Punjab Economy & Industry

Punjab’s economy is largely agriculture dependent. About 75% of the total population of the state is directly or indirectly dependent on agriculture for their livelihood. Punjab is self sufficient in food production and led the country’s Green Revolution in the 1960s and earned the title for itself being India’s ‘bread basket’.

The per capita income at current prices has been estimated at Rs.30,701 in 2004-05 as against Rs.28,607 in 2003-04 showing an increase of 7.32 percent. The Gross State Domestic Product (GSDP) at Constant (1993-94) prices during 2004-05 was Rs.48532 crores (Q) and the provisional estimates of GSDP for the year 2003-04 was Rs. 46049 crores.

Punjab which has done remarkably well in the field of agriculture is now well on its way to rapid industrialization through coordinated development of Small, Medium and Large scale industries. Punjab has predominance of small-scale industry; thanks to the indomitable spirit and entrepreneurial skills of the Punjabis (people of Punjab). 0.2 million small scale industries and 600 large and medium scale industries functioning in the state involve fixed capital investment of Rs.54000 Million and Rs.20400 Million respectively.

About 1.18 million people are employed in industrial sector in the state. Exports from Punjab during 2004-05, were Rs.107289 Million. Other prominent products include engineering goods, hosiery items, pharmaceuticals, leather goods, food and agro products, textiles, electronics, hand and machine etc.

Excluding agriculture, other major industries include the manufacture of scientific instruments, electrical goods, machine tools, textiles, tourism, sewing machines, sports goods, starch, fertilizers, bicycles, and the processing of pine oil and sugar.