January 2020 - The Mentor Group
Special economic zones (SEZs) in India

Special Economic Zones (SEZ’s) In India

Special Economic Zone (SEZ) is deemed to be a foreign territory for trade operations; duties and tariffs. In other words, SEZ is a geographical region that has different economic laws from a country’s. The goal is to increase foreign investments to increase the GDP of the country.

With Asia’s first Export Processing Zone (EPZ) set up in Kandla in 1965, India was one of the first in Asia to recognize the need & effectiveness of the (EPZ) model in promoting exports. To overcome the shortcomings experienced on account of the multiplicity of controls and clearances; the absence of proper infrastructure, and an imbalance fiscal regime and to attract large foreign investments in India, the Special Economic Zones (SEZs) Policy which was announced in April 2000.

The government of India has framed a policy regulation that allows the private sector to establish Special Economic Zones (SEZ) to promote export-oriented manufacturing and delivery of services at competitive costs. Units operating in Special Economic Zones are entitled to direct and indirect tax benefits for a specified time period. The procedures have been simplified under Fiscal and foreign exchange and 100 per cent foreign investment is allowed for setting up units in SEZs. Operating in SEZs is expected to help reduce the manufacturing costs.

For the economic growth of SEZ both at the Centre and State level, this policy will support the quality infrastructure of the SEZs. The development will be with nominal regulations along with subsidiary fiscal package. SEZs in India under the provisions of the Foreign Trade Policy and fiscal incentives were made effective through the provisions of relevant statutes.

The Parliament passed the Special Economic Zones Act, 2005 in May 2005 which also received Presidential assent on the 23rd of June, 2005. The drafted SEZ Rules were put on the website of the Department of Commerce which offered suggestions & comments. Around 800 suggestions were received on the drafted rules. Rigorous consultations, on the SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February 2006 which provided drastic simplification of procedures for single window clearance on matters relating to central and state governments as well. To generate additional economic activity is one of the objective of SEZ act. It also includes the promotion of exports for goods and services, investment from both domestic and foreign sources. Along with this the generation of employment opportunities.

It is expected that this will enable a large flow of foreign and domestic investment in SEZs, in infrastructure and productive capacity, which will lead to the generation of additional economic activity and the creation of a generation of employment opportunities.

The Special Economic Zones Rules includes:

  • SEZs should have a simplified procedure for the development and its operation and maintenance
  • The set up of units and conducting business in SEZs
  • There should be a single-window clearance for setting up of the SEZ and its business units
  • There should be a single-window clearance on matters relating to Central and State Governments
  • There should be simplified self-certification compliance procedures and documentation

 

Investment in Commercial Property

What is Commercial Property?

Commercial property is a real estate property which is used for business purpose. A commercial property mostly refers to buildings that provide space to businesses; it may also refer to the land which is intended to generate profit. The commercial property had many implications such as financing of the building, the tax treatment and the laws implied to it.

Investing in Commercial Property?

The key considerations for investors before investing in the commercial property should be through a rigorous assessment of their investment horizon, risk-taking capacity, the purpose of investment in commercial property (diversification, long-term investment and rental return).

It is important to consider the location of the project, project quality, lease covenants (rent, lock-in period, escalation, etc), micro-market performance and benchmarking before planning to invest in the commercial property. It is important to see whether the micro-market is preferred by a diverse occupier mix or a specific industry, this will be useful if the investment is in the future project of commercial property with no pre-leasing activity. Stable income-generating office assets must be a priority for regular income stream requirements, while few risks can be considered for future commercial projects based on the capacity to risk of the investor.

From the perspective of investment in commercial property which is traditionally been seen as a sound investment. The initial investment costs of the building and costs associated with the customization for the tenants are usually much higher than the residential real estate. It is known that the overall return is also higher and some of the common issues that come with tenants are not present when dealing with a company and clear leases

An investor in commercial property can also utilize the triple net lease, where the risks are shifted on to the leasing business to the extent that is not available to residential property investors. Commercial property tends to have a more straight forward approach towards pricing. A residential real estate property investor should look to several factors, which include the emotional appeal to a property perspective of tenants. In contrast, an investor in commercial property will have income statement which shows the value of the current lease, which can be easily be compared to the rate of capitalization for the rest other commercial property advantages in that area.

If one wants to invest in commercial property but they do not have the financials or the willingness to purchase the whole building, real estate investment trusts (REITs) can achieve this with better manageable sections. Real estate investment trusts operate and function like mutual funds where they pool the investment money to purchase the assets and the shares of the real estate investment trusts themselves go for the trading instruments which represent the underlying assets. Real estate investment trusts specializing in commercial properties that offer the shares to those investors who are willing to raise the capital to purchase a portfolio of income-generating commercial property. Investors can buy and sell these shares on exchanges, buying shares in the commercial property real estate investment trusts gives investors exposure to commercial property without the need for buying the building of their own.

Industrial Area in Haryana

The Industrial area of Haryana has taken immense care of developing itself to pioneer the industrial revolution in the state. The exemplary exemptions and ease of setting up business and industry now rank among the top 3 states in India for ease of doing business. The industries in Haryana have sprouted with a decadent growth in the past few years. With land easily accessible for an industrial area in Haryana, the state is for bearing the name of India as a lead potential manufacturer of goods. The systematic infrastructure development especially in improving the connectivity to other cities in India via national highways and state highways has played a role in featuring Haryana as the choicest place for the setup of units.

Haryana Industrial Area | How has Haryana Risen its portfolio?

The government of Haryana has earmarked several zones as Haryana Industrial Area. The area claims that in the past year over 1000 industries of various scales have forayed into Haryana. This has also raked up the employment opportunities for the youth catapulting economic growth. The boost to the business by the state both in fiscal and policy have been instrumental in carving the way to a future of growth in the Haryana. Promoting the MSME (Micro, Small & Medium Enterprise), it has understood the value addition of these setups in a planned growth of the area. Taking these benefits into consideration, projects by the Mentor group provide land units to the entrepreneurs. These require much less capital than large scale industry and provide effective employment to the people in the area.

The vigorous spread of industries forms a large portfolio that privileges a multitude of manufacturing clusters. Some of these are Agriculture implements, Pharmaceutical, Textile, Plywood, Stainless Steel units, Print & Packaging for modern usage, Heavy Engineering Machinery, Auto Parts and much more.

Industrial Area in Haryana, Let’s take a look at how various industries have broadened the state’s portfolio:

Agriculture:

Haryana hasn’t left out agriculture from its roots and is still one of the four largest producers of cotton in the nation. Haryana is somewhat self-sustained in matters of food and milk products and is also supplying it to other areas in India.

Auto Sector:

The state has a strong portfolio in automobile manufacturing. The plants’ setup in Manesar by big auto companies such as Honda, Maruti, and Hero has been the catalyst to the growth of this sector. These have provided thousands of jobs for labor and technical works. Also, the economy around these sectors has improved as they provide an opportunity for local traders too.

IT:

Gurugram has emerged as the leading hub of Information & Technology in the whole Northern region. Earlier only the states in the South were credited to the advancement of IT in India. The state of art IT-friendly policy has forayed the state to become the leader in the BPM sector with innovative zeal.

Pharma & Chemical

The refinery projects and the big setup by various Pharma companies and developing the necessary infra for them has been a big achievement in its own accord. The disposal mechanism to contain the waste is also a part of the management system. The state plans to open up new chemicals parks for more advanced approach in the area. However, it has brought huge investments to the state.

Defense Manufacturing

The area has allowed for foreign investment in the defense technology and weaponry sector inducting industrial units for the production of defense weapons. Haryana provides land, special provisions to clear the way for it to become a strong contender.

Clean Energy

Apart from being invested in varied industrial gamuts, the state is also professing it’s forward-thinking of a cleaner future with large projects of solar energy. The major solar parks of over 400 acres of land are aimed at making the state self-sustainable in the matters of consumption of energy and saving resources whilst providing the opportunity for business in the sector.

Choosing the Zones

Taking a considerable lead in the growth of a dynamic cluster, the development of the state basing it on manufacturing requires an agile licensing policy and quick clearance from the concerned departments. The industrial area in Haryana has been divided into various zones which are earmarked in accordance with their capacity and potential.

These zones are basically classified as Hyper, High potential, Medium potential, and Low potential. This segregation implied after ascertaining many points. The Hyper areas are the ones with the highest potential due to proximity with NCR. This majorly includes the area of Gurugram and its nearing urban vicinity. The major role of these marked zones is to minimize the hassle of Change Of Land Use (CLU) Law which took a lot of time and resources making the whole process complex. Relaxing this tedious process has proved to be an advantage.

The High potential zone marks selective lands in Faridabad, Panchkula, Kalka, Sonepat & Panipat, etc. The medium zones are Karnal, Ambala, Yamuna Nagar, Hodal, Kurukshetra, Bahadurgarh, Jagadhari, Rohtak, Rewari Palwal, etc. and the low areas cover all of the remaining areas. This step helps in ease of granting the license to the manufacturers and these zones are marked for what type of benefits can be availed in these. The Mentor group has secured land in these prime areas for the development of industry clubbed with incentives of the government and top-notch amenities planned in the land units.

What is the advantage of Industrial Area Haryana?

Haryana’s natural resources, manpower, and agriculture base have thrived many sectors that use these resources. The infrastructure os state grants alluring incentives to a plethora of business. The huge exemptions on IT an automobile sector have kept Haryana at the helm of affairs pertaining to modern growth per se.

The state also boosts Textile, agro and commerce sectors by the force of its key strategies giving a fiscal as well as initial setup advantage. This is the main reason why it is constantly raising interest among the investors from India as well as overseas. To ensure the smooth operations of it industrial endeavors the state has structured a premier body i.e Haryana & Infrastructure Development Corporation Limited (HSIIDC) to regulate and promote the smooth and efficient amenities for industrialists and entrepreneurs alike. The reliability of it’s functioning has had a positive effect upon the surge of cluster setups all across the city.

Haryana area has to it credits the mega projects like petrochemical refinery of IOC, coal power projects, Tata Tele projects, Automobile for manufacturing and assembly. These projects showcase the capacity of the state to handle these key projects in a professional and efficient manner.

What Connects development and success?

The Haryana Industrial area has received unprecedented momentum due to many factors. These include the incentives and the infrastructural policy of the state government. Industries in Haryana are ideally located connecting them by a marvelous network of road transport. The National Highways connecting the state to the neighboring cities have proved to be a boon for the boom.

The closeness of hubs like Gurugram and Faridabad to international airports, and it’s industrial units to the other cities in India have eased the woes of manufacturers and suppliers. They help in the booming growth of the transport sector as well as the industries concerned. Haryana has turned itself into a Global Industrial Park with its avant grade approach for the business.

The statewide roads of over 24218 km are connected to National Highways like NH 1, NH 2, NH 8, NH 10 & NH 22 covering some 1512 km of it. This connectivity also ranks it among a few of the cities in the country that links all it’s rural and urban areas via better roads. Another factor that pays off is the interweb of Railway Network which helps in connecting the Areas of Haryana to rest of the cities in India.

Development by Incentives

Haryana is persistent in its efforts to continue bringing industries in Haryana. After the state announced a special policy for the development of the industrial area in Haryana in the year 2005, the state hasn’t looked back. The development of infrastructure by Haryana have brought desired results. Thriving industries are a prime witness to the accessibility of state as a favored land for units.

plots for sale in Haryana have registered a surmounting growth since the notification. The relaxed norms play their role as well. In a nutshell, the Haryana area has pioneered its policies to help the growth and sustainment of business and is planning to nurture this growth in the coming times with friendly norms and ease of doing business.

Not only does it boast of over 11 billion dollars in investments but also has widespread interest in spending on developing the infrastructure. The single-window approval for small and medium business and ease of norms for clearances make it clear that the government is clear in its objectives and wants the state to progress on a definite roadmap to success.

Self Structured Development | Haryana Industrial Area

According to the government, the state development agencies have been provided self-governance in the matters of framing the policy for internal management of affairs in the Haryana. This includes marking and allotting the land, it’s leasing and defining the terms for its usage. These have catered to carve the way for an investor-friendly area. The nodal agency acquires land from the government and develops it to suit the needs. The agency undertakes sewage facilities, construction of roads, draining and disposal systems and other basic infrastructural facilities. This is done in accordance with the requirements of other agencies like environmental clearance and pollution monitoring board so that the end project is clear of any obstacle and is ready to set up. This reduces the time for investors drastically and saves them a lot of resources which can be directed to begin their operations as soon as possible.

These corporations also facilitate loan and finance to assist the projects. They are not only limited to Haryana industrial area for setups but also extend financial assistance to the service sectors. This includes hospitals and warehousing units. This somewhat broadens the perspective of investment and also helps in the development of basic infrastructure for industries.

The new Enterprise Promotion Policy announced by the government in 2015 targets a growth rate of 8 percent and seeks jobs creation for more than 4 lakh people. This factored in by the policy that makes it an easy business place, investor-friendly, reducing the cost of setting up and running an enterprise. Also, the route map for development is envisioned to evenly spread the development across the state by marking various zones for various businesses. This has brought Haryana on the world map of the investor’s favorite destination.

An overview of industrial Land in Haryana – Plots for sale in Haryana

The Industries & Commerce Department (ICD), The State is the nodal agency responsible for the development & promotion in the state. The agency works as an advisor & the policymaker for entrepreneurs and delivers knowledge about the prospects of available land, the industrial incentives, and all other related policies. ICD is also responsible for the search & allocation of industrial land in Haryana. In an effort to boost the economy of the state, the agency is accountable for delivering the Fiscal Incentive scheme that primarily benefits the Micro, Small and Medium Enterprises (MSME).

Industrial Plots in Haryana

“The Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) Plot Scheme 2018” is the initiative of the state government. As of 2018, the HSIIDC offers plots at more than 1700 location across the state. A committee is formed to make the transparent allotment of these industrial plots in Haryana. This effort of the state government has opened new horizons for the industry sector.

The excellent scope of acquiring land at a competitive price and to avail the fiscal benefits has attracted the attention of entrepreneurs. And in the state, they find great options to purchase land for sale in Haryana. It is also very simple to apply for land purchasing. The entire procedure is online and the interested parties need not be physically present to file their application. Moreover, all the documentation work is also done online. All this saves a lot of time and energy as well and ensures that entrepreneurs get the best options for industrial plots in Haryana.

The Enterprise Promotion Policy (EPP) – 2015

In 2015, the government introduced the EPP to boost the fate of MSME. The policy is designed to offer numerous schemes and policies in a subsidized manner. Once the entrepreneurs’ search plots for sale in Haryana to begin the setup, they are guaranteed to gain tremendous benefits from their initiative. The EPP ensures that investors get refunds and exemptions for several expenses incurred during the setup of the company. Moreover, all approvals and sanctions are managed under one roof through Enterprise Promotion Center in Panchkula.

Industrial plots in Haryana What You Need to look for:

To start a business the location of the plot plays a pivotal role. Equally important the availability of resources required to run your business. Resources like ample supply of electricity & water, flawless road connectivity, availability of skilled workforce and many such factors define if the industrial land in Haryana you have selected is suitable for the purpose or not.

Here are some important things to look in plots for sale in Haryana:

industrial Land in Haryana

Location:

The location is one of the key factors in determining the success of the business. The plot must be situated at a location that is advantageous to business operations. The location must be such where raw material can be brought in easily. Moreover, from the current location, the distribution of finished goods can also be managed easily.

Road Connectivity:

Road infrastructure is very important. The cost to bring in raw material and supply finished goods depends on the access of highways and airports from the location of the land in Haryana. The cost of operations will depend on the road connectivity from the location.

Electricity Supply:

The plots for sale in Haryana must have high tension electrical lines going across the location in order to attain the supply of electricity. The electricity must also be in ample supply and with minimum cut-offs. Remember, under EPP there is a huge subsidy on the electricity bill. Entrepreneurs must take maximum benefit out of this policy.

Water Supply:

An industry cannot function without the supply of water. The demand for water entirely depends on the nature of your business. Manufacturing, especially FMCG and Pharmaceuticals would require a large amount of water to manage their tasks. This factor is the key to select the plot in Haryana.

Skilled Manpower:

It is essential to tap skilled resources for your industry from nearby locations. Whether it’s the need for manual labor or for skilled manpower, their availability is crucial to the functioning of the industry. Therefore, purchase land for sale in Haryana where manpower resource is available easily and quickly.

Other Needs:

Your location should have facilities necessary for a unit. Proper sewer management, safety against fire, street lights, and wide internal roads can make for a pleasant experience.

Scouting land for sale in Haryana

The biggest requirement for entrepreneurs is the availability of appropriate land parcels to install their industry. A good piece of plot for sale in Haryana should address the basic needs required for the business. As cited above, the plot needs to have a sufficient supply of electricity & water, good road connectivity and skilled manpower in proximity. As an entrepreneur, you can scout for land for sale in Haryana at an industrial zone categorized by the Govt. Based on the location, the government has divided the industrial zones of the state into four categories – A, B, C, and D. The category ‘A’ blocks are in the primary zone and considered exclusive locations. Several zones of Faridabad, Gurgaon, Panipat, and Sonepat falls under category A. Those falling in Cat A may not receive all the benefits as defined under Enterprise Promotion Policy (EPP) for Medium, Small and Micro Enterprises

(MSME). The plots for sale Haryana in the Category-A block is usually costly but in a high productivity zone.

Recommended industrial Land in Haryana

Mouli village in Barwala (in district Panchkula) falls under Category B – Block 13. It is an ideal location, situated in the fringes of Chandigarh and offers unique advantages for better profits. Located on old NH-07, the area zone offers smooth connectivity with nearby states of north India. Within hours, one can reach Punjab, Himachal Pradesh, Uttar Pradesh, Uttarakhand, New Delhi, and Rajasthan. This seamless connectivity of the highways makes the procurement of raw material convenient.

Also, it saves time and money when the finished product dispatched for the wholesale and retail market. Mouli is rightly been recommended for purchasing and leasing industrial land in Haryana. The industrial plots in Haryana that lies in Gurgaon, Faridabad and Panipat district is the hot properties. Doing business here is extremely convenient and revenue-generating. In fact, Gurgaon is home to Maruti Suzuki, the largest car manufacturing unit in India. There are other important brands here, like Hero Motors that ranked as one of the largest in India.

Land For Sale In Haryana

The initiative of the Government has made the progress go skyrocket. The state is witnessing progressive growth annually ever since the EPP came into effect. Most MSME has acquired the benefits of this policy after finding support and encouragement from the government. After identifying good plots for sale in Haryana, the entrepreneurs have found their foothold mainly due to all the benefits served by the govt.

Entrepreneurs who are contemplating to start a new industrial unit in the state can speak to ‘The Mentor Group” – who are the land experts. The group offers expertise for the new industries in terms of management, planning & architecture and construction. The package of the service enables entrepreneurs to leave the hassle of planning, architecture, and development in our hand. As entrepreneurs, one can focus on management, production, and other logistics to maximize growth.

Industrial plots for sale Barwala, Panchkula

With transforming industrialization of Haryana, it is evident that the state is taking all the necessary steps to bring itself at the forefront of construction development. With this being said, the state has already marked areas across the land. These are called the industrial zones that specify the category and tier of industries that can and must be set up in these zones. This is done keeping the area, location, regional diversification and development in mind. These are specified to be set up in areas where they find themselves well connected to an interlinked network of roads and highways for the ease of transportation.

These areas are also divided into zones taking into account the availability of raw material for the production of the final commodity in that area. For example, agro-food processing projects need to set up their plants at a location where there is an abundance of supply for the requirement of raw materials for that specific industry. This means the state has already inducted a program for such development keeping in mind the ease of starting, operating and build of goods as well as keeping in mind the growth and development of the region that the industrial cluster is being set up in the vicinity of.

Industrial plot for sale in Panchkula

The state government is providing unprecedented benefits to the projects set up in various zones. The industrial plot for sale in Panchkula is one of the best investments you can make in the state as an entrepreneur. Panchkula is an opening to three states with a big consumer city like Chandigarh present and preset in its vicinity. Buying a plot for sale in Panchkula will unleash a host of chance that can boost your business venture to scale new heights. With benefits given by the state in reimbursement of stamp duties and Vat, it is a bright time to invest in as an industrialist and take a step ahead in the direction of achieving your preset goals.

This ease of setup is only feasible in the industrial plot for sale in Panchkula. You can begin your project without delay and well in your scheduled time frame. The rebates and benefits provided by the state government can be availed to the best of your interests and also you can avail the help of the mentor group in the construction of your desired project. All these benefits can sum up to the fact that it is the best time for you to begin your journey to become a producer and start investing.

Why choose industrial plots for sale in Panchkula

Every plan needs steps to make it successful. Developing an industry needs you to make an investment first and foremost in the procurement of a feasible plot of land. It is made even simple by buying a land already cleared for establishing the making unit as it makes the process of changing the use of land much easier. Industrial plot for sale in Panchkula are already specified by the government to establish a certain category of the industry here. There are more than sufficient reasons to invest in Haryana. Panchkula is the closest city to the capital of Haryana I.e Chandigarh.

The paperwork that is required to set up a project of such statute is substantially less in the state of Haryana. Most of the clearances are available under the single-window mechanism. Once the clearances are done. You can proceed with the safe buying of industrial plots for sale in Panchkula. The mentor group has some of the best land plots that are ‘project ready’ in the area and can help you fulfill your dream of becoming a producer. The plots are cut with wide roads linking them in between, have seamless access to the interstate highways and inland road networks and are fitted with amenities that just need you to start building your project and begin with the production.

GST Council & Changes in GST for Real Estate Sector

Good & Services Tax Council is the legal authority for making any recommendations to the Union and State Government on issues related to GST. This government body is a one-stop solution for taxpayers, tax consultants, tax officials, finance experts, trade and industry, etc. The council provides transparency, efficiency, and speed in implementation and administration of taxes, especially for the real estate sector. On the recommendations by GST Council in the 34th Meeting held in March 2019 – a new composition tax scheme for Real Estate Sector has been brought in with effect from 1st April 2019. The council has introduced a common GSTN portal which fills the gap between taxpayer and the tax administration. The portal enables the real estate and other taxpayers to cater to registration, return filing, payments, refunds, bill generations and, etc. The following changes have brought to the real estate sector: The builders of the projects will get a one-time option to choose between the new and old rates. This is for constructions which started before the due date. Along with this without the input tax credit, the real estate will be taxed at 5% and 1% for affordable housing. The new scheme states that the registered individuals will procure 80% of the input services for construction. In case it is below that the limit, the developer has to pay the tax at the rate of 18% on RCM basis (and 28% for cement and capital goods). The recent amendments have been done to help the buyers and as well the developers. The services via FSI or long term lease or transfer of development rights that are provided to developers by the landowner have got some exemptions that include all the flats should be sold prior to OC and reverse charge for the residential projects. The taxation would be applicable to the residential property which treated when up to 15% of commercial development is done. The basis for calculating the proportion of construction services (credit attributable to taxable, exempt supplies) will be the area of construction only. As per the meeting held in September 2019 under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman the new changes are introduced which will streamline the process for all sectors. To authenticate the identity of the promoters, developers, and buyers the GST registration linkage with Aadhar is mandatory. GST council has decided to link the Aadhar with taxpayers in phases. For all new registrations, the taxpayers will be asked to provide their Aadhar details. The facility of auto-approval of registration will not be available and the physical verification process will be made mandatory to confirm their identity using other documents in case Aadhar is not provided. The real estate taxation is a matter of concern for both buyers to understand the GST and SGST laws of the state and as well as for the developers who plan to buy land from the owners and get it register at their name. The GST Council website is the one-stop solution for every notification, schemes, FAQ’s, and etc. The transparency of the process will provide information on GST, GST support, MSME information, acts, circulars, forms and rules and etc.

MSME Sector in Haryana

Haryana is one of the emerging leaders in terms of commercial production and a major contributor in export as well. From passenger cars, two-wheelers, mobile cranes, tractors in the automobile sector to becoming the 2nd largest of food grains and its export. The Micro, Small and Medium Enterprises (MSME) sector is considered as a model that focuses on the socio-economic growth of the Indian economy. The sector provides a sizeable share of employment opportunities, especially for the agriculture sector. As per the MSME annual report for 2016-17, the contribution of this sector is around 6% of the country’s GDP. Along with this 45% of the exports, and 33% of the manufacturing output.

The industrial transformation has been possible specifically due to the manufacturing and tertiary sector. This has, in turn, led to the Haryana’s economic growth. The state is the leading state in terms of manufacturing GSDP contribution which is higher than the national average. Especially, the states like Gujarat and Maharashtra are gradually becoming the tough competitors to Haryana. Not just limited to the manufacturing, the tertiary sector – real estate, professional services, finance, defense, public administration, and other services have also contributed much to the economic growth.

The industrial growth in the state could not have been possible without the support of globalization of markets, flexible economy and infrastructural creations. Since 57% of the state area falls under the National Capital Region (NCR) with 21 national highways and well-connected rail and land transportation routes has given a competitive edge to the State. With the introduction of the Haryana Enterprise Promotion Policy (EPP), 2015 has benefited the state by supporting the manufacturing and services enterprises with a transformational roadmap. The number of efforts been put up on the regulatory schemes and policies by the government shows the enthusiasm and growth-oriented approach of the State. The government bodies are working hard in improving the ease of doing business in the State.

Investment in industrial units, machinery and the equipment required is what categorizes an enterprise into micro, small and medium enterprises. The categorization is as follows:

In Manufacturing the investment (in plant and equipment):

Micro Enterprises:  should not exceed 25 lakh rupees

Small Enterprises: should be more than 25 lakh rupees but does not exceed 5 crore rupees

Medium Enterprises: should be more than 5 crore rupees but does not exceed 10 crore rupees

In the Services Sector the investment (in equipment):

Micro Enterprises:  should not exceed 10 lakh rupees

Small Enterprises: should be more than 10 lakh rupees but does not exceed 2 crore rupees

Medium Enterprises: should be more than 2 crore rupees but does not exceed 5 crore rupees

Haryana enjoys more than 1 lakh MSMEs with a total investment of more than 20,000 crore rupees. This has generated more than 10 lakh jobs for the state with the majority of being placed in automobiles, food & beverages, textiles, engineering, and the metals sector. The constant efforts and initiatives of the government have made it possible for them to lead national industrial projects like Amritsar-Kolkata industrial corridor, Kundli-Manesar-Palwal global corridor and etc. Along with this in order to provide a conducive industrial environment, the government has set up co-work spaces, incubation centers. The recent “Haryana MSME Policy 2019” aims to give a boost to the MSME sectors.

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