Chapter 4

Trends and Pattern of Growth of State Domestic Product in Haryana

4.1 Introduction

The objective of this chapter is to examine the trends and pattern of GSDP in Haryana

from 2000-01 to 2015-16. For the purpose, the year to year growth rate per capita GSDP

and sector wise share has been calculated .the results are discussed as follows:-

4.2 Trend in Per Capita Income of Haryana

The analysis of collected data has been carried out by using line diagram. The line

diagram is pairs of numerical data, with one variable on each axis, to look for a

relationship between them. If the variables are correlated, the points will fall along a line

or curve. The better the correlation, the tighter the points will hug the line. Line diagram

is used to show the pattern structural change in sectors of economy as per the economic

growth.

Table 4.1 Per Capita Income of Haryana at Constant (2004-2005) Prices

Year Per Capita Income (Rs.) Growth Rate (Percent)

2000-2001 24423 -
2001-2002 25638 5.0
2002-2003 26748 4.3
2003-2004 28805 7.7
2004-2005 37842 31.4
2005-2006 40313 6.5
2006-2007 44222 9.7

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 2007-2008 47520 7.5
2008-2009 51016 7.4
2009-2010 55214 8.2
2010-2011 57797 4.7
2011-2012 61716 6.8
2012-2013 64052 3.8
2013-2014 67260 5.0
2014-2015 78821 17.2
2015-2016 92987 18.0
2016-2017 101543 9.2
Source: Department of economic and statistical analysis, Haryana.

Table 4.1 depicts the per capita income of Haryana at constant prices (base year 2004-

05). There are sixteen years data (2000-01 to 2015-16) of per capita income, from which

growth rate is calculated. The estimated growth rate of per capita income according to

time period is positive. This implies that for all the time period per capita income at

constant prices is increasing. The highest growth rate of per capita income is seen in

2004-05, as it was 31.4 percent. And the lowest growth rate of per capita income is seen

in 2012-13 as it was 3.8 percent. In spite of few small ups and downs, the overall trend

shows the increasing trend during the study period. In recent years of the study, it is

found that there is higher rate of growth of per capita income.

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 Table 4.2 Sector wise share of GSDP in Haryana in (2000-01 to 2015-16) in percentage at constant price 2004-05

Sectors 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

1 30.09 27.34 25.66 25.37 23.63 21.46 20.51 21.24 21.97 20.96 20.14 21.52 21.05 20.93 19.56 18.64

2 0.18 0.18 0.17 0.14 0.17 0.16 0.79 1.41 1.21 1.28 1.22 1.30 1.27 1.06 0.86 0.79

3 0.13 0.12 0.12 0.13 0.13 0.13 0.13 0.13 0.17 0.17 0.27 0.29 0.30 0.25 0.27 0.19

4 0.33 0.39 0.25 0.25 0.22 0.36 0.30 0.27 0.22 0.10 0.04 0.04 0.03 0.08 0.06 0.11

Primary 30.74 28.04 26.20 25.89 24.14 22.10 21.72 23.04 23.57 22.51 21.67 21.56 21.08 21.01 19.63 18.75

5 20.39 21.00 21.54 21.49 21.90 21.89 20.45 19.25 18.35 20.02 19.28 17.77 19.62 19.50 18.93 18.85

6 1.69 1.80 2.46 2.44 2.08 2.36 1.72 1.46 1.74 1.50 1.41 1.15 1.91 2.61 2.69 3.19

7 7.41 8.23 8.65 9.16 9.71 10.41 9.86 9.30 9.04 9.18 9.26 9.92 8.96 9.43 9.04 8.73

Secondary 29.49 31.02 32.65 33.08 33.68 34.65 32.02 30.02 29.13 25.98 26.02 24.84 23.95 23.09 22.12 21.88

8 15.40 16.04 16.25 16.48 17.84 18.69 17.21 17.90 18.18 19.64 20.65 21.68 22.47 21.45 22.28 23.06

9 6.62 7.12 7.28 7.60 7.88 8.26 7.38 8.75 8.30 9.02 9.01 7.74 7.09 7.29 7.47 7.11

10 3.61 3.70 3.91 3.67 3.34 3.35 2.80 3.27 3.17 3.03 2.89 3.89 3.89 3.92 4.08 4.02

11 4.31 4.27 4.17 3.99 3.77 3.63 10.81 9.69 9.50 10.61 10.41 13.65 14.74 16.53 17.01 17.44
12 3.02 2.88 2.79 2.76 3.03 2.94 2.48 2.15 2.47 2.68 2.62 2.43 2.42 2.34 2.53 2.56

13 6.81 6.93 6.74 6.52 6.31 6.37 5.58 5.19 5.68 6.54 6.74 4.22 4.35 4.36 4.89 5.17
Tertiary 39.77 40.95 41.15 41.03 42.17 43.25 46.25 46.95 47.30 51.51 52.31 53.61 54.97 55.89 58.26 59.37
Total
Income 56954 63488.7 69653.02 78815.51 89430.4 100675 126474.6 151607.2 182501.9 212030.6 254348.7 299931.9 339642.8 378839.4 409673.9 450348.5
Source: Department of Economics and Statistical Analysis, Haryana

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(1) Agriculture (2) Forestry (3) Fishing (4) Mining (5) Manufacturing (6) Electric a d

Gas (7) Construction (8) Transportation, Storage (9) Trade , Hotels and Restaurant (10)

Banking and Insurance (11) Real Estate and Business Service (12) Public

Administration (13) other Services

Table 4.2 presents the sector-wise and sub sector-wise share GSDP over the time. There

are three sectors in the economy (primary, secondary and tertiary) which contribute in the

making of GSDP. There are sixteen years data from which it can be estimated that GSDP

of Haryana is increasing or not. From these data it is observed that GSDP is increasing

year to year. The table depicts that highest %age share of GSDP is composed by tertiary

sector in 2000-01 which stands at 39.77% followed by primary sector 30.74% and then

secondary sector 29.49% respectively corresponding to the period 2000-01.

The overall share of GSDP from tertiary sector increases year to year continuously,

however GSDP share relating to secondary sector at first increases at an increasing rate

up to 2006-07 then after falls continuously to the value 21.88 corresponding to the year

2015-16.In comparison to the secondary and tertiary sector the share %age of primary

sector in GSDP diminishes continuously from the initial year to the final data year

showing a negative trend continuously. The trends in sector-wise share are also shown by

following figure 4.2

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Fig 4.2 Sector-wise share of GSDP (Graphical Representation)

Primary, Secondary, Tertiary Sectors

70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00

Primary sector Secondary sector Tertiary sector

The fig 4.2 represent the sector wise in GSDP in Haryana there are three sectors in the

Economy (primary, secondary and tertiary) which contribute in making of GSDP. From

this graph we conclude that in the primary sector the percentage growth is non uniform

which is either decreasing or constant in 2000-01 to 2015-16. But in secondary sector is

increases in 2000-01 to 2005-06 and then decrease thereafter up to 2015-16.And in

tertiary sector the percentage change is gradually increases because the primary sector

and the secondary sector are merged in tertiary sector.

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 TABLE 4.3 Sector-wise Year to Year Growth in GSDP in Haryana (2000-01to2015-16)

Sectors Primary Secondary Tertiary Primary Secondary Tertiary

2000-2001 17507.97 16794.15 22652.69 - - -

2001-2002 17799.84 19692.05 25996.87 1.7 17.3 14.8

2002-2003 18250.03 22741.74 28661.25 2.5 15.5 10.2

2003-2004 20403.87 26075.35 32336.29 11.8 14.6 12.8

2004-2005 21591.2 30122.48 37716.78 5.8 15.5 16.6

2005-2006 22246.86 34887.94 43540.75 3.0 15.8 15.4

2006-2007 27471.87 40502.05 58500.74 23.4 16.0 34.4

2007-2008 34927.34 45505.51 71174.39 27.1 12.4 21.7

2008-2009 43017.32 53165.61 86318.96 23.1 16.8 21.3

2009-2010 47721.84 55092.47 109216.27 10.9 3.61 26.5

2010-2011 55117.42 66169.85 133061.43 15.5 20.1 21.8

2011-2012 64657.68 74491.79 160782.46 17.3 12.6 20.8

2012-2013 71606.79 81336.9 186699.12 10.7 9.2 16.1

2013-2014 79605.57 87484.25 211749.6 11.2 7.6 13.4

2014-2015 80404.24 90614.11 238655.55 1.0 3.6 12.7

2015-2016 84444.52 98547.87 267356.09 5.0 8.8 12.0

Source: Department of economic and statistical analysis, Haryana.

The table 4.3 represent the sector wise year to year growth rate in gross state domestic

product in Haryana. The table reveals that the primary sector recorded highest growth

rate in 2007-08 i.e., 27.1 per cent while it observed lowest in 2014-15 (1 per cent).The

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year to year growth rate originating from secondary sector was found highest in 2010-11

(20.1 per cent) and lowest in 2014-15 (3.6 per cent). The tertiary sector recorded very

high year to year growth rate. It was highest in 2006-07 and lowest in 2002-13 as shown

in above table.

Fig 4.3 Graphical Representation Sector Share in Gross State Domestic Product in

Haryana (2000-01to 2015-16)

Sector Share in Haryana GDP

300000

250000

200000

150000

100000

50000

1 Primary 2 Secondary 3 Tertiary

The highest share of primary sector is 27.1 percent in 2007-08 and lowest percent share

of it 1.0 percent in 2014-15. Likewise the highest percentage share of secondary sector is

20.1 percent in 2010-11 and lowest percent share of it is 3.6 percent in 2014-15.

In this way the highest percentage share of territory sector is 34.1 percent in 2006-07 and

lowest percent share of it is 10.2 percent in 2001-02.

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4.3 Inter District Variation in Economic Growth of Haryana
Haryana has witnessed a healthy growth during last three decades. However, has the

economic growth in Haryana been uniformly distributed across districts or not for this,

we calculated the growth rate of all districts of Haryana and compared it with state

average. The above table shows the district wise growth rate of three main economic

sectors. It is evident from the table that the growth rates of all three key economic

sectors vary substantially across districts. However, the extent of variation is lowest in

case of agriculture. Surprisingly, the agriculture sector has done extremely well in

Gurugram and Faridabad, which are known for industries and tertiary sector. The

agriculture in these districts has grown at average annual growth rate of more than 5

per cent per annum during 2000-01 to 2015-16.

This is almost double of agriculture growth recorded in Kaithal, Fatehabad and Jind

where it has grown by just around 3 percent during the same period.

The inter district variation in growth rate is much higher in case of industrial and

tertiary sector. Interestingly, Rewari, Panipat and Jhajjar have witnessed a double-digit

growth in industrial sector during 2000-01 to 2015-16. This is much higher as compared

to Panchkula and Yamuna Nagar, where the industrial sector has grown at annual rate of

4.9 percent and 5.4 percent, respectively during the same period. The extent of inter

district variation in growth is even higher in case of tertiary sector, which has been

serving as the main driver of economic growth in Haryana. The tertiary sector growth in

Haryana has been mainly concentrated in districts falling in the National Capital Region

(NCR) i.e. Gurgaon, Faridabad and Sonipat, Gurgaon has seen the highest, 16.45

percent per annum, rate of growth in service sector from 2000-01 to 2015-16 and has

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rapidly emerged as the hub of knowledge and knowledge-based industry in India. In

Faridabad tertiary sector has grown at an average annual growth rate of 14.3 percent

during the same period. In contrast, in districts such as Fatehabad, it has grown at even

less than 9 percent per annum.

Table 4.4 Inter District Variation in Sectoral Growth Rate: (2000-01 to 2015-16)

Districts Primary Secondary Service SD Mean CV

Ambala 4.63 7.62 10.68 3.03 7.64 39.58
Bhiwani 3.58 7.32 9.44 2.97 6.78 43.76
Faridabad 5.04 7.09 14.32 4.88 8.82 55.29
Fatehabad 3.06 9.46 8.93 3.55 7.15 49.68
Gurgaon 5.72 8.06 16.45 5.64 10.08 55.99
Hisar 3.29 8.97 10.00 3.61 7.42 48.70
Jhajjar 3.78 10.05 11.40 4.07 8.41 48.35
Jind 3.13 8.57 9.22 3.34 6.97 47.96
Kaithal 2.47 8.72 9.20 3.75 6.80 55.24
Karnal 4.09 7.84 10.53 3.23 7.49 43.20
Kurukshetra 4.35 9.80 10.20 3.27 8.12 40.26
Mohindergarh 4.60 8.74 9.70 2.71 7.68 35.29
Panchkula 5.57 4.86 13.04 4.53 7.82 57.93
Panipat 4.80 10.51 11.97 3.79 9.09 41.67
Rewari 3.73 10.52 9.94 3.76 8.06 46.68
Rohtak 4.78 7.22 10.99 3.13 7.66 40.83
Sirsa 4.88 8.50 9.11 2.29 7.50 30.50
Sonipat 3.54 8.96 13.07 4.78 8.52 56.08
Yamuna Nagar 4.62 5.38 10.09 2.96 6.70 44.25
Haryana 3.76 7.83 12.16 4.20 7.92 53.06
Standard 0.88 1.54 2.01 0.57 1.48 38.44
Deviation
Source: Directorate of Economics and Statistical Haryana.

It is evident from the section above that economic growth in Haryana has been

concentrated around national capital region. Economic growth in Haryana has not been

uniform across districts. According to above table Inter District Variation in Sectoral

Growth rate from 2000-01 to 2015-16 in three different sectors in 19 districts in Ambala

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growth rate in primary sector is 4.63, in secondary sector 7.62 and in tertiary sector 10.68

and its coefficient variable is 39.58. in Bhiwani district growth rate in primary sector is

3.58, in secondary sector 7.32 and in tertiary sector 9.44 in the district Faridabad growth

rate in primary sector is 5.04, in secondary sector 7.09 and in tertiary sector 14.32, in

Fatehabad district growth rate in primary sector is 3.06, in secondary sector 9.46 and in

tertiary sector 8.93, in the district of Gurgaon growth rate in primary sector is 5.72, in

secondary sector 8.06 and in tertiary sector 16.45 it’s very high compare to rest of the

districts in Haryana in tertiary sector and its coefficient variable is 55.99. in Hisar district

growth rate in primary sector is 3.29, in secondary sector 8.97 and in tertiary sector

10.00,in the district of Jhajjar growth rate is like this primary sector is 3.78, secondary

sector 10.05 and tertiary sector 11.40, in Jind district growth rate in primary sector is

3.13, in secondary sector 8.57 and in tertiary sector 9.22, in Kaithal district growth rate in

primary sector is 2.47, in secondary sector 8.72 and in tertiary sector 9.20, in the district

of Karnal growth rate in primary sector is 4.09, in secondary sector 7.84 and in tertiary

sector 10.53, in Kurukshetra district growth rate in primary sector is 4.35, in secondary

sector 9.80 and in tertiary sector 10.20, in the district Mohindergarh growth rate in

primary sector is 4.60, secondary sector 8.74 and tertiary sector 9.70,and its coefficient

variable is 35.29.n Panchkula district growth rate in primary sector is 5.57, secondary

sector 4.86 and tertiary sector 13.04 and its coefficient variable is 57.93 which is highest

in all districts. in Rewari district primary sector is very low it is 3.73 and in Sonipat

district tertiary sector is very high it is 13.07 and its coefficient variable is 56.08.In Sirsa

the coefficient variable is 30.50 which is lowest structural change in Haryana. And by

average in Haryana primary sector is 3.73 with standard deviation 0.88, secondary sector

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is 7.83 with standard deviation 1.54 and finally in tertiary sector 12.16 with standard

deviation 2.01 by observing this all data in district wise variation in economic growth

clearly reflects that Haryana has two growth centers. One growth centre is located around

national capital and another growth center is concentrated around the state capital.

Fig: 4.4 Graphical Representations for above table Inter District Variation in

Sectoral Growth Rate :(2000-01 to 2015-16)

18
16
14
12
10
8 Primary
6 Secondary
4 Service
2
0

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Fig: 4.5 Graphical Representation of Inter District Variation in Sectorial Growth

Rate (2000-01 to 2015-16)

Source: Graphical representation directly based on data from Directorate of

Economics and Statistical Haryana.

It is evident from the section above that economic growth in Haryana has been

concentrated around national capital region. Economic growth in Haryana has not been

uniform across districts. While the aggregate, Haryana has grown at an average annual

growth rate of 8.8 percent during 2000-01 to 2015-16, there are districts that have grown

at a much higher and much lower rate than this figure. For example, districts such as

Gurgaon, Faridabad and Panipat have grown at high average annual growth rates of 12.1

percent, 10.6 percent and 10.3 percent, respectively during 2000-01 to 2015-16. Whereas,

districts such as Kaithal and Fatehabad have grown at even less than 6 percent per annum

during the same period. Thus, the growth in slow growing districts of Haryana is even

less than half of fast growing districts. Of the seven districts that have grown at a higher

rate than the state average i.e. Gurgaon, Faridabad, Panipat, Panchkula, Sonipat, Ambala,

Jhajjar and Rewari, a majority fall in the South-East region and are closer to the national

40
capital Delhi. Whereas, the districts that lag behind i.e. Kaithal, Sirsa, Fatehabad, Hisar

etc., are mostly in the Western region and are located far from the national capital. The

inter district variation in economic growth clearly reflects that Haryana has two growth

centers. One growth centre is located around national capital and another growth center is

concentrated around the state capital.

Conclusion

The main objective of the chapter is to analyze the recent trends in per capita income and

sector share in state domestic product of Haryana. it is concluded that in the primary

sector the percentage growth is non uniform which is either decreasing or constant in

2000-01 to 2015-16. But in secondary sector it increases in 2000-01 to 2005-06 and then

decrease thereafter up to 2015-16.And in tertiary sector the percentage change is

gradually increases because the primary sector and the secondary sector are merged in

tertiary sector

41