With live investments of Rs 3.5 lakh crore, Gurgaon accounted for almost 70 per cent of the total investments — worth Rs. five lakh crore — attracted by Haryana till the last fiscal year (2014-15), says a study conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
The study titled ‘Haryana’s economy: Gurgaon grows & Faridabad falters’ notes: “Besides, robust industrial development in Gurgaon during past two decades has increased its share in total tax collected by Haryana by almost 200 times i.e. from just about Rs. 17.5 crore in 1990-91 to over Rs. 3,445.5 crore in 2012-13”.
“Gurgaon has also registered faster implementation of investment projects, as almost 95 per cent of these projects are under different stages of implementation, while only about five per cent of investment projects have remained non-starters,” said the study that was jointly released by P.K. Jain (Chairman, ASSOCHAM National Council on micro, small and medium enterprises) and D.S. Rawat (Secretary General, ASSOCHAM).
“If another futuristic city can be created on the lines of Gurgaon, which is often known as a ‘symbol of rising new India’, it will help increase Haryana’s revenues by more than three times its current level,” said Mr. Rawat.
“Factors like availability of skilled manpower and proximity to strong consumption markets in north India have helped Gurgaon evolve as a manufacturing and industrial hub, attracting investments mainly from private sector in information technology (IT), information technology enabled services (ITeS), mechanical, electrical, textile, chemical and other sectors,” he added.
The ASSOCHAM study, prepared by the Economic Research Bureau (AERB), has showed how the evolution of Gurgaon toppled Faridabad as a major contributor to Haryana’s economic progress.
Faridabad’s share in total investments attracted by the State has been less than 1 per cent in the last two decades.
Besides, projects comprising over 93 per cent of investments attracted by Faridabad remained non-starters till 2014-15.
The rate of development of factories in Gurgaon has been faster than that in Faridabad.
In fact, Gurgaon’s registered factories contribution to Haryana had increased from about six per cent in 1991 to about 19 per cent in 2013, while Faridabad’s contribution had declined from 29 per cent to about 22 per cent during this period, says the study.
Gurgaon’s share in the number of people employed in factories had increased by over five times, i.e. from about six per cent in 1991 to about 32 per cent in 2013, while Faridabad’s share has declined from over 45 per cent tow 25.5 per cent.
Similarly, the share of Gurgaon in exports has increased significantly from 38.5 per cent in 1997-98 to 62.5 per cent in 2013-14, while that of Faridabad had declined from about seven per cent to about three per cent.
In terms of revenue generation for the State, Gurgaon’s share in the total Value Added Tax collected increased from 5.5 per cent in 1990-91 to about 24 per cent in 2012-13. Faridabad’s share decline from 20 per cent to about 17 per cent.
However, Mr. Jain cautioned that the infrastructure of the city was not at par with the investment it attracted.
An ASSOCHAM study shows how Gurgaon has toppled Faridabad
as a major contributor
to economic progress
in Haryana, but requires infrastructure on par with the investment it attracts for the State
