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Industrial Development & Economic Growth in Haryana

Latest update: March, 2020

Economic Snapshot
Per capita Income


March, 2020

Haryana is one of the leading states in terms of industrial production, especially passenger cars, two- wheelers, mobile cranes and tractors. Haryana is the second-largest contributor of food grains to India’s central pool and accounts for more than 60 per cent of the export of Basmati rice in the country, third- largest exporter of software and one of the preferred destinations for IT/ITeS facilities.

Between FY12-20, the state’s GSDP (in Rs) grew at a CAGR of 13.63 per cent to Rs 7.85 trillion (US$ 112.31 billion) in 2019-20. The state accounted for 7.28 per cent of India’s agricultural exports in FY19. Merchandise exports from Haryana reached US$ 13.83 billion in FY19 and US$ 8.91 billion during April-December 2019.

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, 60 per cent of motorcycles and 50 per cent of the refrigerators manufactured in the country. Automobiles and auto component exports from Haryana were around US$ 945 million in FY19 and have reached US$ 835.04 million between Apr-Dec 2019.

Exports of electric machinery and equipment for Haryana reached US$ 1.41 billion in FY19 and US$ 261.56 million between Apr-Dec 2019.

As of February 2020, Haryana had a total installed power generation capacity of 12,500.44 MW; of which, 5557.78 MW by the private sector, 3,139.30 MW was contributed by the state and 3803.36 MW by the central sector.

The state has invested in the development of world class infrastructure facilities such as special economic zones (SEZs), Kundli-Manesar-Palwal (KMP) global corridor and Delhi - Mumbai Industrial Corridor (DMIC). Haryana enjoys a locational advantage, with nearly one-third of the state’s area under the National Capital Region (NCR), a prominent trade and consumption centre.

The state offers a wide range of fiscal and policy incentives for businesses under the Industrial and Investment Policy, 2011. Moreover, it has sector-specific policies, particularly for IT and tourism. The Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC) is the state's premier industrial promotion and investment facilitation agency, responsible for providing reliable and efficient facilities for entrepreneurs investing in the state.

The state has taken a number of steps for developing industrial infrastructure to achieve consistent economic growth. The following are some of the initiatives:

  • Haryana agriculture minister launched Krishi Kiosk online service for farmers, will provide information about government current and upcoming schemes also help them to file claim under the Pradhan Mantri Fasal Yojana.
  • State government shall create the panel of good designers and subsidise the retainer fee paid by khadi institutions in 2019.
  •  HSIIDC has developed a number of industrial estates, industrial model townships (IMT) and specialised parks for cluster development.
  • An industrial model township is under-construction at Manesar, near Gurgaon. The region is being developed as an automotive and engineering hub.
  • The Kundli-Manesar-Palwal (KMP) Expressway was inaugurated in November 2018.
  • The state government has also come out with notified the Haryana Agri-Business and Food Processing Policy 2018.
  • 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 state invested in the development of world class infrastructure facilities such as special economic zones (SEZs), Kundli-Manesar-Palwal (KMP) global corridor and Delhi-Mumbai Industrial Corridor (DMIC).
  • The International Centre for Automotive Technology (ICAT) has been set up at Manesar as a part of the National Automotive Testing and R&D Infrastructure Project (NATRiP). It provides testing and R&D services to the industry.
  • As of November 2019, the state had seven exporting Special Economic Zones.
  • The state government has extended various incentives to companies within the sector, including relaxation in floor area ratio, rebate on registration, transfer of property charges and exemption under the Haryana Shop & Commercial Act.
  • Haryana is the first state to have implemented its Statewide Area Network (SWAN) for voice, data and video transmission.
  • The state government has established a Regional Centre for Biotechnology (RCB), Gurgaon under the guidance of UNESCO as a Category II Centre.

Note: A – Advance estimates

Haryana State Presentation

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