Work-in-progress: Towards a healthier, more prosperous and egalitarian Haryana

By

Randeep Wadehra

With one of the highest per capita incomes in the country – estimated to be about Rs. 69,000/- at current prices – Haryana is truly one of the most prosperous states. But the road to this prosperity wasn’t an easy one. Although many point out that its proximity to the national capital has been a major factor contributing to Haryana’s phenomenal progress there is really no alternative to hard work and wise planning. It would be pertinent to mention here that the parts of Haryana around Delhi have witnessed a surge in various economic activities and Gurgaon has emerged as one of the most vibrant suburban townships of Delhi.

Ever since its formation, the successive governments in Haryana have been laying strong stress on agricultural development. Consequently, today about 84% of the agricultural land is having access to various means of irrigation. Moreover multi-cropping is now a familiar phenomenon. Similarly, allied agricultural activities, which constitute the State’s primary sector like fisheries, livestock, forestry and mining, too, have shown impressive progress. No wonder the primary sector’s total contribution to the Gross State Domestic Product (GSDP) has been increasing steadily over the years even though its share has been decreasing in percentage terms – it shall be explained subsequently in this article as to why this is a positive indicator. Suffice to say that Haryana, being the second largest contributor to agricultural production, remains the granary of India. It is the largest exporter of Basmati rice. The per capita availability of milk is 673 grams – far ahead of the national average of 252 grams. The milk production increased from 3.65 lakh litres in 2004-05 to more than 5.20 lakh litres in 2009-10.

The government has been giving a very focused attention to the state’s industrial and infrastructural development too. Therefore, the secondary sector’s contribution to GSDP has increased in a very impressive manner. As we know, the secondary sector comprises manufacturing, construction, electricity, gas and water supply segments. Similarly, the tertiary sector – comprising trade, transport, banking, ownership of dwellings, public administration and other services – has registered impressive rates of growth rate.

Although agriculture still forms the backbone of Haryana’s economy its share in the GSDP has been constantly declining over the years. From about 32% in 1999-2000 the primary sector’s contribution to the GSDP has come down to about 20%. On the other hand the manufacturing sector’s share has risen from 28% to 29% and that of the tertiary sector from 40 % to 51%. This is not a bad sign. It points to the state’s progress in those fields that have greater potential to generate employment. After all, greater number of jobs will ensure a better standard of living for all. Furthermore, with the growth of secondary and tertiary sectors the pressure on agricultural land for employment would decline. This, in turn, would make agriculture an economically more viable sector as the per capita productivity of labour would improve. Additionally, with the setting up of agro-industries the economic and technological spin-offs would be rich indeed. As the per capita productivity increases the surplus income too would increase proportionately thus enriching the farmers and farm-hands alike.

Moreover, the industrial/manufacturing sector has made impressive progress. It is a leading producer of automobiles and automotive components. It has over 1,100 big and medium industrial units, chief among them being Maruti Udyog, Bharti Telecom, Hero Honda, Sony, Whirlpool, Escorts, Benetton, TDT Copper, Modi Alcatel and Carrier Aircon etc.  In India, there are around 250 large and medium original equipment manufacturing units of which Haryana has about 50 such units. The industrial performance recorded in Haryana over the past few years has been quite encouraging. The state accounts for about 70% of passenger cars, 50 per cent of tractors, 60 per cent of motor cycles, 50 per cent of refrigerators and 25 per cent of sanitary-ware manufactured in the country. It has several units of small scale industries that account for about 25 percent of the state's production.  All this translates into a vibrant economy with strong fundamentals.

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