panipat under vicinity of IOCL, the “Enterprises Promotion Policy-2015” was launched by Government of India, which became effective in the state from August 2015.

Single Window Clearance Mechanism :

• 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 Investment Promotion Centres (IPC) located in New Delhi and Chandigarh and District Industries Centres (DIC) at the district level serve as nodal agencies and provide support to the committees.

Key Investment Promotion Offices :

Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC) :

• Focusses on the development of medium- and large-scale industries.
• Provides financial assistance by way of term loans, equipment re-finance, equipment leasing and working capital.

Haryana Agro Industries Corporation Ltd (HAIC) :

• Engaged in trading activities such as sale of seeds, fertilisers, pesticides, tractors and other agricultural machinery at economical prices to the farming community.

Haryana State Electronics Development Corporation Ltd (HARTRON) :

• Nodal agency of the Government of Haryana for promoting electronics and IT industries.
• It offers expertise in infrastructure development as well as promotion of projects.

Haryana Urban Development Authority (HUDA) :

• Responsible for promoting and securing development of urban areas; activities include land acquisition, development and sale of property for residential, industrial and commercial purposes.

Haryana Finance Corporation (HFC) :

• Meets the credit needs of small- and medium-scale industrial units by advancing term loans.

State Acts and Policies :

Textile Policy 2017 :

• To attract investment in the textile sector to the tune of Rs 5000 crore.
• To generate 50000 new jobs in the textile sector.
• To boost textile export by CAGR of 20% during the policy period.

Draft IT & ESDM Policy 2017 :

• Attract US$ 2.79 billion as investments in IT & EDSM sector in the next five years.
• Provide employment to 120,000 people in the sector.
• Increase IT & EDSM sector’s contribution to the state’s GDP from 9.4% to 15%.

Draft Aerospace & Defence Policy 2016 :

• Attract orders for at least 15% of all offset obligations discharged by companies in India by leveraging the existing ancillary base and promoting new MSMEs dedicatedly for A&D sector.
• To attract investment of over Rs 25,000 crores throughout the value-chain including research, design, development, manufacturing, maintenance, quality control and training.

Haryana Sports and Physical Fitness Policy 2015 :

• The policy aims at two themes, namely - Sports for All and Excellence in Sports.
• The policy covers five major goals such as - introduction to sports, recreational sports, competitive sports, high performance sports and sports for development.

Enterprise Promotion Policy, 2015 :

• The major objectives of this policy is to facilitate ease of doing business in the state, reduction in cost of doing business in order to attract more number of players, and have an increased focus on MSMEs.

New Integrated Licensing Policy (NILP) 2015 :

• To develop hyper & high potential urban complexes in the state.
• To allow real estate developers in setting up projects that are less than 100 acres of area.

Industrial and Investment Policy 2011 :

• To achieve higher, sustainable and inclusive economic growth by attracting investments in a focussed and structured manner in potential areas.
• Encourage private sector investment and promote the manufacturing sector.
• as a key economic driver.

Rehabilitation and Resettlement Policy, 2010 :

• To smoothen out the land acquisition process under the Land Pooling Scheme.
• To make fair payment of market value as compensation for land to land owners.

Haryana Tourism Policy 2008 :

• To increase the earnings from tourism inflow at the rate of 10.0% annually.
• To promote sustainable tourism by encouraging a constructive and mutually beneficial partnership between the public and private sectors for economic development and employment generation.

Industrial Infra Development Scheme :

• Formulated in January 2017, to promote uniform regional and sustainable growth across the state, including in backward areas. Another objective of the scheme is to provide sufficient width of road connectivity between the nearest states.

Labour Policy :

• To implement labour laws for ensuring proper working conditions and labour standards.
• To improve working conditions for women and eliminate all forms of child labour.
• To train and retain employees and officers.

Land Pooling Scheme :

• To acquire land for development of industrial infrastructure in a planned manner by the HSIIDC.
• To provide land owners with an option to become partners in the development process.

Public Private Partnership Policy :

• To facilitate private sector participation in upgrading, developing and expanding the state’s physical and social infrastructure.

Startup Policy 2017 :

• The policy visualises Haryana as a resourceful and innovative startup hub by supporting & assisting the new-age innovators and entrepreneurial talents across the state.

Objectives :

• Attract Rs 500 crores investments into the incubation and startup ecosystem in Haryana during policy period.
• Establish at least 10 technology /business incubators / accelerators in each of the different sectors in the state in different regions of the state.
• Develop 1 million sq. ft. of incubation space.
• Facilitate venture capital funding of a minimum of Rs 200 crore.
• Encourage/facilitate/incubate at least 500 startups.

• Haryana State Electronic Development Corporation Limited (HARTRON) introduced a start-up warehouse on 10,000 sq. ft. of land in Gurugram under the policy.
• The policy also proposed building of sector specific incubation centers which would provide facilities such as common working space, test and demonstration facilities, mediation and network, training and coaching and business support.
• Various incentives are offered to startups/entrepreneurs under the policy. Few of these are interest subsidy, lease rental subsidy and innovation promotion subsidy.
  The government also decided to create a fund of funds to support startups at the stages of seed funding and venture capital.
• Seed capital of upto US$ 4,656 shall be provided for validation of idea, prototype development and initial activities to setup the startup. A total of 500 ideas would be supported with seed capital.
• The government would also create a fund of US$ 1.5 million dedicated to meet the funding requirement for scalability.