Haryana overtakes UP in exports, ranks 5th in country

Haryana is now among the top five states of the country in exports, replacing Uttar Pradesh by registering exports of $2,401 million in the first two months of the current financial year.

Key Facts :

• Gujarat tops the list with exports of $13,780 million followed by Maharashtra ($12,622 million), Tamil Nadu ($4,858 million) and Karnataka ($2,566 million).
• Major exports from Haryana include engineering goods, automobiles, handloom products, carpets and basmati.
• The increase is mainly due to exports of automobiles and auto components from the state but other sectors have also performed well.
• Haryana is the fifth largest exporter with 4.42% share in the pie during April-May 2018 as compared to 4.37% in 2017-18 and 3.88% in 2016-17.
• Haryana has emerged as a major auto cluster with investments flown into the engineering, automobile and ancillary industries.
• The nearest state to Haryana, i.e; Punjab does not even hold the top ten positions in the export trade. It is in the 13th position with total exports of $1,002 million. Its contribution in total exports has decreased from 1.91% in 2017-18 to 1.84% in the first two months of the current financial year.
• In GST collection too, Haryana holds the fifth position after Maharashtra, Karnataka, Tamil Nadu, and Gujarat.

Analysis :

• Haryana will soon be in the fourth position in terms of exports due to increase of investment in electronics sector and as the gap between Haryana and Karnataka is very less.
• Haryana has been progressing consistently. It was at the sixth position in 2017-18 and seventh in the previous financial year 2016-2017.
• Haryana, however, shares a very far position as compared to Gujarat and Maharashtra in terms of share of India’s exports. Gujarat’s share is 25.4% while Maharashtra’s is 23.23%.
• The export share of Uttar Pradesh has reduced down in the last two months and Haryana’s share has been increased which is why it holds the fifth position.
• It is due to the export of manufactured goods and not the services. When goods like manufactured items are exported it provides various benefits, one of them being jobs employment. But when services are exported, for example, software services, there is not much benefit.

By: Harman Sandhu