Haryana has surpassed Punjab in terms of exports figures this year. Also, on most economic parameters, be it per capita income, FDI flow or the annual Plans of the two states, Haryana holds the lead.
While exports from Haryana have climbed by 30 %, those from Punjab are down by 10 % in 2007-08 compared to year 2006-07, latest data compiled by the two state governments reveals. Haryana recorded exports worth Rs 40,000 crore 2007-08. In 2006-07, exports from the state amounted to Rs 30,000 crore.
Interestingly, Haryana was carved out of joint Punjab and the state has managed to do well on most parameters of growth.
Punjab recorded exports worth Rs 10,710 crore in 2007-08 as against exports of Rs 11,707 crore in 2006-07 or a loss of Rs 1,087 crore in one year. The decline was evident in most export items like food products, textiles, handlooms and cycles. The cycle exports declined from Rs 1,434 crores to Rs 1,044 crores while textiles showed a downfall from Rs 2,675 crore to Rs 2,227 crore.
However, food products recorded the most glaring decline, when they came down from Rs 132 crore in 2006-07 to Rs 9 crores. Cycle manufacturers say runaway prices of steel had resulted in bicycle sales falling 20-25 %. A cycle needs 18 kg of steel and input costs have increased by Rs 270 per cycle making the industry unviable. Managing higher input costs is a challenge as the industry also has to compete with cheap Chinese imports where steel costs 30 % less.
S C Ralhan, president of Hand Tools Manufacturers Association says the instability in prices is forcing manufacturers not to book orders. Figures available with the Engineering Export Promotion Councilreveal that exports of hand tools too have come down by 10 %.