Haryana's economy is continuously gaining strength and is heading towards new heights of development. The Gross State Domestic Product (GDP), in real terms had recorded a growth of 6.0% during 1998-99 which was mainly due to recovery in agriculture sector. The structural composition of State economy has witnessed significant changes since the formation of Haryana as a separate state. There has been a considerable improvement in manufacturing sector which occupies the second important place in the State economy after agriculture and allied sector. Its contribution to the State economy has increased from 18.9% during 1993-94 to 21.3% during 1998-99 reflecting healthy sign of industrialization in the State. The share of secondary sector which includes manufacturing, has also increased from 24.3% during 1993-94 to 26.3% during 1998-99.

It is a matter of pride that today it ranks first in the whole country in the production of passenger cars, motor cycles, tractors, sanitary wares, GI Pipes, gas stoves and scientific instruments. In the last 3 decades, the number of large and medium units has gone up in the State from 162 to 1023. Similarly, the number of small scale units has increased from 4500 in 1966 to 80000 today. The State has been able to attract sizable investment from multinational companies, large business houses, foreign investors, Non-Resident Indians etc. The State already has more than 530 projects with foreign technical/financial collaborations. To mention only a few Maruti Udyog, Escorts, Hero Honda, Alcatel, Sony India, Whirlpool India, Proagro PGS India, Bharti Telecom, Perfetti India, TDT Copper, Carrier Aircon etc. Some major units in the Public Sector, are HMT Ltd., National Fertilizers Ltd., Bharat Electronics Ltd., IDPL etc. The latest addition to this groups is the Rs.6000 crore Oil Refinery set up by Indian Oil Corporation in Panipat district.

Since the commencement of economic liberalization and de-licensing policy of Govt. of India in the year 1991, 2313 Industrial Entrepreneur Memoranda (IEMs) have been filed for setting up of industrial units in Haryana catalyzing an investment of Rs.24021 crores. Out of these, 1128 IEMs have been implemented and 140 projects are at various stages of implementation. Despite recession in industry, Haryana is at Sixth position in the country, so far as filing of IEMs is concerned. Only five States of Maharashtra, Gujarat, Uttar Pradesh, Tamil Nadu and Andhra Pradesh which are very big in size and have plenty of natural resources are ahead of Haryana. The percentage of implementation of IEMs in Haryana is about 48% against an all India average of about 35%. Haryana has also made remarkable progress in the field of exports. Exports from Haryana have increased from Rs 4.5 crores in 1967-68 to more than Rs.4163 crore in the year 1998-99.

During the last nine months alone, the State has been able to catalyze investment of about Rs.2900 crores. 94 Industrial Entrepreneur Memoranda (IEM) have been filed with Govt. of India catalyzing investment of Rs.1666 crores with an employment potential of 14858 persons. 40 Foreign Direct Investment proposals have been approved with proposed FDI investment of Rs.355 crores. Major MNCs which have come to Haryana in the last 9 months are Honda Motors Ltd., Videocon International Ltd., Polaris Holdings Ltd., Mothersons Sumy Systems Ltd., Sona Koya Steering Ltd. etc. Major units undergoing expansion/diversification are M/s Asahi India Safety Glass Ltd., Alcatel Network Systems Ltd., Perfetti India Ltd., Duracel (India) Limited, etc.