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 three sides. Haryana is the second-largest contributor of food grains to India’s central pool. The state accounts for more than 60 per cent of the export of Basmati rice in the country.
It is the third-largest exporter of software and one of the preferred destinations for IT/ITeS facilities. During 2011–12, the state registered IT/ITeS exports of US$ 5.2 billion.
Haryana is one of the leading states in terms of industrial production; especially passenger cars, two-wheelers, mobile cranes and tractors. The Gurgaon–Manesar–Bawal belt has emerged as the auto hub of the country.
The state has emerged as a base for the knowledge industry, including IT and biotechnology. Many large Indian and multinational companies have set up offices in the state due to high-quality infrastructure and proximity to Delhi. Haryana has also emerged as a manufacturing hub with immense scope for the development of the micro, small and medium enterprise (MSME) sector. The state has adopted a cluster-based development approach to promote industries such as IT, textiles, food and handlooms.
Haryana has a stable political environment. Successive state governments have been committed to creating a progressive business environment. At current prices, the total gross state domestic product (GSDP) of Haryana was about US$ 64.6 billion in 2012–13. The state offers a wide range of fiscal and policy incentives for businesses under the Industrial and Investment Policy, 2011. Additionally, it has sector-specific policies, particularly for IT and tourism.