Investment in Haryana state, India

Haryana is located in the Kuru region of Northern India with New Delhi as its neighbor that gives it its suitability as an investment haven; its capital is Chandigarh. Haryana’s economy largely depends on agriculture with about 70% of its population practicing farming and wheat and rice are its major crops. It is ranked third in India amongst the top industrialized states in per capita value addition and the sixth in the register of Industrial Entrepreneurship Memoranda (IEMs) but ranked first in implementation of IEMs. Additionally, it is ranked fourth as per the infrastructure index developed by the CMIE and is a top agrarian state that contributes substantial amounts to the national grain food pool in wheat, rice, coarse cereals and pulses.

 

The state’s government enacted the Haryana Industrial Promotion Act, 2006 that framed its industrial rules of investments. As part of industrial investment promotion to facilitate industries, the government adopted a single window industrial interface by introducing the Composite Application Form whose aim is to provide single point time bound clearances required for the establishment and operation of industrial undertakings in the state. Faridabad is a big industrial part of Haryana and home to industrial giants like Orient fans, JCB India Ltd, Agri Machinery, India Yamaha Motor Pvt Ltd etc; together with other thousands of small scale industrial units like Amrit Enterprises and McAma Industries.  About 50% of India’s motorcycles come from Haryana.

 

The Haryana State Industrial and Infrastructure Development Limited (HSIIDC) organized a business contact program which reported that 17 term loan proposals worth Rs 80 crore were contemplated during the meeting. If implemented, these projects are likely to catalyze an investment of over Rs 160 crore besides generating valuable employment and revenue for the state’s exchequer. Aimed at providing term loan assistance, disseminating financial and services information, the business meeting received financial assistance proposals from various companies. Many entrepreneurs and prominent industrialists were invited for discussions with their proposals that seek financial assistance from the HSIIDC for their new projects, corporate loans, equipment finance and working capital term loans, industrial and infrastructural development loans.

 

The state’s government took several measures aimed at boosting the Sugar industry that is crucial in the state’s economy. The government will revise the price of sugarcane to Rs 185 per quintal for early varieties, Rs 180 per quintal for mid varieties and Rs 175 per quintal for the late maturing varieties. This revision is aimed at ensuring that both farmers and sugar millers benefit in production and processing of this commodity. It further announced that sugarcane prices in 2010/2011 be hiked.