Q4(a). Write about the salient features of the Industrial Policy of Haryana – 2005.

“States compete not on land, but on policy clarity.” World Bank (State Competitiveness Report, 2006)

Haryana’s Industrial Policy, 2005 was formulated at a time when India was experiencing rapid post-liberalisation industrial diversification. The policy aimed to transform Haryana from an agricultural state to a modern manufacturing and services hub, leveraging its proximity to Delhi and strong infrastructural base.

Salient Features of the Policy

1. Focus on High-Priority Sectors

The policy identified automobiles, auto components, IT/ITES, textiles, biotechnology, and agro-based industries as thrust sectors.

2. Infrastructure Development

• Expansion of Industrial Model Townships (IMTs) like Manesar, Rohtak, and Bahadurgarh.
• Strengthening of HSIIDC for industrial estates and clusters.
• Promotion of private Special Economic Zones (SEZs) in IT and manufacturing.

3. Attractive Incentives for Industry

• Capital investment subsidy for SMEs.
• Exemption from electricity duty, stamp duty, and sales tax for new units.
• Simplification through single-window clearance.

4. Labour and Power Reforms

• Support for flexible labour laws to enhance competitiveness.
• Priority for uninterrupted power supply to industries; foundation for later schemes like “Mahra Gaon, Jagmag Gaon”.

5. Emphasis on IT and Knowledge Industry

Creation of IT parks in Gurugram and Panchkula; promotion of e-governance and digital services.

6. Inclusive Growth

Promotion of agro-processing, rural BPOs, skill development centres, and women entrepreneurship.

Impact

The policy accelerated Haryana’s rise as India’s auto hub, boosted Gurugram’s emergence as a global IT centre, and strengthened MSMEs.

Industrial Policy 2005 positioned Haryana as a competitive industrial state with strong infrastructure, investment-friendly governance, and sectoral specialization.