Last updated: Sep, 2024
Introduction
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.
As of FY24, Punjab has a total installed power generation capacity of 14455.87 MW, with 3932.85 MW under the central sector, 3281.20 MW under state utilities, and 7241.82 MW under the private sector. Of the total installed power generation capacity, 8364.00 MW was contributed by thermal power, 3827.44 MW by hydropower, and 2067.62 MW was generated from renewable energy.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in the state stood at US$ 1,141.8 million between October 2019-March 2024.
Tourism in Punjab
Punjab offers a rich culture with Vibrant festivals, historic landmarks like the Golden Temple in Amritsar, and lush agricultural landscapes. Tourists can explore traditional Punjabi cuisine, colourful markets, and heritage sites, making the state a unique and memorable tourist destination.
According to the State Tourism Policy, 2018, the government has he following goals:
- To promote tourism and to double the annual tourist visits in the state from 25 million to 50 million in the next five years by creating new infrastructure and improving the existing one.
- To boost the tourism sector in the state, the Punjab Government unveiled the Punjab Adventure Tourism Policy 2023 and the Punjab Water Tourism Policy 2023.
Economy of Punjab
- The state’s GSDP (in Rs.) increased at a CAGR of 8.26% between 2015-16 and 2023-24.
- At current prices, Punjab’s gross state domestic product (GSDP) is projected to stand at Rs. 8.02 trillion (US$ 96.94 billion) in 2024-25.
- The state’s GSDP (in Rs.) increased at a CAGR of 8.33% between 2015-16 and 2023-24.
- The state’s per capita GSDP in 2023-24(A) stood at Rs. 225,356 (US$ 2,721.69).
- The per capita GSDP (in Rs.) increased at a CAGR of 6.87% between 2015-16 and 2023-24.
Agriculture in Punjab
- Punjab has a strong agriculture base with a huge production of principal crops such as rice, maize, sugarcane & barley.
- In 2021-22, Punjab produced nearly 14% of the country’s total wheat with just less than 12% share of the total area under its cultivation at the national level.
- Top three fruits with the highest production recorded in 2022-23 were Kinnow, Guava and Mangoes. The highest yield was seen in Bananas (61,018 Kgs/ha), Grapes (30,969 Kgs/ha) and Kinnow (26,832 Kgs/ha). However, the production of pear recorded the highest growth of 8.53% followed by 7.82% growth in the production of plum and 6.11% growth in the production of sweet orange.
- In FY24, rice exports from the state stood at US$ 862.50 million.
- In September 2021, the state government of Punjab and the American Chamber of Commerce in India (AMCHAM India) signed a memorandum of understanding (MoU) to mutually cooperate in boosting investments and promoting ease of doing business in sectors like textiles, agriculture, engineering and pharmaceuticals.
- In the Rabi Marketing Season 2021-22, Punjab was the country’s top wheat procurer, with 132 lakh metric tonnes (LMT) of procurement at minimum support price.
Recent Developments in Key Sectors
- The Punjab Cabinet has approved Punjab Electric Vehicle Policy (PEVP)-2022 with a move to check the environmental pollution due to emission from vehicles. The policy desires to reduce vehicular emission, create infrastructure, manufacturing, research and development, job creation, ensuring sustainability, besides establishing Punjab as a favored destination for manufacturing of electric vehicles, components and batteries.
- In October 2022, Punjab Minister Mr. Aman Arora stated that the state government would release a new affordable housing policy, the draft of which has been posted on the official website for public comments.
- In October 2022, Mr. Harjot Singh Bains, the Minister of Education for Punjab, announced that a first tranche of Rs. 17.49 crore (US$ 2.12 million) had been released to address the lack of classroom space in 17 districts' public schools.
- In September 2022, the Punjab government announced that TestingXperts, the world’s fifth-largest pure-play quality assurance and software testing firm, will open an ‘Innovation and Delivery Centre’ in Mohali with an investment of Rs. 160 crore (US$ 19.44 million).
- In September 2022, the World Bank approved a US$ 150 million loan to Punjab to enhance access to public services and assist the state in managing its budgetary resources better.
- In September 2022, the Housing and Urban Development Department announced that it would soon decentralise the authority to provide building plans, completion certificates, and change of land use (CLU) certificates to allow quicker turnaround times for cases.
- Total merchandise exports from Punjab stood at US$ 7.09 billion in FY22, and US$ 6.58 billion in FY23.
- On April 27, 2022, Punjab Director General of Police (DGP), Mr. VK Bhawra, inaugurated a state-of-the-art ‘Punjab Road Safety and Traffic Research Centre’ in Mohali to reduce road accident fatalities using futuristic scientific tools of artificial AI and machine learning.
- In April 2022, Punjab’s Minister of Health, Dr. Vijay Singla, announced plans to set up 333 urban wellness centres in urban and semi-urban areas across the state.
- In September 2021, the Punjab government approved a policy to develop 50-acre townships in New Chandigarh (Mullanpur) due to the rising demand for affordable housing in Chandigarh and Mohali.
- Under the Samagra Shiksha initiative, the Union Ministry of Education authorised a budget of Rs. 1,126 crore (US$ 152.91 million) for school education and teacher training in Punjab for FY22.
- In June 2021, the National Highways Authority of India (NHAI) announced planned infrastructure development work worth Rs. 1,417 crore (US$ 194 million) in Punjab for the current fiscal (FY22). The annual plan will cover 295 kms of national highways.
- In March 2021, Union Minister of Education Ramesh Pokhriyal ‘Nishank’ announced opening of a new Kendriya Vidyalaya in Punjab.
- Under the State Budget 2024-25:
- Rs. 2,340 crore (US$ 282.61 million) has been allocated for transport of which funds Rs. 1,672 crore (US$ 201.93 million) has been allocated for roads and bridges.
- Rs. 6,171 crore (US$ 745.29 million) has been allocated for health and family welfare to strengthen the health infrastructure of the state.
- Under the State Budget 2024-25, the government has allocated Rs. 17,330 crore (US$ 2.09 billion) for school education. Of the total, the government allocated Rs 1,593 crore (US$ 192.39 million) towards Samagra Shiksha Abhiyan.
- Under the State Budget 2024-25, Punjab has allocated 1% of its expenditure towards urban development. Under the State Budget 2022-23 Rs. 2,390 crore (US$ 304.07 million) have been allocated for urban development.
- In 2021-22, the total production of horticulture crops in the state was estimated to be 8,106.77 thousand metric tonnes and area under production was 439.56 thousand hectares. In 2021-22, the total production of vegetables and fruits was estimated at 5,758.47 thousand metric tonnes and 2,202.10 thousand metric tonnes, respectively.
- In FY22, basmati rice exports from the state stood at US$ 318.27 million.
- In the Rabi Marketing Season 2021-22, Punjab was the country’s top wheat procurer, with 132 lakh metric tonnes (LMT) of procurement at minimum support price.
- The state has emerged as a key hub for textile-based industries including yarn, readymade garments, and hosiery. With the development of apparel parks, favourable textiles policy and other incentives for the creation of textile infrastructure, the state offers numerous opportunities for investment. Punjab is the source of 95% of India’s woollen knitwear production, 85% of India’s sewing machine production, and 75% of India’s sports goods production.
- In FY24, Punjab exported cotton yarn worth US$ 778.26 million and ready-made garments (manmade fibres) worth US$ 426.30 million.
FACTFILE
Capital
ChandigarhGeographical Area (sq km)
50,362State Language
Punjabi, Hindi and EnglishLiteracy Rate
76.7 per centKey Industries:
Tractors and auto components
Agro-based industries
Textiles
Pharmaceuticals
Light engineering goods
Food products
Chemical products
Bicycles and bicycle parts
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