HARYANA THE BREAD BASKET OF INDIA

Transcription

1 SHEIKH CHILLI TOMB IN KURUKSHETRA, THE BREAD BASKET OF INDIA March 2018

2 Table of Content Executive Summary....3 Advantage State State Vision Haryana An Introduction..6 Budget Infrastructure Status...16 Business Opportunities Doing Business in Haryana State Acts & Policies

3 EXECUTIVE SUMMARY Strong economic growth With an area covering 1.3% of the country, Haryana contributes nearly 3.63% to India s GDP. Between FY12 and FY17, the state s GSDP grew at a CAGR of 12.96%. Leading manufacturing hub Haryana is home to Maruti Udyog Ltd, India s largest passenger car manufacturer & Hero MotoCorp Ltd, the world's largest manufacturer of 2-wheelers. Under Make in India project, Manesar-Bawal Investment Region has been identified by the Government to be a manufacturing hub Leading food producer Haryana is the second largest contributor of food grains to India s central pool. The state accounted for 7% of India s agricultural exports in Growing IT sector Haryana is the third-largest exporter of software and one of the preferred destinations for IT/ITeS facilities. The state has invested in the development of world class infrastructure facilities such as special economic zones (SEZs), Kundli-Manesar-Palwal (KMP) global corridor and Delhi-Mumbai Industrial Corridor (DMIC). Infrastructure support Haryana enjoys a location advantage, with nearly one-third of the state s area under the National Capital Region (NCR), a prominent trade and consumption centre. Note: GSDP Gross State Domestic Product The state has almost 100% connectivity to rural areas, with metalled roads. Source: Directorate of Economics & Statistics of Haryana, Central Statistics Office, Economic Survey of Haryana , APEDA 3

4 ADVANTAGE: GSDP : US$ billion Leading business hub Haryana is one of the leading states in terms of industrial production, especially passenger cars, two-wheelers, mobile cranes & tractors. The Gurgaon-Manesar-Bawal belt is the auto hub of India. Haryana has emerged as a base for the knowledge industry, including IT & biotechnology. Many large Indian & multinational companies have set up offices in the state due to its highquality infrastructure & proximity to Delhi. Rich labour pool Haryana has a large base of skilled labour, making it an ideal destination for knowledgebased & manufacturing sectors. It also has a large pool for support services. The state has set up various national level institutions such as Indian Institute of Management (IIM), Indian Institute of Corporate Affairs (IICA), Central Institute for Plastics Engineering & Technology (CIPET) & National Institute of Food Technology & Entrepreneurship & Management (NIFTEM). Advantage Haryana Attractive investment avenues Haryana has emerged as a manufacturing hub, with immense scope for development of micro, small & medium enterprises (MSMEs) sector. The state adopted a cluster-based development approach to promote industries such as IT, textiles, food & handloom. The state s real estate market is attractive and it is a preferred automotive hub. Of the total 250 large & medium OEMs, about 50 are located in Haryana. Policy & infrastructure support With a stable political environment, successive governments have been committed to creating a progressive environment. The state offers a wide range of fiscal & policy incentives for businesses under the Industrial & Investment Policy, It also has sectorspecific policies, particularly for IT & tourism. Haryana has well-developed infrastructure like power, roads & railways. For trade promotion, the state has planned several projects. Per capita GSDP : US$ 3, Note: GSDP Gross State Domestic Product 4

5 STATE VISION 2018 Contain revenue & fiscal deficit. Commencement of mining & e-taxation projects would reduce revenue deficit. Develop IMTs, industrial parks & expand industrial estates Create E-biz portal to ensure ease of doing business. Address needs of MSMEs in areas of R&D and technology; develop rail connectivity to airports, etc. Manage surface water resources efficiently. Improve water availability by pursuing upstream storage dams. Implement schemes for remodelling, rehabilitate water courses, flood control. Timely availability of quality feedstock at subsidised rates. Modernise irrigation systems. Pursue crop diversification & introduce modern technologies. Irrigation Agriculture Economy Welfare Vision 2030 Infrastructure Education Housing Tourism Ensure availability of affordable housing for all. Provide financial assistance for construction. Offer loans at reasonable terms to BPL families. Fully utilise nature s endowment Create network of business and tourism facilities. Source: Government of Haryana Schemes to develop SC, BC and other vulnerable sections of society. Healthcare for women and children. Modernise police department. Improve quality of education and access to schools. Expand college and university network. Enhance sports education and infrastructure to prepare people for competing at international & national events. 5

6 FACT FILE The state has three major seasons, viz., summer (April-June), monsoon (July-September) and winter (October-March). Parameters Haryana Capital Chandigarh Geographical area (sq km) 44,212 Source: Wikimedia Commons Haryana is surrounded by Uttar Pradesh in the east, Punjab in the west, Himachal Pradesh in the north and Rajasthan in the south. The state surrounds the national capital city, New Delhi, from 3 sides. The most commonly spoken languages are Hindi and Punjabi. English is the medium of education in most schools. Gurgaon, Faridabad, Karnal, Ambala, Panipat & Kurukshetra are some of the key districts of the state. Administrative districts (No) 22 Population density (persons per sq km) 573 Total population (million) 25.4 Male population (million) 13.5 Female population (million) 11.9 Sex ratio (females per 1,000 males) 879 Literacy rate (%) 75.5 Source: Economic Survey of Haryana, Census

7 IN FIGURES (1/2) Parameter Haryana All states Source Economy GSDP as a percentage of all states GSDP GSDP growth rate (%) Per capita GSDP (US$) 3, , Directorate of Economics & Statistics of Haryana, Central Statistics Office Directorate of Economics & Statistics of Haryana, Central Statistics Office Directorate of Economics & Statistics of Haryana, Central Statistics Office Physical Infrastructure Installed power capacity (MW) 11, , Central Electricity Authority, as of February 2018 Wireless subscribers (No) 25,465,220 1,167,435,645 Internet subscribers (million) Telecom Regulatory Authority of India, as of December 2017 Telecom Regulatory Authority of India, as of September 2017 National highway length (km) 2, ,435 NHAI & Roads and Building Department Airports (No) Airports Authority of India 7

8 IN FIGURES (2/2) Parameter Haryana All states Source Social Indicators Literacy rate (%) Census, 2011 Birth rate (per 1,000 population) SRS Bulletin September, 2017 Investment FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, April 2000 to December 2017 Industrial Infrastructure Completed and operational PPP projects (No) Exporting SEZs (No) Department of Economic Affairs, Ministry of Finance, Government of India, July 2017 Department of Commerce, Ministry of Commerce & Industry, December 2017 Note: PPP: Public-Private Partnership, SRS: Sample Registration System 8

9 ECONOMIC SNAPSHOT GSDP GSDP of Haryana at current prices (in US$ billion) Per Capita GSDP of Haryana at current prices (in US$) CAGR 5.15% CAGR 3.68% At current prices, the total GSDP of Haryana was about US$ 81.6 billion in The state s GSDP increased at a compound annual growth rate (CAGR) of 5.15% between and Growth was driven by expansion in the services sector, IT/ITeS, real estate, biotechnology and tourism. The state s per capita GSDP in was US$ 2, The per capita GSDP increased at an average rate of 3.68% between and Source: Directorate of Economics & Statistics of Haryana, Central Statistics Office 9

10 ECONOMIC SNAPSHOT NSDP NSDP of Haryana at current prices (in US$ billion) NSDP per capita of Haryana at current prices (in US$) CAGR 4.95% CAGR 3.48% At current prices, the net state domestic product (NSDP) of Haryana was about US$ 73.6 billion in The state s NSDP expanded at a CAGR of 4.95% between and The state s per capita NSDP in was US$ 2,685.6 Per capita NSDP increased at an average rate of 3.48% between and Source: Directorate of Economics & Statistics of Haryana, Central Statistics Office 10

11 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSVA Tertiary sector is the largest contributor to Haryana s economy. In , it contributed 49.8% to the state s GSVA at current prices. It was followed by the secondary sector at 30.74%. The tertiary sector grew at a CAGR of 14.75% between FY12 and FY17. The growth was led by trade, hotels, real estate, finance, insurance, transport and communications. The secondary sector grew at a CAGR of 11.79% between and Its growth was driven by manufacturing, construction, and electricity and gas & water supply. The primary sector grew at a CAGR of 8.14% between FY12 and FY % 90% 80% 70% 60% 50% 40% 30% GSVA composition by sector 44.9% CAGR 49.8% 14.75% 31.6% 11.79% 30.7% 20% 10% 23.6% 8.14% 19.5% 0% Primary Secondary Tertiary Source: Directorate of Economics & Statistics of Haryana 11

12 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION Wheat, sugarcane, rice, cotton, rapeseed and mustard are key agricultural products of the state. Total food grain production in Haryana stood at million tonnes in In , the average yield of wheat and rice in Haryana was 4,390 and 3,253 kg per hectare, respectively. The state government allocated US$ million for the agriculture and allied sector in As per the budget , a new farm insurance scheme has been launched by the state government, namely, Pradhanmantri Fasal Bima Yojana, with an allocation of US$ million to minimise damages in the farm sector. Further, the state government approved grant-in-aid to the Haryana Agricultural University worth Rs crore (US$ 65.1 million) in Crop Annual production ( 000 MT) Rice 4,453 Wheat 11,524.2 Oilseeds Total pulses 74.1 Total food grains 17,157.4 Sugarcane 8,640 Fruits* Vegetables* 6, Source: Economic Survey of Haryana, , Ministry of Agriculture- Department of Agriculture & Cooperation, Government of India, State Budget ,

13 * 5,071 5,985 6,882 8,114 6,242 6,875 5,884 12,743 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to the Department of Industrial Policy & Promotion (DIPP), cumulative foreign direct investment (FDI) inflows from April 2000 to December 2017 were recorded at US$ billion. The services sector accounted for a major share in FDI followed by real estate & electricity. The state received 59 investment intentions worth US$ million in 2016 and 44 intentions worth US$ million in 2017 (up to December). In 2017, the government allocated substantial investment for digitization and development of power sectors of Gurugram, in lieu of the steadfast growth of the state and the role of Gurugram towards its development. 14,000 12,000 10,000 8,000 6,000 4,000 2, ,350 FDI equity inflows 1 (US$ million) 6,113 Note: * - up to December 1 Includes Delhi, part of UP Source: Department Of Industrial Policy & Promotion Companies Investment Offers to Haryana Government PLG Clean Energy Group Videocon Group Asahi Group, Japan Essel Group US$ million for production of 250MW solar energy US$ million in Haryana US$ million, for setting up a beverage plant US$ million Source: Economic Times 13

14 H ECONOMIC SNAPSHOT EXPORT TRENDS The setting up of SEZs in sectors like IT/ITeS, biotechnology, handicrafts, etc., has helped increase exports in the state. Basmati rice exports from Haryana ( 000 MT) Haryana is amongst the biggest producers of food grains in India. More than 60 percent export of Basmati Rice is taking place from Haryana alone. The state exported basmati rice worth US$ million in April-November Exports from Haryana (US$ billion) CAGR 9.52% Source: Department of Economic and Statistical Analysis, Haryana, APEDA, Economic Survey of Haryana

15 ANNUAL BUDGET State Budget Sectoral allocation In US$ million Agriculture and Allied Services Power and Non Convention Energy 1,969 Education, Sports, Art & Culture 2, Rural Development and Panchayat Technical Education, Skill Development & industrial training Transport Irrigation and Water Resources Urban Development and Town & Country Planning Industries & minerals Public Health Engineering Source: Haryana Budget , Department of Finance, Government of Haryana 15

16 (¹) PHYSICAL INFRASTRUCTURE ROADS (1/2) The state government sanctioned a work programme for renovation of major district roads, state highways, other district roads, etc. at an amount of US$ million during Moreover, the state government has also projected to widen VT roads of 250 km from 3.66 metres to 5.50 metres. Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in 2000 with the objective of connecting eligible rural habitants. During (up to October 2015), a total amount of US$ million was allocated to the state under PMGSY. In June 2017, Haryana received an award from Ministry of Rural Development for completing more than 95% of its PMGSY targets. In , five road works were sanctioned in the state under PMGSY-II National highway length completed (km) * As of March 2016, Haryana had a total road network of 26,022 km out of which 2,482 km was constituted by the national highways and 1,801 km were state highways. During * km of national highways were constructed in the state. Expenditure on construction of national highways in Haryana (US$ million) Haryana is among the states having almost 100% connectivity to rural areas with metalled roads. Haryana Roadways, with its fleet of nearly 4,215 buses, is one of India s biggest state road transport undertakings which operate across lakh km everyday During * km of national highways were constructed in the state Note: (1) Till December 2015, * up to Dec 2017 Source: Economic Survey of Haryana, , Ministry of Road Transport & Highways, Government of India, News articles, NHAI 16

17 PHYSICAL INFRASTRUCTURE ROADS (2/2) NHAI Projects Completed in Stretch NH No. Length (Km) Total Project Cost (Rs crore) Category 4-Laning of Rohtak - Hissar Section NHDP Phase IIIB Construction of Flyover at Bahalgarh ch and construction of additional 2-lane bridge near Rasoi Ch on NH Others Bhatinda-Suratgarh (ROB) 32-B Others Source: NHAI 17

18 PHYSICAL INFRASTRUCTURE RAILWAYS As of March 2016, Haryana had a 1, km long rail route. Kalka, Kurukshetra, Rohtak, Jind, Hisar, Ambala, Panipat, Gurgaon & Jakhal are some of the important railway stations. There is a railway workshop at Jagadhari. Rail network across the state During , Rohtak-Jhajjar-Rewari railway line was completed at an estimated cost of US$ million. Sonepat Jind railway line was commissioned in June 2016 with a cost of around US$ million. Construction work for the Rohtak-Meham-Hansi railway line was started in November The state government will provide 50% of the US$ million funds for implementing three railway line projects: Delhi-Sohna-Nuh- Ferozpur Jhirka-Alwar (104 km), Hisar-Agroha-Fatehabad-Sirsa (93 km) and Yamunanagar-Sadhora-Naraingarh-Chandigarh (91 km). Source: Maps of India Haryana Government has approved elevation of the existing Rohtak Panipat track to decongest the Rohtak city at a cost of US$ million. Work is expected to begin during Elevation of the Rohtak Panipat railway line has also been approved. Railway Ministry declared its plans to set up a new joint venture between the Haryana government and Railways for upgradation of railway stations and strengthening infrastructure in the state. Railways has also signed a MOU with Haryana government regarding the plantation of saplings on vacant land on both sides of railway lines. Source: Economic Survey of Haryana, , State budget , Dainik Jagran 18

19 PHYSICAL INFRASTRUCTURE AIRPORTS There is a domestic airport at Chandigarh and civil aerodromes at Pinjore, Karnal, Hissar, Bhiwani and Narnaul. The state has a total of eight airports, which includes both operational and nonoperational airports. In the the state budget , the Chief Minister of Haryana announced to upgrade the Hisar civil aerodrome into an international airport. Under the first phase of construction, the aerodome would be converted into a domestic airport. In the second phase, the airstrip will be expanded and in the third phase, an aerotropolis comprising of an international airport would be developed. The airport will also be covered under the regional connectivity scheme of UDAAN. The Chandigarh airport handled 1,886,983 passengers, 5,263,000 tonnes of freight and saw 16,594 aircraft movements in *. Also, as per the state budget , the civil aerodrome in Karnal is proposed to be upgraded to a domestic airport during Therefore, for the development of civil aviation sector in the state, a total allocation of US$ million has been made by the state government during In September 2015, a new terminal at Chandigarh airport was inaugurated. The terminal is capable of handling both domestic and international flights. The cost incurred in the construction of the airport by AAI is US$ million. A stake of 51% was taken by the AAI and shares of 24.5% each were held by the state s of Punjab and Haryana. Domestic airport Passengers Aircraft movement ( 000) Freight ( 000 MT) * * * Chandigarh 1.534,058 1,825,881 1,886, ,254 16, ,697 5,263 Note: * - Up to January 2018 Source: Economic-Survey, Airports Authority of India, 19

20 * 4,630 5,071 5,985 6,882 8,114 8,665 8, ,788 11, ,225 PHYSICAL INFRASTRUCTURE POWER (1/2) As of February 2018, Haryana had a total installed power generation capacity of 11, MW; of which, 4, MW was contributed by the state, 4, MW by the private sector and 2, MW by the centre. Coal-based plants accounted for the majority share as the capacity stood at 8, MW as of February Gas power plants accounted for a power generation capacity of MW. Nuclear power plants accounted for a power generation capacity of MW. Hydropower plants accounted for a power generation capacity of 1, MW. Besides, MW of installed power generation capacity came from renewable sources. 12, , , , , , Installed power capacity (MW) Classification of installed power capacity, by source of power generation (January 2018) 4% 1% 17% Thermal Hydro Renewable Nuclear 78% Source: Central Electricity Authority, *till February

21 PHYSICAL INFRASTRUCTURE POWER (2/2) The total number of electricity consumers in the state increased from 35,44,380 in to 55,62,019 in In annual plan , the Government of Haryana proposed an allocation of US$ 1.09 billion for restructuring of power sector in the state. Between , 73 sub-stations have been established to strengthen the transmission and distribution system in the state. To produce power from bagasse cooperation in sugar mills, six projects of 60 MW capacity have been established in cooperative sugar mills of the state in The state government has proposed to set up around 3,055 solar water pumping systems in the state during Proposed projects 1,500 MW gas-based project at Faridabad 660 MW capacity thermal unit at Yamuna Nagar 2,800 MW (4x700 MW) nuclear power plant near Fatehabad Projects under implementation 1,320 MW Mahatma Gandhi Thermal Power Project, at Jhajjar Procurement of 2,113 MW on a long term basis through tariff based competitive bidding In the budget, the state government launched a new scheme Mhara Gaon Jagmag Gaon with a view to provide 24x7 supply of power across rural domestic consumers as well. Further, during , the government decided to spread the scheme to cover around 260 feeders in the state. Moreover, the state government allocated an amount of US$ 1.96 billion for enhancement of power sector in the state during SPML Infra has got an order worth US$ million, for power distribution & transmission in the state. As per state budget , 45 MW capacity rooftop solar power projects had been installed in Haryana. Source: Haryana Power Generation Corporation Ltd; Economic Survey ; Haryana Budget ,

22 PHYSICAL INFRASTRUCTURE TELECOM According to the Telecom Regulatory Authority of India (TRAI), Haryana had nearly million wireless subscribers and 307,898 wireline subscribers, as of December The number of internet subscribers in the state as of September 2017, stood at 9.92 million. By the end of December 2017, 13,132,637 subscribers had submitted requests for mobile number portability in Haryana. Moreover, the state of Haryana had a tele-density of 91.43%. In consultation with telecom power companies, Haryana government has rolled out a new Communication and Connectivity Policy to provide a major push to telecom and communication infrastructure in the state. The Department of Telecommunications (DoT) initiated a project in 2011, the National Optical Fibre Network (NOFN), with an aim of providing broadband services to 2,50,000 gram panchayats across the country. By February 2015, 6,097 gram panchayats had access to broadband services in Haryana. Performance status of NOFN (Bharat Net) project (as of July 2017) No. of GPs in Phase-I 6,020 Telecom Infrastructure (As of December 2017) Wireless subscribers 25,465,220 Wireline subscribers 307,898 Internet subscribers* 9,920,000 Tele density (in %) Postal facilities (as of March 2017) Head post offices 16 Sub post offices 488 Branch post offices 2,184 Total post offices 2,688 Pipe laid (km) 9,776 Cables laid (km) 11,005 GPs for which cable laid 5,803 No. of Gram Panchayats Lit 894 Note: GP-Gram Panchayat, * till September 2017 Source: Telecom Regulatory Authority of India; Department of Telecommunications- Ministry of Communications & Information Technology, India Post 22

23 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE Government of India released Rs crore (US$ million) to Haryana in under Swachh Bharat Mission (rural).the state government has provided an impetus & would continue to the financial status of urban local bodies & provide adequate funds for improving civic amenities in urban areas. There are 77 urban local bodies in the state, consisting of 9 municipal corporations, 19 municipal councils & 50 municipal committees. As of April, 2017, Swachh Bharat Mission (Urban) has been implemented in all 80 statutory towns & cities in Haryana. Around 24,986 individual household toilets out of the targeted 1,06,373 have been built, and around 1,679 public toilets have been constructed out of the target of 10,394. In Haryana, 10 towns - Panipat, Sirsa, Mandi Dabwali, Thanesar, Pehowa, Ladwa, Shahbad, Kalanwali, Ellenabad & Rania - have been declared & certified as Open Defecation Free. The state s 20 cities & towns are included in the AMRUT Mission. A total investment of US$ million has been approved under this mission for providing water taps to all urban households in mission cities as 1st priority, besides improving sewerage & drainage networks, non-motorised urban transport & providing open spaces. Total central assistance of US$ million has been approved for Haryana under Atal Mission. Panipat, Sonipat, Ambala, Ambala Sadar, Bahadurgarh, Hissar, Karnal, Rohtak, Bhiwani, Jagadhari, Palwal, Sirsa, Faridabad, Jind, Panchkukla, Thanesar, Gurgaon, Kaithal, Rewari & Yamuna Nagar are the AMRUT cities of Haryana Karnal and Faridabad have been included in Smart City Mission. Investment worth US$ million has been approved under the Smart City Plan of Faridabad. Under Pradhan Mantri Awas Yojana (Urban) - Housing for All, US$ million has been approved by the Ministry of Housing & Urban Poverty Alleviation for the construction of 4,299 houses. Central assistance of US$ million has been approved for the construction of this project, out of which US$ 17.7 million has been released to the state. Completion of construction of 958 houses for urban poor has also been announced. In June 2017, the state ministry proposed to develop "Science city" by the National Council of Science Museums (NCSM) under Ministry of Culture. The total cost of the project will be worth US$ million. Source: JNNURM, Ministry of Urban Development, Directorate of Urban Local Bodies-Haryana, Economic Survey 23

24 DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS Project name Sector Project cost (US$ million) Stage Road upgradation (Punjab/Haryana Border-Jind) Project Roads & bridges Under construction Construction of Kundli Manesar Palwal Expressway Roads and bridges Under construction Amusement park at Gurgaon Social & commercial infrastructure Under construction Construction of 4 laned ROB including its approach on Delhi Agra Railway Line near Bata Chowk Roads and bridges 3.67 Operational Unitech SEZ at Kundli, Sonipat Social & commercial infrastructure 3, Under construction Installation of 100 Reverse Osmosis Plants in 100 villages Water treatment plants 1.72 Under construction Development of Industrial Park, Gurgaon Social & commercial infrastructure 9.17 Operational Hotel Management Institute (Badhkal) Education 6.11 Operational Source: Department of Economic Affairs, Government of India 24

25 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (1/5) As of December 2017, the state had 7 operational SEZs, 23 formally approved SEZs, 3 SEZs with principal approval & 20 notified SEZs. S No Some of the promoters of SEZs: Planned or under construction 25 proposals have been granted in-principle/formal approval in the state by the Government of India. The state granted industrial colony licences to SEZs. Under the policy, 15% of land can be developed as residential area, 45% for industrial units and 5% for commercial use. The remaining 35% will be left for roads, infrastructure services and public utilities, apart from open spaces. In order to increase job opportunities in rural areas and set up industries, the Government of Haryana identified 32 blocks in the rural areas of Haryana for industrial development. 1 Perpetual Infracon Pvt Ltd at Faridabad 2 Pioneer Urban Land and Infrastructure Limited 3 G.P. Realtors Private Limited 4 Ansal Colours Engineering SEZ at District Sonipat 5 DS Realtors Private Limited 6 Natasha Housing & Urban Development Ltd at Panipat 7 Orient Craft Infrastructure Limited 8 DLF Ltd. Source: Ministry of Commerce & Industry, Government of India, 25

26 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (2/5) The state government has approved, in principle, the setting up of an SEZ near Garhi Harsaru in Gurugram district. The Garhi Harsaru SEZ would be utilised only for industrial purposes and cost US$ million. The SEZ aims to promote FDI and resultant exports. The focus is on providing a hassle-free environment for export-oriented production. The proposed SEZ would be a duty-free enclave & a deemed foreign territory, where no licence would be required for imports. The import of capital goods, raw materials and consumables as well as their procurement from the domestic market to the SEZ would be exempted from customs duty and central excise duty. The supplies from domestic tariff area (DTA) to SEZ units would be treated as deemed exports. Through the automatic route, 100% FDI in the manufacturing sector would be allowed for projects set up in the SEZ. The SEZ units would be provided in-house customs clearance, and no separate documentation would be required for customs and Exim Policy. Source: Government of Haryana 26

27 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (3/5) Index Operational SEZ Notified SEZ IT/ITeS Anant Raj Industries Ltd. Punjab IT/ITeS Mittal Infratech Private Ltd. IT/ITeS Anant Raj Industries Ltd IT/ITeS DLF Cyber City DLF Ltd Gurgaon Infospace Ltd Unitech Reality Projects Ltd. ASF Insignia SEZ Pvt. Ltd. IT/ITeS Selecto Systems Pvt Ltd Perpetual Infracon Pvt Ltd Source: Ministry of Commerce & Industry 27

28 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (4/5) Punjab IT/ITeS DLF Ltd. Dr Fresh Health Pvt Ltd DLF Cyber City Developers Ltd Gurgaon Infospace Ltd. Mayar Infrastructure Development Private Limited Metro Valley Business Park Pvt Ltd Goldsouk International Gems & Jewellery SEZ Pvt. Ltd. ASF Insignia SEZ Private Limited Unitech Realty Projects Ltd Ascendant Estates Pvt Ltd Orient Craft Infrastructure Limited G P Realtors Pvt Ltd Handicrafts: Natasha Housing & Urban Development Limited Biotechnology: Mayar Infrastructure Development Ltd Agro and Food Processing: Ansal Colors Engineering SEZ Limited Source: Ministry of Commerce & Industry 28

29 DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS (5/5) Industry clusters in Haryana Punjab Index Textiles and handlooms Automotive Engineering IT and ITeS Petrochemicals Agro-based industry 29

30 GURUGRAM WORLD BPM HUB The Gurugram district is divided into 3 sub-divisions: Gurugram North, Gurugram South and Pataudi, which are further divided into 5 tehsils, namely, Gurugram, Sohna, Pataudi, Farukh Nagar, Manesar. Gurugram city, also known as a World BPO hub, serving industries like IT & ITeS, pharmaceuticals, FMCG etc., has provided direct and indirect employment to over 10 lakh people. IT and ESDM sector has proven to be the epicenter of city s economic growth. Gurugram has a base of more than 450 companies employing 4,000 expats. Fact File of Gurugram Global BPM workforce 5% Country BPM Workforce 13% Contribution to State s GDP 10% Contribution to Haryana s Exports 54% Real estate is a major contributor in the city s economy. Retail is an important sector in Gurugram, with 26 operational shopping malls. Gurugram Development Authority was founded in the year 2016, and covers a total area of 1,258 km 2. In collaboration with NASSCOM, Gurugram is planning to set up a warehouse incubation centre of excellence cum innovation campus in hub and spoke model with an investment of US$ 0.61 million and operational expenditure of US$ 0.15 million, for a duration of 3 years. Source: Department of Information Technology, Government of Haryana 30

31 SOCIAL INFRASTRUCTURE EDUCATION The state has a strong primary education infrastructure, with a primary school located within a 1.03-km radius of each village AND a middle school within a 1.07-km radius. As of 2015, there was one higher secondary & one senior secondary school within a 1.52-km & 2.28-km radius, respectively. In the budget, US$ 2.17 billion has been allocated for improving the education sector. For provision of funds to universities, the state government launched a centrally sponsored scheme, Rashtriya Uchchatar Shiksha Abhiyan (RUSA), for which US$ million has been allocated during During , 33 government run middle and high schools were upgraded to senior secondary schools and two news schools were also opened. The state government has decided to open 29 new government colleges within a 20 km radius. The move is expected to empower women, strengthen infrastructure and industry, and help the farmers and youth. The major flagship programmes being undertaken in the state include Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and Sarv Shiksha Abhiyan (SSA). Other programmes for the upgradation of education sector in the state include Beti Bachao Beti Padhao (B3P), Haryana Ek Khoj under SSA, etc. For RMSA, SSA and Dual Desk Scheme, the state government has allotted investments of US$ million, US$ million and US$ million respectively. A Swedish organisation Kunskapsskolan is working with the government to improve vocational education at 100 state-run schools. Literacy rate (%) ( ) Total Male Female Source: Economic Survey of Haryana, No of educational institutions ( ) Universities 39 Colleges 1,156 Medical colleges* 7 Engineering colleges* 2,393 MBA colleges* 190 MCA colleges* 51 Industrial Training Institutes (ITIs)* 224 Primary schools* 8,899 Middle schools* 2,395 Higher & Senior Secondary schools* 3,210 Note: MBA: Master of Business Administration, MCA: Master of Computer Applications, * Source: Haryana at a Glance, Government of Haryana website, AICTE, National Health Portal,, State budget

32 ¹ SOCIAL INFRASTRUCTURE HEALTH As of , Haryana had 121 community health centres, 488 primary health centres, 2,630 sub-centres, 23 sub district hospitals and 27 district hospitals. As of December 2016, the state had 76 Employees State Insurance (ESI) dispensaries. In the annual budget, US$ million was allocated for health services, including medical education & family welfare. During , work on construction of Kalpana Chawla Medical College at Karnal was under process. The college is being set up at a total cost of US$ million. The college was inaugurated in April As per the state budget , the state government announced plans to establish new institutes and medical colleges in the state during , which include Health University in Kutail district of Karnal, a new AIIMS (All India Institute of Medical Sciences) in Manethi village, a National Cardiovascular Institute at Badhsa village, as well as the medical colleges in Jind, Pinjore and Bhiwani. Further, the state government has also decided to set up an AYUSH University as well as AYUSH Cell across every PHC of the state. The health infrastructure of the state during includes 458 Ayurvedic dispensaries, 3 Ayurvedic hospitals, 6 Ayurvedic Prathmic Swasthya Kendras, 1 Unani Hospital, 18 Unani Dispensaries, 1 Institute of Indian Systems of Medicine & Research & 20 Homoeopathic Dispensaries. The state government is planning to make dialysis a more affordable & accessible medical procedure for people by increasing the number of dialysis centres in the state to 10 centres from the existing 4 centres. Note: 1 September 2015, 2 Per thousand persons, 3 Per thousand live births Source: Annual Budget , Sample Registration System (SRS) Bulletin,Haryana economic survey Health indicators (September 2017) Birth rate Death rate Infant mortality rate 3 33 Life expectancy at birth (years) Male ( ) 68.9 Female ( ) Allocation, release and utilization under NHRM (US$ million) Allocation Release Expenditure 32

33 CULTURAL INFRASTRUCTURE Phag, Dhamal, Ratvai, Khoria, Ghoomar & Ganguar are some of the many dance forms of Haryana. Important festivals of the state are Lohri, Basant Panchami, Holi, Gangore, Baisakhi, Nirjala Akadashi, Gugga Naumi & Navratri. Fairs held in Haryana include Gopal-Mochan, Masani, Basdoda, Surajkund and the Kartik Cultural Festival. Under Rajiv Gandhi Khel Abhiyan (RGKA), a block level stadium would be constructed in the state. The outfield of this stadium would be built under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). During , various youth activities & programmes were organised by the state government for boosting the sports sector in the state. Further, the state is also deploying the Haryana Sport & Physical Fitness Policy 2015, under which the cash awards amounting to US$ 7.73 million & US$ 0.35 million have been circulated among 89 medal winners of Asian Games & 71 International medal winners. Moreover, the state government has allocated an amount of US$ million for the sports sector during Kingdom of Dreams, which is India s first live entertainment & leisure destination, is located in Gurugram. The Epicentre in Gurgaon has been developed as an arts & culture centre. Some renowned museums in the state include Urusvati Museum of Folklore, Sanskriti Museum, Museum of Folk & Tribal Art in Gurgaon, Sri Krishna Museum (Kurukshetra) & City Museum (Chandigarh). In the budget, Kurukshetra was recognised under Krishna Circuit by the state government for the enhancement of tourism in the state. In addition to this, other 5 sites which have been recognized & qualified include Brahma Sarovar, Narkatari, Jyotisar, Amin Kund & Sannihit Sarovar. For the tourism sector, the state government has allocated US$ million during Prominent stadiums in the state include Tejli Sports Complex (Yamunanagar), Nahar Singh Stadium (Faridabad), Tau Devi Lal Stadium (Panchkula) & Nehru Stadium (Gurgaon). In , in order to improve the sports infrastructure, the Supplies & Disposal Department of Haryana had provision of US$ 2.34 million for sports equipment.. Also, for the upgradation of yoga, it has been declared by the state government that yoga vayayamshalas will be established in across 6,500 villages of the state. On the occasion of Golden Jubliee of the state of Haryana, on November 2nd, 2016, India s Prime Minister launched three schemes for the state of Haryana - Deen Dayal Jan Awas Yojana, Automation of Fair Price Shops & Kerosene Free Haryana As of February 2017, the state government is planning to organize Surajkund International Crafts Mela twice in a year. Sri Lanka will also be considered as a partner country for the next edition of the Mela. Source: Economic Survey , State Budget ,

34 INDUSTRIAL INFRASTRUCTURE Historically an agrarian state, Haryana today is a well-developed industrial state. HSIIDC is the state s premier industrial promotion agency. It is responsible for providing reliable and efficient facilities to entrepreneurs investing in the state. The state has taken several initiatives for developing industrial infrastructure to achieve consistent economic growth. HSIIDC has developed a number of industrial estates, industrial model townships and specialised parks for cluster development. Various industrial clusters that have come up across the state include footwear and accessories in Bahadurgarh, agricultural implements in Karnal, scientific instruments cluster in Ambala, handloom, hosiery and textile goods in Barhi, and fabrication & fitting cluster in Faridabad. An Industrial Model Township is located in Manesar, on NH-8. The IMT deals in housing readymade garments, automobile industries, etc. Industrial Model Townships (IMT) Developed and under developed IMT Rohtak IMT Faridabad IMT Kharkhoda IMT Mewat IMT Bawal IMT Manesar Source: HSIIDC National Investment and Manufacturing Zones are conceived as major integrated industrial townships, that provide manufacturing industries with a conducive environment. During , Manesar- Bawal Investment Region of Haryana was approved as NIMZ in the country, Maruti Suzuki announced its plans to invest US$ million in its new R&D center in Rohtak, which is expected to be operational by

35 SMART CITIES In August 2015, two cities of Haryana were proposed to be developed as smart cities. As of May 2015, along with the selected smart cities, 20 cities of Haryana were selected for infrastructure development under the AMRUT scheme. Under the AMRUT scheme, a total fund of US$ 7.89 million was allocated to the state in Smart cities in Haryana Cities Population Area (sq. km) Literacy rate Karnal Faridabad 1,809, % Karnal 1,505,324 1, % Gurgaon Faridabad Source: Census 2011, Amrut website 35

36 INDUSTRIAL INFRASTRUCTURE EXISTING INDUSTRIAL ESTATES (1/2) Estate/location IMT Manesar (Phase I is complete, Phases II, III, IV and V are undergoing development) IIDC, Saha (Status- Planned & Developed) Udyog Vihar, Gurgaon Kundli Phases I, II, IV, EPIP and Electronic Hardware Technology Park (Status - Planned & Developed) Faridabad Murthal Panipat (Status - Fully Developed) Brief description Located at a distance of 50 km from Delhi on NH-8 & about 32 km from the IGI Airport. Focus on hi-tech and hi-precision non-polluting units such as automotive, readymade garments, ITeS and packaging. Located on NH-10, about 250 km from New Delhi. HSIIDC acquired around 76 acres of land for setting up IIDC in Saha. Located on NH-8, about 8 km from IGI. Focus on IT/ITeS, electronics, electrical goods, pharmaceuticals, light engineering, auto parts and components and readymade garment sectors. Maruti Udyog, a leading car manufacturer of India, has its base in Udyog Vihar. Located on NH-1 on the Delhi-Haryana border, about 20 km from Delhi. Has industrial units from general engineering, cycle parts, dairy products & agro-based sectors. Located about 35 km from New Delhi, on the Delhi-Mathura highway. Has industrial units for the light engineering sector. Located about 50 km from New Delhi, on NH-1. Has industrial units from general engineering, malt, chemicals & cycle parts sectors. Located about 89 km from New Delhi, on NH-1. It covers 922 acres of area and is a well-equipped facility with an internal road network & electric distribution system. Source: HSIIDC website 36

37 INDUSTRIAL INFRATSTRUCTURE EXISTING INDUSTRIAL ESTATES (2/2) Estate/location Ambala Tohana (Status- Planned & Developed) Jind Brief description Located about 200 km from New Delhi, on NH-1. Has industrial units from scientific instruments, electronic and light engineering sectors. It also has a United Nations Development Programme (UNDP) assisted instrument design and development centre. Located about 200 km from New Delhi. Has industrial units from agriculture implements, foundry and light engineering sectors. Located about 120 km from New Delhi. Has agro-based industries, leather based products and chemical industries. Samalkha (Status- Planned & Developed) Rai (Status- Planned & Developed) Barwala (Phase-l Completed and Phase-ll under-construction) Located about 70 km from New Delhi on NH-1. Has light engineering and foundry units. Located about 35 km from New Delhi on NH-1. A food park and a technology park have been developed here. Located at about 240 km from New Delhi, Panchkula-Saha State Highway, in District Panchkula Has industrial units of plywood, pharmaceuticals units and light engineering works. Other industrial estates under implementation are ancillary estates at Panchkula, Kalka, Murthal, integrated infrastructure development centre at Sirsa, built-up sheds near Sohna, and estates at Manakpur in Yamuna Nagar. Source: HSIIDC website 37

38 INDUSTRIAL INFRASTRUCTURE UPCOMING INDUSTRIAL ESTATES (1/3) Estate/location Brief description Barhi (Status- Planned & Developed) Located about 57 km from Delhi on NH-1, near Gannaur in Sonepat District. List of key industrial units include Seasons Textiles, Wooltex Textiles, Kaico Deer, EOC Polymer, etc. Bahadurgarh (Sector 18 & 18A) Just next to New Delhi on NH-10 linking Delhi with Rohtak and Hissar in District Jhajjar. HSIIDC acquired around 138 acres of land for setting up an industrial estate in Bahadurgarh (Jhajjar district). Growth Centre, Saha (Phase-l is completely planned and developed; Phase-ll is planned and underconstruction) Located about 180 km from Delhi on NH-73 and is about 15 km from Ambala Cantt. Key companies include Mount Shivalik Breweries Ltd, Super Filtration System Ltd, Osaw Agro Industries Ltd, Kandhari Beverages (P) Ltd and Mahaunt Agro (P) Ltd Hosiery complex in Barhi (expansion in planning stage) A hosiery and textile park exists in Barhi near Ganaur, in Sonipat district, and an industrial complex is being planned as part of the expansion. Three more townships are being planned at Sampla, Badli-Jahangirpur and Ganaur-Samalkha. Source: HSIIDC website 38

39 INDUSTRIAL INFRASTRUCTURE UPCOMING INDUSTRIAL ESTATES (2/3) 39 Mega-projects of Haryana Kundli-Manesar-Palwal (KMP) Expressway on Build-Operate-Transfer (BOT) basis Delhi-Mumbai Industrial Corridor (DMIC) Project Manesar Bawal Investment Region (MBIR) Early Bird Projects (Global City Project, Integrated Multimodal Logistics Hub (IMLH), Mass Rapid Transit System Between Gurgaon-Manesar-Bawal (MRTS) Kundli-Manesar-Palwal (KMP) expressway: The government is developing sector specific theme parks and sub-cities along the KMP expressway. The 135-km KMP expressway will act as a Delhi bypass and provide seamless connectivity across NH-1, NH-2, NH-8 and NH-10. Total cost of the project is US$ million. In addition to industrial infrastructure, the project aims to provide smooth and quick transportation of surplus food grains, milk products, fruits and vegetables from Haryana, Punjab, Himachal Pradesh and Kashmir to other parts of the country. Source: HSIIDC website Delhi-Mumbai Industrial Corridor (DMIC) Project: The 1,500-km Delhi-Mumbai Industrial Corridor (DMIC) project worth US$ 90 billion will serve as a dedicated freight corridor between Delhi and Mumbai. The project plans to create self sustaining industrial townships within the corridor. These townships would be served by multimodal connectivity for freight movement as well as reliable power and air connectivity. The project incorporates Nine Mega Industrial zones of about sq km area, high-speed freight line, three ports and six airports; a six-lane intersection-free expressway connecting the country s political and financial capitals and a 4,000-MW power plant. The corridor is expected to create 2.5 million new jobs. The DMIC covers nearly 14 districts of Haryana 66% of the state s total area. International Cargo Airport at Bhaini Maharajpur & Bhaini Bhairon villages is a greenfield project located at the tri-junction of Rohtak, Hisar and Bhiwani districts. The proposed airport would be about 110 km from New Delhi s IGI Airport. The Government of Haryana has decided to spend US$ million on development of village infrastructure during FY 18. Apart from this, the state government has planned to spend US$ million on the development of state during the next three years, out of which US$ million will be spent on the development of 600 villages.

40 INDUSTRIAL INFRASTRUCTURE UPCOMING INDUSTRIAL ESTATES (3/3) Manesar Bawal Investment Region (MBIR): The 800 square km Manesar Bawal Investment Region (MBIR) would provide investment opportunities alongside NH-1, NH-2, NH-8 & NH-10. With this, the government aims at developing urban, industrial and economic infrastructure in the state. The planned residential population of MBIR is 3.20 million, employment potential of 1.6 million and industrial output value of US$ 50 billion. During , the master plan notification for the region has been completed and Ministry of Environment, Forest and Climate Change (MoEFCC) has also obtained the environmental clearance for the region. Moreover, the plan for integrated water resources management for the region has also been decided. Early Bird Projects: Global City Project: This 1,100 acres project located in Gurgaon is expected to be the biggest facility in the country. This project would cater to the hospitality sector and meet the business needs of the corporates and public enterprises. Integrated Multimodal Logistics Hub (IMLH): The 900 acres project located in district Rewari is worth US$ 500 million. This project is expected to be the union point for cargo movement from Punjab, NCR, Haryana and Rajasthan. Mass Rapid Transit System Between Gurgaon-Manesar-Bawal (MRTS): The 130 km MRTS aims to provide connectivity between Gurgaon, Manesar, Dharuhera and Bawal. This includes connection of 57 stations with Delhi Metro and is expected to carry million passengers per day by Source: HSIIDC website 40

41 KEY INDUSTRIES Haryana s natural resources, policy incentives and infrastructure support investments in sectors such as automobiles and auto components, IT/ITeS, textiles, agro-based industries, business tourism and commerce. Forming industrial clusters and developing infrastructure has been the state s key strategy to attract investments in various industries. Haryana State Industrial and Infrastructure Development Corporation would continue to assist in the development of the private sector and joint industrial units in the state. FIPB (Foreign Investment Promotion Board) provides technical support for evaluating the proposals for foreign investment along with decisions related to land allotment and loan sanction among others. During , the state government employed a new policy Haryana Enterprises Promotion Policy-2015, for providing people with a cost effective environment for executing their business, endorsing entrepreneurship, innovation, etc. As per state budget , the allocated budget for industries and minerals sector was US$ 62.7 million. The Government of Haryana has signed a memorandum of understanding (MoU) with Verbind in November As per the memorandum, a logistics and trading hub is to be built in the state which will attract investments of around Rs 20,000 crore (US$ 3.1 billion). Key industries in Haryana Automotive Agro-based industry IT/ITeS Textiles Oil refining Bicycles Year IEMs filed Sanitary ware Scientific instruments Tourism Real estate & construction Biotechnology Petrochemicals Proposed investments (in US$ million) (up to January) Source: Haryana Economic Survey , State Budget , , DIPP, 1 During April- October

42 KEY INDUSTRIES AUTOMOTIVE INDUSTRY (1/2) Haryana is a preferred destination for auto majors and autocomponent manufacturers. The state is host to many large automotive players. The state produces two-thirds of passenger cars, 50% of tractors, 60% of motorcycles and 50% of the refrigerators manufactured in the country. A significant percentage of the state s workforce is engaged in the automotive industry; Gurgaon & Faridabad are important automobile centres. Some of the key players Maruti Suzuki India Ltd Yamaha Motor Pvt Ltd Escorts Group General Motors India Pvt Ltd The International Centre for Automotive Technology (ICAT) has been set up at Manesar as a part of the National Automotive Testing & Research & Development (R&D) Infrastructure Project (NATRiP). It provides testing & R&D services to the industry. The state government has proposed a sliding railway & logistics centre in IMT Manesar for smoother transportation & more effective inventory management Source: Haryana Economic Survey,

43 KEY INDUSTRIES - AUTOMOTIVE INDUSTRY (2/2) Maruti Suzuki India Ltd General Motors India Pvt Ltd Maruti Suzuki India had a market share of around 40 cent in the Indian passenger car market at the end of March Its Gurgaon facility has three integrated plants, with an installed capacity of around 900,000 units; the fourth plant is located at Manesar. In , US$ 354 million was invested in the Manesar plant. The Gurgaon plant would eventually serve as a base for engine assembly and machining, while automobile assembly is done at the Manesar plant. The company recorded revenues of US$ 8.7 billion in and US$ 2.98 billion in Q General Motors India Pvt Ltd, founded in 1996, is a wholly owned subsidiary of General Motors and is engaged in the automobile business in India. Its subsidiary Chevrolet Sales India Pvt Ltd is headquartered in Gurgaon. As of December 2014, the company employs around 216,000 persons in 158 facilities globally. Escorts Group Escorts is a leading engineering conglomerate in the high growth sectors of agri-machinery, construction and material handling equipment, railway equipment and auto components. Its corporate headquarters and manufacturing facilities for tractor assembly, transmission and engines, crankshaft and hydraulics is located in Faridabad. The company posted revenues of US$ million during and US$ million in Q Yamaha Motor Pvt Ltd Yamaha Motors is a 100% subsidiary of Yamaha Motor Company Ltd, Japan. The company has more than 2,000 employees in India, and a countrywide network of over 400 dealers. It has a manufacturing plant in Faridabad, which supplies bikes to the domestic as well as overseas market. 43

44 KEY INDUSTRIES IT/ITES INDUSTRY (1/2) Gurugram has emerged as a preferred destination for the IT industry in North India, with more than 400 IT & ITeS companies. The government has granted licenses to 50 proposals for establishment of IT/cyber projects as of August Haryana is among the leading states in terms of IT exports. As of September 2015, Gurgaon accounted for a share of around 9% in the overall software exports from the country. The state government has extended various incentives to companies within the sector, including relaxation in floor area ratio, rebate on registration, transfer of property charges & exemption under the Haryana Shop & Commercial Act. Haryana is the first state to have implemented its State Wide Area Network (SWAN) for voice, data & video transmission. The SWAN vertical connectivity at the State Network Management Centre (SNMC), District Network Management Centre (DNMC) & Block Network Management Centre (BNMC) is completed & now operational. As of March 2017, the state is strengthening its digital infrastructure by ensuring rolling out of National Optic Fibre Network to 4,051 gram panchayats along with providing Wi-fi to 119 gram panchayats. In the state budget, the Department of Electronics & IT was allocated a proposed outlay of US$ million. As per Economic Survey , in order to fulfil the vision of digital empowerment of the citizens, the government is targeting to provide training to around 5 million citizens in the coming five years, of which 1 million citizens will be trained during The total amount of US$ million was allocated by the state government for this purpose. Haryana Knowledge Corporation Ltd. HKCL) has set up 205 official learning centres. On April 10, 2017, Haryana government launched a mobile application to inform the citizens of the state about various welfare schemes and programmes. The mobile application also allows people to check the status of their complaints, and provide the contact information of various high ranking civil servants. Some of the key players IBM Global Process Services Tata Consultancy Services (TCS) Microsoft Corporation (I) Pvt Ltd Google Source: Haryana Economic Survey, , State Budget ,

45 KEY INDUSTRIES IT/ITES INDUSTRY (2/2) IBM Global Process Services IBM Global Process Services (formerly IBM Daksh) is a leading provider of business process solutions, with its corporate office in Gurgaon. The company has 23 service delivery centres at nine locations in India and Philippines and employs more than 100,000 persons, making it one of the largest Business Process Outsourcing (BPO) vendors in India in terms of headcount. Haryana was awarded the software centre of excellence by IBM. Tata Consultancy Services (TCS) TCS is among the largest providers of IT and BPO services in India. The company s clients are in BFSI, healthcare & life sciences, insurance, manufacturing, media, entertainment, transportation, travel & hospitality, retail, utilities and energy resources sectors. It commenced operations in Gurgaon in The company posted revenues of US$ billion in and US$ 3.75 billion in Q Microsoft Corporation (I) Pvt Ltd Microsoft entered India in 1990 and works closely with the Indian government, IT industry, academia and the local developer community. Microsoft has offices in 10 cities: Ahmedabad, Bengaluru, Gurgaon, Chennai, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi and Pune. In India, Microsoft employs about 5,800 people and has six business units representing the complete Microsoft product lifecycle. The company has two offices in Haryana, both at Gurgaon. Google Google, a web based search engine, is the flagship product owned by Google, Inc. It offers special features such as synonyms, weather forecasts, time zones, stock quotes, maps, earthquake data, movieshow times, airports, home listings and sports scores. Google has a sales office in Gurgaon. It is a direct sales organisation and helps the world's biggest advertisers to enjoy immediate and accountable communication with the consumer. The sales teams here are structured according to industry verticals. 45

46 KEY INDUSTRIES AGRO-BASED INDUSTRY (1/3) Agriculture is one of the biggest employment generators in rural Haryana, with strong potential in value addition & exports. Haryana is self-sufficient in food production and the 2nd-largest contributor of food grains to the central pool. The Department of Horticulture encourages a cluster approach for the development of fruit cultivation. A horticulture terminal market, being developed at Ganaur, would act as an export hub for fruits, flowers & vegetables from all over the country. Haryana aggressively promotes organic farming; financial assistance is provided to farmers for production and use of vermicompost. The state government approved US$ 9.48 million for minor irrigation systems till January Furthermore, under National Mission on Micro Irrigation scheme, the state government has set a target to cover over 9,588 hectares of area for horticulture crops. In January 2016, Haryana State Flood Control Board sanctioned US$ million for 105 new schemes and US$ million for 140 ongoing schemes for flood control and improving the drainage works. In February 2017, the state government decided to constitute a committee of Council of Ministers for preparing a blueprint of integrated Dairy Complexes in all cities of the state. In production of fruits and vegetables in the state, stood at 900 thousand tonnes and 6,960 thousand tonnes, respectively. During , the state accounted for an area of 523 thousand hectares for horticulture crops. The total production of horticulture crops in was 8,016 thousand metric tonnes In November 2017, at World Food India 2017, the state government signed pacts worth US$ 321 million with 44 agro-based and food processing companies that will provide employment to 5,012 persons Production of horticulture crops in Haryana ( 000 MT.) Crop Total fruits Total vegetables 5, , ,960 Total spices Total flowers Source: Economic Survey of Haryana, ,, Department of Agriculture Cooperation and Farmers Welfare 46

47 ,286 6,819 6,337 8,016 KEY INDUSTRIES AGRO-BASED INDUSTRY (2/3) Spices production in the state stood at thousand MT in According to Haryana Renewable Energy Development Agency (HAREDA), Germany based Verbio AG, has approached the Haryana government to invest US$ 15 million to develop bio-cng, from paddy residue in the state. As of May 2017, the state government plans to set up 140 consolidated pack houses across Haryana for storage, packing, processing and marketing of horticultural and vegetable products on commercial and industrial levels. In the first phase, around US$14.93 million would be spent and 30 consolidated pack houses would be built. Haryana total production for horticulture crops ( 000 MT) Haryana total area under cultivation for horticulture crops ( 000 Ha) Source: Economic Survey of Haryana, ,, Department of Agriculture Cooperation and Farmers Welfare 47

48 KEY INDUSTRIES AGRO-BASED INDUSTRY (3/3) Nestle India Ltd Nestle India is a subsidiary of Nestle SA, Switzerland. Its Indian headquarter is in Gurgaon, Haryana. Its famous brands in India include Nescafé, Maggi, Milkybar, Milo, Kit Kat, Bar-One, Milkmaid, Nestea, Nestle Milk, Nestle Fresh 'n' Natural Dahi and Nestle Jeera Raita. The company has a factory at Samalkha, Panipat, which was commissioned in 1993, to manufacture milk products. The company recorded revenues of US$ million in Q GlaxoSmithKline Consumer Healthcare Ltd (GSK) GlaxoSmithKline Consumer Healthcare Ltd (GSKCH) is an Indian group company/associate of GlaxoSmithKline UK and one of the largest players in the health food & drink industry in India. GSK has a factory at village Khewra, Sonipat, with a capacity of 26,100 tonnes per annum for its brand Horlicks. In Q , the revenues recorded by the company stood at US$ million. Haldiram s Foods International Ltd Haldiram's started in Bikaner and is one of India's largest sweets and snacks manufacturers. The company sells packaged food and snacks, which are not only consumed in domestic markets but also exported to various countries viz., Pakistan, Canada, Australia, Sri Lanka, Singapore, Malaysia, South Africa, Indonesia, Qatar, Hong Kong, Japan, Kenya, Libya and South Korea. Haldiram s also has its own outlets where it sells sweets and eatables. In Haryana, Haldiram Manufacturing Co Pvt Ltd is located in village Kherki Daula on the Delhi-Jaipur highway. PepsiCo India PepsiCo established its business operations in India in The company has a diverse range of products including carbonated drinks and potato chips. It employs 6,400 people and provides indirect employment to almost 200,000 people. It has 38 beverage bottling plants and three food plants in the country. Its corporate office is in Gurgaon. 48

49 KEY INDUSTRIES TEXTILES (1/3) Abundant availability of raw materials gives Haryana a competitive advantage in the textile sector cotton production in is estimated to be 2 million* bales (bales of 170 kg each). The average yield and area in was around 683* kg per hectare and 498* thousand hectares, respectively. Readymade garments worth around US$ 1.3 billion are exported from Haryana annually, providing employment to around one million workers. The state had 30 operational textile mills as of June A cluster of high-fashion readymade garment units has come up in the well-developed industrial area of Udyog Vihar, Gurgaon. Panipat, known as the city of weavers, has established itself as a centre for handloom products on the global map. In the 12th Five Year Plan, the Ministry of Textiles, Government of India, launched the ISDS (Integrated Skill Development Scheme). The aim of this scheme is to train 15 lakh people for skill development. The state of Haryana aims at training around 20,000 people under this project at an estimated cost of US$ 3.31 million. The total training cost would be split in the ratio of 75:25 between the Government of India and the state government. In April 2017, the state government announced the Haryana Textile Policy for integrated development of the textile industry. Under the policy, new measures like capital subsidy of 10% for investment in Plant and Machinery allowed under Amended Technology Upgradation Fund Scheme (ATUFS) and Interest subsidy of 4-6% for all types of new textile units were introduced. According to Information and Credit Rating Agency (ICRA), these new Measures will reduce the project cost and boost investments in the state Haryana total production for Khadi (US$ million) Haryana total sales for Khadi (US$ million) The handloom business is expected to receive a further boost with the establishment of the proposed International Trade and Convention Centre in Panipat. It will function as a design centre for the handloom products Note: *Provisional figures Source: Economic Survey of Haryana , Ministry of Textiles, Cotton Corporation of India 49

50 KEY INDUSTRIES TEXTILES (2/3) Cotton yarn production ( 000 kg) Funds released under National Handloom Development Programme ( ) US$ million Integrated Handloom Development Scheme (IHDS) ,159 54,859 Handloom Marketing Assistance (HMA) 0.02 Diversified Handloom Development Scheme (DHDS) 2.13 Spun yarn production ( up to September 2015) Production ( 000 kg) Share (%) 121, Funds Released Under handicraft schemes ( ) US$ thousand Ambedkar Hastshilp Vikas Yojna (AHVY) Design and Technological Up-gradation 3.67 Human Resource Development Scheme Total Source: Ministry of MSME 50

51 KEY INDUSTRIES AGRI AND PROCESSED FOOD SECTOR (2/3) DCM Textiles The company manufactures 100% grey cotton yarn and melange yarn. It has a spinning mill located in Hisar, with an installed capacity of 74,436 spindles. The company exports to 25 countries, including Spain, Portugal, Egypt, South Korea, Brazil, Hong Kong, Italy and Israel. Benetton India Pvt Ltd. Benetton India is a wholly owned subsidiary of the Benetton Group, Italy. United Colors of Benetton is among the market leaders in branded apparel, with around 480 stores across 100 cities. The company has a manufacturing unit in Gurgaon. Orient Craft Ltd Orient is located in Gurgaon and employs around 5,000 people. It has established itself as a premium exporter of textiles from Haryana people. The company has the combined capacity to produce nearly 200,000 pieces per day at 21 units across the country. Pearl Global Ltd. Pearl Global Ltd is a subsidiary of House of Pearl Fashions Ltd Group, which is among the pioneers of the ready-to-wear apparel industry in India. The company has six fully integrated manufacturing plants in Gurgaon, with a capacity for producing value added woven and knitted garments. The total factory area in north India covers more than 310,000 sq ft. The installed capacity on a single shift basis stands at 10 million pieces per annum. The units specialise in casualwear dresses, ladies blouses in both woven and knits. Important customers of the company include Gap, Inc, JC Penney, Kohls, Next, H&M and Esprit. Revenue for the year ended March 2017 was US$ million. In Q , the company had revenues of US$ 62.9 million. 51

52 KEY INDUSTRIES PETROCHEMICALS (1/2) Panipat Refinery, which is a unit of Indian Oil Corporation Limited (IOCL), was commissioned in The refinery has a capacity of MMTPA, as of FY17. As per refinery operations data for FY2016, the refinery produces diesel and gasoline which are compliant to BS-IV specifications. For leveraging the establishment of a petrochemical plastic park and hub at Panipat under vicinity of IOCL, the Enterprises Promotion Policy-2015 was launched by Government of India, which became effective in the state from August Consumption of major petroleum products during ( 000 tonnes) 1 Petroleum products Haryana India Naphtha 3,459 10,835 Liquefied petroleum gas (LPG) ,179 Motor spirit (MS) ,765 Superior kerosene oil (SKO) 31 5,397 Aviation turbine fuel (ATF) 40 6,658 High speed diesel (HSD) 4,952 75,980 Light diesel oil (LDO) Fuel Oil (FO) Lubs/Grs 47 1,339 Bitumen 127 4,998 Others ,384 2 Total 10, ,247 Note: 1 Does not include private imports, 2 Inlcudes HHS/LSHS Source: Ministry of Petroleum & Natural Gas 52

53 KEY INDUSTRIES PETROCHEMICALS (2/2) Indian Oil Corporation Ltd (IOCL) IOCL manufactures petroleum products, crude oil, lubricants, grease, oil base, additives etc. IOCL has a refinery at Panipat, the company s seventh. The refinery was set up in 1998 at a cost of US$ 848 million, with a capacity of 6 million metric tonnes per annum (MMTPA). The Panipat refinery has increased its refining capacity from 6 MMTA to 15 MMTA with the commissioning of its expansion project. Kandla-Bhatinda product pipeline was converted to crude oil service and renamed as Mundra-Panipat pipeline in The Mundra-Panipat pipeline augmentation was commissioned in 2009 at a cost of US$ million. In March 2010, a naphtha cracker complex was set up adjacent to the Panipat refinery at an investment of US$ 3.04 billion. The company recorded total revenues of US$ billion for Q

54 KEY INDUSTRIES REAL ESTATE AND CONSTRUCTION (1/2) The real estate and construction industry has grown rapidly in Haryana. The growth in real estate in Haryana encompasses activities in the residential, commercial and hospitality space. Real Estate Development Council (REDCO) is the apex body for all stakeholders in the housing and construction industry; it was launched jointly by the Government of Haryana and the Ministry for Urban Development, Government of India. Gurugram accounts for more than 70% of the new commercial space coming up in the NCR. and is registering the fastest growth in the real estate sector in India. Owing to Gurugram s reputation as an IT hub and proximity to the national capital Delhi, demand for both housing and commercial space is rising. To accommodate further growth, the state has finalised the new Gurugram-Manesar Master Plan The plan allocates land for developing residential and growth corridors. Adani realty team has tied up with US-based Brahma Management for a 150 acre township in Gurgaon. New Gurgaon is one of the top realty destinations, with its world-class infrastructure, amenities and connectivity with neighbouring states. Gurgaon-Sohna road is another big site for commercial as well as residential development. In June 2015, the central government launched the Atal Mission for Rejuvenation and Urban Transformation (AMRUT). Under this, 20 cities have been selected in the state, namely Ambala Urban Agglomeration, Hisar, Bahadurgarh, Ambala Municipal Corporation, Bhiwani, Gurgaon, Faridabad, Jagadhri, Jind, Kaithal, Karnal, Palwal, Panipat, Panchkula, Rewari, Rohtak, Sirsa, Thanesar, Yamunanagar and Sonepat. As per state budget , approval has been given for construction of 11,259 flats for economically weaker sections of the state at a cost of US$ 137 million. With the transparent and liberal New Integrated Licensing Policy in the state, the state government is aiming to provide houses to all the people at economical prices as per the budget The progress of clearances on Renuka and Kishau dams is in its advanced stage. With completion of these projects, the state is expected to get regular water supply from the Yamuna. Source: State budget , economic survey , Amrut website 54

55 KEY INDUSTRIES REAL ESTATE AND CONSTRUCTION (2/2) DLF Ltd. DLF Group is one of the largest real estate players in India. Its primary business is development of residential, commercial and retail properties. DLF has been in the industry for over 60 years, having developed homes, offices, malls, SEZs, hotels and infrastructure projects. In , the company garnered US$ 1.39 billion in revenues. In August 2009, the foundation stone was laid for the first private metro rail project in the country. It was to be developed in Gurgaon by the DLF-IL&FS consortium. The first of the 11.7-km rapid metro rail opened commercially in 2013 and the second project in March Unitech Group Unitech is among the largest real estate players, which have executed projects in Gurgaon with world-class service facilities. Its projects include Nirvana Country, Unitech World, Unitech Trade Centre, Unitech Business Park, Millennium Plaza (jointly developed with Vipul), Signature Towers and Global Business Park (jointly developed with Vipul). In , the company registered revenues of US$ million. Ansal Housing & Construction Ltd Ansal Group expanded its activities from real estate development to high-value construction. In , the company posted revenues of US$ million. It is present in Gurgaon through several projects in both residential and commercial spaces. The group presently employs over 5,000 persons. Emaar MGF Land Ltd Emaar MGF is a joint venture between Emaar Properties PJSC Dubai, a leading global real estate company, and MGF Development Ltd, one of the leading real estate developers. The company has several housing and commercial projects in the state. 55

56 KEY INDUSTRIES BIOTECHNOLOGY (1/2) The Government of India selected Haryana for the establishment of a biotechnology park along with R&D facilities, besides promoting the establishment of a pharma industrial park. The state government acquired 1,000 acres of land for a dedicated pharma park in the KMP (Kundli-Manesar-Palwal) express global economic corridor. Establishment of research centres and laboratories in collaboration with the private sector is being encouraged. Key players Proagro Seeds Company Pvt Ltd Eli Lilly Company (India) Pvt Ltd Sun Pharma Venus Remedies Ltd The state government has established a Regional Centre for Biotechnology (RCB), Gurgaon under the guidance of UNESCO as a Category II Centre. This centre was established for education, training, and research in biotechnology and undertakes contemporary research at the interface of various disciplines. The centre started functioning in its permanent campus in Faridabad, Haryana in January

57 KEY INDUSTRIES BIOTECHNOLOGY (2/2) Proagro Seeds Company Pvt Ltd Proagro Seeds Company Pvt Ltd, a leading seed company in India, is a Bayer CropScience Group company. It is engaged in breeding, development, production and marketing of high quality hybrid field seeds. The company has a biotech laboratory in Gurgaon where genetic markers, DNA finger printing and other testing techniques are used to support the company s plant breeding efforts. Eli Lilly and Company (I) Pvt Ltd Eli Lilly and Company (India) Pvt Ltd is a subsidiary of the US pharmaceutical major Eli Lilly and Co. Its primary focus is on diabetes, oncology, acute coronary syndrome, critical care, osteoporosis and growth hormones, and employs more than 550 people across India. In India, Eli Lilly operates in Gurgaon and conducts clinical trials of biotech drugs with its overall range. Sun Pharmaceutical Industries Ltd Sun Pharmaceutical Industries Ltd, one of India's largest pharmaceutical companies, is an integrated, research-based pharmaceutical company with a global presence. The company recorded revenues of US$ million in Q The company announced the acquisition of Ranbaxy Laboratories Limited in April 2014, and completed the acquisition deal in March The company manufactures a wide range of generic medicines in its 45 manufacturing sites across the globe. Sun Pharma Industries Ltd has two manufacturing facilities in Madhya Pradesh at Dewas and Malanpur. Venus Remedies Ltd Venus Remedies Ltd is among the 10 leading fixed-dosage injectable manufacturers worldwide. The company has presence in 60 countries and covers more than 75 products. The company registered revenues of US$ million in and US$ million in Q The company s' first manufacturing unit commenced operations in 1991 in Panchkula, Haryana. It manufactures products in the categories of antibiotics, Total Parenteral Nutrition (TPN), neuro and other superspecialty therapeutic segments at its Panchkula unit. 57

58 SINGLE-WINDOW CLEARANCE MECHANISM Single-window clearance mechanism was established under the Haryana Industrial Promotion Act, It has a three-tier structure to grant exemption/relaxation from any of the provisions/rules of the Act. The Investment Promotion Centres (IPC) located in New Delhi and Chandigarh and District Industries Centres (DIC) at the district level serve as nodal agencies and provide support to the committees. Investment handled Under the Chairmanship of Nodal agencies Greater than US$ 6.5 million High- Powered Clearance Committee Principal Secretary to Chief Minister Investment Promotion Centre (IPC) State Level US$ 1.09 to US$ 6.5 million State-Level Clearance Committee Principal Secretary Industries District Industries Centre (DIC) District Level Less than US$ 1.09 million District-Level Clearance Committee Deputy Commissioner 58

59 KEY INVESTMENT PROMOTION OFFICES Agency Description Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC) Focusses on the development of medium- and large-scale industries. Provides financial assistance by way of term loans, equipment re-finance, equipment leasing and working capital. Haryana Agro Industries Corporation Ltd (HAIC) Engaged in trading activities such as sale of seeds, fertilisers, pesticides, tractors and other agricultural machinery at economical prices to the farming community. Haryana State Electronics Development Corporation Ltd (HARTRON) Nodal agency of the Government of Haryana for promoting electronics and IT industries. It offers expertise in infrastructure development as well as promotion of projects. Haryana Urban Development Authority (HUDA) Responsible for promoting and securing development of urban areas; activities include land acquisition, development and sale of property for residential, industrial and commercial purposes. Haryana Finance Corporation (HFC) Meets the credit needs of small- and medium-scale industrial units by advancing term loans. 59

60 CONTACT LIST Agency Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC) Haryana Urban Development Authority (HUDA) Haryana Finance Corporation (HFC) Contact information Plot No C-13-14, Sector 6, Panchkula Phone: Fax: Website: C-3, Sector-6, Panchkula Phone: Website: Bays , Sector 17-A, Chandigarh Phone: Fax: Website: Haryana State Electronics Development Corporation Ltd (HARTRON) SCO , Sector 17-B, Chandigarh Website: 60

61 KEY APPROVALS REQUIRED Approvals and clearances required Department Estimated time Site clearances and No-objection Certificate Department of Environment/Haryana Pollution Control Board Site and/or environment clearance: 60 days No-objection certificate to establish: 7 days No-objection certificate to operate: 30 days Renewal of consent: 21 days Approval, No-objection Certificate and change of industrial land Department of Town and Country Planning Change of land use in industrial zone: 30 days No objection certificate for establishment of industrial unit under the Urban Area Act: 15 days Approval of building plan: 30 days Approval and licence Labour Department/ Chief Inspector of Factories Approval of factory plan under the Factories Act, 1948 (Act 63 of 1948): 90 days Licence for running factory: 15 days Release of power connection Uttar Haryana Bijli Vitran Nigam/Dakshin Haryana Bijli Vitran Nigam Load up to 20 KW: 21 days Load up to 70 KW: 45 days Load above 250 KW: 60 days Load above 1 MW: 60 days Sales tax Excise and Taxation Sales tax registration: 15 days 61

62 COST OF DOING BUSINESS IN Cost parameter Cost estimate Source Industrial land (per sq m) US$ Industry sources Office space rent (per sq ft) Gurgaon: US 31 cents to US 74 cents per month Industry sources Residential rent (2,000 sq ft) US$ 287 to US$ 478 per month Industry sources Five-star hotel room rent US$ 80.4 per room per night Leading hotels in the state Power (per kwh) Commercial & Industrial: US 9.6 cents Industry sources Water (per 1,000 litres) Commercial & Industrial: US 9.6 cents Water Supply and Sanitation Department As per the World Bank and Department of Industrial Policy and Promotion (DIPP) report - Assessment of State Implementation of Business Reforms 2016, the state ranked 6th in the Ease of Doing Business Index. 62

63 STATE ACTS AND POLICIES (1/3) Objectives To attract investment in the textile sector to the tune of Rs 5000 crore Textile Policy 2017 To generate new jobs in the textile sector To boost textile export by CAGR of 20% during the policy period Read more Draft IT & ESDM Policy 2017 Attract US$ 2.79 billion as investments in IT & EDSM sector in the next five years Provide employment to 120,000 people in the sector. Increase IT & EDSM sector s contribution to the state s GDP from 9.4% to 15%. Read more Draft Aerospace & Defence Policy 2016 Attract orders for at least 15% of all offset obligations discharged by companies in India by leveraging the existing ancillary base and promoting new MSMEs dedicatedly for A&D sector To attract investment of over Rs 25,000 crores throughout the value-chain including research, design, development, manufacturing, maintenance, quality control and training Read more Haryana Sports and Physical Fitness Policy 2015 The policy aims at two themes, namely - Sports for All and Excellence in Sports The policy covers five major goals such as - introduction to sports, recreational sports, competitive sports, high performance sports and sports for development. Read more Enterprise Promotion Policy, 2015 The major objectives of this policy is to facilitate ease of doing business in the state, reduction in cost of doing business in order to attract more number of players, and have an increased focus on MSMEs Read more 63

64 STATE ACTS AND POLICIES (2/3) Objectives New Integrated Licensing Policy (NILP) 2015 To develop hyper & high potential urban complexes in the state To allow real estate developers in setting up projects that are less than 100 acres of area Read more Industrial and Investment Policy 2011 To achieve higher, sustainable and inclusive economic growth by attracting investments in a focussed and structured manner in potential areas. Encourage private sector investment and promote the manufacturing sector as a key economic driver Read more Rehabilitation and Resettlement Policy, 2010 To smoothen out the land acquisition process under the Land Pooling Scheme. To make fair payment of market value as compensation for land to land owners. Read more Haryana Tourism Policy 2008 To increase the earnings from tourism inflow at the rate of 10.0% annually. To promote sustainable tourism by encouraging a constructive and mutually beneficial partnership between the public and private sectors for economic development and employment generation. Read more Industrial Infra Development Scheme Formulated in January 2017, to promote uniform regional and sustainable growth across the state, including in backward areas. Another objective of the scheme is to provide sufficient width of road connectivity between the nearest states. Read more 64

65 STATE ACTS AND POLICIES (3/3) Objectives Labour Policy To implement labour laws for ensuring proper working conditions and labour standards. To improve working conditions for women and eliminate all forms of child labour. To train and retain employees and officers. Read more Land Pooling Scheme To acquire land for development of industrial infrastructure in a planned manner by the HSIIDC. To provide land owners with an option to become partners in the development process. Read more Public Private Partnership Policy To facilitate private sector participation in upgrading, developing and expanding the state s physical and social infrastructure. Read more 66 65

66 STARTUP POLICY 2017 The policy visualises Haryana as a resourceful and innovative startup hub by supporting & assisting the new-age innovators and entrepreneurial talents across the state. Objectives: Attract Rs 500 crores investments into the incubation and startup ecosystem in Haryana during policy period Establish at least 10 technology /business incubators / accelerators in each of the different sectors in the state in different regions of the state Develop 1 million sq. ft. of incubation space Facilitate venture capital funding of a minimum of Rs 200 crore. Encourage/facilitate/incubate at least 500 startups Haryana State Electronic Development Corporation Limited (HARTRON) introduced a start-up warehouse on 10,000 sq. ft. of land in Gurugram under the policy. The policy also proposed building of sector specific incubation centers which would provide facilities such as common working space, test and demonstration facilities, mediation and network, training and coaching and business support. Various incentives are offered to startups/entrepreneurs under the policy. Few of these are interest subsidy, lease rental subsidy and innovation promotion subsidy. The government also decided to create a fund of funds to support startups at the stages of seed funding and venture capital. Seed capital of upto US$ 4,656 shall be provided for validation of idea, prototype development and initial activities to setup the startup. A total of 500 ideas would be supported with seed capital. The government would also create a fund of US$ 1.5 million dedicated to meet the funding requirement for scalability. 66

67 EXCHANGE RATES Exchange Rates (Fiscal Year) Year INR INR Equivalent of one US$ Q Q Q Exchange Rates (Calendar Year) Year INR Equivalent of one US$ Source: Reserve bank of India, Average for the year 67

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