A

Project Report On

Macro Economic Analysis

of

Haryana

by

Chirag Shah

Under Guidance Of

Prof. Surta Mehta(Visiting Faculty Member)

At

Xcellon Institute – School of BusinessAhmedabad.

Year 2012-2013

Map :

Capital : ChandigarhArea : 44,212 Sq. Km.Total Population : 25.3 MillionLiteracy Rate : 76.6 %

Profile of Haryana :

Haryana is a landlocked state in northern India, surrounded by Punjab and Himachal Pradesh to the north and Rajasthan to the west and south. Its eastern border touches Uttaranchal & Uttar Pradesh which is defined by river Yamuna. The state also surrounds Delhi on three sides, forming the northern, western and southern borders of Delhi. A large area of the state is included in the National Capital Region (NCR). Two emerging cities - Gurgaon and Faridabad are close to Delhi and major hubs for IT and software industry.

It is one of the most agrarian states in India covered with greenery all around. The state is famous for wheat and milk production. The vast plains that stretch between river Indus and Gangetic belt have fertile soil and hence have improved the crop productivity of the country. The industrial revolution in the state can not be overlooked. It is also home to Maruti Udyog Limited, India's largest automobile manufacturer, and Hero Honda Limited, the world's largest manufacturer of two-wheelers.

Haryanvis (people of Haryana) are simple, straight-forward, enterprising and hard-working. Preserving their old religious and social traditions; they celebrate festivals in traditional fervor. Above all, it is the hospitality of the people which attracts people from across the globe to explore the state with nosiness. 

Capital : Chandigarh

Chief Minister : Bhupinder Singh Hooda

Population : Approx 3 Crore

Current GDP : $ 56.120 bn

GDP par capita : $ 2009

Largest City : Faridabad

GSDP Graph:

Economy Growth Graph:

Economic Sectors : Manufacturing

Yamuna Nagar is the largest industrial town wholly within Haryana. It has Asia's largest paper mill, BILT and Asia's largest sugar mill. Yamuna Nagar has Asia's largest timber industry, an HPGCL thermal power plant, a hydro power plant and India's largest railway workshop. It is also famous for its old steel and brass industries.

Bahadurgarh is an important developing industrial town with glass, steel, tiles manufacturing and biscuits production.

Panipat is a city of textiles and carpets. It is the biggest centre for cheap blankets and carpets in India

Ambala is the largest manufacturer of scientific apparatuses. It is named 'Science City' of Haryana. Ambala is one of the biggest exporters of education instruments in the country

Service IndustriesGurgaon has seen emergence of an active information technology industry in the

recent years. A number of large international companies have their Indian headquarters or branch offices and contact centers in Gurgaon, including Nokia Siemens Networks, Mitsubishi Electric, General Electric, IBM, Huawei, and Tata Consultancy Services.

Agriculture  Haryana is primarily an agricultural state. About 70% of residents are engaged in

agriculture Wheat and rice are the major crops. Haryana is self-sufficient in food production and the second largest contributor to India's central pool of food grains. The main crops of Haryana are wheat, rice, sugarcane, cotton, oilseeds, pulses, barley, maize, millet etc. There are two main types of crops in Haryana: Rabi and Kharif. The major Kharif crops of Haryana are rice, jowar, bajra, maize, cotton, jute, sugarcane, sesame and groundnut. 

Dairy farming is also an essential part of the rural economy. Haryana has a livestock population of 98.97 lakh.[25] Milk and milk products form an essential part of the local diet. There is the saying Desaan main des Haryana, jit doodh dahi ka khaana, which means "Best among all the countries in the world is Haryana, where the staple food is milk and yoghurt". Haryana, with 660 grams of availability of milk per capita per day, ranks at number two in the country as against the national average of 232 grams

Roads, Aviation & InfrastructureIt has a total road length of 23,684 kilometers. There are 29 national

highways with total length of 1,461 km and many state highways with total length of 2,494 km. The most remote parts of the state are linked with metaled roads. Its modern bus fleet of 3,864 buses covers a distance of 1.15 million Kilometers per day. It was the

first State in the country to introduce luxury video coaches.[29] Grand Trunk Road, commonly abbreviated to GT Road, is one of South Asia's oldest and longest major roads. It passes through the districts of Sonipat, Panipat, Karnal, Kurukshetra and Ambala in north Haryana where it enters Delhi and subsequently the industrial town of Faridabad on its way. The state government proposes to construct Express highways and freeways for speedier vehicular traffic. The 135.6-km long Kundli-Manesar-Palwal Expressway(KMP) will provide a high-speed link to northern Haryana with its southern districts such as Sonepat, Gurgaon, Jhajjar and Faridabad. The work on the project has already started and is scheduled to be completed by July 2013.[30] Haryana is in close contact with the cosmopolitan world, being right next to Delhi. As a result, international and domestic airports, diplomatic and commercial complexes are located in close proximity to the state. Haryana and Delhi government has also constructed Delhi-Gurgaon Expressway which has the largest toll plaza in Asia and 3rd largest in the world. There is a proposal for a Badarpur Flyover and the widening of the Mathura Road passing through Faridabad from 6 lanes to 8 lanes. There is also a proposal to connect Chandigarh to Haryana without entering Punjab through a 4-lane highway via Yamuna Nagar and Panchkula. Delhi Metro Rail Corporation connects Gurgaon with Delhi and it will connect Faridabad and Bahadurgarh by 2014 and 2016 respectively

Population Graph :

Economic Analysis of India :

The Indian economy expanded at 6.9% in fiscal year 2011-12, its slowest pace in last three years.

The government expects a better showing in 2012-13 and has pegged groeth at 7.6% for the new fiscal year.

Manufacturing sector expansion slowed for a third month in March as growth in new orders eased and costs for raw materials kept rising, a business survey showed.

Growth in the Indian services sector slipped to a five-month low in March as optimism about the business outlook in the coming year faded to its weakest level since 2009, a survey showed last week.

India’s headline inflation edged up to 6.95% in February on higher food costs. The Reserve Bank of India is widely expected to cut repo rate – the main policy rate – by

25 basis points to 8.25% to spur growth when it reviews policy next Tuesday. The RBI has already cut banks’ reserve requirement by 125 basis points in two moves since

late January, making more money available for lending.

Major Industries:

Automobile & Auto Parts Industry Bicycles Industry Tractors Industry Machinery Industry Consumer Durable Industry Handloom & Handicrafts Industry Sanitary ware & Glassware Industry Scientific Instruments Industry

Strength of the Haryana: Roads

National Highway No.1, with four-laning half-way complete, passes through Haryana from Delhi to Ambala, linking Punjab, H.P. and  J&K. National Highway No.2, (Delhi-Mathura Road), with four-laning in progress passing through Faridabad and linking vast areas to U.P., M.P. etc. right up to Bombay.National Highway No.8 (Delhi-Jaipur Highway), four-laning already taken in hand, passes through prestigious industrial estate Gurgaon, Industrial Model Township Manesar, and Growth Centre Bawal and linking vast areas right upto Ahemdabad and Bombay.

Power

The total power availability to the state was 1269 Million Units during 1997-98 and 1341 Million Units. During 1998-99. The average power availability has increased from 348 LU/day during 1997-98 to 367 LU/day during 1998-99.A record power supply of 518.40 LU was recorded on 25.09.1999 compared to the highest figure of 452.05 LU supplied during 1998-99 on a single day on 09.08.1998.The construction of  210 MW unit No. 6 at Panipat Thermal Power Station is in full swing and is expected  to be completed by December 2000

Rail Amritsar-Delhi Rewari-Ahamdabad Bhiwani-Rohtak-Delhi Ambala-Ferozepur Delhi-Ferozepur Kalka-Jodhpur Kalka-Hawrah Amritsar-Hawrah Delhi-Shimla

Financial Service Term Loans Merchant Banking Equipment Refinance Scheme Leasing National Equity Fund

Advantage of the Haryana Economy:

The state provides excellent infrastructure facilities such as well developed roads, railways, industrial estates, technical institutes, commercial markets, and communication network.

The state provides a well developed system of banking with more than 4500 branches of banks.

The state has adopted policies that are investor friendly. The state has a very efficient administrative system which tries to make it easy for the

investors to make investments in the state. The state provides abundant supply of skilled manpower. The state provides residential and corporate estates that are of world class standards. It is India's largest producer of automobile spare parts. It is home to Maruti Udyog Ltd., India's largest automobile manufacturer and Hero Honda

Ltd, the world's largest manufacturer of two wheelers.

The state also has the distinction of producing the largest number of tractors in the country.

The state has been able to attract investment of Rs 59000 crores during the last about six years and another Rs 1 Lakh crore is in the pipeline.

The state has a stable political environment with single party State Government. As per the CMIE report of 2007, Haryana achieved the top position of per capita

investment at Rs 78,500/-, moving 13 places from 14th position it had in the year 2002. With strong economic indicators viz; GDP growth rate of 9.9% during 2009-10 and one of

the highest per capita income, Haryana offers a number of opportunities for the investors to invest and grow. Primary Sector contributed 19.7%, Secondary Sector 29.2% and Tertiary Sector 51.1% to the State Gross Domestic Product.

Haryana is at Second position in food grain production in the country. Wheat and rice are the major crops. Haryana is self-sufficient in food production and the second largest contributor to India's central pool of food grains. The main crops of Haryana are Wheat, Rice, Sugarcane, Coton, Oilseeds, Gram Barley, Corn, Millet etc.

Special Economic Zones (SEZs) Act passed. 20 SEZs with an investment of Rs. 87,000 crore to be set up. Ten SEZs already approved by Central Government.

2nd largest contributor of wheat to the national pool. 3rd largest contributor of rice to the national pool. First in the country to achieve 100% electrification. First in the country to link all villages with all weather roads. First in the country to provide safe drinking water facilities throughout the state.

Other advantages of the Haryana :

Excellent law and order situation Responsive and supportive administrative set up Excellent law and order situation Simplified and transparent procedures for investment Hardworking, educated and skilled workforce Excellent transportation facility (roads, rail and airways) Reliable power and communication network Well developed industrial estates Good banking and financing services Home to modern technical and educational institutions Large manufacturing capabilities and market base Efficient and strong presence of private sector etc.

Weaknesses of the Haryana Economy: The female literacy rate is 23% less than male literacy rate. The urban population is 29% of the total population.

The sex ratio is 877 females per 1000 males. There is no any international airport in Haryana. The maternal mortality ratio of 2007-09, 153 death per lakh live birth. The number of vehicle registered is 5,55,894 while number of vehicles on road are

53,77,003.

Most Promising Sectors : Haryana is 2nd rank in milk production in the country. Haryana’s most promising sector is IT. The government of Haryana introduced plans of

Rs. 50 crore for development. Gurgaon has seen emergence of an active information technology industry in the recent

years. The state is second largest contributor to India’s central pool of food grains. Haryana is the largest producer of the automotive components. In India, there are 250 large & medium original equipment manufacturing units out of

which 50 units are with Haryana. The government’s policy has been attracted to both domestic and international investors

in various sectors of the economy like automotive, automobile parts, telecommunication equipment, electrical goods, software development, hardware, sports goods, rubber products, textiles, light engineering goods, pharmaceuticals, food items, consumer durables, footwear and chemicals.

Mainly Sectors :

Manufacturing Sector Power Sector Agricultural Sector Automobile Sector IT Sector Service Sector

Economic factors which affect the decision :

Growth in GDP, (%)

Lending rate, (%) Inflation, (%) Exchange rate change, (%) Oil Production (bbl / day) Population Railways (km) Highways (km) Electricity Production (kwh / year) Unemployment rate, (%) Income, (GNI: Gross National Income) Starting business, (days) Enforcing contract, (days)

Economic Sector Graph :

Bibliography :

http://www.haryanaonline.in/About/profile/index.html http://business.mapsofindia.com/fdi-india/states/haryana-economy.html

http://profit.ndtv.com/news/corporates/article-india-s-economic-scenario-top-facts-301761

http://www.haryanainvest.org/advantage-haryana.php http://haryanahighway.com/Haryana/agriculture.htm http://www.haryanainvest.org/general-information.php http://pppinindia.com/state-economy-haryana.php http://business.gov.in/investment_incentives/haryana.php http://www.economywatch.com/stateprofiles/haryana/economic-infrastructure.html http://www.rbi.org.in/scripts/images/IIECRE220812_30.gif http://business.gov.in/investment_incentives/state_level_invest.php