70% of Haryana’s investment comes from Gurgaon, says industry body
Small and medium enterprises in Gurgaon need better infrastructure and financial support to keep the city on the growth trajectory, states a recent report by industries body The Associated Chambers of Commerce and Industry of India.gurgaon Updated: Oct 09, 2015 14:56 IST
Small and medium enterprises in Gurgaon need better infrastructure and financial support to keep the city on the growth trajectory, states a recent report by industries body The Associated Chambers of Commerce and Industry of India.
The report also hinted that if proper measures are not taken soon, Gurgaon could face a Faridabad-like situation which has slid considerably on the investment and industrial graph.
DS Rawat, secretary general of Assocham, said, currently, Gurgaon is on top when it comes to investment and has garnered around 70% of the total investment in live projects till the last fiscal.
The report also confirms that the city’s share in Haryana’s tax collection in the last two decades has increased by 200 times. “From about Rs 17.5 crore in 1990-91, Gurgaon contributed to over Rs 3,445.5 crore in 2012-13 as taxes,” noted the study titled ‘Haryana’s economy: Gurgaon grows and Faridabad falters’.
What has acted in favour of Gurgaon is the faster implementation of projects in the city as compared to Faridabad and other parts of Haryana. “Almost 95% of these projects are under different stages of implementation, while only about 5% of investment projects have remained non-starters,” said PK Jain, a Gurgaon-based industrialist and chairman of the Assocham National Council on MSMEs.
The industries body also called for the creation of new cities in Haryana on lines of Gurgaon. This is because Gurgaon has reached the saturation point and there is a strong need of boosting social and civic infrastructure, Rawat said.
Meanwhile, the study also delved on how Faridabad has declined in the past two decades and is far from being a premium industrial destination. According to the study, Faridabad’s share in total investment has remained less than 1% in last 20 years. Additionally, 93% of the investment in the city has remained only on paper.
The industrial contribution of Faridabad to Haryana’s revenue has declined from 29% to 22%, while Gurgaon’s contribution has increased from 6% in 1991 to 19% in 2013. Gurgaon employs five times more people in its factories whereas Faridabad’s share has declined from 45% to 25.5%. In exports too, Gurgaon is higher than Faridabad, whose share has come down from 7% to about 3% in last decade.
In terms of revenue generation for the state exchequer, Gurgaon’s share in total value added tax (VAT) had increased from 5.5% in 1990-91 to about 24% in 2012-13. Meanwhile, Faridabad had declined 20% to about 17%.