Haryana highly progressive, says CII study

A study on emerging trends in gross state domestic product for northern states, done by the Confederation of Indian Industry (CII), northern region, says the share of the industrial sector in the gross domestic product of the northern region increased at 2 per cent in 2003-2004, as compared with 0.7 per cent in 1993-94.

The northern region in the study comprises the Union Territory of Chandigarh, and the eight states of Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh, and Uttaranchal.

The industrial sector, which comprises manufacturing, construction, power, and water, grew by 5.4 per cent over the period in the region. Construction enjoyed the highest growth rate of 6.1 per cent, manufacturing 5.3 per cent, and power and water 4.1 per cent. In absolute terms, the industrial sector grew from Rs 47,556 crore in 1993-94 to Rs 80,434 crore in 2003-04.

Haryana has been one of the most rapidly evolving states in the region, changing from an agrarian economy to a service-oriented economy. In the state, services increased their share from 31per cent to 42 per cent, while the share of agriculture and allied sectors fell from 43 per cent to 30 per cent.

Punjab has also shown similar trends, though it is still more agrarian than its neighbouring state, Haryana, with nearly 40 per cent of GDP coming from the agriculture and allied sectors in 2003-04.

Himachal Pradesh too has begun to mature into an industrialised state, from being a predominantly agrarian one. The industrial sector has increased its share in the Himachal economy by nine percentage points (27 per cent to 36 per cent) over the period.

The study also revealed that the northern region's share of agriculture and allied sub-sectors of forestry and logging; mining and quarrying; and fishing, and service sub-sectors of banking and insurance, and communications had increased in the country's economy over the period.

In the state-level analysis, Delhi has increased its share in the region's GDP from 10.2 per cent to 14 per cent over the decade. Chandigarh recorded the highest CAGR of 8.9 per cent per annum among the northern states over the period.

Among other northern states, GDP in Delhi, Haryana, Himachal Pradesh, and Rajasthan has grown at a higher rate than the country's average over the decade.