Mainstream WeeklyHaryana is one of the fastest-developing states of India, and it has been politically vibrant too due to its location around the National Capital. It was carved from erstwhile Punjab on 1st November 1966 and at that time, its territory was relatively lagging in agriculture, industry and even services from the combined Punjab But after becoming a separate state, its growth rate has surpassed most of other states, including neighbour Punjab, due to the octopus spirit of some of its leaders. After a short lived administrative turmoil and political chaos, it was ruled with firm hand of a Chief Minister Bansi Lal who has an insatiable hunger to make Haryana number one states in India.
Under his visionary leadership, Haryana was the first state to achieve 100 per cent electrification and road connectivity in the early 1970s. The availability of electricity in rural areas enabled the installation of tube wells and sprinkler irrigation systems, especially in its rain-fed southern part. It gave a boost to the agricultural growth in the state and brought it on par with its neighbour, Punjab. Piped drinking water was made available throughout the state in 1970s, especially in areas with hard groundwater. The Haryanavi Song, ‘Tosham, Bhiwani and Mahu ki Dhani, pive pani Nalka Ka” still thrills the old people who know its earlier problem. Even an unthinkable canal lift irrigation Project was implemented in southern Haryana, which accelerated growth of agriculture, animal husbandry and improved the environment and groundwater quality in rain-fed areas. Horticultural and dairy development were also encouraged with subsidy support from State and Central governments and bank credit since the 1980s.
The setting up of the Maruti Plant in 1981 in Gurgaon (Now Gurugram) may be termed as a harbinger of industrial development in the State. Its ancillaries and other industrial units followed thereafter in the State. Later on, Honda and Hero-MotoCorp, the big two-wheeler companies, were also set up in Gurugram, and later on the city became a big hub of Information Technology (IT) units of international level. Haryana was ahead in setting up industrial estates(IEs) after its progressive industrial policy of 1992 and earlier. Different types of industrial units came up at Faridabad, Sonipat, and Ambala. Agro-processing units were also set up in food parks of Sonipat and Yamunanagar. An oil refinery in 2010 and a Neptha Cracker Plant in 1998 were commissioned at Panipat, the city traditionally known for its handloom industry.The developments above in the first three decades pushed Haryana into the top 10 states by per capita income (PCI) in 2004-05. Its PCI surpassed that of its big brother, Punjab, in 2010-11. The PCI of Haryana in 2024-25 at current prices is about Rs. 3.97 lakh compared to Rs. 2.31 lakh of Punjab and Rs. 2.20 lakh of India. However, the following issues are still lingering on in the growth story of the state.
First, the agricultural productivity in the southern districts of Haryana is less than half that of districts adjoining Punjab. The kharif crops in this part have not stabilized after tube-well irrigation. The region has more potential for oilseeds, pulses, citrus fruits, vegetables, castor seeds, etc., but its optimum is not achieved due to lack of 100 % procurement at MSP like wheat and paddy. Second, Industrial development in the state is mainly concentrated in the districts of Gurugram and others on the Delhi-Chandigarh National Highway (NH-44). Third, Information Technology(IT) units have not gone beyond Gurugram in the state. One more IT centre may be developed near Hisar. Fourth, Regional inequality has to be reduced by setting more Industrial Estates in southern districts of the states, along the NH 152 and others. Fifth, the State Capital and High Court in one corner of the state are adversely affecting access of the distant districts in availing the benefits of government-sponsored schemes and cost-effective redress of justice. Moreover, the elite of the state have aligned their residence and activities near the capital city. This has slowed social and cultural development in the state. The remoteness of decisive authorities and police is a hindrance to improving law and order. Reports of frequent threats, extortion, abduction, and harassment of entrepreneurs in the interior areas of Haryana are a big challenge to attracting big outside investments.
(Author: Dr Sher Singh Sangwan, Former Professor of the SBI Chair
and General Manager, National Bank for Agriculture and Rural Development)