Haryana – A Rising Hub for Foreign Direct Investment in India

Introduction:

A promising Indian State which has earned its name globally as a coveted destination for leading automobile and auto parts, the State of Haryana has become a rising hub for Foreign Direct Investment (FDI) in India to set up a company in India.

Its prime location in close proximately with the capital of India makes it easier for its to access the international players. Chandigarh as the state capital, Haryana is located in the northern part of India and shares its borders with the states of Uttar Pradesh, Punjab, Himachal Pradesh, and Rajasthan. It is also surrounded on three sides by the national capital, Delhi (north, west, and south), and its bordering districts form an integral part of the Delhi National Capital Region (NCR). It has a population of 28 million as of 2021 and majority of people in Haryana speak Hindi and English. Haryana is known for its strong agricultural heritage and maintaining the culture while its people are enterprising and hardworking. The literacy rate in Haryana is 75.5% and on a year-on-year basis the unemployment rate in Haryana has also gone down drastically. Some of the most important cities are Chandigarh, Panipat, Gurugram, Faridabad, Ambala, Rohtak, Sirsa and Panchkula.

THE GROWTH STORY

Haryana is considered to be one of the fastest-growing State in sectors such as automobile & auto components, agro & food processing, textiles & apparel, footwear & accessories, electronics and IT/ITeS, defense & aerospace, renewable energy & solar parks, pharmaceutical & chemicals. The State accounts for two-thirds passenger cars, 50% tractors and 60% motorcycles manufactured in the country. The state has also emerged as a base for the knowledge industry, including IT and biotechnology. Haryana is the third-largest exporter of software and one of the preferred destinations for IT/ITeS facilities with the highest concentration of BPO workforce in the world.

The State has an added advantage on account of connectively to roads, railways and airways. Some of the major industrial corridors such as the Delhi-Mumbai Industrial Corridor (DMIC), the Amritsar Kolkata Industrial Corridor (AKIC), and the Kundli-Manesar-Palwal Expressway (KMP) are located in the State of Haryana.

With the most SEZ in the country, 23 SEZs with formal approval including 7 exporting SEZs, primarily situated along the industrial corridor projects connecting the NCR, Haryana has an advance infrastructure system. You may find more information on https://www.sezindiainvest.com/Statewise/Haryana_Statewise.htm for SEZ in Haryana.

Various Industrial estate and township located in areas such as Ambala, Faridabad, Gurugram, Karnal, Panchkula, Panipat and Sirsa to name a few making Haryana a lucrative ground for foreign investors. Another main reason for the growth of the State is the Single-window clearance mechanism established under the Haryana Industrial Promotion Act, 2005. This has made Haryana one of the top rankers of the Ease of Doing Business ranking as per the Business Reforms Action Plan (BRAP) 2020 and has also been ranked No. 1 in Export Preparedness Index 2020 under Landlocked states category.

As per the latest statistics provided by the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative Foreign Direct Investment (FDI) inflows in Haryana stood at USD 2.6 billion in Financial year 2023 making it one of the highest recipients of the Foreign Direct Investments. As per the estimates for 2022-23, GSDP has been estimated at Rs. 994,195 crore, USD 120.44 billion, with an expansion rate of 10.46% from 2015-16 to 2022-23.

Haryana is also a home to 250 of the Fortune 500 companies, with some of the major foreign investors in the state are Accenture, Microsoft, Genpact, Samsung, E&Y, Nokia, American Express, Dell, Google, Wipro, Siemens, Maruti Suzuki, Honda, Cargill, Asahi Glass India Ltd., Kubota, Johnson Matthey, Haryana has been a preferred options for many foreign direct investments.

CONCLUSION

Haryana, has an advanced technological system making it a rapidly evolving state in India. “Benefits such as well-connected infrastructure, a single-window clearance system, and government-provided incentives and policies have made it easier for foreign companies to set up their unit in Haryana.

With a main focus on manufacturing, innovation, entrepreneurship, and sustainability, it presents abundant opportunities for businesses and investors across industrial and service sectors, Haryana has slowly transformed itself from an agrarian economy to an industrial powerhouse.

We at D’Andrea & Partners Legal Counsel is a legal firm with its presence in India, Pune and provide all round legal and fiscal services relating to open a company in India, legal compliance, litigation and dispute resolution, drafting of agreements and contracts, intellectual property rights protections, HR and IPR Related work and other miscellaneous services. Should you have any query or wish to know more, please reach us at info@dandreapartners.com. We are also pleased to introduce our practical guide on Foreign Direct Investment in India which you can purchase on https://www.amazon.com/Foreign-Direct-Investment-India-Invest-ebook/dp/B0BP7M7GKD/ref=sr_1_3?qid=1695004259&refinements=p_27%3ACarlo+Diego+D%27Andrea&s=digital-text&sr=1 3&text=Carlo+Diego+D%27Andrea

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