Comparison Punjab and Haryana

General information about both the states

PUNJAB:

Punjab symbolizes the land of enterprise and endeavour. The state of Punjab blessed with
fertile soils and rivers, has earned the distinction of being the " Granary of India" owing to its
enterprising spirit and toil of its people. Punjab is a progressive state of India with an average growth
rate of 10 per cent and has evolved into a land of boundless opportunities for investment, industry and
employment.

Punjab is bordered by Pakistan in the West, Jammu and Kashmir in the North, Himachal
Pradesh to the northeast, Haryana to the south and southeast, Chandigarh to the southeast and
Rajasthan to the southwest. The state of Punjab was the first to translate agricultural technology into
the “Green Revolution" recording the highest growth rate in food production.

HARYANA:

Haryana became a new state on 1st November 1966. Haryana is situated in the north between
27 deg 37' to 30 deg 35' latitude and between 74 deg 28' to 77 deg 36' longitude. Haryana has Uttar
Pradesh on its eastern border, Punjab on its western border, Uttaranchal, Himachal Pradesh &
Shivalik Hills on its northern border and Delhi, Rajasthan and Aravali Hills on its southern border.
The altitude of Haryana varies between 700 ft to 900 ft above the sea level.

Political Condition
Punjab:

The political condition of Punjab is stable. From 4 years, the Government of Mr. Parkash
Singh Badal (Shiromini Akali Dal & BJP) is running without any dispute.

By adopting the new industrial policy, the state government has taken a step to promote the
industry in the state. Many Mega-Projects are already running successfully in the state.

The support of the state government to the Industry is quite encouraging. The government has
provided each facility required to the Industrial units.
Haryana:

Government of Indian National Congress Party is running under the leadership of Mr.
Bhupendra Singh Hudda. The clear success of the party in the state election had shown the political
stability of the state, where Congress had won 99% of the seats. The single party dominated
government in Haryana is supposed to be more stable as compare to Punjab.

The same party is running the central government of India under the leadership of Dr.
Manmohan Singh. Thus it has complete support of the central government. Thus we can say that the
political stability of Haryana is higher than Punjab.

Haryana holds 40% of the National Capital Region. Cities like Gurgaon, Faridabad are called
the Industrial hub of the country. The industrial policies of the state are more suitable for starting a
new business.

Economic Condition
Punjab:

 Punjab holds the highest per-capita-income in the country.

 The infrastructure development in Punjab is also very high. Punjab has been awarded as
Highest Developed State 5 times.
 Punjab has been awarded The Best State of country for 6 years continually from 2002 to
2007.
 Punjab has been the interest for foreign investors. The investment potential in Punjab is also
high. A company can have a big investment from local investors only

Haryana:

 Haryana has adopted investor-friendly economic policies. These policies have been adjusted
in accordance with the changing economic scenario and are far more liberal and transparent.
These policies are geared towards promoting private investments- both domestic and foreign.
 Under the Special Economic Zones (SEZ) Act, 20 SEZs with an investment of US$ 18.8779
billion have to be set up in Haryana. Ten SEZs have already been approved by the Central
government.

Social Condition
Punjab

Education

Punjab is ranked seventh in terms of education amongst the states. With growing pace of
industrialization in Punjab, the main stress has been on expansion, modernisation and reorientation of
technical education and industrial training system so as to match it with emerging technologies for
ensuring quality manpower availability to the industrial sector. The basic objective is to produce
engineers, technicians and craftsmen who are viewed as assets by the Industry of world-class
capability. For this purpose, besides opening up new Engineering colleges, Polytechnics and
Industrial training in the emerging areas, the existing institutions are being modernized by providing
new equipment and machinery with the assistance of World Bank as also the state government. To
consolidate the development in these fields, a new full fledge 'Punjab Technical University' at
Jalandhar has been established.

Haryana

Health

The health department of Haryana is committed to provide quality healthcare services to the people of
the state and to raise the health status of the people. The health services are being provided to the
people of Haryana state through a well-connected network of 50 government hospitals, 81 community
health centres, 408 primary health centres, 2433 sub centres, 12 district tuberculosis centres, 41
dispensaries, 2 mobile dental dispensaries and one postgraduate institute of medical education and
research.

Education

The state of Haryana has made tremendous expansion in the field of higher education since its
inception. It has been the endeavor of the government to make educational facilities available within
the reach of the children. 32 primary schools, 69 middle schools and 101 high schools were upgraded
to middle, high and senior secondary respectively during the year 2004-05. Now accessibility to
schooling is available within the radius of 1.10 km, 1.38 km, 1.66 km and 2.79 km at the primary,
middle, high and senior secondary level respectively.

Legal Condition
Punjab

Industrial Policy 2003

Objectives of the Policy

The new Industrial Policy has following broad objectives:

 Create a conducive investment climate through infrastructure creation, reduced regulations

and general facilitation.
 Rejuvenate and make competitive existing industry, particularly in the small-scale sector
through improved technology, product quality and marketing.
 Create a special thrust in the areas where Punjab has an edge in terms of cost and
competitiveness

Main Planks of the Industrial Policy

 Hassle free dealing with government.

 Power sector reforms.
 One time settlement scheme.
 Industry and business friendly tax administration.
 Enhancement of competitiveness of the existing Industry.
  Revival of sick Small Scale Industrial (SSI) Units.
 Redefining role of PSIDC, PFC and PSIEC.
 Industrial infrastructure development.
 Measures for attracting new investment

Notification Textile Policy 2006

The objectives of this Policy are following:-

a). Facilitate the Textile Industry of Punjab to attain and sustain a pre-eminent global standing;
b). The Industry equips itself to withstand pressure of import penetration and maintains a dominant
presence in the domestic market;
c) Facilitate cluster formulation to promote collective efficiency of textile units by improving their
business processes and support systems.

IT Policy

Objectives of the Policy

 Improve the overall economy of Punjab by generating more jobs,

as well as domestic and export revenues and ensuring even spread
of such benefits to one and all.
 Creation of high value Employment potential through Human
resource development in IT and related areas along with the IT
industry and business.
 Make Punjab a favoured industry destination for attracting investment from outside the state
by facilitating the creation of world class infrastructure, institutional framework and an
enabling environment
 Provide citizen-centered Governance, which is efficient, low cost effective, transparent,
friendly, affordable, convenient and ensures full accountability of employees. The
government would empower Citizen through deployment of IT and e-governance.
 Make the State of Punjab globally competitive in the new Globalized, Privatized and
Liberalized economy and Changing business environment of the new millennium.
 Turn the state into a smart & intelligent state and a knowledge society through IT education
and e-Governance by promoting knowledge as the key resource for economic progress of
individuals & institutions.

Haryana

Industrial Policy 2005

The state has laid down the following objectives of the Industrial Policy

 Re-establish industry as a key driver of economic growth.

 To create wealth for the residents of the state and improve the quality of their life.
 Generate employment and entrepreneurial opportunities across all sectors of the economy.
 Facilitate spatial dispersal of economic activities particularly in economically and socially
backward regions of the state.
 To ensure sustainable development through investments in key sectors of economy

Strategy of the Policy

The State Government intends to realize the objectives of the policy by emphasizing a coordinated
development strategy in mission mode approach. The strategy proposed by the state is outlined below

 Develop economic hubs through infrastructural initiatives.

 Encourage public-private partnership in infrastructure in infrastructure projects.
 Focus on economic activities enjoying a comparative advantage in the state in general and
develop the food processing ICT and frontier technologies in particular.
 Promote mega projects with economic spin-off potential, particularly in backward regions.
 Adopt sector-specific approach, providing incentives and infrastructural support, for the
synergetic growth of key enterprises.
 Develop services sector especially tourism, transport, education, healthcare and financial
services.
 Focus on development and support to the small and medium enterprises.
Enhance export-competitiveness and enable Compounded Annual Growth Rate of 20 per
cent.
 Create investor-focused approach in administrative process and bring about efficiency,
transparency and accountability using modern technological and management solutions.
 Strengthen the grievance redressal mechanism.
 Human resource development by establishing strategic linkages between the industry and
technical institutions to meet future manpower requirements.
 Continue with fiscal reforms and prudent public finance management to release resources for
deployment in key public investment areas.

Information Technology Policy-2000

The State Government of Haryana recognizes the role of It as an effective tool in catalyzing economic
activity, in efficient governance and in developing human resource. The vision of the information
technology policy is to transform Haryana into an IT driven economy.

Objectives of the Policy

The government strives to make Haryana an IT driven economy by achieving the following
objectives:

 Upgrading the standard and quality of administration, particularly in social and public
services sector through a process of modernisation and rationalization of the administrative
set up,
 Providing public centered, efficient and cost-effective Government
 Extensive percolation of IT literacy and education in the State,
 Promoting investments in IT industry
 Encouraging private sector initiative in IT related infrastructure and services
 Increasing the share of IT in State Gross Domestic Product
 Generating IT related employment opportunities, and
 Enhancing earning capacity of the residents thereby ensuring a better quality of life.

SEZ Policy

Governor of Haryana has formulated this policy to facilitate acquisition of land for private
deployment and in public-private partnership for setting up of Special Economic Zones, Technology
Cities, Industrial Parks and Industrial Model Townships etc. this policy will come into force with
immediate effect.

Labour Policy 2006The policy has been devised in order to ensure the implementation of labour laws
and create an enabling environment for enhancing productivity, competitiveness and labour welfare.
Advantages in Punjab
 All towns and villages are well connected by roads. All villages are
electrified. A vast network of canals and tube wells irrigate 90% of the
cultivated area.
 Punjab has 4.2 million hectares of well-irrigated and fertile land in which cropping intensity is
182%. Having a geographical area of only 1.5%, Punjab produces 21% of the country's wheat
(13.7 million tons), 9% of rice (7.3 million tons) and 15% of cotton (1.9 million bales). It
contributes 60 to 70% of wheat and 40 to 50% of rice to the central pool. Punjab State has
earned a name "Food Basket of Country" & "Granary of India" has been containing 40- 50%
of Rice & 50-70% of Wheat for the last two decades.
 Punjab government has a complete policy for Rice Milling Industries. Projects of 18000 crore
rupees are to be establish in the state for Rice Processing only.
 The state has abundant labour resources coupled with cheap water and power supply.
 Highly skilled and professional work force with an abundance of skilled workers.
 Punjab has the highest per capita incomes in India.
 Conducive and harmonious industrial relations.
 Well-developed export base.
 Strong agricultural and a well developed small and medium scale industrial base.
 Well-developed financial services- banks, financial institutions and stock exchange.
 Peaceful and congenial environment.
 The state of Punjab cleared a record level of Private investment amounting to US$ 11.2718
billion in various industrial and housing projects, of which nearly US$ 1.95088 billion has
been materialized. Punjab has been judged as the best-administered state in India over the last
three years.
 Punjab has the best power situation in the country and the power tariff is one of the lowest in
the country.
 The Government is committed to its initiatives in e-governance and has envisioned the
creation of a common infrastructure for the implementation of e-governance projects


Advantage Haryana
 Haryana offers excellent location to start any industry. It has a rich industrial base and a
sound infrastructure.
 Forty percent of the national capital region falls in Haryana state and thirty percent of the
state is notified National Capital Region (NCR).
 Ninety-three of top Fortune -100 companies with their corporate offices and production bases
already in Haryana.
 The state has impressive infrastructure facilities in relation to road and rail network, well-
developed industrial estates, good banking facilities, reliable communication network,
modern technical institutes and developed commercial markets.
 World-class industrial, corporate and residential estates with highly competitive prices,
developed and managed by highly professional and world-renowned Private and Government
agencies.
 Haryana is in close contact with the cosmopolitan world, being close to Delhi. International
and domestic airports, diplomatic and commercial complexes are in near proximity. Indira
Gandhi International Airport is just ten minutes drive from Gurgaon, an emerging metropolis.
 Strike/lockouts are bare minimum. Negligible loss of man-days.
  Haryana has an efficient administrative and delivery system. Its endeavor has always been to
simplify procedures, eliminate red-tapism and willful delays and ensure transparency in
decision-making.
 Special emphasis is laid on planned development of infrastructure and providing eco-friendly
environment conducive to healthy growth of industry.
 Haryana has adopted investor-friendly policies. These policies have been adjusted in
accordance with the changing economic scenario and are far more liberal and transparent.
These policies are geared towards promoting private investments- both domestic and foreign.
 Large manufacturing, capabilities. Strong private sector.
 Developed banking system with over 4500 bank branches.
 Skilled manpower and professional management including engineers, managerial personnel,
accountants etc.
 Conducive foreign investment environment.
 Well-balanced package of incentives.
 One of the top agrarian states contributes substantially to the national food grain pool of
wheat, rice, coarse cereals and pulses.
 Haryana today produces more than 50 percent of passenger cars, 50 percent of motorcycles
and 25 percent of tractors, 25 percent of bicycles and sanitary wares manufactured in the
Country.
 Under the New Industrial Policy (NIP) the state has received investment proposals of worth
over one lakh crore rupees in the areas of automobiles & automotive components,
information, technology, readymade garments, electrical goods, handlooms, agro-based &
food-processing industry, light engineering etc.
 Under the Special Economic Zones (SEZ) Act, 20 SEZs with an investment of US$
18.8779 billion have to be set up. Ten SEZs have already been approved by the
Central government.

Final decision
Although there is a very small difference between these two states but according to my research
Punjab is better for my business because the company Masterfood is going to open a Rice Mill. Any
industry related to Agribusiness is more suitable in Punjab. If we are supposed to open an Automobile
Industry, having more Industrial facilities, Haryana would have been my decision. Masterfood
Company require more production of rice for its export requirements, which is easily available in
Punjab. No doubt, Haryana also has a good agriculture base, the interest of the people is shifting to
other products rather than Rice. Secondly, the Industrial Policy of Punjab Government is more
suitable for an agribusiness company rather than Haryana. Haryana has adopted a more of
Commercial Industrial policy.

So my suggestion to the company will be to go for Punjab.