Unit -3:Economy of Haryana
CHAPTER :INDUSTRIES IN HARYANA
Haryana is among the highly economically developed and industrialised states of India. With a splendid economic growth, highest per capita income indices, sound industrial infrastructure, strong manufacturing base, advanced agricultural sector and vibrant service sector.
Historically an agrarian state, Haryana today is well known for its strong enterprise (manufacturing and services) base. Surrounding the national capital city, Delhi, from three sides it has become one of India’s largest automobile hub. The state has also emerged as a base for the knowledge industry, including IT and biotechnology. Haryana is the third largest exporter of software and one of the preferred destinations for IT/ITes facilities.
History of Industrial Development in Haryana
Before Independence, a few industries were concentrated in the region mainly sugar, timber and cotton mill. After Independence, the Central Government gave priority to industrial development from the Second Five Year Plan. As a result, the areas of Faridabad, Sonipat, Panipat and Bahadurgarh developed as industrial units. The state got its share of mineral resources after its separation from Punjab in 1966. From then, onwards the state started framing its independent industrial policy.
Stages of Industrial Development in Haryana
Industrial development started in Haryana from 1980 onwards as comprehensive plans were drawn to extract and utilise the mineral resources to give a firm industrial base to the state. The industrial development in the state primarily depends on the mineral resources found in the specific regions. The districts of Yamunanagar, Ambala, Faridabad, Bhiwani, etc, emerged as important industrial zones due to concentration of mineral and other resources.
The districts of Gurugram, Faridabad, Sonipat and Panipat emerged as important industrial centres due to their locational advantage of being in National Capital Region. The state has more number of small industries as compared to large scale industries. From year 2000 onwards the state gave strength to the development of Information and Technology Industry. The state declared 2013 as year of Industry and Employment. The new industrial policy of 2015 stimulates further industrial growth in the state on a fast-track basis.
Industrial Scenario in Haryana
According to Economic Survey 2017-18, Industries contribute 30% to Haryanas GDP and has a GDP growth rate of 8%. Haryana provides close accessibility to the National Capital of Delhi, quality infrastructure, excellent law and order situation and conducive policy environment due to which it is the preferred investment location for both private and foreign sector.
Key Industries in Haryana
Some major industries in Haryana are as follows:
Food Processing and Allied Industry
Haryana has the advantage of being an agrarian state. It is a major contributor to the National Foodgrains Pool. Apart from its own base for production of vegetables and fruits (perishable commodities), the state constitutes the route for transportation of fruit from Jammu and Kashmir and Himachal Pradesh. The state has a good base for production of milk and holds the potential for growth of milk and dairy based industry. Dairy industries are concentrated throughout the state.
Yakult (Sonipat), Perfetti Van Melle India (Manesar) and Nestle (Samlakha), Parle (Bahadurgarh), etc are important food processing industries of private sector located in Haryana. As per the State Food Processing Policy, 2018 the state is equipped with 4 food parks with 2 fully functional food parks at Rai and Saha. Mega Food Parks at Barhi and Rohtak are being set-up with the state of the art common infrastructure facilities under Ministry of Food Processing scheme of Mega Food Parks.
Agro Based Industry
Cotton textile Industry The first mill to be started in the state was in 1937 in Bhiwani. Panipat has already established its place on the International map as a centre for the handloom products. Gurugram-Manesar belt has also emerged as the centre for manufacture and export of readymade garments. A number of units are engaged in the manufacturing of leather garments and other accessories.
The Haryana State Industrial Development Corporation has already developed a Textile Park at Barhi. An International Trade and Convention Centre would be set up at Panipat to promote handloom products.
Under the New Textile Policy, 2018, the state government will facilitate setting up of Apparel parks exclusively for apparel manufacturing units in Mewat district. An Integrated Textile Park in Hisar District and a Textile Park exclusively for Dyers and Processors in Faridabad district shall also be assisted by the state government. In addition, the government will also facilitate the process of development of clusters in the state namely Carpet cluster at Panipat, Garmenting cluster at Gurugram and Hosiery cluster at Sirsa.
Paper Industry First paper mill started in the state was in 1929 by the name of Messors Punjab Pulp and Paper Mill Limited at Abdullahpur. Many private companies have their paper manufacturing units in Sonipat, Rewari and Yamunanagar. Gurugram also has paper mills from which paper is supplied all over India.
Sugar Mill Haryana has many sugar mills as sugarcane is a commercial crop of Haryana. Oldest sugar mill in the region is now in Lahore opened in 1933 in Undivided Punjab, by the name of Saraswati Industrial Syndicate Limited.
Footwear and Accessories Industry
The state has many leather product and footwear-making industries, which are actively involved in the process of end-to-end product making. The major industries are at Karnal, Faridabad, Bahadurgarh, Gurugram, Manesar, Sonipat, Kundli, Ambala etc. In view of the demand of trained manpower of the footwear industry, Footwear Design and Development Institute (FDDI) is being set up IMT Rohtak.
This industry also forms one of the main industries of Haryana in the North-East regions of the state in the districts of Yamunanagar, Kaithal and Karnal. Chir, Sheesham, Keekar, Sagwan trees are used for timber. Before 1947, the timber industry in Yamunanagar was known as Wood Mandi of Abdullahpur.
Automobiles and Automotive Components
Automobile manufacturing sector constitutes Haryana s primary strength, due to the presence of Maruti Suzuki, Hero, Honda, Escorts, which have led to the development of a large number of ancillaries in this sector.
Gurugram-Manesar-Bawal region has been identified as an Auto Hub by the Government of India. A number of auto and auto component units have already set up base in this hub. Haryana is the largest producer of tractors in the country.
The pharma sector has a vast growth potential in the country and the state recognises the need for development of this sector on a sustainable basis. The Government of India has selected Haryana state for establishment of a Bio-Technology Park along with research and development facility besides promoting the establishment of a Pharma Industrial Park in the state.
The State Government has decided to earmark and acquire about 1000 acres of land for the development of a dedicated Pharma Park in the Kundli-Manesar-Palwal (KMP) Expressway Global Economic Corridor. Haryana Pharmaceutical Policy 2018 is being framed to facilitate pharmaceutical companies in the state.
Waste Prcocessing and Recycling Industry
The state encourages and promote the industry engaged in processing of waste material e.g. urban solid waste, hazardous waste, medical waste, etc. Its recycling with value addition to be set up in different parts of the state. It would facilitate all the requisite clearances for this industry on priority.
As a special measure to promote this industry, the government proposes to exempt from Value Added Tax (VAT) on any fuel manufactured by the processing of municipal solid waste. The recycling is set up at IMT Manesar, Rohtak, Samalakha. Solid and Liquid Waste Management Projects are being set up in three districts i.e. Yamunanagar, Kurukshetra and Kaithal. A waste treatment plant to convert waste to energy was set up in Karnal on Kachwa road in February, 2018.
Information Technology and IT Enabled Services
The State Government continue to accord priority to the IT and ITeS sector in recognition of its potential for employment, exports, wealth generation and spin off on the growth of services sector. The state has approved 35 sites for the development of cyber parks, of which the Town and Country Panning Department has granted licenses in respect of 33 proposals.
Gurugram has emerged as the most preferred investment destination in Northern India for IT and ITeS industry. Apart from Gurugram, other IT centres in Haryana are Faridabad, Ambala and Chandigarh. Sonipat and Karnal are emerging as IT hubs.
Besides, the State Government is taking initiatives through its agencies like Secretariat for Information Technology (SIT), Haryana State Electronics Development Corporation (HARTRON) and Haryana State Industrial Development Corporation (HSIDC) for furthering the development of Information and Communication Technology sector in the state.
The State Government has launched the New Haryana IT and ITeS Policy, 2017. The policy focuses on giving attractive fiscal incentives to the private sector investors and also aims to develop an all-round ecosystem through appropriate governance mechanism interventions to improve existing industry infrastructure.
Key Industrial Centres in Haryana
Some of the main industrial areas in the state are as follows:
It is the biggest industrial city of Haryana as well as of North India. Large and small scale industries related to production of automobiles, tractor, motorcycle, refrigerator, rubber tyres, tools, footwears, appliances of kitchen are based here. It is home to hundreds of large-scale companies like Orient Paper and Industries, JCB India Limited, Whirlpool, ABB Group, Goodyear Tyres and Knorr Bremse India Pvt. Ltd., Escorts Limited. Adjacent to the Southern part of Delhi, the city is well-connected to the national capital and Gurugram through road and rail network. An exhibition cum convention centre is planned to be developed in Faridabad.
The State Government encourages the Information Technology (IT) Sector and BPO Sector by providing several incentives. Inline of this, Panchkula IT Park was established in 2008 and a Nano City Project was also proposed. This Nano city will be developed on similar line as of Silicon Valley (Banglore) of India. Economic hub around Panchkula is to be developed as Information Technology (IT) Corridors.
Indian Oils Panipat refinery which was set up in 1980 is the most modern public sector refinery equipped with state-of-the-art technology. It is located at Baholi in Panipat. Panipat refinery today is on the springboard of growth with two projects, Panipat Refinery Expansion Project for doubling its capacity and Integrated Paraxylene and PTA Project. In order to further accelerate the development of textile industry, a project under Textile Centres Infrastructure Development Scheme (TCIDS) of the Government of India, is started at Panipat.
Panipat is a city of textiles and carpets. It is the biggest centre for quality blankets and carpets in India and has a handloom weaving industry. In addition, Panipat city is the biggest centre of Shoddy Yarn in the world. The Samalkha sub-division of this district is famous for foundry of agriculture instruments.
National Fertilizer Limited is a major industry that is run by Central Government in Panipat that produces around 20 lakhs tonnes of fertilizer. Panipat also has centres for production of captive electricity machine components.
Yamunanagar is one of the largest industrial centres of Haryana, where the largest sugar mill and the largest paper mill of Asia are located. Therefore the city is also called Paper City of Haryana. Ballarpur Paper Mill is located here that was established in 1929 as Punjab Pulp and Paper Mill Abdullahpur Limited. Now the mill also produces refined oil, ghee, caustic soda, writing ink apart from paper.
It also houses a Thermal Power Plant, a Hydroelectric Power Plant and Steel and Brass Industries. Jagadhri has printing and packaging cluster. Famous Saraswati Sugar Mill is also located here which was established in 1933 in Lahore. The district is also popular as a wholesale timber market, which is more than 100 years old. It is famous as Abdullahpur. The Railway Carriage and Wagon workshop at Jagadhri in Yamunanagar was established in 1952. It is an important workshop for the maintenance of Northern railway especially Shatabdi trains. Industrial gas production unit established in 1973 is also located in Yamunanagar. It was renamed to Yamma Gases and Chemicals Limited in 1988.
It is a centre for small, cottage and village industries. The first textile mill in Haryana was established in Bhiwani in 1937. Charkhi Dadri in Bhiwani has a large scale cement factory that was established in 1939 by Seth Ramkrishna Dalmia in collaboration with German engineers. It was acquired by Cement Corporation of India on 23rd June, 1981. The Technological Institute of Textiles is an industrial unit that was set up in 1943 in Bhiwani. Its textiles are exported to Bangladesh, Turkey and Belgium. At present Charkhi Dadri is made into a separate district.
It is the most developed commercial and business centre of Haryana, located on the outskirts of Delhi. Most of the automobile and auto component manufacturers in the state have their base in the industrial areas around Gurugram. Gurugram also has a number of garment export units. During the last 3-4 years, Gurugram has emerged as an important location for the Information Technology (IT) and the Information Technology Enabled Services (ITeS) industry in the state. Gurugram is called as City of the Millennium. It is a hub of call centres. Gurugram has now emerged to become the city with the third highest per-capita income in India. Gurugram has the presence of about 250 or 50% of the Fortune 500 companies.
Somefamous companies located in Gurugram district are as follows:
- A branch of Benetton Group is located in Gurugram which produce shoes, clothes, bags, etc.
- Maruti Suzuki Private Limited was the first company that set up a manufacturing unit in the city in 1970s making cars.
- DLF Limited, a real estate company acquired vast stretches of land in the city.
- The first major American brand to set up a unit in Gurugram was General Electric in 1997, and it is regarded as the first foreign company in India, that was established for Outsourcing Software Work.
- SRF Limited Company which produce engineering plastics, fibers, synthetics chemicals and packaging films is also located in Gurugram.
- Various international companies, including Coca-Cola, Pepsi, IBM, American Express, Agilent Technologies, Microsoft and Bank of America have their offices positioned in Gurugram.
- Orient Crafts Limited was set up in 28th February, 1978 is a major exporter with its production centre at Gurugram.
- Munjal Shova Limited Company for the production of shock absorbers, SRF Limited Company for the production of industrial fibres, engineering plastics, synthetic chemicals and packaging have their head office at Gurugram.
- Tata Consultancy Services (TCS), a leading BPO was set up in 1968 in Gurugram. There are five corporate centres of TCS in Gurugram.
- Other companies with their head offices in Gurugram are Ranbaxy Limited (1961), Pro-Agro Seeds Company (1977), Eli-Lili India Private Limited (1976) for pharmaceutical products.
- Genpact Company was established in 1997. Its head office is located in Gurugram.
It is one of the largest producers of scientific and surgical instruments in the country, hence called Science City. It is also known for the production of engineering goods and textile particularly rugs which is locally known as ‘Durries.’ Consumer goods like kitchen appliances, electrical appliances, gas stoves are also produced here.
This city is also called golden city. Ganaur, Kundli Rai are major industrial centres of Sonipat. The district is also popular for Atlas Cycle industries which is one among the top three cycle manufacturers in the world. Milton cycle company is also located here. Yakult Donone India Private Limited in Saha and Glaxo Smith Kline (GSK) Consumer Health Care Limited in Khera village which is famous for its product, Horlicks, are also located in Sonipat.
Industrial development has started on a rapid pace in this district due to single window clearance facility scheme of Haryana. The scheme provides ease of establishing small scale industrial units. Eelectrical equipments, sugar, cotton textiles, threads, surgical instrument and spare parts industries are major industries of the district.
Dharuhera, Baawal and Rewari are important industrial zones of the district. The region is most popular for producing brass wares. The brass industry began around 1535 in the city with the help of Portuguese. During the time of Hemu, cannons were cast in Rewari for the army of Sher Shah Suri.
Other popular industries are leather shoes, tiles, handicrafts and hand crafted fancy bridal jutties known as ‘Tilla Jutti.’ Dharuhera and Baawal has large manufacturing unit of Hero Honda Motorcycles and Harley Davidson (assembling unit). Dharuhera plant of Hero Moto Corp is the largest producer of motor cycles in the world.
The city has a large steel industry and is also known as the Steel City because of the Jindal Stainless Steel Factories. It is also one of the largest producer of galvanised iron. This city in Haryana has small scale industries related to agro based products like cotton ginning, spinning and yarns, leather, furniture and ropes. It also has mineral based industries like iron garders, agricultural tools, PVC pipes, etc.
Industries and Realated Places
|Major Industry||Main Centres|
|Cement||Surajpur (Panchkula), Charkhi Dadri|
|Sugar||Yamunanagar, Sonipat, Panipat, Rohtak, Jind, Karnal, Hisar|
|Paper||Jagadhri (Yamunanagar), Faridabad, Sonipat, Dharuhera|
|Automobiles||Gurugram, Faridabad, Pinjore (Panchkula)|
|Bicyles||Sonipat, Faridabad, Palwal, Jind|
|Petroleum||Karnal, Panipat, Bawal|
|Utensils (Steel and Brass)||Rewari|
|China Clay Potteries||Gurugram, Bahadurgarh|
|Iron and Steel||Hisar, Ganaur Panipat, Bahadurgarh, Sonipat|
|Tyre Tube||Ballabhgarh, Good Year Company Faridabad|
|Electricals||Panchkula, Gurugram, Ambala, Faridabad|
|Scientific Instruments, Mixer||Ambala|
City Titles According To Industrial Units
|Gurugram||Medicity, Cyber City, Solar City|
|Ambala||Science City, Mixie City|
|Rohtak||Sugar City, Education City|
Major Industrial Development Agencies of Haryana Haryana
State Industrial and Infrastructural Development Corporation
It was set up in 1967, for promoting medium and large scale industries, so as to ensure balanced regional development of Haryana, by acting as an institutional entrepreneur and a financial institution.
Headquarted at Panchkula, it is a state owned agency that strives to develop world class infrastructure. It provides financial assistance byway of loans, equipment re-finance/equipment leasing and working capital.
Haryana Khadi and Village Industries Board
In order to promote village industries, the State Government of Haryana established the Khadi and Village Industries Board in 1969. Chowdhary Devi Lai was its first Chairman. The industry thrives on producing village products through cottage industries like Khadi handlooms, honey, soaps, aggarbattis, candles, bags, carpets, mats, etc.
Haryana Enterprises Promotion Board
It has been constituted in 2017 under the Chairmanship of Chief Minister to attract domestic as well as foreign direct investment in the state. The Haryana Enterprises Promotion Board is competent to approve a customised package of incentives and concessions to mega projects, undertake investment promotion activities, identify and approve sectors in which foreign as well as domestic investment is sought keeping in view the state priorities. One enterprises promotion board is set up at Chandigarh to provide single point contact services.
Haryana Industrial Policy, 2015
This policy is also called Enterprises Promotion Policy, 2015. It came into effect from 11th August, 2015. The main features of this policy are asfollows:
- The Haryana State Government aims to create 10 lakh jobs with this policy by attracting an investment of 1 lakh crore. The state will open 20 new SEZ.
- It plans to open food processing industries along with giving easy loans for opening up 700 small scale production units.
- Under Mukhya Mantri Grammen Yojna, easy loans are given to open village industries for local markets.
- Opening up of Industrial Township at Faridabad and Kharkhoda. It will based on the lines of Industrial Model Township (IMT), Manesar that provides land, investment facilities, business establishments and housing facilities all at one place.
- Under this policy the state also provides facilities to MNC and other Indian companies to invest in Haryana.
State Government Initiatives for Industrial Development
The Haryana State Industrial Development Corporation (HSIDC) is the nodal agency of the state for development of industrial infrastructure. The corporation has successfully developed a number of Industrial Model Townships/Industrial Estates at strategic locations in the state and plans to develop such projects at new sites besides expansion of existing ones. Following initiatives are being taken by the state for the development of industrial infrastructure.
Special Economic Zone (SEZ)
Haryana has 8 notified Special Economic Zones (SEZs), 29 formally approved Special Economic Zones (SEZs) and 28 Special Economic Zones (SEZs) having in principle approval. It is appreciated widely for being the state with highest number of Special Economic Zones (SEZs) in the country. DLF SEZ at Gurugram and United SEZ at Rai (Sonipat) are notable. Reliance Haryana SEZ at Jhajjar is India’s largest SEZ project with a capital outlay of US $ 10 billion. Panchkula is developed as Nano City and IT corridor. The state has come out with Haryana Special Economic Zones Act, 2006, for facilitating development of Special Economic Zone (SEZs) in the state and framed rules thereunder.
Industrial Model Townships
The Haryana State Industrial Development Corporation (HSIDC) has developed an Industrial Model Township (IMT) at Manesar. More and more IMTs are being developed at Rohtak (3,800 acres), Faridabad (1,800 acres), Roz-ka-Meo (1,500 acres) and Kharkhoda (3,000 acres). Some regions of Haryana that lie within the
Delhi-Mumbai Industrial Corridor (DMIC) are also developed as industrial townships. They are Faridabad-Palwal, Rewari, Hisar, Kundli-Sonipat and Manesar-Bawal. These townships will have campuses for large industries, ICT parks, industrial plots, flatted factories, residential facilities, labour housing, commercial and institutional areas, entertainment zones, skill development, healthcare facilities, etc.
Inland Container Depot
The state has set up Inland Container Depot for providing the storage and warehouse facilities to businesses. It is set up at Faridabad, Rewari and Panipat. The Container Corporation of India is setting up a cold chain complex at Rai (Sonipat). In Bawal warehousing facilities are developed with public private partnership.
Gems and Jewellery Parks
These parks have been identified as an industry having good potential for development in the state. Government will develop a Gems and Jewellery Park Complex at Udyog Vihar (Gurugram) to promote this sector. It will be endeavour of the government to seek Special Economic Zone status for this park.
Haryana has established 103 industrial estates through its development agencies. The industrial estates in the state are developed by Haryana State Industrial Development Corporation (HSIDC), Haryana Urban Development Authority (HUDA) and private players. The important industrial estates are Kundli (Sonipat), Samalkha (Panipat), Tohana (Fatehabad) and Roz-ka-Meo (Gurugram).
The State Government has earmarked various regions for setting up production units of one kind. Panipat is developed as textile cluster, Gurugram as auto parts and Faridabad as light engineering. Rural areas are also developed as industrial clusters such as Ismailabad in Kurukshetra for Jute manufacturing, Farrukhnagar in Gurugram for cave formative, Odhi in Rewari for leather footwear, etc. A petrochemical complex is established at Panipat that caters to the production of petrochemical products. The state also plans to set up Nuclear plant at Faridabad.