According to report published by the Reserve Bank of India in 2012,
Chandigarh is the twelfth largest deposit centre and tenth largest
credit centre in India. This makes the city one of the richest in the
country. Many factors have contributed to the economic prosperity of
the town.
Influencing Factors on Economy in Chandigarh
As we said, there
are quite a few reasons behind rapid growth of economy of Chandigarh.
The city being the base of three different governments is indeed a
major factor. Other than that we can mention availability of proper
infrastructure and excellent living condition. Because of them, the city
has been able to attract a large pool of skilled workers from all over
the country. This too has encouraged the growth of business and industry
in Chandigarh. Let us now look into them one by one.
Governmental Contribution to the Economy of Chandigarh
As
we all know, Chandigarh is the seat of three different governments;
i.e. Punjab State Government, Haryana State Government and Chandigarh
Administration. Consequently, a large percentage of its population works
in different governmental departments and draws their salary from their
respective governments. In addition, a large section of the retired
government employees, who draws regular pension, has continued to live
here. The government also spends a huge amount for the maintenance of
the city. All these make the government a major contributor to the
economy of the city.
Industries in Chandigarh
Industries
also play a significant role in the economy of the city. The area under
Chandigarh Administration has 15 large / medium scale industries along
with 2950 small scale units. This is in spite of the fact that
Chandigarh was never envisaged as an industrial town and only a limited
area of about 1450 acres was set aside for development of small scale
industries in this city.
40% of the existing small scale
industries in Chandigarh are ancillary units that manufacture components
for a major tractor industry located in the vicinity. Light engineering
sector is also well developed in Chandigarh. Electrical,
pharmaceuticals, plastic goods, sanitary fittings, steel and wooden
furniture, food products etc are also adequately represented in the
industrial scenario of the city.
However due to limitation of
available land, there is no scope for further expansion of traditional
industries in Chandigarh. That is why the government is now trying to
develop the IT sector, which requires minimum space, in Chandigarh.
Trade and Commerce in Chandigarh
Trade
is another important factor in the economy of Chandigarh. The city has
many markets and shopping malls set up in its different parts. This has
been done to sustain the huge salaried population living in and around
it. Since a huge percentage of the population in this city has surplus
income, the annual turnover of this sector is quite significant. This
in turn has considerable impact on the economy of the town.
Service Sector in Chandigarh
Other
than that, Chandigarh has number of hotels and restaurants, which have
high annual income. They are followed by real estate, construction
industry, finance, and transport. In fact, this sector is one of the
chief contributors to the Gross State Domestic Product (GSDP) of
Chandigarh.
If you have gone through our page on Services in
Chandigarh, you would know that the city has many banks, currency
exchange units, hospitals, spas, salons, beauty parlors, laundries,
courier service providers, catering service providers, packers and
movers etc. They provide excellent services to the people and in turn
contribute extensively to the economy of the city.
Other Sectors in Chandigarh
Although Chandigarh itself is a
cosmopolitan city, the agricultural sector has considerable influence on
its economy. The areas around this city produce 2800 tons of wheat, 250
tons of paddy and around 40 tons of maize annually. The produce is
brought to the city for marketing and this in turn has significant
impact on the economy of the town. Therefore, we see that economy of
Chandigarh depends not on one, but on multiple factors.
