Economy

Faqs on Economy of Punjab

How is the overall economic condition of Punjab?

Punjab has the 16th largest state economy in India with a GDP of ₹8.02 lakh crore (US$96 billion) in the fiscal year 2024-25. It ranks 19th in terms of per capita GDP, standing at US$3460(264,000). While Punjab was once a leading state in terms of economic growth, it has faced challenges in recent years, leading to a slower growth rate.

What are the main sectors of the Punjab economy?

The main sectors of the Punjab economy include:

  • Agriculture: Punjab is known as the “Granary of India,” contributing significantly to the country’s wheat and rice production.
  • Industry: Manufacturing, textiles, food processing, and pharmaceuticals are key industries in Punjab.
  • Services: This sector is growing rapidly, with trade, transport, communication, and real estate playing major roles.

What are the key challenges facing the Punjab economy?

Some of the key challenges include:

  • Agricultural Distress: Farmer debt, declining water table, and crop failures have led to agricultural distress.
  • Slowing Industrial Growth: Punjab’s industrial growth has slowed down compared to other states.
  • Unemployment: The state faces a high unemployment rate, especially among youth.
  • Fiscal Deficit: The state government faces a large fiscal deficit, limiting its ability to invest in development projects.

What are the government’s initiatives to boost the Punjab economy?

The government has taken several initiatives, such as:

  • Invest Punjab: This initiative aims to attract investments in various sectors.
  • Start-up Punjab: This scheme supports new businesses and entrepreneurs.
  • Skill Development Programs: These programs aim to equip the youth with employable skills.
  • Agricultural Diversification: The government is promoting crop diversification to reduce dependence on wheat and rice.

How does Punjab compare to other states in terms of economic development?

While Punjab was once a leader in economic growth, it has now fallen behind some other states. However, it still has a significant agricultural sector and is making efforts to attract investments and create jobs.

Where can I find more information about the Punjab economy?

You can find more information on:

  • Punjab Government Website: Look for economic surveys and reports on the official website.
  • Economic Survey of Punjab: This document provides a comprehensive overview of the state’s economy.
  • Newspapers and News Websites: Follow leading newspapers and news websites for the latest economic news and analysis.