Gurgaon garners 70% share in investments attracted by Haryana

Tribune News Service

Gurgaon, October 9

With investments worth Rs 3.5 lakh crore, Gurgaon has accounted for almost 70% of the total inflow of Rs 5 lakh crore attracted by Haryana till the last fiscal (FY 2014-15), according to a study by Assocham.

Besides, robust industrial development in Gurgaon during the 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, the study found.

Gurgaon has also registered faster implementation of investment projects as almost 95% of these projects are under different stages of implementation while only about 5% of investment projects have remained non-starter, highlighted the study.

“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), ITeS, mechanical, electrical, textile, chemical and other sectors,” Assocham secretary general DS Rawat said.

“Gurgaon is a face of development not just for the state but the entire nation and we want its contribution to be recognised,” he said.

However, Faridabad’s share in total investment attracted by Haryana has remained less than even 1% during the past 20 years. Besides, projects comprising over 93% of investments attracted by Faridabad remained non-starter till 2014-15.

Gurgaon’s share in the number of people employed in factories had increased by over five times i.e. from about 6% in 1991 to about 32% in 2013 while share of Faridabad in this regard had declined from over 45% to 25.5%, the study pointed out.

Share of Gurgaon in exports from Haryana has also increased significantly from 38.5% in 1997-98 to 62.5% in 2013-14 while that of Faridabad had declined from about 7% to about 3%.

In terms of revenue generation for the state exchequer, Gurgaon’s share in total value added tax collected by the Haryana Government had increased from 5.5% in 1990-91 to about 24% in 2012-13 while the share of Faridabad declined from 20% to about 17%.

In terms of contribution to central sales tax, Gurgaon’s share has increased from 21% to about 26% while Faridabad’s contribution in this regard has almost halved from 30.5% to 15%.