Impact of FDI on Haryana Economy

Abstract:

Impact of FDI on Haryana Economy has proved to be beneficial for the state's economy has grown at a very impressive rate. Employment in Haryana has increased significantly due to Foreign Direct Investments in the state.

Factors attracting foreign direct investment in Haryana are:

• The state provides excellent infrastructure facilities such as well developed roads, railways, industrial estates, technical
• institutes, commercial markets, and communication network.
• The state provides a well developed system of banking with more than 4500 branches of banks
• The state has adopted policies that are investor friendly
• The state has a very efficient administrative system which tries to make it easy for the investors to make investments in the state.
• The state provides abundant supply of skilled manpower
• The state provides residential and corporate estates that are of world class standards

Amount of foreign direct investment in Haryana:

The total amount of foreign direct investment in the state of Haryana came to around ` 3,000 crore during 2000 to 2004.

Industries in Haryana attracting foreign direct investment are:

• Information technology
• Electrical goods
• Food processing industries
• Automobiles
• Ready made garments
• Light engineering

International companies having presence in Haryana are:

• Siemens
• Alcatel
• Duracell
• GE Capital
• Silicongraphics
• Motorola
• Daewoo Telecom Ltd
• Polaroid
• Hughes Software systems

Growth in Haryana economy due to foreign direct investment:

Haryana has emerged as one of the most important states in the country for foreign direct investment and this has given a major boost to the economy of the state. Haryana has become the largest manufacturer of the number of tractors, passenger cars, scientific instruments, and motorcycles in the country. The tax collections in the state increased at the rate of 15% in 2003- 2004. The state of Haryana has also generated more than 2 lakh jobs due to foreign direct investments between 2000 and 2004. The total amount of exports from Haryana has registered growth from ` 10,000 crores in 2002- 2003 to more than ` 12,000 crores in the next year.