Punjab - Economy
Punjab is also known as the ‘Breadbasket of India’ and led to first Green Revolution in the country. By 2025, it is expected that the state will be among the leading producers of non-food grains as well as exporter of various agri-products. During 2017-18, gross area sown was estimated at 7.9 million hectares. Total food grain production during 2018-19 is stood at 30.44 million metric tonnes, as per state’s economic survey 2018-19. Horticulture production in the state reached 7,342.12 thousand metric tonnes in 2018-19, as per the 3rd advance estimates.
Punjab’s economy has predominantly been agrarian in nature, historically evidenced in the remains of granaries and other artifacts of the Indus Valley Civilization. Dairy products, unleavened flat breads, pulses, vegetable and meat curries continue to reflect the rural temper of the state while being wedded to the residual flavors of foreign invasions, such as rice and gravies. As a result, Punjabi cuisine is among the richest in the country as well as the world. It incorporates generous quantities of milk, curd, butter, and cream in cooking of fresh vegetables and meats. In addition to these, Punjabis have created a combination of the northwest frontier cuisine and Mughlai recipes to prepare rich poultry and mutton dishes. The ubiquitous ‘tandoori chicken’ is very popular.
Post-independence, Punjab has made considerable economic progress despite the setback it suffered in 1947. It contributes nearly two thirds to the total production of food grains and a third of milk production in the country. It is the leading producer of wheat at a total production of 2 million tonnes per annum. The initiative of Green revolution (a major agricultural initiative) has been keenly taken forward by the people of Punjab. Even though, Punjabis account for less than 2.5% of the Indian population, they are one of the most prosperous races in India. Their per capita income is twice the national average.
The state’s GSDP (in Rs) increased at a Compound Annual Growth Rate of 9.97 per cent between 2011-12 and 2018-19A to Rs 5.18 trillion (US$ 71.84 billion). The state provides investment opportunities in sectors such as textiles, agro-based industries, IT & ITeS, automotive and auto components, sports goods and light engineering goods. State is the source of 95 per cent of India’s Woollen Knitwear production, 85 per cent of India’s sewing machine production and 75 per cent of India’s sports goods production.
Punjab’s road, rail and air transport network, connectivity, construction of bridges and infrastructure facilities are rated among the best. As of November 2019, Punjab had total installed power generation capacity of 13,525.31 MW of which 8,070.88 MW was contributed by thermal power, 3,809.12 MW by hydropower, 1,448.50 MW by renewable power and 196.81 MW by nuclear power.
According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows to Punjab1 between April 2000-March 2019 amounted to US$ 2.09 billion and in Q1FY20 US$ 60 million. During 2019 (up to October 2019), Punjab Government received 49 IEMs with proposed investments of Rs 1,745 crore (US$ 249.68 million).
Punjab has easiest procedures to set up a business, according to a study by the World Bank and KPMG. Punjab had set up a Bureau of Investment Promotion (BIP) in December 2013 for one-stop clearance of investment proposals. BIP has powers to give approvals related to pollution control, excise and taxation, labour issues, factory licences, boiler registrations, town and country planning, land and power-related issues.
Punjab has emerged as a key hub for textile-based industries including yarn, readymade garments and hosiery. With the development of apparel parks, favourable textile policy and other incentives for the creation of textile infrastructure, the state offers opportunities for investment. Total merchandise exports from Punjab were US$ 6.03 billion in FY19 and reached US$ 2.69 billion during April-September 2019.
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