India, Mumbai -28th January, 2014 – Frost & Sullivan, a global consulting company jointly conducted a study with The Associated Chambers of Commerce and Industry of India (ASSOCHAM) on Haryana’s scope and capability as a state to grow beyond its boundaries. The study titled ‘Haryana: Emerging As The Pioneer Knowledge State of India’ revealed that Haryana may emerge as India’s leading Knowledge State by promoting innovation centers of excellence for specific sectors and by promoting industrial development replicating its success story in the auto sector across other priority industries such as electronics, agriculture, food processing and healthcare.
Mr. V G Ramakrishnan, Managing Director, South Asia, Frost & Sullivan said “Haryana, as a state with existing high growth statistics, is poised for further growth given its proximity to the National Capital, and the abundance of local labor. The state has demonstrated equivalent growth in the primary, secondary, as well as tertiary sectors indicating that holistic growth is likely to continue in the future. The focus now needs to shift towards inclusive growth to ensure economic development for all strata of society. ”
The state possesses inherent strengths in sectors such as Auto, ICT, Pharma, Textiles and certain Agro based industries. Given the ongoing development initiatives in social and industrial infrastructure, MSME promotion, education and R&D, immense growth opportunities are foreseen for this dynamic state in the areas of electronics, entertainment, retail, horticulture, service industry, and sports-led industries.
“These sectors can have substantial impact in the development of the state’s rural economy thereby revolutionizing the way rural people live, think, and above all survive and this rural revolution will go a long way in contributing towards economic and inclusive growth”, Mr. Ramakrishnan added.
“Cluster approach for industrial development is expected to usher huge opportunities in the high tech sector for Haryana,” said Mr D.S. Rawat, National Secretary General of ASSOCHAM while releasing the study at a press conference held here in Chandigarh today.
“Besides, Haryana’s vantage geographic position is influencing rapid industrial development ably supported by an enabling policy environment” said Mr. Rawat. “Beyond just the manufacturing sector, the state’s proximity to other developed/developing industries across the NCR region and the DMIC belt is favoring setting up of many ancillary and supporting industries in Haryana including the service sector”.
There is an urgent need for Haryana to improve its performance vis-à-vis various social indicators as the growth in industries in both public and private sectors needs to be supported by significant developments required in areas of education, health, hygiene and others, highlighted the ASSOCHAM-Frost & Sullivan study. “Growth of Haryana as a preferred investment destination for both domestic and global investors would remain restrained without a strong social infrastructure and social inclusion”, Mr. Rawat added.
As Haryana is home to numerous small, medium and large electronics organizations operating across the electronics system design and manufacturing (ESDM) industry value chain from semiconductor design companies, to electronic component companies, to product manufacturers to electronics manufacturing services (EMS) companies, newer avenues for investments either in Greenfield or Brownfield projects need to be explored. With regards to R&D, the state needs to accord priority to initiatives in development and application of frontier technologies like Nano technology, development of new materials, genetics, biotechnology, chip manufacturing, communications technology, mobile computing, robotics, energy saving and development of new sources of energy and others.
Though, Haryana’s economic growth has been exemplary since it was created in 1966, the state government needs to focus on initiatives that enable overall economic and social development of the state. The state government needs private sector participation to lure investment in healthcare sector to facilitate establishment of quality healthcare institutions within the framework of set standards and norms.
“Building on its existing strengths in the medical segment, locational advantage of the state creates opportunities for attracting investments to facilitate establishment of quality healthcare institutions,” highlighted the ASSOCHAM-Frost & Sullivan study. “Opportunities are ample for the private sector to supplement and complement state government’s efforts in providing quality healthcare facilities through specialty and super specialty hospitals and state-of-the art diagnostic facilities at the tertiary level. Further, the State also has the potential for development as a centre for medical tourism.”
There is an need to improve the quality of public education system by increasing the number of good quality higher education institutions across Haryana on the basis of public-private partnership (PPP) mode, further added the study.
Considering that foreign tourist arrivals in Haryana has been low and the state even does not figure in top 10 states attracting domestic tourists, the state government needs to focus on making tourism in Haryana a blooming industry. “A comprehensive tourism marketing program for tourism promotion, appointment of a state’s brand ambassador, promoting concepts like golf, medical tourism and other theme-based programs are certain strategies the state government may follow in this regard”.
Highlighting certain potential business opportunities in further developing the food processing sector in Haryana, ASSOCHAM-Frost & Sullivan study has suggested the state to establish cold chains, provide pre-cooling facilities to farmers as a service, cold chains in terminal markets and improving the retail marketing arrangements on a priority basis.
In the auto and auto components industry, the study has asserted that establishment of a Logistics Centre Facility in PPP mode or through the private sector in IMT Manesar for efficient inventory management and dispatches by the industries is an opportunity to capitalize on.
Similarly, there are plenty of opportunities in the textiles and garments sector especially in the SMEs due to abundant availability of raw materials and presence of a large number of garment manufacturing units.
Besides, there are immense opportunities in and around Panipat for the development of downstream industries as this is an area that remains untapped and is expected to attract investors in the future. “Haryana government, in collaboration with the Central Government, aims to set up ‘Central Institute of Plastic and Engineering Technology’ in Murthal (district Sonipat) to undertake R&D and create skilled manpower for the development of petrochemicals industry, this is seen as an influencer to attract investments” the ASSOCHAM-Frost & Sullivan study noted.
