Chief Minister Bhupinder Singh Hoodas Haryana Number One slogan is losing its shine. In advance estimates made by the state Planning Department for 2011-12,Haryanas growth has hit a seven-year low of 8.1 per cent.
Haryana has been on the path of high growth since 2005-06,when Hoodas government came to power. In 2007-08,growth slowed to 8.5 per cent,but jumped back to 11 per cent by 2009-10. It slowed to 9.6 per cent in 2010-11.
According to growth estimates compiled by the Ministry of Statistics and Programme Implementation for 2011-12,the four fastest growing states are Bihar,Chhattisgarh,Uttrakhand and Tripura. In per capita income,Haryana now ranks below Goa,Delhi and Puducherry at Rs 1,09,227.
Sectors such as real estate,construction,banking and manufacturing,which drove Haryanas growth in the latter half of the last decade,have been slowing over the last two years.
Manufacturing,which grew at 10.5 per cent in 2009-10,is down to 4.8 per cent in 2011-12. Construction,which grew at 10.7 per cent two years ago,is now at 8.3 per cent,and power is down from 16 per cent growth in 2009-10 to 10.6 per cent in 2011-12.
Real estate,which posted 20.2 per cent growth in 2005-06 grew only 6.5 per cent in 2010-11. For 2011-12,the sector is expected to show an improved growth of 9 per cent.
Banking and insurance,which grew at a robust 24 per cent in 2005-06 is pegged at 16 per cent for 2011-12. Trade,hotels and restaurants are likely to grow at only 8.3 per cent,compared to the 20.7 per cent two years ago.
The finance department blames the overall economic situation.
The low growth rate is a countrywide trend and not exclusive to Haryana. Our growth is still far above the national average and most other states. States with low base growth will show higher rate,as in the case of Bihar. Haryanas performance should be seen in the context of comparable states such as Punjab and Rajasthan,and we are doing much better than them, said Sanjeev Kaushal,principal secretary,finance.
Ajit Saran,former finance secretary who was recently appointed principal secretary,power,said,Haryana cannot be out of sync with the rest of the country and the world. It is a producing,not consuming,state. If consumption levels go down,it will impact our growth. Our growth rate has been consistently above the national average.