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 state’s Gross State Domestic Product (GSDP) (in Rs.) is estimated to increase at a Compound Annual Growth Rate (CAGR) of 10.55% between 2015-16 and 2020-21, reaching Rs. 6.44 lakh crore (US$ 92.19 billion).
Punjab’s road, rail and air transport network, connectivity, construction of bridges and infrastructure facilities are rated among the best. As of August 2020, Punjab had a total installed power generation capacity of 14,352.27 MW, of which 8,741.48 MW was contributed by thermal power, 3,809.12 MW by hydropower, 1,604.85 MW by renewable power and 196.81 MW by nuclear power.
According to Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in Punjab amounted to US$ 2.49 billion between April 2000 and March 2020. The state Government had set up a Bureau of Investment Promotion (BIP) in December 2013 for one-stop clearance of investment proposals.
- In March 2020, the Punjab government allocated an outlay of Rs. 100 crore (US$ 7.45 million) under a ‘Smart School Policy’ for smart schools and digital education.
- Total merchandise export from Punjab stood at US$ 6.03 billion in FY19 and reached US$ 4.055 billion during April-December 2019.
- During 2019, Punjab Government received 57 Industrial Entrepreneur Memorandum Intentions (IEMs) with proposed investment of Rs. 1,843 crore (US$ 263.70 million).
- During 2018-19, Punjab had 199 Government colleges, 179 private aided colleges, 10 Government universities,15 private universities and one deemed to be universities.
- In 2018-19, 4,100 kms of railway tracks was commissioned, which included 1,000 kms of new lines, 1,000 kms of gauge conversion, and 2,100 kms of doubling.
- Gross Enrolment Ratio for higher education in the state reached 30.3 in 2017-18.
- Punjab’s agricultural land is rich and productive. The state 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. Total food grain production during 2018-19 stood at 31.53 million metric tonnes as per state’s economic survey 2019-20. Horticulture production in the state reached 7,342.12 thousand metric tonnes in 2018-19, as per the third advance estimates. Basmati rice is the most exported commodity from the state. Its export reached US$ 597.22 million in FY19 and US$ 471.72 million between Apr-Dec 2019.
- 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 opportunities for investment. State 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 FY20 (till December 2019), Punjab exported cotton yarn worth US$ 349.47 million and ready-made garments (manmade fibres) worth US$ 157.09 million.