Gurgaon attracted Rs 3.5 lakh crore investments in FY15

Gurgaon has emerged as the top destination for investors in Haryana with the city attracting investments worth Rs 3.5 lakh crore, almost 70 per cent of the total inflows of Rs 5 lakh crore in the state in FY 2014-15, says an Assocham study. "Besides, robust industrial development in Gurgaon during past two decades has increased its share in total tax collection by Haryana by almost 200 times i.e. from just about Rs 17.5 crore in 1990-91 to over Rs 3,445.5 crore in 2012-13", noted the study titled "Economy of Haryana and Contribution of Gurgaon & Faridabad".

"Gurgaon has also registered faster implementation of investment projects as almost 95 per cent of these projects are under different stages of implementation while only about five per cent of investment projects have remained non starter", said P K Jain, Chairman, Assocham National Council on MSMEs and D S Rawat, secretary general, Assocham at a press conference in Gurgaon. "If another futuristic city can be created on the lines of Gurgaon which is often known as a 'symbol of rising new India', owing to emergence of international commercial hub like Cyber City, it will help increase Haryana's revenues by more than three times its current level", said Rawat.

"Factors like availability of skilled manpower and proximity to strong consumption markets in north India have helped Gurgaon evolve as a manufacturing and industrial hub attracting investments mainly from private sector in information technology (IT), information technology enabled services (ITeS), mechanical, electrical, textile, chemical and other sectors", added Jain. Gurgaon Vs Faridabad: An overview in its study, Assocham has showcased as to how evolution of Gurgaon had toppled Faridabad as a major contributor in Haryana's economic progress.

Faridabad's share in total investments attracted by Haryana has remained less than even one per cent during past 20 years. Besides, projects comprising over 93 per cent of investments attracted by Faridabad remained non starter till 2014-15. Factories' level development in Gurgaon has been faster than that in Faridabad as Gurgaon's registered factories contribution to Haryana had increased from about six per cent in 1991 to about 19 per cent in 2013 while Faridabad's contribution had declined from 29 per cent to about 22 per cent during this period, noted the study.

Gurgaon's share in the number of people employed in factories had increased by over five times have i.e. from about six per cent in 1991 to about 32 per cent in 2013 while share of Faridabad in this regard had declined from over 45 per cent to 25.5 per cent. Share of Gurgaon in exports from Haryana has also increased significantly from 38.5 per cent in 1997-98 to 62.5 per cent in 2013-14 while that of Faridabad had declined from about seven per cent to about three per cent.

In terms of revenue generation for the state exchequer, Gurgaon's share in total value added tax collected by Haryana government had increased from 5.5 per cent in 1990-91 to about 24 per cent in 2012-13 while the share of Faridabad had decline from 20 per cent to about 17 per cent. In terms of contribution to central sales tax, Gurgaon s share has increased from 21 per cent to about 26 per cent while Faridabad s contribution in this regard has almost halved from 30.5 per cent to 15 per cent.

Gurgaon accounted for over 54 per cent of total entertainment tax collected by the state government in 2012-13 which had increased from over seven per cent during the aforesaid period while share of Faridabad had dropped from about 21 per cent to about 13 per cent. As of 2012-13, Gurgaon accounted for over 96 per cent of all automobiles produced in Haryana, 95 per cent of all swing machines produced and about 96 per cent of all sports goods produced in the state.

Image Credit: Wikipedia

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