Industrial Development & Economic Growth in Chandigarh
Chandigarh is located at the foothills of the Shivalik hills range in the north and is the capital of Haryana and Punjab. Foundation of the city was laid out in 1952 but assumed its status of capital of Haryana and Punjab during the state reorganization in 1966. Apart from being the capital of Haryana and Punjab, the city is also a Union Territory and hence is governed by central government.
Chandigarh’s Gross State Domestic Product (GSDP) was Rs. 4,211,386.00 million (US$ 6,025.73 million) in 2018-19, rising at a CAGR of 12.89% between 2015-16 and 2018-19. Chandigarh’s Net State Domestic Product (NSDP) was Rs. 359,026.94 (US$ 5,137.03) in 2018-19.
The State Government of Chandigarh has been committed to creating a progressive business environment. The state offers a wide range of fiscal and policy incentives for businesses under the Chandigarh Industrial Policy, 2015. The Chandigarh Administration is focusing on promoting the ‘Information Technology’ (IT) industry, which requires lesser space. To develop the associated ecosystem, the government has developed high speed data communication facilities for software development and its export by providing a NODE at Punjab Engineering College (PEC), Chandigarh, by collaborating with the Software Technology Parks of India (STPI).
- Out of the total union budget 2021-22, a major chunk of Rs. 950.41 crore (US$ 130.57 million) has been allocated for next fiscal year for Housing and Urban Development including the smart city project.
- Total merchandise exports from the state stood at US$ 76.54 million in 2019-20. As of January 2021, exports from the state stood at US$ 62.04 million in FY21. The key items exported from Chandigarh are industrial machinery, telecom instruments, engineering products, and electronics components.
- In 2019-20, Chandigarh exported industrial machinery for dairy worth US$ 21.74 million, followed by electronic equipment worth US$ 7.88 million and other miscellaneous engineering products worth US$ 7.45 million.
- In October 2020, Hartek Power Private Ltd., an Engineering, Procurement and Construction (EPC) company based in Chandigarh, bagged orders worth Rs 8.05 crore (US$ 1.09 million) from the Electricity Department of Chandigarh.
- In December 2020, Chandigarh administration announced to hire 40 AC electric buses for a period of 10 years to improve the air quality of the city.
- In April 2021, Chandigarh’s administration has decided to expand the IT industry in the Industrial Area. According to the Chandigarh Export Promotion Plan, the union territory will allow IT-based industry, including software and electronics hardware, to set up their units, but any activity entailing direct customer interface would not be allowed.
- There are many units manufacturing agricultural equipment, tractor components, auto parts, tyres & tubes, electric meters, electronic items, cables and engineering items operating in Chandigarh.
- Basic metal and metal alloy industries are among the leading industries in this sector in Chandigarh. Metal products such as bars, rods of steel & rolled products and HR strips are some examples.
- Chandigarh industrial area is also home to several pharmaceutical manufacturing companies such as Pfizer and Ind Swift.
- ~ 40% of all industries in Chandigarh are ancillary units manufacturing components for the tractor industry.
- Other industrial units are mainly into manufacturing of industrial fasteners, electrical / electronic items, machine tools, pharmaceuticals, plastic goods, sanitary fittings, steel / wooden furniture and food products etc.
Note: * - 1st Advance Estimates, P - Provisional, ^-3rd advance estimate