A s Haryana went to the polls on October 5, it's an opportune time to reflect on the state's economic journey over the last couple of decades to understand the priorities for the new government.
In FY24, the state's real per capita gross domestic product (GDP) is 1.85 lakh, 75 per cent higher than the national average, a significant lead compared to 1994 when it was approximately 45 per cent higher. This impressive growth performance over the last three decades puts Haryana alongside Gujarat, Uttarakhand, Karnataka, and Tamil Nadu as one of India's fastest-growing states.
Their combined GDP share increased from 27 per cent in 2000 to 34 per cent by 2020. Without them, the state's GDP growth was 6.9 per cent between 1994 and 2020, the same as India's. Gurugram's annual GDP growth of 9.7 per cent between 2000 and 2020 played a defining role in the state's outperformance.
The Government of India's decision in the early 1980s to build Maruti Suzuki's first automotive plant in Gurugram, the lack of developable space in Delhi, prompting real estate developers to look for adjoining areas, and the city's proximity to the airport are catalysts for the city's meteoric rise.
What makes this growth performance even more impressive is that it involved Haryana shifting from an agriculture-dominant economy to an industrial and service powerhouse. A contrast with Punjab illustrates the point clearly. In 1994, agriculture constituted around a third of the GDP for both Haryana and Punjab. And while Haryana's agricultural share of GDP has halved by FY24, picked up equally by industry and services, agriculture still accounts for about 25 per cent of Punjab's GDP. Consequently, Haryana's per capita GDP is the seventh highest in 2023, while Punjab's has slipped to the 18th place from the fifth spot in 1994.
This begs the question, what caused Haryana's economy to perform better, and how can the incoming government build on this momentum further?
Esta historia es de la edición October 08, 2024 de Business Standard.
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