PROBLEMS OF HARYANA ECONOMY

OR
OBSTACLES IN WAY OF DEVELOPMENT IN HARYANA
lndustrial and services sectors
various sectors.
1arvana has achieved significant growth in
the basis ot geographical aspect.
very supportive to the economy. Haryana
is a small state on
re capita in the country.
of perinvestment
he state e c o n o m y has emerged as the largest recipient

year at significant rate.

tate domestic product of Haryana is increasing every
as follows:
some problems
Dut the economyof the state is suffering from
for the economy.
economy. In Haryana.
Haryana,
Unemployment is not good
1Unemployment: various reasons which
are obstacles in the wayof
is among the
unemploved population based o n agricultural sector
chunk of population in rural area is
progress A large
sector is based on m o n s o o n and other
uncertain conditions. This situation
Agriculture
in urban areas is another
r e a t e s the problem of seasonal
unemployment. Employment
serious problen.
in the balanced
Imbalanced Growth: Not all the regions of Haryana are developed
2. Rohtak and Panipat are more
way Some districts like Gurgram, Faridbad, Panchkula,
and services sector while some districts like Mewat
developed of industry
in case

etc. not so developed. Some districts have

Bhiwan Mahendragarh and Jhajar
are

districts contribute many times more in the

adverse demographic characteristics. Some
others.
GDP and Per Capita Income of the State than
Sector: Agriculture Sector of the state is over burdened
Less Growth of Agriculture
due to the direct and indirect independence of population. At the time of inceptionot
and
the state agriculture in the economy was more than industrial
the contribution of
serv ces sectors but in the present times, it is less than industrial and servicessectors
roads
Lack of Intrastructure: The state is not having sufficient infrastructure like ro
rawavs
irngation, weltare services, irrigation and energy generation system. vd and
aties of the state are not well connected to each other due to which industla
do n
e r v e s sertors sutter to
large extent, Agriculture and industrial sectors
the
reeie
suthc ient power supply which affects the industrial production and
badiy Mne districts
like Panchkula, Gurgram, Panipat and Faridabau i e
intrastru ture while some districts do
not have sufficient infrastructural faci
Is the nmain r e a n of under developnment.
ECON

5Less Growth of Small Scale Industries: Small industries can play mportant rele in th
like
economic growth. Small scale sector of Haryana is facing various problems
competition from foreign products, lack of skilled workforce, lack of capital, lack oft
of
technology scientific industry of Ambala district is the prominent industry
elc. Small
the country which accounts for 34 % of the total production of scientilic instrumens

produced in India. This industry has lost its competitive edge in the previous years and
production of these units has decreased.
the state
6Lack of Latest Technology: The agricultural, industrial and services sectors of
suffer from latest technològy. Technological backwardness makes the products and
services uncompetitive at international level. Lack of research and development
facilities and technically qualified persons is the big problem in the state.
7. Low Level of Education: Education is the base for the development of human power
Education is the main component of social sector. The access and quality of higher
education is the big challenge in this competitive scenario., Another consjderable issue
is the access to medical and technical education. In 1985-86, total number of Arts and
Science colleges in the state was 110 which increased up to only 274 in 2016-17.
Problem of Fiscal Deficit: The term fiscal deficit refers to the total amount of
expenditure of the government which is more than the total revenue generated
excluding borrowin89. For 2018-19, fiscal deficit of Haryana has been projected at
19399.34 crore.,) Fiscal deficit is not good for the growth of economy. This problem
affects the expenditure on social welfare activities.

9Low Sex Ratio: Sex ratio is described as the total number offemales per 1000 of males.
Low sex ratio can cause many social problems which aftects the economic
development As per the Census of 2011, Haryana has thirstiest rank in the country due
low sex ratio of 879) Low sex ratio is the sigrn of narrow thinking of people which is
the big obstacle in the way of progress.
1e Unequal Growth of Economic Sectors: There are three main sectors of the economy
V1z, primary sector, secondary sector and services sector. T'hese three sectors of
the progress in balanced manner. Agriculture sector is
attaining
Haryana are not
growing at the very low speed while services sector is growing at rapid rate. This type
of imbalance creates disparities among various classes of the society. About 70 percent
of the total population is engaged in agricultural activities. Growth of agriculture sector
Is necessary for the economy of Haryana.
. Shortage of Natural Resources: Natural resources have important role in the
state does not have sufficient mines and
development process. The geography of the
Some of the state grow
ivefs Agricultural land is not suitable for all the crops.
areas

pulses. Water resources are

only wheat and rice in while other areas grow cotton and

not sutticient in all the districts. down day by day due

Water level is going to

the ground for agriculture.

dereasing rainfall and extractionof more water trom
.NEED OF ECONOMIC DEVELOPMENT
OR
OBJECTIVES OF ECONOMIC DEVELOPMENNT
Economv is the base of any nation. It includes mainly three sectors such as the primary,
eCondary and services sectors. The growth of thesesectors is necessary for making the economny
authoritative

Following points ennphasise the need of economic development:

1. To Create Employment Opportunities: Employment to all the should be
working force
ensured in the state. Unemployed persons can not contribute in the development
process significantly. The development in various sectors creates the employment
 development
les the empl oVmert
i n d u s t r i a l

For
enample,
supervisors,
nicians
techn and rkers etc
opportunities.
managers, prous
like,
positions Economic
development
the emp
arious
Income:
the inc
Increase in
Real Per Capita is directiy
related with
ncrease in per
2. to raise their
their standar
of liapva
Employment s
the people
in various
sectors.
income
endoles

medical, insura
rdof
capita
income.
Increased per facilities
like
education,

avail the required

They can life.
the better
etc for the economic .
developmeutila
transportation nations,
underdeveloped
Income: In
state. Govern
in Real State income of the state. Government
3. Increase
increasing
the real can
plays significart
role by sectors in the planned
way.
the growth of various
the funds for
construction of roads, bridges,
railu.
I n f r a s t r u c t u r e : The
4. To Develop
the of the nation
for the development
necessary
power generation plants are conveniences in the
state which is the essenhal
ntial
development
increases all these featu
of the self-sufticiency
sector of the econom
5. Development of Agriculture: Agriculture sector is important omy.
on agriculture. Agriculture provid de
India, 75 percent population is dependent of
in the rural sector. Scientific ways cultivatin
maximum employment opportunities
seeds are the ma
environment-friendly fertilizers and pesticides and high-yielding
features of development in agriculture sector.
6. Growth of Industries: Industries are the key for the sound economy. Industrie
manufacture and provide the services to public and assist the exports which earn th

foreign exchange Industrial sector requires capital investment in abundante

reserves.
Skilled workforce is another requirement of this sector. 1he economic developme
process fulfills all these requirements.
7 Ensuring Basic Amenities to Public: Public is the precious asset of any nation. Ment
and physical health is vey urgent for the effective performance of the people. Vario
basic amenities like food, education, medical and accommodation are necessary for tm
public. Economic development is required to fulfill all these requirements of t
people
8. To Reduce Poverty: Poverty is the big problem for any nation. Economic developme
creates
employment opportunities by making the people capable for
Employment reduces the poverty up to great extent employmer
9. Human Development: The development of human capital is
contribution in the necessary for ensuring
growth process. Economic
medical, training and other facilities for the human development provides educai
10. To Attract Foreign Investment: Foreign investment is
development.
xonomy in the
modern era of for the growth oro
necessary
globalisation.
opportunities for the multinational
The economic
development creates t
units in the
country. Government of corporation (MNCs) for establishing induIstrid
India has allowed
upto 100 percent foreig
n dire
ONOMIC DEVELOPMENT: CONCEPT AND ELEMENTS
3.3
investment (FDI) in various major sectors tor attracting more and more
foreign
investment in the country.
11. To Compete at International Level: International competency is very important for
any nation. Economic development assists the economic sectors of the domestic nation
to represent them at international level withconfidence.
 the Welfare-Oriented
or Modern Approach
ch
of Economic development as per
2atures
features:
This approach includes the following e c o n o m i c development is bas.
based
The modern approach of
. Increase in Welfare Services:
welfare schemes a r e important in th:
his
on the concept of the welfare
of people. Social
should have every
facility required for t
the
of the society
approach. All the sections
improved life style.
for ensuring healthy li6e
facilities have great role
Medical
2. Better Medical Facilities: to the public fo
facilities should be provided
Medical
style of people in the state.
ensuring welfare-oriented economny.
for the growth f
Education is the basic requirement
3. Better Educational Facilities: to be competitivein
Education enables the people
positive attitude and personality.
life.) Well qualified person is m o r e aware of his rights pertaining to
various aspects of
the welfare aspects.
oriented approach emphasises the providing
4. Increase in Employment: The welfare
Employment is important for making the
employment opportunities to the people.
necessities for the life.
people capable for fulfilling their
is the obstacle in the way of progress. Poverty can
big
5. Reduction in Poverty: Poverty
be reduced by ensuring basic amenities to the public and by creating awareness about
the factors which are responsible for poverty.

6. Optimum Utilisation of Resources: Economic development gives the boost to the

manuracturing process by latest methods of production. Research, development and
innovative practices are carried for new and qualitative products which help the
undertakings to utilize the resources in the optimum way.

7Technological Development: Technology is important for developing the new ways

for doing the things. Growth process leads to the development of
technology.
 CHARACTERISTICS OF ECONOMIC DEVELOPMENT

Economic development is based on ensuring the growth of all the sectors of the economy as
well as the
people
Following are the main characteristics
or elements ofeconomic development:
1. Increase in National or State income: Economic development emphasises the increase
in national income so that development
of all the sectors can be ensured. Increase in
national income enables the Government to make
plans for the economic growth.
2. Rise in Per Capita Income: Per capita income is the indicator of human development.
Rise in 1ncome is essential tor fulfilling the various
requirements for the healthy ana
mooth l1te The rise in income
helps the people to be more productive which s
 Increase in population can attect the rise
necessary for the economic development. nn

income which is not a sound indicator of development

can not be ensured without the growth
3 Development of all the Sectors: Development
sector is necessary for creat1ng base for the
all the three sectors. Growth of primary
not be ignored in the modern competitive and fast
secondary sector. Service sector can
changing environment.

the effectual progress of the economy, the tactors of

4. Sustained Growth: For attaining
the long run. Growth for one or
economic development should attain the growth in
For example, industrial
two years is not sufficient for the sustained growth.
There should be
for one year is not the indicator of sound economy.
development
continuous growth for at least five year for better results.
contribute in the
5. Emphasis on Human Development: Capable people can
is the important element
development process in the better way. Human development
of economic development which should be taken at priority, Adequate employment
and other welfare services should
opportunities, better health and educational facilities
be ensured for the public.
are created for everyone in the
6. Employment Oriented: Employment opportunities
Gross National Product
development oriented economy. According to Salvatore,
continuous increase in per capita
(GNP) increases over a sustained period through
productivity. Per capita productivity can be increased by providing employment
opportunities for everyone.

7. Poverty Eradication: Poverty the symbol of underdevelopment. Poverty can be

is
and by creating awareness about the
reduced by ensuring basic amenities to the public
factors which are responsible for poverty.
resources should be
8. Equal Distribution of Resources: In the developed economy,
can not be termed as
equally distributed. Rise in income of particular group public
of
standards of people in the state is
the economic development. Pisparity in the living
not good for the economic growth.
means the growth
of roads,
9. Development of Infrastructure: Economic development
the country.
power, communication
and technological structure in
transportation,
the economic

of Entrepreneurship: Industrial development

is urgent for
8. Development various sectors.
Industrial

development. Industries the base for the growth of

are ana
of various goods
to be self-sufficient in
case
development helps the government
services.
is necessary
for makng ue
Welfare: Provision of various social welfare schemes the economic
. Social contribute in
people can
People capable
and healthy. Capable

development process in the effective way.