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About Punjab State: Information on Tourism Industry, Agriculture, Economy & Geography

October, 2017

Punjab, one of the northernmost states of India, is bordered by the Pakistani province of Punjab to its west, Jammu & Kashmir in the north, Himachal Pradesh in the northeast, Haryana in the south and southeast, and Rajasthan in the southwest.

The confluence of five rivers makes Punjab’s agricultural land rich and productive. Approximately 82 per cent of the state’s land is under cultivation compared with the national average of 40 per cent.

Punjab is also known as the ‘Bread Basket 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. Occupying only 1.5 per cent of India's geographical area, the state accounts for about 17 per cent of the country's wheat production and 11 per cent of rice production. This makes it suitable for agro-based industries, dairy farming and products, and other food processing industries. During 2015-16, total vegetable production in the state was 4.16 million tonnes, wheat production stood at 17.10 million metric tonnes, and rice production stood at 10.62 million metric.

Punjab has strong agriculture base with the huge production of principal crops. In 2015-16, production of sugarcane was recorded at 7,125 thousand metric tonnes. As per state budget 2016-17, an amount of US$ 1.14 billion has been allocated to the agriculture and allied industries sector.

Punjab has been ranked first in India in terms of infrastructure facilities offered. Punjab’s road, rail and air transport network, connectivity, construction of bridges and infrastructure facilities are rated among the best. As of June 2016, Punjab had a total installed power generation capacity of 12,936 megawatt (MW).

The state has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 1.35 billion during the period April 2000 to March 2016, according to data released by Department of Industrial Policy and Promotion (DIPP).

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.

The average gross state domestic product (GSDP) growth rate for the state of Punjab was about 10.12 per cent between 2004-05 and 2015-16. 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.

Key Sectors:

  • The agriculture sector contributed around 27.19 per cent to the state’s GSDP in 2015-16 at 2011-12 prices and provides livelihoods to more than 60 per cent of the state’s population. Food processing is considered to be a focus area in the state and the government has made various efforts in aiding deserving investments for the food processing industry.
  • Punjab’s IT policy and the incentives offered to the IT industry are aimed at promoting Punjab as an attractive destination for the industry. Mohali has been developed as an IT and ITeS hub in the state.
  • Punjab is among the largest producers of cotton and blended yarn as well as mill-made fabrics in India. Ludhiana is often referred to as the ‘Manchester of India. The state accounted for 15.47 per cent of the country’s cotton production in 2015-16 (up to June 2015).

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