Haryana's Development Trajectory: An Analysis of Strategy, Infrastructure, and Contested Issues

Executive Summary:

Haryana presents a compelling case study of rapid economic development juxtaposed with significant challenges. Propelled by its proximity to the National Capital Region (NCR) and proactive industrial policies, the state has achieved impressive economic growth, boasting one of India’s highest per capita incomes and a diversified economy transitioning towards industry and services. Strategic frameworks like the Haryana Vision 2030 and annual Economic Surveys articulate ambitious goals aligned with sustainable development, focusing on infrastructure enhancement, industrial promotion, agricultural modernization, and social welfare. Infrastructure development, particularly in transportation (expressways, metro expansion), energy (power surplus status), and industrial zones (managed by HSIIDC), has been a cornerstone of this strategy, attracting substantial investment.

However, this development model is fraught with tensions. Large-scale infrastructure projects frequently trigger conflicts over land acquisition, despite policy shifts towards voluntary land pooling. The environmental costs are stark, with severe degradation of the Aravalli ecosystem due to mining and urbanization, and a critical groundwater crisis driven by agricultural and urban over-extraction. Furthermore, Haryana’s high average income masks significant internal disparities; regional imbalances persist between the prosperous NCR-influenced belt and other areas, and social development indicators, particularly concerning gender equity and rural education, lag behind economic progress. Fiscal health, while currently within broad limits, shows signs of stress due to high committed expenditure and debt levels, potentially constraining future development spending.

The state’s trajectory hinges on navigating these inherent trade-offs. While initiatives like the Integrated Water Resources Action Plan (IWRAP) and the Aravalli Green Wall project demonstrate policy responses, achieving sustainable and equitable development requires a more fundamental shift towards integrated planning, robust environmental regulation, effective policy implementation, and a concerted effort to bridge social and regional divides. The future outlook depends critically on Haryana’s ability to balance its economic ambitions with ecological sustainability and social inclusion.

1. Haryana’s Development Framework:

Haryana’s approach to development is guided by a combination of long-term vision documents, annual economic assessments, budgetary allocations, and specific policy initiatives implemented through various government departments and agencies.

1.1 Vision and Strategic Objectives:
The state’s long-term development aspirations are formally encapsulated in the Haryana Vision 2030 document, launched in 2017.¹ This document explicitly aligns state goals with the United Nations Sustainable Development Goals (SDGs).¹ It sets forth an ambitious agenda across economic, environmental, and social spheres.⁴ Key targets by 2030 include eradicating extreme poverty; ensuring universal access to housing, 24×7 electricity, and clean drinking water; maintaining Open Defecation Free status; improving health outcomes (reducing Maternal Mortality Rate to 70 per 100,000 live births and Under-5 Mortality Rate to 25 per 1,000 live births); eliminating child malnutrition; achieving 100% net enrolment at the pre-primary level; increasing female workforce participation to 30%; creating 18 lakh new jobs; providing skill development for 50,000 persons with disabilities; enhancing environmental protection through measures like eliminating stubble burning, establishing 400 climate-smart villages, and increasing tree cover by 10%; and transforming Haryana into a modern digital state.¹ The foundational principles underpinning this vision are integrated planning, equitable development (specifically addressing gender inequality and regional imbalances), human capital development, citizen-centric governance (emphasizing transparency and accountability), and green growth that considers environmental limits.¹ To facilitate coordination and implementation, a dedicated SDG Coordination Centre (SDGCC) was established under the Swaran Jayanti Haryana Institute of Fiscal Management (SJHIFM), in partnership with UNDP.¹ The full Vision 2030 document and an abstract are accessible via the Department of Economic and Statistical Affairs (ESA) Haryana website.⁸
Annual Economic Surveys, such as the one for 2024-25 ¹⁰, provide crucial monitoring and analysis of the state’s progress towards these goals. They detail economic performance, sectoral growth trends, per capita income levels, fiscal health, and the status of various development initiatives.¹¹ The 2024-25 survey, for instance, highlighted continued robust Gross State Domestic Product (GSDP) growth (estimated 11.8% at current prices, 7.6% at constant prices), the ongoing structural shift towards industry (32.9% of Gross State Value Added – GSVA) and services (51.2% of GSVA), a persistently high per capita income (estimated ₹3,53,182 at current prices), and Haryana’s significant contribution (3.6%) to the national GDP despite its small geographical size.¹⁰ The survey reiterated the government’s focus on industrial promotion (particularly in automotive, IT, and petrochemical sectors), agricultural prosperity, investment attraction, improving the ease of doing business, infrastructure development (power, roads, irrigation), and social sector advancement.¹⁰
State Budgets translate these strategic priorities into actionable financial plans. The Budget for 2025-26, for example, projected an 11% GSDP growth (current prices) and estimated total expenditure (excluding debt repayment) at ₹1,69,229 crore, a 15% increase over the revised estimates for the previous year.¹⁵ It targeted a fiscal deficit of 2.7% of GSDP and a revenue deficit of 1.53%.¹⁵ Significant policy announcements often accompany the budget, reflecting current priorities. The 2025-26 budget featured the launch of the Lado Laxmi Yojana (providing ₹2,100 per month to women, with a substantial ₹5,000 crore allocation), the Mukhyamantri Yuva Kaushal Samman Yojana (offering internships with a ₹10,000 monthly honorarium), the Haryana AI Mission (planning AI hubs in Gurugram and Panchkula), increased subsidies for crop diversification under the Mera Pani Meri Virasat scheme, commitments to upgrade district hospital equipment, and promotion of natural farming.¹⁵ Notably, the budget saw large percentage increases in allocations for sectors like Industries (129%), Sports (42%), Housing (303%), Social Welfare and Nutrition (28%), Agriculture and Allied Activities (47%), and Urban Development (47%).¹⁵
While the Vision 2030 document outlines a broad spectrum of social and environmental goals, the emphasis in budget announcements often appears skewed towards large financial outlays for specific schemes, industrial promotion, and physical infrastructure. This apparent emphasis, coupled with Haryana’s relatively low ranking (16th among 18 major states) on the ‘Quality of Expenditure’ sub-index in NITI Aayog’s Fiscal Health Index 2025 ¹⁹, despite strong revenue mobilization (ranked 8th), raises questions. It suggests a potential disconnect between the breadth of the state’s long-term vision and the actual allocation and effectiveness of public spending in achieving holistic development, particularly in complex areas like social equity and environmental sustainability which may require nuanced, long-term investment rather than just large headline figures. A deeper analysis comparing detailed budget heads against specific Vision 2030 targets would be needed to fully assess this alignment.
A clear area of alignment between strategy and action is the push towards e-governance. Haryana has actively rolled out numerous digital platforms and initiatives, such as the HSVP portal for allottees ²⁰, the ‘Meri Fasal Mera Byora’ portal for farmers facilitating direct benefit transfers ²¹, the Service Plus Platform (SARAL) for delivering urban citizen services ²¹, HSIIDC’s E-Sewa portal for industrial plot management ²², and the implementation of the Haryana Right to Service Act, 2014, featuring an innovative Auto Appeal System for time-bound service delivery.²⁴ This concerted effort directly supports the Vision 2030 objective of transforming Haryana into a modern digital state ⁶, aiming to enhance transparency, accountability, and citizen convenience in accessing government services.
1.2 Key Policy Thrusts and Governance Mechanisms:
The implementation of Haryana’s development strategy involves a complex web of government departments, specialized agencies, specific schemes, and overarching policies. Key departments driving the agenda include the Department of Urban Local Bodies (DULB) responsible for municipal governance and urban amenities ²⁵, the Horticulture Department implementing the Mission for Integrated Development of Horticulture (MIDH) ²⁶, the Department of Economic and Statistical Affairs (ESA) providing data analysis and planning support ²⁷, the Haryana Shehri Vikas Pradhikaran (HSVP, formerly HUDA) managing urban development, land allotment, and the Land Pooling Policy in urban areas ²⁰, the Rural Development Department overseeing schemes like MGNREGS and Pradhan Mantri Gramin Awas Yojana ³¹, the Public Works Department (Buildings & Roads) managing state roads and infrastructure projects ³², the power distribution companies Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN) ³⁴, and the Irrigation & Water Resources Department along with the Haryana Water Resources Authority (HWRA) tackling water management challenges.¹⁰ The Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) plays a pivotal role in developing industrial estates, SEZs, logistics hubs, and major projects like the Global City Gurugram, also acting as the nodal agency for industrial land pooling.³⁰ A comprehensive list of government departments is available.⁴²
A major policy thrust has been on improving the Ease of Doing Business. Haryana has actively pursued reforms, achieving “Top Achiever” status in the Centre’s State Business Reform Action Plan 2020.¹⁰ Key initiatives include facilitating streamlined land acquisition through mechanisms like the Auto Change of Land Use (CLU)/No CLU provision, simplifying procedures for land-use change ⁴³, and implementing the Haryana Enterprises & Employment Policy-2020.¹⁰ HSIIDC serves as the nodal agency for state-level policies impacting industry, such as the Labour Policy (introduced in 2005) and the Land Pooling Policy (introduced in 2017).⁴¹
Numerous specific schemes and programs operationalize the state’s objectives. Examples include the Mission for Integrated Development of Horticulture (MIDH) promoting horticultural growth ²⁶, rural housing and employment schemes like Pradhan Mantri Gramin Awas Yojana and MGNREGS ³¹, the high-profile Lado Laxmi Yojana for women’s financial assistance ¹⁵, the Mukhyamantri Yuva Kaushal Samman Yojana for youth internships ¹⁵, the Mera Pani Meri Virasat scheme encouraging crop diversification away from paddy ¹⁵, the Pradhan Mantri Jan Vikas Karyakram (PMJVK) focusing development efforts in minority concentration districts like Mewat and Sirsa ⁴⁶, and the Haryana Right to Service Act (2014) guaranteeing time-bound delivery of public services.²⁴
The state’s governance structure follows a standard administrative hierarchy of divisions, districts, sub-divisions, tehsils, blocks, towns, and villages.¹¹ The power sector operates under an unbundled model with separate entities for generation (HPGCL), transmission (HVPNL), and distribution (UHBVN covering northern districts, DHBVN covering southern districts).³⁵ Specialized authorities like HSIIDC, HSVP, and HWRA manage specific domains like industrial infrastructure, urban development, and water resources, respectively.
The sheer number of departments, agencies, schemes, and policies involved in Haryana’s development process underscores the critical need for effective inter-departmental coordination. Achieving the integrated and holistic development envisioned in Vision 2030 ¹ requires breaking down silos and ensuring synergistic action. The establishment of the SDGCC ¹ and the formulation of cross-cutting plans like the Integrated Water Resources Action Plan (IWRAP) ³⁷, which involves multiple departments committing to water-saving targets, represent efforts to institutionalize such coordination. However, ensuring consistent and effective collaboration across diverse administrative units in day-to-day implementation remains a significant governance challenge. For instance, the successful integration of HSIIDC’s industrial planning with HWRA’s water sustainability mandates, or the alignment of ULB master plans with PWD’s road network development, requires continuous communication and joint planning mechanisms.

2. Economic Profile and Comparative Performance:

Haryana stands out as one of India’s leading states in terms of economic performance, characterized by high growth rates, significant per capita income, and a structural shift towards a more industrialized and service-oriented economy. However, this aggregate success is accompanied by considerations regarding fiscal health and relative performance on broader human development indicators.

2.1 Growth Dynamics:
Haryana has consistently demonstrated robust economic growth. For the fiscal year 2024-25, the Gross State Domestic Product (GSDP) was projected to grow at 11.8% at current prices and 7.6% at constant (2011-12) prices.¹⁰ This follows a period where the state’s growth rate was continuously recorded above 6% from 2015-16 to 2020-21.²¹ The GSDP growth at constant prices for 2023-24 was estimated at 8%, slightly outpacing the national GDP growth estimate of 7.6% for the same year.⁴⁷ The state budget for 2025-26 further projected an 11% GSDP growth at current prices.¹⁵
The structure of Haryana’s economy reflects a successful transition from its agrarian roots. In 2024-25, the Services sector was estimated to be the largest contributor to the Gross State Value Added (GSVA) at 51.2%, followed by the Industry sector at 32.9%, and the Agriculture & Allied sectors at 15.9%.¹⁰ This confirms the shift noted in earlier analyses.¹⁰ Within the Industry sector, manufacturing has been a key driver, with a reported growth rate of 10%, cited as the highest in the country at one point.²¹ Sectoral growth figures for 2023-24 (constant prices) showed Agriculture growing at 4.5%, Industry at 7.2%, and Services at 9%.⁴⁷
This economic expansion translates into high Per Capita Income (PCI). For 2024-25, Haryana’s PCI was estimated at ₹3,53,182 (current prices) and ₹1,94,285 (constant prices), reflecting growth rates of 10.6% and 6.3% respectively over the previous year.¹⁰ Estimates for 2023-24 placed the current PCI between ₹3,25,759 ⁴⁷ and ₹3,61,993.¹⁵ These figures consistently place Haryana’s PCI significantly above the national average (e.g., ₹1,72,276 in 2022-23 ¹¹).
Investment activity appears strong, with Gross Fixed Capital Formation (GFCF) growing by 14.3% in 2022-23.¹⁰ The state has successfully attracted major corporations, particularly in the Gurugram region, which hosts offices of 400 Fortune companies.²¹ Haryana is also a major player in international trade, cited as the largest software exporting state ²¹ and ranking highly in NITI Aayog’s Export Preparedness Index (EPI) 2021 – securing the 1st rank among landlocked states and 5th overall nationally.⁴⁹
While these aggregate figures paint a picture of strong economic dynamism, the concentration of high-value economic activity raises questions about equitable distribution. The prominence of Gurugram as a hub for Fortune 500 companies ²¹ and the dominance of the Industry and Services sectors in the state’s GSVA ¹⁰ suggest that economic growth might be heavily concentrated geographically, primarily within the NCR belt, and sectorally. This pattern potentially contributes to the regional disparities observed in agricultural and social development indicators, as discussed later.
2.2 Fiscal Health Assessment:
Haryana’s fiscal management aims to balance development spending with prudence. The fiscal deficit for 2025-26 was targeted at 2.7% of GSDP, maintaining the level of the revised estimate for 2024-25.¹⁵ The revenue deficit was projected at 1.53% of GSDP for 2025-26, a slight increase from the revised 1.47% in 2024-25.¹⁵ These deficit levels are generally considered within the prudent limits prescribed by the Central Finance Commission and the Government of India.¹⁰
However, concerns exist regarding the state’s debt profile. Outstanding debt was estimated to reach 26.2% of GSDP by the end of 2025-26.¹⁵ NITI Aayog’s Fiscal Health Index (FHI) 2025 ranked Haryana 15th (categorized as “Aspirational,” indicating poor performance) on the Debt Index sub-component.¹⁹ The FHI report further noted that Haryana failed to contain its outstanding liability-to-GSDP ratio within targets between 2018-19 and 2022-23, signaling potential risks to fiscal sustainability.¹⁹
Analysis of expenditure patterns reveals potential pressures. Committed expenditure (primarily salaries, pensions, and interest payments) was estimated to consume 58% of revenue receipts in 2025-26 ¹⁵, slightly down from the 60% estimated for 2024-25.⁴⁷ This high proportion limits fiscal space for developmental spending. Furthermore, capital outlay, crucial for asset creation, experienced a significant 22% cutback in the 2023-24 revised estimates compared to the budgeted amount ⁴⁷, although it was budgeted for a substantial 27% increase in 2025-26.¹⁵ This volatility in capital spending, combined with the NITI FHI ranking Haryana 16th (“Performer”) on Quality of Expenditure ¹⁹, suggests potential challenges in maintaining consistent, high-quality developmental investments.
On the revenue side, Haryana performs well. Total own tax revenue was estimated at ₹92,144 crore for 2025-26, a 12% increase over the previous year’s revised estimate.¹⁵ The NITI FHI ranked Haryana 8th (“Front Runner”) on Revenue Mobilization, indicating strong capacity to generate its own resources.¹⁹
Despite managing deficits within prescribed norms, Haryana’s fiscal situation presents a potential tension between its development ambitions and long-term sustainability. The high level of committed expenditure, the concerning debt trajectory highlighted by NITI Aayog, and past volatility in capital spending suggest underlying fiscal pressure. This pressure could constrain the state’s ability to consistently fund the wide-ranging goals of Vision 2030 ¹ and execute large-scale infrastructure projects ⁵⁰ without compromising fiscal stability or the effectiveness (‘Quality’) of its spending.¹⁹ The introduction of large, new welfare schemes like the Lado Laxmi Yojana, estimated to consume 4% of revenue receipts ¹⁵, further adds to this fiscal balancing act.
2.3 Benchmarking Haryana:
Comparing Haryana’s performance with neighboring states and national averages provides valuable context.
Economically, Haryana is a frontrunner. Its GSDP growth (8% constant in 2023-24 ⁴⁷) typically exceeds the national average (7.6% in 2023-24 ⁴⁷). Its Per Capita Income (around ₹3.6 lakh current in 2023-24 ¹⁵) significantly outperforms Punjab, Rajasthan, and the national average.¹¹ A stark comparison exists with Punjab, whose relative PCI declined from a peak of 169% of the national average in 1970-71 to just 106.7% in 2023-24, while Haryana’s surged from 106.9% in 1960-61 to 176.8% in 2023-24.⁵³ Delhi maintains a higher PCI (250.8% of national average ⁵²). Haryana’s share in the national GDP (estimated 3.6% in 2024-25 ¹⁰) has also shown steady growth, contrasting with Punjab’s declining share.⁵³
However, on the Human Development Index (HDI), which combines income, health, and education indicators, Haryana’s position is more modest. In 2022, Haryana’s HDI score was 0.696, ranking 13th among Indian states and UTs.⁵⁴ This placed it slightly below Punjab (0.698, 12th) and Himachal Pradesh (0.715, 8th), and significantly below Delhi (0.734, 5th) and top-ranked states like Kerala (0.758, 2nd). It remained above Rajasthan (0.652, 23rd), Uttar Pradesh (0.609, 34th), and the national average of 0.644.⁵⁴ Notably, Gurugram city recorded a very high HDI of 0.889, ranking 3rd among Indian cities surveyed.⁵⁴
In terms of Fiscal Health, the NITI Aayog FHI 2025 ranked Haryana 14th overall among 18 major states, placing it in the “Aspirational” category.¹⁹ This rank was lower than states like Odisha (1st), Gujarat (5th), and Rajasthan (11th), but higher than Punjab (18th), Kerala (15th), and West Bengal (16th).¹⁹
The disparity between Haryana’s high per capita income and its relatively moderate HDI ranking presents a significant finding. It suggests that the state’s substantial economic wealth has not fully translated into commensurate achievements in health and education outcomes across the population, when compared to other states. While the income component of the HDI is strong, the health and education components appear to be lagging relative to its economic standing. This reinforces the observations about potential issues in social sector performance, possibly linked to the quality of public expenditure ¹⁹, the existence of significant regional disparities ⁵⁵, or persistent social equity challenges.⁴⁸ The exceptionally high HDI score of Gurugram city ⁵⁴ further underscores the likelihood that the state average masks considerable internal variations, pulling down the overall rank despite pockets of high development.
Table 1: Comparative Development Indicators (Latest Available Year)

Indicator	Haryana	Punjab	Rajasthan	Delhi	India (National Avg.)	Source(s)
GSDP Growth (Constant, 2023-24)	8.0%	N/A	N/A	N/A	7.6%	⁴⁷
Per Capita Income (Current, ~2024)	₹ 3,53,182 (Est)	~₹ 1.8 Lakh (Rel)	~₹ 1.56 Lakh	~₹ 4.6 Lakh (Rel)	~₹ 1.97 Lakh (Rel)	¹⁰ (Calculated)
HDI Score (2022)	0.696	0.698	0.652	0.734	0.644	⁵⁴
HDI Rank (2022)	13	12	23	5	–	⁵⁴
GSVA Share – Agri (2024-25 Est)	15.9%	N/A	N/A	N/A	17.7% (FY24)	¹⁰
GSVA Share – Industry (2024-25 Est)	32.9%	N/A	N/A	N/A	27.6% (FY24)	¹⁰
GSVA Share – Services (2024-25 Est)	51.2%	N/A	N/A	N/A	54.7% (FY24)	¹⁰
NITI Fiscal Health Index Rank (2023)	14	18	11	N/A	–	¹⁹
NITI Fiscal Health Index Score (2023)	27.4	13.9	34.6	N/A	–	¹⁹

*(Note: N/A indicates data not readily available in provided snippets for direct comparison. PCI values are approximate based on relative figures and estimates from different sources/years. National GSVA shares are for FY24, Haryana’s are FY25 estimates.)*

3. Infrastructure: The Backbone of Development:

Infrastructure development is central to Haryana’s growth strategy, encompassing transportation, energy, water management, digital connectivity, and industrial zones. Significant investments are being made across these sectors, though challenges related to implementation, sustainability, and equitable access remain.

3.1 Transportation Network:
Haryana is investing heavily in upgrading its transportation infrastructure, leveraging its strategic location.

Roads: An extensive road network is managed by the Public Works Department (Buildings & Roads) ³² and the National Highways Authority of India (NHAI). Major ongoing NHAI projects are transforming connectivity, including several sections of the Delhi-Amritsar-Katra Expressway ⁵¹, the Delhi-Mumbai Expressway passing through the state ⁵⁸, the Eastern and Western Peripheral Expressways completing the Delhi outer ring corridor ⁵⁸, the Gurgaon-Pataudi-Rewari section of NH-352W ⁵¹, the Rewari Bypass ⁵¹, the Ambala Ring Road ⁵¹, the Karnal Ring Road ⁵¹, and greenfield connectivity to Jewar International Airport.⁵¹ A comprehensive list of central road projects with status details is available.⁵¹ The state budget for 2025-26 also included plans for developing ‘smart roads’ in cities and districts.¹⁸ However, road development, particularly for expressways, has faced significant challenges, most notably land acquisition disputes and farmer protests.⁵⁹ The PWD (B&R) utilizes the Haryana Schedule of Rates (HSR) for project tendering and contracts.⁶¹
Railways: Current railway projects focus on capacity enhancement through track doubling, specifically between Bhiwani-Dobh Bahali and Rewari-Kathuwas.⁵¹
Metro Rail: Urban transit is expanding, particularly in the NCR. The Gurugram Metro expansion project is a major initiative, involving a 28.5 km elevated line with 27 stations connecting Millennium City Centre to Cyber City via Old Gurugram. With an estimated cost of ₹5,452.72 crore, construction is slated to begin in May 2025 and targets completion by 2029.⁵⁰ Additionally, an inter-city metro link is planned between Bata Chowk in Faridabad and Sector 56 in Gurugram.¹⁶
Aviation: The state has a Civil Aviation Department ⁴² and has initiated regional air services from Hisar Airport to destinations like Ayodhya, Jaipur, Chandigarh, Ahmedabad, and Jammu.¹⁶
Logistics: Haryana has emerged as a leader in logistics infrastructure, ranked 2nd nationally and 1st in North India for logistics facilities.²¹ HSIIDC is actively developing Integrated Multimodal Logistics Hubs (IMLH) and Multi-Modal Logistics Parks (MMLP) at strategic locations including Nangal Choudhary, Pinjore, Sonipat, Kharkhoda, Manesar, Hisar, and potentially others along key corridors.⁴¹

The pattern of major transportation investments reveals a strong focus on enhancing connectivity within and radiating from the National Capital Region (Gurugram, Faridabad, Sonipat, Rohtak, Rewari) and along major national corridors like the Delhi-Mumbai Expressway and Delhi-Amritsar-Katra Expressway.⁴¹ While this strategy significantly improves logistical efficiency and supports the state’s primary economic hubs, it carries the risk of reinforcing existing economic concentration and potentially exacerbating regional disparities by not prioritizing connectivity improvements within or between less developed parts of the state to the same extent.

3.2 Energy Sector:
Haryana possesses a well-structured and relatively robust energy sector.

Structure: Following the unbundling of the state electricity board, the power sector comprises Haryana Power Generation Corporation Ltd. (HPGCL), Haryana Vidyut Prasaran Nigam Ltd. (HVPNL) for transmission, and two distribution companies (Discoms): UHBVN serving northern Haryana and DHBVN serving southern Haryana.³⁵ Both Discoms maintain websites and online payment portals for consumer convenience.³⁴ DHBVN is headquartered in Hisar.⁶⁶
Capacity and Access: Haryana achieved 100% village electrification decades ago (by 1970).⁴³ The state is considered power surplus.⁴³ The total installed power generation capacity was reported as 13,443 MW in 2022-23 ¹¹, up from an earlier figure of 11,102 MW mentioned in a NITI Aayog note.⁴³
Modernization and Sustainability Initiatives: The state is actively modernizing its power infrastructure and promoting efficiency. This includes IT enablement of sub-divisional offices, automation in meter reading, establishment of commercial bank offices within Discoms, facilitating over 80% online revenue collection, and operating toll-free helplines.¹⁰ A major push involves the installation of smart meters, with a target of 10 lakh units covering several towns.¹⁰ Haryana is also collaborating with organizations like RMI and NITI Aayog through the Lighthouse Discom Programme to evaluate and implement clean energy technologies and prepare for increased electric vehicle (EV) penetration, including planning for EV charging infrastructure.⁶⁷ The state aims to have 30% of the government vehicle fleet consist of EVs within five years.¹⁶ Policies support this transition, including reducing power tariffs for new industrial investments ⁴³ and the existence of a dedicated Department of Renewable Energy.⁴² The Vision 2030 document targets achieving 14.5% renewable energy in the total energy mix.⁵ The 2025-26 budget also included provisions for electricity subsidies for Antyodaya families with low consumption.¹⁶

The energy sector in Haryana demonstrates a clear transition towards modernization and sustainability. Being power surplus provides a significant advantage for attracting and sustaining industrial growth. The proactive steps in adopting smart grid technologies, preparing for electric mobility, and setting renewable energy targets indicate a forward-looking approach aimed at enhancing efficiency, reducing environmental impact, and ensuring long-term energy security.

3.3 Water Resource Management:
Water represents one of Haryana’s most critical development challenges.

The Crisis: The state faces a severe water crisis characterized by both groundwater depletion and waterlogging in certain areas.³⁷ The primary driver is the significant imbalance between water demand and availability. The estimated annual water demand is approximately 34.96 BCM (34.96 lakh crore litres), while the total availability from surface water, groundwater, and treated wastewater is only about 20.93 BCM, resulting in a substantial water gap of around 14 BCM.³⁷ Groundwater over-extraction is rampant, with the overall state extraction rate exceeding recharge by 34-36%.³⁶ A staggering 60-61% of the state’s assessment units (blocks/urban areas) are classified as “Over-exploited”.³⁶ Agriculture and Horticulture are the largest consumers, accounting for 86% and 5% of the total water demand, respectively.³⁷ The problem is not confined to rural areas; major urban centers like Gurugram (extraction rate 212.77%) and Faridabad (180.89%) exhibit alarming levels of groundwater depletion.³⁶ Certain districts like Kurukshetra (highest extraction rate at 228%) and specific blocks such as Thanesar (260%), Ladwa (297%), and Ratia (248%) are under extreme stress.³⁶
Policy Response – IWRAP: Recognizing the urgency, the Haryana government formulated the Integrated Water Resources Action Plan (IWRAP) 2023-25.¹⁰ This plan serves as a roadmap, compiling block-wise and district-wise interventions from all relevant departments with the ambitious goal of reducing the water gap by 49.7% (saving approximately 6.97 lakh crore litres) within two years.³⁷ Key interventions outlined in IWRAP include:

Demand-Side Management: Promoting Micro Irrigation (with a target of bringing 1 lakh acres under micro-irrigation in FY 2025-26 ⁷¹), encouraging Crop Diversification away from water-guzzling paddy (targeting 3.14 lakh acres under diversification to save 1.05 lakh crore litres ³⁸), promoting Direct Seeding of Rice (DSR) (targeting 4.75 lakh acres to save 1.18 lakh crore litres ³⁸), introducing water-efficient crop varieties (Varietal Interventions), adopting Conservation Tillage practices (targeting 27.53 lakh acres to save 0.51 lakh crore litres ³⁸), using Green Manuring/Dhaincha, and promoting Natural Farming.³⁷ The ‘Mera Pani Meri Virasat’ scheme provides financial incentives for farmers shifting away from paddy.⁴⁵
Supply-Side Augmentation & Management: Modernizing irrigation infrastructure (Channels & Water Courses), significantly increasing the Reuse of Treated Wastewater (TWW) (with a state policy goal of 80% reuse by 2030 ⁷³, 50% by March 2025, and 100% by December 2028 ⁷¹; IWRAP focuses on utilizing TWW from 177 STPs for micro-irrigation and agriculture ⁷³), enhancing Groundwater Recharge through Pond Rejuvenation ³⁷, construction of Check Dams ³¹, and promoting Rooftop Rainwater Harvesting.³⁷ Construction of new water storage structures, including dams (like the completed Adi Badri dam, ongoing work on 9 others ⁴⁵, and planned large dams like Renuka, Lakhwar, and Kishau ⁶⁹) and reservoirs (e.g., a proposed 100-acre reservoir in Faridabad ³⁶), is also part of the strategy.

Institutional Mechanisms: The Haryana Pond and Waste Water Management Authority (HPWWMA), established in 2018, focuses specifically on pond management and promoting the utilization of treated wastewater.⁶⁸ Three-level committees have been formed to implement and monitor IWRAP.¹⁰
Progress and Outlook: Initial reports indicate some success, with the state claiming to have achieved 85% of its IWRAP water-saving target by February 2025, saving 5.8 BCM through measures like TWW reuse and improved agricultural practices.⁷¹ The Central Ground Water Board (CGWB) reported an 11% increase in groundwater recharge from 2023 to 2024.⁷¹ Planning for the second edition of IWRAP (2025-28) is underway.⁷¹

Despite these comprehensive interventions outlined in IWRAP ³⁷ and the reported progress ⁷¹, the sheer magnitude of Haryana’s water deficit (14 BCM ³⁷) and the vast extent of over-exploited areas (over 61% ⁷⁰) underscore the immense scale of the challenge. Achieving long-term water security will necessitate sustained, aggressive implementation of these measures, coupled with robust enforcement mechanisms (e.g., ensuring compliance with TWW reuse mandates ⁷¹) and potentially more fundamental shifts in agricultural water use and urban water management practices that go beyond current targets. The resolution of inter-state water disputes, such as the Sutlej Yamuna Link (SYL) Canal issue, also remains a critical factor.⁶⁹

3.4 Digital Infrastructure:
Haryana has made strides in digital connectivity, aligning with its Vision 2030 goal of becoming a modern digital state.⁶

Connectivity Landscape: Compared to many other Indian states, Haryana exhibits relatively better outcomes for the digitalization of rural areas.⁷⁵ The overall internet subscriber density (per 100 population) was reported at 55.55, with rural density at 34.41 and urban density nearing 100%.⁷⁶ While this indicates significant penetration, particularly in urban areas, it also highlights a persistent rural-urban digital divide ⁷⁶, a challenge reflected in national data showing much lower internet access in rural households (24%) compared to urban ones (66%).⁷⁷
Government Initiatives: The central government’s BharatNet project aims to bridge this gap by providing high-speed broadband connectivity to Gram Panchayats across the country, including Haryana.⁷⁷ The state government leverages networks like Common Service Centers (CSCs) to enable the delivery of e-governance services, even with intermittent connectivity.⁷⁷ The overall emphasis on IT and digital governance is a core component of the state’s development strategy.⁶ While specific Haryana initiatives leveraging advanced tech like AI/IoT for rural governance weren’t detailed in the snippets, models like the Village Integrated Command & Control Center (VICCC) implemented in Lalitpur, UP ⁷⁸, showcase the potential of such technologies.

While Haryana has established a relatively strong base for digital infrastructure, realizing the full potential of digitalization for inclusive development, as envisioned in Vision 2030 ⁶, requires moving beyond basic connectivity. Addressing the remaining rural-urban divide necessitates tackling not only infrastructure access but also critical factors like affordability of devices and data, enhancing digital literacy levels, and ensuring the availability of relevant digital content and services in local languages.⁷⁷ Effectively leveraging digital tools can play a role in improving access to education, health, financial services, and government schemes, potentially helping to mitigate some of the regional and social disparities prevalent in the state.

3.5 Industrial Infrastructure:
Developing robust industrial infrastructure is a cornerstone of Haryana’s economic strategy, facilitated primarily by HSIIDC.

HSIIDC’s Central Role: The Haryana State Industrial and Infrastructure Development Corporation acts as the state’s premier agency for planning and developing integrated industrial areas, including Industrial Estates (IEs), Industrial Model Townships (IMTs), Special Economic Zones (SEZs), technology parks, and logistics hubs.⁴¹ HSIIDC develops essential infrastructure like roads, water supply, and power systems within these zones before allotting plots to industries.⁴¹ It manages numerous established industrial areas across the state, such as those in Manesar, Bawal, Rohtak, Kharkhoda, Rai, and Barhi.⁴¹ HSIIDC also plays a key role in facilitating ease of doing business and serves as the nodal agency for the state’s Land Pooling Policy for industrial development.³⁰ The corporation provides online services through its E-Sewa portal ²² and maintains a public website.³⁹
Flagship Projects and Investments:

Global City Gurugram: This ambitious project, spearheaded by HSIIDC, aims to develop a mixed-use township over 1000 acres in Gurugram (covering parts of Sectors 36, 36B, 37, 37B). Envisioned as a self-sustaining smart city, it plans to integrate inspiring workspaces, modern residences, retail spaces, resilient social infrastructure, extensive green areas, water bodies, and multi-modal connectivity, potentially establishing a new Central Business District (CBD) for Gurugram.⁷⁹
IMT Kharkhoda: This major industrial township is notably the site chosen by Maruti Suzuki for establishing a large new manufacturing plant.⁴¹
Other Significant Projects: Haryana continues to attract large industrial investments, including the major capacity expansion of the Indian Oil Corporation Limited (IOCL) Panipat Refinery ⁵¹, IOCL’s new R&D Campus in Faridabad ⁵¹, IOCL’s Poly Butadiene Rubber Plant in Panipat ⁵¹, expansion of the Hisar Industrial Manufacturing Cluster (IMC) ⁸⁰, a large paint manufacturing facility expansion in Rohtak ⁸⁰, a grain-based ethanol plant expansion in Sirsa ⁸⁰, a cement production expansion in Jhajjar ⁸⁰, an Active Pharmaceutical Ingredient (API) unit in Rewari ⁸⁰, and a metal products manufacturing expansion in Hisar.⁸⁰
Industrial Ecosystem: Haryana has fostered specialized Industrial Clusters, such as the Textile hub in Panipat, Footwear park in Bahadurgarh, Apparel park in Barhi, and the well-established Automotive cluster spanning Gurugram, Manesar, and Bawal.¹⁰ The state is also developing Mega Food Parks under a central scheme, with parks operational or under implementation in Rai (Sonipat) and Rohtak, and others proposed.⁴¹ State policies like the Haryana Enterprises & Employment Policy-2020 ¹⁰ and the planned ‘Make in Haryana’ program ¹⁶ aim to further bolster the industrial sector, with a particular focus on maintaining leadership in the automotive industry.¹⁰

Haryana’s development strategy clearly hinges on infrastructure-led industrialization. By proactively developing high-quality industrial estates and logistics facilities through HSIIDC ⁴¹, the state aims to attract significant domestic and international investment, particularly in manufacturing sectors like automotive and petrochemicals, as well as in logistics and warehousing.¹⁰ Ambitious projects like the Global City Gurugram ⁷⁹ signal a move towards creating more integrated, high-value urban-industrial ecosystems designed for modern businesses and lifestyles. However, this model inherently demands large tracts of land and significant water and energy resources, placing considerable pressure on the environment and often leading to conflicts with existing land users, highlighting the critical need for sustainable planning and resource management within this industrialization drive.

3.6 Major Project Status:
Tracking the progress of major infrastructure projects provides insight into the pace and potential challenges of development.

Centrally Funded/Managed Projects: Data available from the central government’s project monitoring portal (as of an unspecified date, likely late 2024 or early 2025 based on snippet context) provides status updates for numerous projects involving agencies like NHAI, IOCL, Railways, and HLL Infra Tech Services.⁵¹ Several key projects show anticipated costs exceeding original estimates, including the Panipat Refinery expansion, IOCL’s R&D campus, the Jind-Gohana road section, the Rewari Bypass, Ambala and Karnal Ring Roads, and connectivity to Jewar Airport.⁵¹ This suggests potential delays, scope changes, or cost overruns in implementation. The expenditure on the AIIMS Manethi project also appeared relatively low compared to its sanctioned cost at the time of reporting.⁵¹
State-Led and Private Sector Projects: The Gurugram Metro expansion is scheduled to commence construction in May 2025, targeting completion by 2029.⁵⁰ The HSIIDC’s Global City Gurugram project is under development.⁷⁹ Various large private sector industrial projects across Haryana (Hisar IMC, Rohtak paint facility, Sirsa ethanol plant, Jhajjar cement plant, Rewari API unit, Hisar metal products) have projected construction timelines spanning from 2025 to 2030, many awaiting environmental clearances.⁸⁰ HSVP also periodically updates the status of its development works.⁸¹

The observed cost escalations in several major centrally managed projects ⁵¹ point towards potential implementation hurdles. Factors such as land acquisition delays, regulatory approvals, financing issues, or contractor performance could be contributing factors. Continuous monitoring of the physical and financial progress of these large-scale infrastructure investments is essential to ensure they deliver their intended developmental benefits efficiently and without imposing an excessive fiscal burden on the state or central exchequer.Table 2: Status Update of Selected Major Infrastructure Projects in Haryana

Project Name	Sector	Agency	Location/Description	Est. Cost (₹ Cr) (Orig./Antic.)	Status (Approx. Early 2025)	Source(s)
Global City Gurugram	Industrial/Urban	HSIIDC	Gurugram (Sec 36-37B), Mixed-use township	N/A	Under Development	⁷⁹
Gurugram Metro Expansion	Urban Transport	Haryana Metro Rail Corp. (Likely)	Gurugram (Millennium City Centre – Cyber City)	5452.72	Construction start planned May 2025, End 2029	⁵⁰
Delhi-Amritsar-Katra Exp (Haryana Sections)	Transport (Road)	NHAI	Various sections (e.g., KMP to Rohtak-Panipat Jn)	Variable (e.g., 1690/2010)	Partially Open / Under Construction	⁵¹,
Panipat Refinery Expansion (15 to 25 MMTPA)	Energy/Industry	IOCL	Panipat	34627 / 38231	Under Construction (Significant Expenditure)	⁵¹
AIIMS Manethi	Health	HLL Infra Tech Services Ltd	Manethi, Rewari	1294.34 / 1294.34	Under Construction (Relatively Low Expenditure)	⁵¹
Gurgaon – Pataudi – Rewari Section (NH-352W)	Transport (Road)	NHAI	Gurgaon to Rewari	1524.03 / 1524.03	Under Construction (Advanced Stage)	⁵¹
Hisar Industrial Manufacturing Cluster (Expansion)	Industrial	HSIIDC (Likely)	Hisar	8000	Planned (Construction Sep 2025 – Dec 2030)	⁸⁰
IWRAP Interventions (Statewide)	Water Resources	Various Depts. coordinated by HWRA	Statewide (Micro-irrigation, TWW reuse, Recharge etc.)	N/A	Ongoing (Targeting 49.7% water gap reduction by 2025)	³⁷
Aravalli Green Wall Project	Environment	Forest Dept./Multiple Agencies	Aravalli range in Haryana	N/A	Phase 1 Ongoing (Target: 35,000 ha restoration)	⁸²

*(Note: Status and costs are based on information available in snippets, dates may vary. N/A indicates data not specified.)*

4. The Contested Path: Challenges and Criticisms:

Haryana’s pursuit of rapid development has not been without significant friction and negative consequences. Key areas of contestation include land acquisition practices, environmental degradation, growing regional imbalances, social equity concerns, and questions about the long-term sustainability of its economic model.

4.1 Land Acquisition Conflicts:
The acquisition of land, a prerequisite for Haryana’s extensive infrastructure and industrial projects, has been a persistent source of conflict.

Farmer Protests and Issues: Major farmer protests have erupted against land acquisition for large projects, notably expressways like the Delhi-Amritsar-Katra Expressway ⁵⁹ and the Kundli-Manesar-Palwal (KMP) / Kundli-Ghaziabad-Palwal (KGP) corridors.⁶⁰ These protests, often organized by established farmer unions like the Kisan Mazdoor Sangharsh Committee ⁵⁹ and the Bharatiya Kisan Union (BKU) ⁸⁵, as well as Khap panchayats and local groups like the Bhumi Bachao Sangharsh Samiti ⁶⁰, have sometimes led to clashes with authorities.⁵⁹ The core grievances typically revolve around the perceived inadequacy or lack of clarity regarding compensation packages ⁵⁹, a feeling of insufficient consultation with affected landowners during the planning process ⁵⁹, instances where authorities allegedly attempted to take possession of land before compensation was paid ⁵⁹, and physical damage caused to land during the acquisition process.⁵⁹ These specific land-related issues are often intertwined with broader farmer demands, such as the legal guarantee of Minimum Support Price (MSP) for crops and farm loan waivers.⁶⁰ Historical precedents, like the prolonged protest (2005-2017) by villagers in Badhkhalsa over land for the KGP/KMP expressways, which was eventually resolved through offers of enhanced compensation or alternative land allotments ⁸³, highlight the recurring nature of these disputes.
Land Pooling Policy (LPP) as an Alternative: In response to the challenges and litigation associated with compulsory land acquisition, Haryana introduced a Land Pooling Policy (LPP), initially drafted in 2017 ²⁸ and formalized as the ‘Haryana Land Pooling Policy-2022’.³⁰ This policy aims to replace forced acquisition with a voluntary, consensus-based approach, positioning landowners as “partners in development”.²⁸ Under LPP, landowners willingly pool their land for a specific development project and, instead of cash compensation, receive a predetermined portion of the developed land back in the form of serviced residential and/or commercial plots.²⁸ HSVP manages land pooling for urban development purposes (residential, commercial, institutional), while HSIIDC handles pooling for industrial, infrastructure, or institutional projects anywhere in the state.³⁰ Landowners can offer their land directly or through aggregators via the state’s e-Bhoomi portal.³⁰ The policy also includes provisions for annual interim financial assistance to landowners during the project development phase to compensate for loss of agricultural income.³⁰ Proponents argue that LPP offers several advantages over acquisition, including non-displacement of landowners (as they receive plots nearby), consolidation of scattered parcels into regular plots, provision of better infrastructure funded through the value capture inherent in development, and potential tax benefits.⁸⁷ HSIIDC acts as the nodal agency for the policy.⁴¹ While NITI Aayog has acknowledged the potential of LPP, citing examples from other states like Andhra Pradesh (Amaravati) ⁸⁸, the specific Haryana LPP is not explicitly identified as a ‘best practice’ in the provided materials.⁴³ However, successful implementation of LPP is complex. Experiences elsewhere, such as in Delhi ⁸⁸, highlight potential challenges including fragmented land ownership, disputed land titles, difficulties in achieving the required consent threshold (often 70% of contiguous land ⁸⁸), ensuring adequate development incentives (like Floor Area Ratio – FAR), building trust between landowners and the development authority, addressing information asymmetry, and the need for proactive state involvement in coordination and infrastructure provision.⁸⁸

Despite the shift towards the potentially more equitable Land Pooling Policy ³⁰, assembling land for development remains a significant bottleneck and a primary source of conflict in Haryana. The success of LPP hinges critically on establishing transparent processes, ensuring fair valuation and distribution of developed plots relative to the contributed land, adhering to realistic timelines for project completion, and fostering genuine trust between the state agencies (HSVP/HSIIDC) and landowners.⁹² While the policy rhetoric emphasizes partnership ²⁸, the inherent power imbalances and potential for information asymmetry ⁹² mean that LPP itself can become contested if not implemented with sensitivity and fairness. If these implementation hurdles, observed in contexts like Delhi ⁸⁸, are not effectively managed in Haryana, land assembly could continue to constrain the pace of development and undermine its social acceptance.

4.2 Environmental Concerns:
The rapid pace of development in Haryana, particularly concentrated in the NCR and driven by industrialization and urbanization, is exacting a heavy toll on the state’s environment, most critically impacting the Aravalli ecosystem and water resources.

Aravalli Ecosystem Under Siege: The Aravalli range, a geologically ancient and ecologically vital feature running through Haryana, serves as a crucial natural barrier against the eastward expansion of the Thar desert, a significant zone for groundwater recharge, and a habitat for considerable biodiversity.⁸² This fragile ecosystem is facing severe degradation due to multiple anthropogenic pressures. Illegal mining activities, particularly for stone extraction in areas like Nuh (where potential revenue loss is estimated at ₹2,000 crore ⁹³), have led to the physical destruction of hills.⁹³ Unchecked urbanization has resulted in significant encroachment and habitat fragmentation, with human settlements increasing by 158% between 1980 and 2016 in studied areas.⁹⁴ Widespread deforestation has led to the loss of native plant species and overall degradation of forest cover.⁹⁴ Pollution from sources like the Bandhwari landfill site, where untreated toxic leachate has been found seeping into the surrounding Aravalli environment and potentially contaminating groundwater with high levels of BOD, COD, TSS, and Fluoride, further damages the ecosystem.⁹⁶
Consequences of Degradation: The cumulative impact of these pressures is multifaceted and severe. The Aravallis’ ability to act as a barrier against desertification is weakening, leading to increased aridity (8.2% of Haryana became more arid by 2018-19 ⁹³) and a greater frequency of dust storms impacting air quality in the NCR.⁹³ Loss of vegetation cover and topsoil results in increased soil erosion and reduced water infiltration, thereby diminishing groundwater recharge capacity ⁹³ and contributing to the shrinking of water bodies.⁹⁴ Habitat destruction and fragmentation disrupt wildlife corridors, impacting species like leopards and various birds, increasing human-wildlife conflict, and reducing biodiversity.⁸² The degradation also impacts local communities through deteriorating health conditions caused by mining dust ⁹³ and threats to agricultural livelihoods due to increased aridity and potentially contaminated water sources.⁹³
Governance and Mitigation: Environmental governance appears weak. Forest department checkpoints have been dismantled, enforcement against illegal mining seems limited despite the creation of an Enforcement Bureau, and the Aravalli Rejuvenation Board has reportedly been inactive.⁹³ There has also been a lack of clarity in formally identifying and protecting forest areas despite court directives and concerns regarding the application of Natural Conservation Zone (NCZ) regulations.⁹⁵ In response to the crisis, the Aravalli Green Wall project has been initiated, inspired by similar large-scale afforestation efforts in Africa and Saudi Arabia.⁸² This project aims to create a 1400 km long, 5 km wide green corridor across Gujarat, Rajasthan, Haryana, and Delhi by planting native trees and restoring degraded land. In Haryana, the project targets restoring 35,000 hectares (including 18,000 ha in Gurgaon) and creating 75 water bodies across several districts.⁸² The National Action Plan to Combat Desertification also provides a framework for such activities.⁸² Experts emphasize the need for comprehensive conservation efforts, including removal of invasive weeds and long-term ecological monitoring.⁹⁵
Link to Water Crisis: The degradation of the Aravallis, a key recharge zone, directly exacerbates Haryana’s water scarcity problems.⁹⁵ This is compounded by the over-extraction detailed in section 3.3. Water quality is also threatened by pollution sources like landfill leachate ⁹⁶ and potentially untreated industrial wastewater (implied by the goal of developing Haryana as a “zero water wastage industrial area” ¹⁸).

A critical assessment reveals that Haryana’s prevailing development model, characterized by rapid urbanization and industrialization focused heavily around the NCR and reliant on significant resource extraction (stone for construction, groundwater for agriculture and urban use), is imposing severe, and potentially irreversible, environmental costs. The damage to the Aravalli ecosystem and the depletion of groundwater resources represent existential threats to the state’s long-term ecological and economic well-being. While policy responses like the Aravalli Green Wall project ⁸² and the IWRAP for water management ³⁷ are steps in the right direction, their current scale and the effectiveness of their implementation appear insufficient to counteract the momentum of environmental degradation driven by dominant economic activities and significant governance shortcomings in environmental protection and enforcement.⁹³

4.3 Regional Imbalances:
Despite Haryana’s status as a high-income state, development has not been uniform across its territory, leading to significant regional disparities.

Geographical Patterns: Research indicates distinct geographical patterns in development levels. Studies focusing on agricultural development found northern districts like Yamuna Nagar and Kurukshetra to be relatively prosperous, while southern districts such as Mahendragarh, Nuh, Rewari, and Bhiwani lagged significantly (with exceptions like Palwal and Faridabad, likely due to NCR influence).⁹⁷ A study on social development (using a composite index based on 33 indicators tracked from 1991-92 to 2018-19) found that districts in the northern and southern regions generally showed improvement over time. In contrast, districts geographically situated around the National Capital (Gurugram, Faridabad, Panipat, Rohtak, Jhajjar) and those in the western part of the state either deteriorated or lagged in social development.⁵⁵
Economic vs. Social Development Disconnect: A striking finding from the social development study was the inverse relationship observed in several districts: those identified as the most economically advanced (Gurugram, Faridabad, Panipat, Jhajjar, Rohtak) performed poorly or showed deteriorating trends on the social development index.⁵⁵ This highlights a significant decoupling between economic prosperity and social well-being in the state’s high-growth zones, reinforcing the paradox observed when comparing Haryana’s high PCI with its moderate HDI rank (Insight 2.3).
Contextual Factors: These internal disparities within Haryana reflect broader national trends of uneven regional development, often characterized by a North-South or West-East divide, although Haryana itself is an economic outlier in the North.⁵² Factors contributing to regional imbalances nationally, such as historical development patterns, geographical advantages or disadvantages, variations in infrastructure quality, governance effectiveness, and the differential impact of economic liberalization policies ⁵², are likely also at play within Haryana, concentrating investment and opportunities in certain areas (like the NCR) while others struggle to catch up.

Haryana’s high average economic indicators mask significant internal fractures. The persistence, and in some aspects widening, of regional disparities challenges the narrative of uniform progress across the state. Development benefits appear unevenly distributed, both geographically and across different dimensions (economic versus social). Achieving the goal of equitable development, explicitly stated in Vision 2030 ¹, necessitates targeted policy interventions aimed at uplifting lagging regions and, crucially, addressing the social development deficits observed even in the most economically prosperous districts.

4.4 Social Equity Dimensions:
Beyond regional imbalances, Haryana grapples with several social equity challenges, indicating that the benefits of development have not reached all segments of society equally.

Gender Inequality: This remains a significant concern despite overall economic progress. Female participation in the workforce is notably low (reported at 23.66%, while Vision 2030 aims for 30% ⁴). Female literacy rates, though improving, lag behind male literacy.¹¹ Access to higher education and subsequent employment opportunities for women are constrained by prevailing social norms and familial responsibilities.⁵⁶ Studies point to ongoing gender discrimination in education, employment, and healthcare access.⁴⁸ Furthermore, Haryana has faced issues with high rates of violence against women ⁴⁸ and specific challenges related to cross-regional marriages.¹⁰⁰ Policy responses include the Lado Laxmi Yojana providing financial assistance to women ¹⁵ and plans to build hostels for working women in major cities.¹⁶
Educational Inequality: Access to quality education is unevenly distributed. A significant gap exists between urban and rural areas in terms of literacy rates (around 15 percentage points) and access to higher education (only 18% enrolment in rural areas compared to 35% in urban areas).⁵⁶ Socio-economic status, gender, and geographic location are identified as major determinants of educational achievement disparities.⁵⁶ A perceived mismatch between the skills provided by the education system and the requirements of industry has also been noted.⁵⁶ The state aims to address this through initiatives like achieving 100% pre-primary enrolment (Vision 2030 goal ⁴) and targeting the implementation of the National Education Policy (NEP) 2020 by the year 2025.²¹
Poverty and Vulnerability: While poverty levels have declined substantially over the decades (from 24% in 2004-05 to 11.2% in 2010-11 ⁴, and further to 10.1% in 2019-20 ⁴⁸), a significant portion of the population still lives below the poverty line.⁴⁸ Specific programs like the Pradhan Mantri Jan Vikas Karyakram (PMJVK) target development interventions (infrastructure for education, health, skills) in designated minority concentration districts like Mewat and Sirsa to address relative disadvantage.⁴⁶ The overarching goal of Vision 2030 is to eradicate extreme poverty and ensure universal access to housing and basic services.¹
Access to Public Services: Ensuring equitable access to essential services is crucial for social equity. The Haryana Right to Service Act, 2014, which notifies time limits for the delivery of over 656 services, and the implementation of the Auto Appeal System are designed to enhance accountability and efficiency in service delivery.²⁴ E-governance initiatives also aim to improve accessibility for citizens.²⁰
Corporate Social Responsibility (CSR): While state public sector enterprises (SPSEs) are mandated to undertake CSR activities, a review of spending in 2019-20 indicated that while ₹21.37 crore was spent, the focus was heavily skewed towards employment and skill development (73% of spending, including a large contribution to IIIT Sonepat by HSIIDC). Other critical areas relevant to social equity, such as education, sports, and slum development, received comparatively less attention.¹⁰¹

Similar to the findings on regional disparities, progress on key social equity indicators, particularly gender equality and equitable access to quality education, appears to be lagging behind Haryana’s impressive economic performance. Deep-seated social norms and attitudes ⁴⁸ contribute significantly to these challenges, particularly concerning gender roles and opportunities. While various government schemes and legislative frameworks exist ¹⁵, ensuring truly equitable access to opportunities and outcomes for all communities – especially women, rural populations, and marginalized groups – remains a critical task for realizing the inclusive development aspirations articulated in Vision 2030.

4.5 Economic Sustainability Questions:
Beyond immediate social and environmental impacts, questions arise about the long-term sustainability of Haryana’s economic trajectory.

Fiscal Sustainability: As discussed previously (Section 2.2, Insight 2.2), the state faces potential fiscal stress due to high levels of committed expenditure, rising debt concerns highlighted by NITI Aayog, and past volatility in crucial capital spending.¹⁵ This raises questions about the state’s ability to maintain development momentum and fund social programs without compromising fiscal stability.
Employment Generation: Creating sufficient quality employment for its population is a key challenge. Vision 2030 sets a target of 18 lakh new jobs ⁵, while the 2025 budget mentioned an aim for 50 lakh jobs.¹⁶ Various skill development initiatives are in place, including the Mukhyamantri Yuva Kaushal Samman Yojana ¹⁵, programs for persons with disabilities ¹, and the Skill Development & Industrial Training Department.⁴² However, concerns about a mismatch between the skills imparted by the education system and the demands of the modern industry ⁵⁶ suggest that ensuring growth translates into meaningful employment requires better alignment between education, skilling, and job market needs.
Agricultural Sustainability: The state’s agricultural sector, while productive, faces significant sustainability challenges, primarily linked to water resources. The heavy reliance on water-intensive crops like paddy is a major contributor to the groundwater crisis.³⁷ Government efforts to promote crop diversification (e.g., through the Mera Pani Meri Virasat scheme ¹⁷) and other water-saving techniques under IWRAP ³⁸ are crucial but face the challenge of achieving widespread farmer adoption and sufficient scale. The experience of neighboring Punjab, where over-reliance on the Green Revolution model arguably hindered broader economic diversification ⁵³, serves as a cautionary tale. Additionally, practices like stubble burning continue to pose environmental problems, although Vision 2030 aims for its complete elimination.¹
Environmental Sustainability: As detailed under environmental concerns (Section 4.2, Insight 4.2), the current development model’s heavy impact on the Aravalli ecosystem and water resources raises fundamental questions about its long-term ecological and, consequently, economic viability.³⁶ Resource depletion and environmental degradation can eventually undermine the very economic activities they currently support.

Haryana’s path forward involves navigating a complex set of interconnected sustainability challenges. Fiscal pressures could limit investment capacity. Environmental degradation, particularly the water crisis, threatens both agriculture and urban/industrial sectors. The agricultural sector itself requires significant reform to become sustainable. Ensuring that economic growth is inclusive and generates sufficient employment is also vital for social stability. Addressing these challenges requires integrated policy approaches that recognize the linkages between the economy, society, and the environment, moving beyond siloed solutions to foster a development model that is resilient and sustainable in the long run.

5. Analysis: Interlinkages and Trade-offs:

Understanding Haryana’s development trajectory requires analyzing the complex interplay between its strategic choices, infrastructure initiatives, economic outcomes, and the resulting challenges and controversies. The state’s path is characterized by inherent tensions and trade-offs that shape its present reality and future possibilities.

5.1 Connecting Strategy, Infrastructure, and Challenges:
Haryana’s core development strategy, emphasizing rapid economic growth driven by industrialization and urbanization, is heavily reliant on the creation of large-scale infrastructure – expressways, industrial parks, power generation, and urban amenities.¹⁰ This strategic choice directly fuels some of the state’s most significant challenges. The demand for land for these projects inevitably leads to conflicts with existing landowners, primarily farmers, resulting in protests and disputes over compensation and consultation processes.⁵⁹ Simultaneously, this development model exerts immense pressure on natural resources. The expansion of cities and industries, often located in or near ecologically sensitive areas like the Aravallis, coupled with resource extraction (stone, water), leads to severe environmental degradation, including damage to the Aravalli ecosystem and critical depletion of groundwater resources.³⁶
Furthermore, the geographical pattern of infrastructure development, with a strong focus on the NCR and major transportation corridors (as noted in Section 3.1), appears to align with and potentially reinforce the observed regional economic disparities.⁵⁵ While enhancing connectivity in these high-growth zones, this focus might inadvertently neglect the infrastructure needs of lagging regions, making it harder for them to catch up, despite the Vision 2030 goal of promoting equitable development.¹ There is also an apparent tension between the stated strategic goal of ‘green growth’ ¹ and the actual environmental outcomes, suggesting that environmental considerations may not be adequately integrated into the primary economic and infrastructure planning processes.
The dominant development model pursued by Haryana, while successful in generating high aggregate economic growth, inherently creates friction points. It prioritizes rapid expansion, which clashes with finite land resources, fragile environmental limits, and the goal of equitable benefit distribution. State policies often seem designed to manage the consequences of these clashes (e.g., introducing Land Pooling after acquisition problems ³⁰, launching IWRAP in response to the water crisis ³⁷) rather than proactively embedding sustainability and equity considerations into the core development strategy itself to prevent or minimize these conflicts from arising in the first place.
5.2 Assessing Policy Effectiveness:
While Haryana has formulated specific policies and frameworks to address key challenges, their effectiveness in bridging the gap between intent and outcome appears mixed.

The Land Pooling Policy (LPP) ³⁰ offers a potentially fairer and less conflict-prone alternative to compulsory acquisition.⁸⁷ However, its success depends heavily on effective implementation, requiring trust-building, transparent valuation, timely execution, and addressing landowner concerns.⁹² The limited information available in the provided sources regarding the actual uptake and success rate of LPP projects specifically in Haryana makes it difficult to definitively assess its effectiveness in mitigating land conflicts compared to the known challenges faced in other regions like Delhi.⁸⁸
The Integrated Water Resources Action Plan (IWRAP) ³⁷ represents a comprehensive attempt to tackle the water crisis through multi-departmental coordination. Initial progress reports are positive, claiming significant water savings.⁷¹ However, given the sheer scale of the water deficit ³⁷ and the continued high rate of groundwater extraction ⁷¹, the long-term success of IWRAP hinges on achieving sustained, large-scale adoption of demand-side measures (like crop diversification and micro-irrigation) and rapid implementation of supply-side solutions (like TWW reuse and recharge structures). The effectiveness will depend on farmer cooperation, technological adoption, infrastructure completion, and regulatory enforcement.
The Vision 2030 framework and the SDGCC ¹ provide a structure for aligning development with sustainable goals, including processes for mapping budget allocations to SDGs.³ However, the persistent environmental degradation ⁹³ and social disparities ⁵⁵ suggest that translating this framework into tangible, balanced progress across all dimensions remains a challenge.

A recurring theme appears to be an implementation gap. Policies and plans exist on paper, but translating them into effective, widespread action on the ground faces significant hurdles. This is particularly evident in environmental protection, where governance failures and lack of enforcement are noted.⁹³ The effectiveness of LPP also remains contingent on overcoming practical implementation challenges.⁹² Reasons for this gap could include insufficient resources, weak monitoring and enforcement capacity, lack of political will to tackle entrenched interests (e.g., in illegal mining), coordination failures between agencies, or resistance to change from stakeholders (e.g., farmers hesitant to shift cropping patterns).

5.3 Identifying Key Trade-offs:
Haryana’s development path necessitates navigating several fundamental trade-offs:

Economic Growth vs. Environmental Protection: This is the most stark trade-off, clearly visible in the degradation of the Aravallis ⁹³ and the depletion of groundwater ³⁶ driven by the resource demands of urbanization and industrialization. Maximizing short-term economic output appears to come at the cost of long-term ecological health.
Rapid Development vs. Social Equity/Inclusion: The concentration of growth in specific regions (NCR) and sectors (Industry/Services) risks widening the gap between prosperous and lagging areas ⁵⁵ and may not automatically translate into improved social indicators for all segments of the population.⁴⁸
Infrastructure Development vs. Land Rights/Livelihoods: The need for land for projects like expressways and industrial zones directly conflicts with the rights and livelihoods of existing landowners, particularly farmers, leading to disputes and protests.⁵⁹
Agricultural Productivity vs. Water Sustainability: The highly productive but water-intensive paddy-wheat cropping system contributes significantly to the water crisis. Shifting towards less water-intensive crops ¹⁰², as promoted by IWRAP, is essential for sustainability but may raise concerns among farmers regarding income stability and food security perceptions.
Fiscal Prudence vs. Welfare/Development Spending: The state must balance maintaining fiscal discipline (managing deficits and debt) with the increasing demands for social welfare spending (e.g., Lado Laxmi scheme ¹⁵) and continued investment in growth-enabling infrastructure.⁵¹

Effectively managing Haryana’s future development requires explicitly acknowledging and strategically balancing these inherent trade-offs. The current approach often seems to prioritize economic growth and infrastructure development, subsequently attempting to mitigate the negative social and environmental consequences. A more sustainable and equitable path would involve shifting towards an integrated planning philosophy that seeks to optimize outcomes across multiple dimensions simultaneously, proactively designing policies and projects to minimize negative externalities and maximize shared benefits, rather than simply reacting to conflicts and crises after they emerge.

6. Synthesis, Outlook, and Recommendations:

6.1 Balanced Assessment of Haryana’s Development Trajectory:
Haryana’s development journey presents a narrative of significant achievement alongside substantial challenges.

Achievements: The state has undeniably achieved remarkable economic success, characterized by high GSDP growth rates, a per capita income significantly above the national average, and a successful transition towards an industry and services-led economy.¹⁰ It has proven adept at attracting investment, particularly in manufacturing (automotive hub) and IT/software exports, supported by proactive industrial policies and improving ease of doing business rankings.¹⁰ Infrastructure development has been extensive, including a network of expressways, expanding urban metro systems, logistics hubs, and achieving power surplus status.²¹ Commendable progress has also been made in reducing poverty ⁴ and improving overall literacy rates.¹¹ Furthermore, the state has demonstrated policy foresight by formulating long-term plans like Vision 2030 ¹, attempting innovative solutions like the Land Pooling Policy ³⁰, developing comprehensive responses like IWRAP for the water crisis ³⁷, and strengthening governance through initiatives like the Right to Service Act.²⁴
Shortcomings and Challenges: This progress has come at a cost. Persistent conflicts over land acquisition highlight unresolved tensions between development needs and landowner rights.⁵⁹ Environmental degradation is severe and widespread, particularly the damage to the Aravalli ecosystem and the critical over-exploitation of groundwater resources, posing long-term sustainability risks.³⁶ Despite high average incomes, significant regional disparities persist, with development concentrated in certain belts while other areas lag.⁵⁵ A concerning trend is the decoupling of economic growth from social development in high-growth zones, indicating that prosperity is not translating into commensurate social well-being.⁵⁵ Social equity remains a challenge, with lagging indicators for gender equality and rural education access.⁴⁸ Fiscal pressures, evidenced by high committed expenditure and debt concerns, coupled with questions about the quality of spending, could hamper future development efforts.¹⁵ Critically, significant implementation gaps appear to exist between policy formulation and effective on-the-ground action, particularly in environmental regulation and potentially in land management.⁹²
6.2 Future Outlook: Opportunities and Risks:
Haryana stands at a crossroads, with significant opportunities counterbalanced by substantial risks.

Opportunities: The state can leverage its strong industrial base, skilled manpower (with further upskilling), and strategic proximity to the NCR to attract further high-value investment. Effective implementation of the Land Pooling Policy could provide a more sustainable mechanism for land assembly. Benefits from major national infrastructure corridors passing through the state can be maximized. There is considerable scope for agricultural diversification towards high-value, less water-intensive crops and strengthening agro-processing value chains.⁵³ The existing digital infrastructure provides a platform for enhancing governance and service delivery.⁷⁶ Aggressive implementation of Treated Wastewater (TWW) reuse offers a significant opportunity to mitigate water stress for industrial and agricultural use.⁷¹
Risks: The most significant risks stem from escalating environmental crises. Continued degradation of the Aravallis and unchecked groundwater depletion could lead to irreversible ecological damage, severe water scarcity impacting agriculture, industry, and drinking water supply, and potentially trigger desertification.³⁶ Failure to resolve land conflicts peacefully and fairly could lead to social unrest and delay critical projects. Widening regional and social inequalities could undermine social cohesion and long-term stability. Fiscal instability, if not managed prudently, could derail development plans and social welfare programs. Failure to transition the agricultural sector towards sustainability could result in both ecological collapse and economic distress in rural areas. Reputational damage arising from environmental mismanagement or social conflicts could negatively impact the state’s investment climate.
6.3 Actionable Recommendations:
To navigate its challenges and capitalize on opportunities for a more sustainable and equitable future, Haryana should consider the following strategic directions:

Strengthen Integrated Planning & Governance: Enhance the mandate and capacity of the SDGCC to ensure genuine cross-sectoral alignment in policy formulation and implementation, moving beyond siloed approaches. Integrate resource management (land, water, energy) assessments into the approval process for all major infrastructure and urban development projects. Increase transparency and meaningful public participation in the planning and environmental impact assessment processes.
Promote Sustainable Urban & Industrial Development: Implement and strictly enforce stringent environmental regulations for mining, industrial activities, and urban development, particularly within and near the Aravalli region. Expedite remediation efforts for pollution hotspots like the Bandhwari landfill. Promote and incentivize green building standards, waste reduction, and circular economy practices in industrial estates and urban centers, including flagship projects like Global City Gurugram. Strategically prioritize infrastructure investments to support development in lagging regions, fostering balanced growth.
Accelerate Water Resource Management: Aggressively pursue the targets set under IWRAP, with a strong focus on monitoring and enforcement. Mandate the use of Treated Wastewater (TWW) for designated industrial and horticultural purposes, rapidly expanding the necessary infrastructure. Scale up the adoption of micro-irrigation and water-saving agricultural practices through effective incentive programs and extension services. Strengthen groundwater extraction regulations and monitoring, particularly in critical and over-exploited zones. Expedite the completion of planned water storage and recharge projects. Pursue resolution of inter-state water sharing issues.
Reform Land Management Practices: Focus on building trust and ensuring transparency in the implementation of the Land Pooling Policy. Develop clear, fair, and easily understandable mechanisms for land valuation and benefit-sharing (distribution of developed plots). Establish firm timelines for LPP project completion and create accessible, efficient grievance redressal mechanisms for landowners. Where acquisition remains necessary, ensure rigorous adherence to Social Impact Assessment (SIA) and Rehabilitation & Resettlement (R&R) provisions of the 2013 Act.¹⁰³
Foster Inclusive Growth & Social Equity: Design and target social sector investments (health, education, skills) specifically towards lagging regions and vulnerable social groups (women, minorities, persons with disabilities). Implement concrete programs to address the gender gap in workforce participation, education, and safety. Bridge the digital divide by enhancing digital literacy and ensuring affordable access to relevant digital services in rural areas. Strengthen the implementation and monitoring of the Right to Service Act to guarantee timely and equitable access to public services. Encourage CSR activities to align more closely with state priorities in social equity and environmental sustainability.
Ensure Fiscal Prudence & Expenditure Quality: Focus on improving the quality and efficiency of public spending, potentially guided by recommendations stemming from analyses like the NITI Fiscal Health Index. Prioritize capital expenditure that supports long-term sustainable development goals. Exercise caution in introducing large, untargeted welfare schemes that strain fiscal resources. Ensure long-term debt sustainability remains a key fiscal anchor. Conduct rigorous, independent cost-benefit analyses for major projects and schemes.
Enhance Data & Monitoring Systems: Strengthen the capacity of the Department of Economic and Statistical Affairs (ESA) Haryana to collect, analyze, and disseminate disaggregated data (by region, social group, gender) to effectively track progress towards Vision 2030 goals and identify emerging disparities or challenges. Develop and implement robust, transparent monitoring frameworks for key initiatives like LPP, IWRAP, and environmental compliance programs.

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Haryana’s Development Trajectory: An Analysis of Strategy, Infrastructure, and Contested Issues

1. Haryana’s Development Framework:

2. Economic Profile and Comparative Performance:

3. Infrastructure: The Backbone of Development:

4. The Contested Path: Challenges and Criticisms:

5. Analysis: Interlinkages and Trade-offs:

6. Synthesis, Outlook, and Recommendations:

Works cited

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The Economic and Infrastructural Fallout of a Major Terror Attack in Pahalgam: An Assessment for Jammu & Kashmir

Ladakh’s Infrastructure Development: Strategic Imperatives, Current Projects, and Future Trajectory

Kerala’s Development Trajectory: Achievements, Challenges, and Strategic Roadmap

Himachal Pradesh: Development Trajectory, Strategic Roadmap, and Future Outlook

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Haryana’s Development Trajectory: An Analysis of Strategy, Infrastructure, and Contested Issues

1. Haryana’s Development Framework:

2. Economic Profile and Comparative Performance:

3. Infrastructure: The Backbone of Development:

4. The Contested Path: Challenges and Criticisms:

5. Analysis: Interlinkages and Trade-offs:

6. Synthesis, Outlook, and Recommendations:

Works cited

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Table of contents [hide]

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