gdp report of punjab

7/29/2019 gdp report of punjab

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Punjab:TheStateProfile

PHDResearchBureau 1


November 2011

PHD Research Bureau

PHDChamberofCommerceandIndustry

PHDHouse,4/2SiriInstitutionalArea,AugustKrantiMargNewDelhi110016

Phone:911149545454,Fax:911126855450,26863135

Email:[email protected],Website:www.phdcci.in


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PHDResearchBureau 2

Disclaimer

Punjab:TheStateProfile ispreparedbyPHDChamberofCommerceand Industryto

provideabroadviewofthestate.Thisreportmaynotbereproduced,whollyorpartly

in

any

material

form,

or

modified,

without

prior

approval

from

PHD

Chamber

of

CommerceandIndustry.

Itmaypleasebenotedthatthisreportisforguidanceandinformationpurposesonly.

Thoughduecarehasbeentakentoensuretheaccuracyoftheinformationtothebest

of the PHD Chambers knowledge and belief, it is strongly recommended that the

readersshouldseekspecificprofessionaladvicebeforemakinganydecisions.

Please note that the PHD Chamber of Commerce and Industry does not take any

responsibilityforoutcomeofdecisionstakenasaresultofrelyingonthecontentof

this

report.

PHD

Chamber

of

Commerce

and

Industry

shall

in

no

way,

be

liable

for

any

directorindirectdamagesthatmayariseduetoanyactoromissiononthepartofthe

ReaderorUserduetoanyrelianceplacedorguidancetakenfromanyportionofthis

publication.

Copyright2011

PHDChamberofCommerceandIndustry

ALLRIGHTS

RESERVED.

No part of this publication including the cover, shall be reproduced, stored in a

retrievalsystem,ortransmittedbyanymeans,electronic,mechanical,photocopying,

recording, or otherwise, without the prior written permission of, and

acknowledgementofthepublisher(PHDChamberofCommerceandIndustry).


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PHDResearchBureau 4

Preface

Punjab: The state profile is an extensive study of the state of Punjab, that the PHD

Chamberhascomeupwithanditgivesmeimmensepleasureandhonourtopresentit

toouresteemedreaders.Thisstudyisuniqueinitskind,whichcapturestheessenceof

thegrassrootsofthelushgreenstateofPunjab.

The study is an exhaustive report on the states economy and its socioeconomic

scenario.Itincludesitseconomicpolicieslike,industrialpolicy,agroandfoodprocessing

policiesandsocialinfrastructuralframework.

Thestudyalsobringstogetherlatestdevelopmentsinthestateandhighlightspotential

roadmap for its further growth. It has made recommendations to improve the

agriculture production scenario, to capitalize on the opportunities emerging from its

innovativepolicies,toexplorealternativeenergybasedindustriesandtostrengthenthe

tourism sector. Finally the study recommends measures to attract investments in the

varioussectorsoftheeconomy.

The PHD Chamber has always aimed to be an important stakeholder to the

development of the Northern and Central states of India and the nation. I hope this

studyhelps

in

further

policy

formulatation

in

the

state,

so

as

to

serve

as

avehicle

for

its

inclusive growth and socioeconomic development. This is one of the studies in the

series of state profiles that the chamber is coming out with and we would also be

bringingoutotherstateprofilesinthecomingtimes.

IcommendandappreciatethetirelesseffortsofPHDResearchBureau,whichhascome

up with this report with their focused approach. I would also like to express my

gratitudetowardsMr.RajivBali,ChairmanandMr.R.S.Sachdeva,CoChairman,Punjab

Committeefortheirsupport.

I

hope

that

this

report

serves

as

a

handy

and

informative

readers

guide!

SusmitaShekhar

DeputySecretaryGeneral


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PHDResearchBureau 5

Contents

Sr.No Topic Pageno.

1 Structureoftheeconomy 10

2 Economicpolicy 19

3 Infrastructure 25

4 Socialinfrastructure 27

5 Performancein

six

thrust

areas

focused

by

PHD

Chamber

31

6 PunjabBudget201112 32

7 Conclusionsandrecommendations 33


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PHDResearchBureau 6

TablesTables PageNo.

Grossstatedomesticproductanditscomposition 10

Summaryofsocioeconomicindicators 11

Fiscalindicators 14

IndustrialInvestmentsproposalsinPunjabvisvisIndia 16

PatterninattractingFDI(equity)inflows:Chandigarhregion 16

Summaryofagrostatistics 17

FoodgrainproductioninPunjabvisvisIndia 18

ProductionofwheatandriceinPunjabvisvisIndia 19

Thekeystrategicthrustareas 20

BankingscenarioinPunjab 22

BankstotalcreditanddepositinPunjab 23

InvestmentopportunitiesinPunjab 24

Roadinfrastructure 25

Telecomsubscriberbase 27

Educationalinfrastructure 28

Summaryofhealthindicators 30

Performanceinsixthrustareas 31

Budgetat

aglance

32

Summaryofeconomicindicators 37

AnnexureI 37


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PHDResearchBureau 7

Charts

Title

PageNo.

GrowthofrealGSDP 10

Compositerankingofthestate 12

Socioeconomicrankingofthestate 12

ComparisonofPunjabwithotherstatesinOverallEconomicFreedom(2009) 13

PatternofpercapitaincomeoftheIndianstates(FY2008) 14

ComparisonofGrossFiscalDeficitasa%ofGSDP(FY2011) 15

Regional(Chandigarh)shareofFDIinIndiastotalFDIinflows 16

ShareofPunjabsfoodgrainproductioninIndiasfoodgrainproduction 18

ShareofPunjabinwheatandriceproductionofIndia 19

Installedpowercapacity(MW) 26

Populationbelowpovertyline(BPL):Punjabamongstotherstates 27

Trendofliteracyrate:PunjabvisvisIndia 29

InfantmortalityrateofPunjabvisvisotherstates 29

Availabilityofsafedrinkingwatertohouseholds 31


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PHDResearchBureau 8

Abbreviations

BPL BelowPovertyLine

Bn Billion

CDRatio CreditDepositRatio

FY FinancialYear

GDP GrossDomesticProduct

GFD GrossFiscalDeficit

GSDP GrossStateDomesticProduct

J&K JammuandKashmir

IT InformationTechnology

IMR

InfantMortality

Rate

ITES InformationTechnologyEnabledServices

mn million

MT MillionTonnes

MNCs MultinationalCompanies

NSDP NetStateDomesticProduct

PD PrimaryDeficit

PHC PrimaryHealthCentre

PRB PrimaryRevenueBalance

PWD PublicWorksDepartment

RD RevenueDeficit

SEZ

SpecialEconomic

Zone

TRAI TelecomRegulatoryAuthorityofIndia


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PHDResearchBureau 9

Punjab

Punjabisastateendowedwithrichculture,tradition,religionandacknowledgedforits

selfdependence, selfreliance and glory. It is located in the NorthWestern region ofIndiaandisboundedontheWestbyPakistan,ontheNorthbyJammuandKashmir,on

theNorthEastbyHimachalPradeshandontheSouthbyHaryanaandRajasthan.

The state is subdivided into three parts namely Malwa, Majha and Doaba. Malwa

regions constitutes majority of the regionin the state and comprises ofcities

likeLudhiana,Patiala,BhatindaandMohali ,whereasMajhaembracemoderndistricts

of Amritsar, Gurdaspur and Tarn Taran and lastly, Doaba isone of the most fertile

regions of the world and was the centre of the Green Revolution in India, includes

biggestcitiessuchasJalandhar,Hoshiarpur,Adampur,NawansherandPhagwara.

Punjabispredominantlyanagrarianstateandmorethan60%ofthepopulationlivesin

rural area. The state is an exquisite land of monuments of historic significance,

enchanting scenes of natural beauty, aweinspiring religious sites and fertile greenery

andhasenjoyedaprominentpositioninsports.Thestatehaswonnumerousawardsin

athletics,kabbadi,weightlifting,hockeyandkhokho.


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PHDResearchBureau 10

1.Structureoftheeconomy

Punjab is one of the fastest developing states in India. The state has posted a steady

growthduringthelastdecade.TheaveragerealGSDPofthestatehasgrownataround8% during the last decade (FY02FY11) and has increased more than twofold from

aroundRs.71146croreinFY2002toaroundRs.151941croreinFY2011.

GrowthofRealGSDP

0

2

4

6

8

10

12

FY2007 FY2008 FY2009 FY2010 FY2011

Source:PHDResearchBureau,compiledfromDepartmentofPlanning,GovernmentofPunjab

Tertiarysectorcontributes asignificantshareofaround 42% in theGSDP followedby

thesecondaryandprimarysectorat29%and28%respectivelyduringFY2011.However,

the share of agriculture has declined from around 32% in FY2005 to 28% in FY2011.

While share of secondary sector has augmented from around 25% to 29% during the

sameperiod.

GrossStateDomesticProductanditsComposition

Components FY05 FY08 FY11

GSDPatcurrentprices(Rscrore) 96694 152772 228754

NSDPatcurrentprices(Rs.Crore) 85703 135822 203446

EconomicGrowth%(GSDPatconstant

prices)

24.6 9.25 7.78

SectoralContributioninGSDPatcurrentprices(%)

Primary* 32.5 31.2 28.0

Secondary** 24.8 27.6 29.4

Tertiary***

42.7

41.2

42.6Source:PHDResearchBureau,compiledfromDepartmentofPlanning,GovernmentofPunjab

*PrimarySectorincludesAgriculture,Forest&Logging,FishingandMining&Quarrying

**SecondarySectorincludesManufacturing,Construction,Electricity,Gas&WaterSupply.

***TertiarySectorincludesTransport,Storage&Communication, Trade,Hotel&Rest,Banking&Insurance,Real

Estate,OwnershipofDwelling&BusinessServices,PublicAdministrationandotherservices.


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SummaryofsocioeconomicindicatorsStateCapital Chandigarh

Area(Sq.km) 50,362sq.km

Population(Census2011) 2.77crore

PopulationDensity(Sq.Km)Census2011 550

No.ofDistricts# 22

ImportantRivers Ravi,Beas,Satluj,IndusandJhelum

Prominenttouristdestinations Goldentemple,WagahBorder,Anandpur

Sahib,JallianwalaBagh.

GSDPatCurrentPrices(FY201011) Rs.228754crore

GSDPatConstantPrices(FY201011) Rs.151941crore

GrowthofGSDPatConstantPrices(FY201011) 7.78%

Percapita GSDP(200910) Rs.61,035

FiscalDeficit (FY2011)* 3.6%

Poverty (FY200405) 8.4%

National

Highway

length

(2009

10)

1749kms

RailLength(200506) 2133kms.

DomesticAirport Chandigarh,LudhianaandPathankot

Internationalairport RajaSansiInternationalAirport,Amritsar

PerCapitaHealthExpenditure(200405)** Rs.1359

LiteracyRate(2011Census) 76.7%

SexRatio(2011Census) 893

KeyIndustries Agroandfoodprocessing,Beverages,ITand

knowledge,Textiles,Hoisery,Wollengarments

Tourism,Handicrafts,Automobile,Chemicals,

MetalandLightEngineering.

MainIndustrialCities Ludhiana,Jalandhar,Amritsar,andMohali

Investmentenvironment

10

th

rank

Compositerankingofthestate^ 2nd

rank

Agriculture 1strank

Macroeconomy^ 5th

rank

Labourlaws(2009)^^ 18th

rank

Consumermarkets^ 1strank

Infrastructure 1strank

Legalsystem^^ 11th

rank

Labourregulation^^ 18th

rank

Overalleconomicfreedomindex^^ 12th

rank

Source:PHDResearchBureau,compiledfromDepartmentofPlanning,GovernmentofPunjab,Census2011,

GovernmentofIndia,*RBI,**AnnualreporttopeopleonHealth,September2010

#ThestateofPunjabhas22districtswhichcomprisesofsubdivisions,tehsilsandblocks.

^IndiaToday,29th

Nov2010,anarticlebyBibekDebroyandLaveeshBhandari,^^EconomicFreedomoftheStatesof

India2011,byLaveeshBhandari,BibekDebroyandSwaminathanAiyarand variouspolicypapersofGovernment.


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Compositerankingofthestate

Punjab stands 2nd

on the basis of various socioeconomic parameters viz. macro

economy, investment environment, infrastructure, agriculture, primary education and

consumermarkets.

CompositeRankingofthestate

0

5

10

15

20

25

HimachalP

rades

Pun

jab

TamilN

adu

Kerala

Gujr

at

Haryana

Karnataka

Jamm

u&Kashm

Mahara

shtra

AndhraPr

adesh

Uttarakhand

Rajasth

an

WestB

engal

MadhyaPr

adesh

Oris

sa

UttarPr

adesh

Chhatisgarh

Assam

Jharkhand

B

ihar

Source: PHD Research Bureau, Compiledfrom India Today, 29

thNov 2010, an article byBIbekDebroy and Laveesh

Bhandari

Note:Onlybigstateshavebeentakenupwithareaover35000sq.km.andwithpopulationoverfivemillion.

Socio economicrankingofthestate

Thestatehasbeenranked1stinagriculture,infrastructure,andconsumermarkets,5

thin

macro economy, 7th

in primary health services and 10th

in primary education and

industrialinvestments.

Socioeconomicrankingofthestate

Source:PHDResearchBureau,Compiledfrom IndiaToday,29November2010,anarticlebyBibekDebroyandLaveesh

Bhandari.Chartdepictingareawithhighestranktothelowestrank

0 2 4 6 8 10 12

PrimaryEducation

IndustrialInvestment

PrimaryHealth

Services

Macroeconomy

Agriculture

ConsumerMarkets

Infrastructure


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The state has been ranked 5th

in terms of size, 11th in legal system, 12th

in overall

economicfreedomand18thinlabourregulation.

ComparisonofPunjabwithotherstatesinoveralleconomicfreedom

0 5 10 15 20 25

Bihar

Uttar akhand

Assam

Or iss a

Chhatisgar h

West Bengal

Uttar P r adesh

Kar nataka

Punjab

Mahar ashtr a

Ker ala

Jammu & Kashmir

Jhar khand

Rajasthan

Madhya Pr adesh

Himachal Pr adesh

Har yana

Andhr a Pr adesh

Gujr at

Tamil Nadu

Source: PHD Research Bureau, Compiledfrom Economic Freedom of the States of India 2011, by Laveesh Bhandari, Bibek

DebroyandSwaminathan Aiyar.

Note:Datapertainsto2009

Competitivenessranking

of

the

state

Among the 15 bigger states of India1, Punjab stands 2nd

in overall competitiveness

ranking of the states. The state has been ranked 1st in terms of infrastructure, 3rd

in

termsofhumanresourcesandbusinessefficiency,5th

intermsofitseconomicstrength

and6th

ingovernancequality.

Percapitaincome

Percapita

income

of

Punjab

is

Rs.

61,035

(FY2010),

which

is

around

38%

higher

than

the

national average of Rs. 44,345. As per the latest comparable data2 during FY2008,

Punjabisrankedatthe5th

intermsofpercapitaincomeamongalltheIndianstates.

1CompiledfromStatecompetitivenessreport2004byNationalProductivityCouncil

2 LatestComparabledataofstatesavailablefor2008,EconomicSurveyofGovt. ofIndia201011


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PatternofpercapitaincomeoftheIndianstates

0 20000 40000 60000 80000 100000 120000

Bihar

Uttar Pradesh

Madhya Pardesh

Manipur

Jharkhand

Assam

Rajasthan

Jammu & KashmirOrissa

Mizoram

Tripura

Arunachal Pradesh

Chhatisgarh

Meghalaya

West Bengal

Sikkim

Utt arakhand

Andhra Pradesh

Karnataka

Himachal Pradesh

Tamil nadu

Kerala

Gujrat

Punjab

Maharashtra

Haryana

Delhi

Goa

Source:PHDResearchBureau,compiledfromeconomicsurveyofIndia201011.DatapertainstoFY2008

FiscalDeficit

Gross fiscaldeficitof thestateasa percentageofGSDPhas increasedto 3.6%during

FY2011ascomparedtothe3.4%inFY2010.PrimarydeficitaspercentageofGSDPhas

also increased from 0.6% to 0.9% during the same period. The revenue deficit has

remained more or lesssame of around 2% during the same period. Whereas primary

revenuebalancehasdeclinedmarginallyfrom 0.6%to 0.5%duringthesameperiod.

FiscalIndicators (%ofGSDP)Fiscalcomponents FY2005 08

(Average)

FY2009 FY2010(RE) FY2011(BE)

GFD/GSDP 3.1 4.0 3.4 3.6

RD/GSDP

1.7

2.3

2.2

2.2

PD/GSDP 0.2 1.1 0.6 0.9

PRB/GSDP 1.6 0.6 0.6 0.5Source:PHDResearchBureau,CompiledfromRBI.

RD:RevenueDeficit,GFD:GrossFiscalDeficit,PD:PrimaryDeficit,PRB:PrimaryRevenueBalance.

BE:BudgetedEstimates,RE:RevisedEstimates,()signreferstosurplus.


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Comparisonoffiscalpositionwithotherstates

Grossfiscaldeficitofstateislowerincomparisontostateslike HimachalPradesh,West

Bengal,J&k,

Uttar

Pradesh,

Madhya

Pradesh

and

Tamil

Nadu

and

higher

than

the

states

like Haryana, Rajasthan, Gujarat, Orissa, Andhra Pradesh, Bihar, Maharashtra

ChhatisgarhandJharkhand.

ComparisonofGrossFiscalDeficitasa%ofGSDP

0 2 4 6 8 10 12

Jharkhand

Mizoram

Arunachal Pradesh

Maharashtra

Bihar

Chhattisgarh

Meghalaya

Andhra Pradesh

Karnataka

Uttarakhand

Orissa

Nagaland

Manipur

Gujrat

Rajasthan

Kerala

Haryana

Punjab

Tamil Nadu

Madhya Pradesh

Uttar Pradesh

Jammu & Kashmir

West Bengal

Himachal Pradesh

Goa

Tripura

Assam

Sikkim

Source:PHDResearchBureau,compiledfromRBI.

DatapertainstoFY2011

Investmentenvironment

Punjab

offers

conducive

milieu

for

industrial

investments

by

providing

various

policy

incentives andgood industrial infrastructure. The state hasbeen able to attractmore

than Rs. 31000 crore as industrial investment proposals in last four years. However,

share of Punjab in Indias industrial investment proposals has remained steady ataround0.6%(average20072010)duringtherecentyears.

ThestateishometomanylargeIndiancompanies&MNCssuchasRanbaxy,M&M,HCL,

Nestle,Dell, IDS Infotech,Hero Group,GujaratAmbujaandmanymore.Ludhianahas

beenregardedasthebestplacefordoingbusinessin India3andisacknowledgeforits

readymadegarments,woolengarmentsandhosierygoodsanditsispopularlyknownas

Manchester

of

India.

While

Jalandhar

is

widely

known

for

its

sports

goods,

leatherproducts, hand tools, rubber goods, auto partsand electrical goods. Mohali has been

developedasITITeShubinthestate.

3AccordingtoWorldBankStudy2009.


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IndustrialInvestmentsproposalsinPunjabvisvisIndia (RsCrore)

Year Punjab India

Shareof

PunjabinIndiastotal investment

proposals

2007

5172

834249

0.62

2008 9482 1523852 0.62

2009 9731 1040259 0.94

2010 6779 1736322 0.39

2011(uptoJuly) 10144 1199856 0.85Source:PHDResearchBureau,CompiledfromDepartmentofIndustrialPolicyandPromotion,Govt.ofIndia

FDIinflows

During recent years, the FDI inflows (Chandigarh region)4 in the statehave posted an

impressivegrowth. However,theregionconstitutesaround1%ofthetotalFDIinflows

inIndia.

Regional(Chandigarh)shareofFDI*inIndiastotalFDIinflows

0 5 10 15 20 25 30 35 40

Kanpur

Panaji

Chandigarh

Ahmedabad

Bangalore

Mumbai

Source:PHDResearchBureau,compiledfromDIPP

FDI inflows inChandigarh regionhas increased to US$416millionduringFY2011 from

US$ 224 million during FY2010 marked growth of more than 85%. The cumulative

inflowsfromApril00toJuly11constitutearoundUS$1059million.

PatterninattractingFDI(equity)inflows:ChandigarhRegion

Year

FDIinflows

(US$mn)

FY200910 224

FY201011 416

CumulativeInflowsfrom

(FY01toJulyFY11) 1059

Source:PHDResearchBureau,CompiledfromDepartmentofIndustrialPolicyandPromotion,Govt.ofIndia.

4PertainstoPunjab,HaryanaandHimachalPradesh


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ExportsThemajorprincipalcommodityexport items fromthestatearereadymadegarments

andhosiery,engineeringgoods,sportsgoodsandyarnand textile,machine tools and

handtools.Ludhiana,AmritsarandJalandharconstitutetobethe leadingexportshub

withinthe

state.

The

total

estimated

commodity

wise

exports5

from

the

state

stands

at

aroundUS$3.5bn6duringFY2010.

Themaincropsgrowninthestatearewheat,paddyandsugarcane.Thestatepossesses

hugepotential inagroexports,dueto itsextensivepresenceofagriculturalbase.Rice

accountsastheprominentexportitemfromthestate.PunjabhassetupaPermanent

Perishable Cargo centre at Amritsar international airport to facilitate and boost the

exportoffarmproducts

Agriculture

The

state

economy

is

predominantly

an

agrarian

economy

and

it

is

popularly

known

as

thewheatbasketof India.Thestatecontributesaconsiderableshare innational food

grainproductionandtherebyaidsinensuringthenationalfoodsecurity.

Major crops grown in the state include wheat, paddy and sugarcane. The main fruits

grown in state are kinnow, orange, mango, grapes and guava and it is undertaking

special efforts to increase cultivation of cotton, maize, oilseeds and pulses as well.

Punjab has proposed budget of Rs. 453 crore for agriculture and allied sectors in the

annualbudgetofFY201112,whichisaround37%higherincomparisontolastyear.

SummaryofagrostatisticsSr.No Components Growth/ratio/production

1

AgricultureGSDP

at

Current

prices

(FY2011)

Rs64045

Crore

2 GrowthofAgriculture&Allied realGSDP(Avg.fromFY2003toFY2011) 2.69%

3 AgriculturalsectorscontributioninGSDP(FY2011) 27.9%

4 FoodGrainproduction(FY2010) 27224(ThousandTonnes)

5 Statescontributiontonationalfoodgrainproduction(FY2011) 11.26%

6 Statesrankinnationalfoodgrainsproduction(FY2011) 2nd

7 Yield totalfoodgrains(FY2010) 4148Kg/Hectare

8 Grossareairrigated (FY2009) 7724000(Hectare)

9 Populationdependentonagriculture Twothird

10 RiceProduction(FY2011) 10837(ThousandTonnes)

11 WheatProduction(FY2011) 15828(ThousandTonnes)

12

Coarse

Cereals

(FY2011)

540

(Thousand

Tonnes)

13 Pulses(FY2011) 18(ThousandTonnes)

14 OilSeeds(FY2011) 71(ThousandTonnes)

15 Sugarcane(FY2011) 4170(ThousandTonnes)

16 RankinRiceproduction(FY2011) 3rd

17 RankinWheatproduction(FY2011) 2ndSource:PHDResearchBureau,CompiledfromRBI&MinistryofAgriculture.

5Commoditywiseexportsfromthestatearestated inAnnexureI

6Theexchangerateistakenat1US$=Rs.45.73pertainingto2010


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PunjabstandsatsecondpositionatallIndialevelintermsoffoodgrainproduction.The

states food grain production has grown from 25.32 million tonne in FY2001 to 27.22

milliontonnesinFY11,markingagrowthofmorethan7%.

Foodgrainproduction

in

Punjab

vis

vis

India

Year

(FY)

Punjab

(Million

Tonnes)

India

(Million

Tonnes)

ShareofPunjabin

India(%)

2001 25.32 196.81 12.86

2002 24.88 212.85 11.68

2003 23.49 174.78 13.43

2004 24.72 213.19 11.59

2005 25.67 198.36 12.94

2006 25.18 208.59 12.07

2007

25.31

217.28

11.64

2008 26.81 230.78 11.61

2009 27.32 234.47 11.65

2010 27.32 218.2 12.52

2011 27.22 241.56 11.26Source:PHDResearchBureau,compiledfromRBI,MinistryofAgriculture

ShareofPunjabinfoodgrainproductionhasdeclinedovertheyears.Ithascomedown

toaround11%inFY2011fromaround13%inFY2001.

ShareofPunjabsfoodgrainproductioninIndiasfoodgrainproduction (%Share)

10

10.5

11

11.5

12

12.5

13

13.5

14

FY

2001

FY

2002

FY

2003

FY

2004

FY

2005

FY

2006

FY

2007

FY

2008

FY

2009

FY

2010

FY

2011

Source:

PHD

Research

Bureau,

compiled

from

RBI,

Ministry

of

Agriculture

The state is one of the largest producer of two crops i.e. wheat and rice in India.

Production of rice in Punjab has grown from around 9 million tonnes in FY2001 to

around 11 million tonnes in FY2011. However, production of wheat has remained

stagnantataround15milliontonnesduringthelastdecade.


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ProductionofWheatandRiceinPunjabvisvisIndia

Punjab(MillionTonnes) India(MillionTonnes)ShareofPunjabinIndia

(%)Year

(FY) Rice Wheat Rice Wheat Rice Wheat

2001 9.15 15.55 85.06 69.75 10.75 22.29

2002

8.81

15.49

93.43

72.83

9.42

21.26

2003 8.88 14.17 72.66 65.10 12.22 21.76

2004 9.65 14.48 88.61 72.22 10.89 20.04

2005 10.43 14.69 83.13 68.63 12.54 21.40

2006 10.19 14.49 91.79 69.35 11.10 20.89

2007 10.13 14.59 93.35 75.80 10.85 19.24

2008 10.48 15.72 96.69 78.57 10.83 20.00

2009 11.00 15.73 99.18 80.67 11.09 19.49

2010 11.23 15.54 89.30 80.98 12.57 19.18

2011 10.83 15.82 95.32 85.92 11.36 18.41Source:PHDResearchBureau,compiledfromRBI,MinistryofAgriculture

TheshareofPunjabintheIndiastotalriceproductionhasremainedmoreorlesssame

during the last decade. While share in wheat production of India has declined from

around22%duringFY2001toaround18%inFY2011.

ShareofPunjabinWheatandRiceproductionofIndia (%)

0

5

10

15

20

25

FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011Ri ce Whe a t

Source:PHDResearchBureau,compiledfromRBI,MinistryofAgriculture

2.EconomicPolicy

Punjab has immensepotential toemergeasone of themost economically developed

state

in

India.

The

state

offers

wide

range

of

subsidies,

fiscal

and

policy

incentives

and

excellent infrastructure, to provide conducive milieu to foster investments and

developmentforindustries.

The state has emerged as a key hub for textile based industries including yarn,

readymadegarmentsand hosiery. The statehas successfully establishedFood Parkat

Fatehgarhdistrict,ElectronicsTownship(ELTOP)atMohaliforpromotionandgrowthof

ITandelectronicsindustryinthestateandBiotechparkinChandigarh.


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ThekeystrategicthrustareasAgroindustries Rich agricultural base; competitive advantage in wheat, paddy, cotton, potatoes,

citrus,chilly.

Highfertility

Agroproduceexports

Foodpark

Textile Textilehub

Dominatedbysmallscaleunits

NIIFT has been set up in Mohali for providing qualitative manpower to textile

industry

ApparelparkatLudhiana.

ITandElectronic ElectronicsTownship(ELTOP)atMohali

ITSEZParksatJalandhar,KapurthalaandRupnagar

Powertarifftobechargeatindustrialrateandonactualunitsconsumed

100% stampdutyreimbursementandexemptiontodeveloper

Exemptionfromlandusezoningregulationsandconversioncharges

Tourism Richculturaltraditionandheritage

Singlewindow

clearances

facility

for

speedy

approvals

and

availability

of

land

for

constructinghotels.

ImmensepotentialtobeaTouristhubSource:PHDResearchBureau,compiledfromvariouspolicypapers.

Punjab has mix of industries such as agrobased industries (food products, and

beverages),leatherproducts,woodproducts,chemicalsandchemicalproducts,rubber

andplasticproducts,nonmetallicmineralproducts,paperproducts,motorvehiclesand

manufacturingoftransportequipments.

NewIndustrialpolicy,2009

The state government announced its new industrial policy in 2009 which focuses on

creating favorable destination for investment and to establish synergy between

agriculture and industrial sectors and to rejuvenate small scale sector. Some of the

incentivesprovidedbythestatearementionedbelow:

Specialpackageof incentivesand concessionare provided foragrobased industries

and food processing industries, information technology and knowledge based

industries,textileindustry,hotelandhealthserviceindustries.

ToenhancemoreprivatesectorparticipationunderPPP.

To set up Udyog Sahayak, a state level nodal agency for single window clearance

approvalsforindustrialprojects.

Toemphasisonrevivalofsickunitsandemploymentgeneration.

To boost private investment in the State, 69 mega projects worth Rs. 42,000 crore

havebeenapprovedduringthelast4years.


21/39



AgroIndustriespolicy,2009

Punjab has been in the forefront of the Green revolution in the late sixties and the

seventies,withabundantagrobase .Withaviewtodevelopagro industries,thestate,

governmenthas

announced

its

agro

industry

policy

in

2009.

Major

incentives

provided

bythestatearementionedbelow:

Interest subsidy is provided to agro units, infra projects and for modernization and

technologyupgradation.

Assistance for developing setting up centre of excellence for development of

technologies inareaofagroprocessing industries, internationalstandardscertification

andforpatentregistration.

Thestate is loweringthethreshold limitfor investmentfromRs.100croretoRs.25

croreformegaprojectsrelatedtoagrounits.

Toincrease

exports

of

fruits

and

vegetables

and

value

added

agri

products.

Services

During the lastdecade, the services sectorhasperformed significantlybetter andhas

come out to be as amajor segment in contributing to its economicgrowth. Services

sector has marked an impressive growth of more than 9% during FY2011. The

contribution of services sector in GSDP (constant prices) of Punjab was around 42%

duringFY2011.

IT/Knowledgeindustry

The state government announced its IT industry policy in 2009 which focuses on

providingconduciveenvironment to foster the growthof IT industry.Punjabprovides

gamutof incentivesinordertomakethestateapreferreddestinationforemergingIT

businessopportunities.Someofthekey incentivesofferedbythestateareexemption

from electricity duty for five years, statutory power cuts and restriction of peak load.

hours,reimbursementofstampdutyto ITunits,providingcapitalsubsidies,andother

incentivestoITUnitsforqualitycertifications.

The state has extended venture capital fund with corpus of Rs. 20 crore along witha

dedicated

fund

of

Rs.150

for

extending

fiscal

support

to

the

IT

industries.

These

industries have been exempted from the purview of pollution and zonal regulation.

MohalihasbeenemergedasanITandITeShubinthestate.


22/39



Tourism

Punjab Tourism policy of 2003 aims at promoting tourism in the state to enhance

employmentandeconomic growth. The statehasa richculture and heritagecoupled

withgood

tourism

infrastructure,

which

makes

it

one

of

the

favorable

destinations

by

domestic and international tourists. In order to facilitate investments in the state,

severalinitiativeslikesinglewindowclearancesfacilityforspeedyapprovals,availability

of land for construction of hotels and provision of loan at easy limits have been

undertaken.

Thestateisalsostrivingtopromoteecotourisminthestateandthusinthisregard,a

separateEcotourismpolicy,2009hasbeenintroduced.Thewellrenownedtouristspots

inthestateareGoldentemple,WagahBorder,AnandpurSahibandJallianwalaBagh.

Banking

Banks plays significant role in the development of economy. They are not only

significant for industrial development but also for social development. The banking

sectorofPunjabispredominatedbynationalizedbankswithmorethan2000branches

ofwhichSBIanditsassociateshave822branches,followedbyprivatesectorbankswith428branches,regionalruralbankswith251branchesandforeignbankswith8branches.

BankingscenarioinPunjab (March2011)

BanksinPunjab No.ofofficesin

Punjab

No.ofoffices

inIndia

OfficesinPunjab

as%

of

total

NationalisedBanks 2268 43908 5.2

SBI anditsassociates 822 17899 4.6

PrivateSectorBanks 428 11347 3.8

RegionalRuralBanks 251 15658 1.6

ForeignBanks 8 298 2.7

Total 3777 89110 4.2

Source:PHDResearchBureau,compiledfromRBI

Punjabprovideswidenetworkofbankingfacilitiesandofferexcellentfinancialoutreach

to the dwellers of the state. The high credit deposit ratio represents the effective

functioningofbankingsector.Thestatescreditdepositratiostandsat77.3%(March

2011), which is comparatively higher than the national credit deposit ratio of 75.1%

during thesameperiod.However,creditdeposit ratio in ruralareasstandsataround

57.7%.


23/39



BankstotalcreditanddepositsinPunjab (March2011)

Punjab India

Components Deposit Credit Credit

deposit

ratio(%)

Deposit Credit Credit

deposit

ratio(%)SBIanditsassociates 40518 33865 83.6 1171917 902979 77.1

NationalisedBanks 93058 73430 78.9 2875049 2153335 74.9

ForeignBanks 471 275 58.4 236405 197959 83.7

RegionalRuralBanks 3031 2102 69.4 163928 98244 59.9

PrivateSectorBanks 16659 9235 55.4 979,212 724,351 74.0

Total 153,737 118,906 77.3 5426510 4076868 75.1

Source:PHDResearchBureau,compiledfromRBI


24/39



InvestmentopportunitiesinPunjabAgrobased,food

processing&

beverages

Punjab is endowed with rich agricultural base and it is popularly known as wheat

basketof India.Thestateoffersrich fertility,gamutof incentivesandpackages for

the growth of agricultural output and carry immense potential for setting up agro

basedindustrialunits. Thestateisoneoftheleadingproducersoffoodgrainsand

contributessignificantly

to

the

nations

food

grain

basket.

The

state

has

food

park

located inFatehgarhSahibdistrict. Inordertospeedupthe investments,thestate

haslowered itsthreshold limitforinvestmentfromRs.100croretoRs.25crorefor

megaprojects.

Autoparts

industry

Thestateisaleadingproducerofbicycleandbicyclepartsanditisalsoamongstthe

majorproduceroftractor,autoandtwowheelerparts.Italsocaterstotheneedsof

foreignautomarket.

Biotechnology To facilitate biotech industries, state has provided special package of incentives

under itsBiotechpolicy,2006.Provisionforsettingupnewbiotechnology institutes

forresearchanddevelopment,creationofPunjabBiotechPromotionBoard (PBPB)

to attract investments are the key initiatives taken up by the state. The state has

establishedBiotechparksituatedinChandigarhtoprovidefavorableenvironment.

Handicrafts

Punjabhas

adistinguished

tradition

of

art

and

culture.

The

state

has

set

up

Punjab

SmallIndustries&ExportCorporationLimitedtoprovideconduciveenvironmentand

supporttodevelopsmallscaleindustriesandtomarketthehandicraftsproducts,the

corporationhasopenedachainofemporianamedasPhulkari inmajorcitiesof

Punjab.

Information

technology&

knowledge

industry

State government is highly focused on developing necessary Infrastructure,

development of human capital, proactive engagement with investors and effective

policy implementationso as tocreateaconducivemilieu for IT industry.The state

has offeredagamutof incentives under its IT policy. Special economic zone for IT

industry has been set up in Mohali. The state government is encouraging private

investment in theknowledgebased industries.Land hasbeenalreadyacquired for

twoselfcontainedmixeduseandintegratedinformationtechnologyandknowledge

industry

parks

spread

over

1350

acres

at

Rajpura

and

226

acres

at

village

JhallThikriwala indistrictKapurthala.ElectronicsTownship(ELTOP)hasbeenestablished

atMohaliforpromotionandgrowthofITandelectronicsindustryinthestate.

Textiles Thestatehasemergedasahub fortextile industryandhassetupApparelparkat

Ludhiana. Textilepolicyofthestateofferagamutof incentivessuchascreationof

infrastructure through cluster development, maximum utilization of Central

GovernmentsTechnologyUpgradationFundScheme(TUFS),reductionofelectricity

duties and assistance in acquiring land for textile related projects. Northern India

InstituteofFashionTechnologyhasbeensetup inMohali forprovidingqualitative

manpower to textile industry. Ludhiana is known for its readymade garments,

woolengarmentsandhosierygoods.

Tourism Tourismindustryhasbeenaccordedasoneofthekeythrustareasinthestate.With

rich cultural tradition and heritage coupled with good infrastructure, the state has

emergedas

one

of

the

favorable

tourist

destination.

The

state

has

provided

various

incentivesunder itsTourismpolicysuchas tax incentives, single windowclearance

facility and provision of loans for Tourism related projects. The government of

Punjab has set constituted thePunjabHeritage&TourismPromotion Boardunder

chairmanshipofChiefMinister. ThestategovernmenthasallocatedgrantofRs.100

crore, forpreservationandmaintenanceofheritagebuildings inannualbudget for

thisfiscal.

Source:PHDResearchBureau,compiledfromvariouspolicypapers


25/39



3.Infrastructure

Infrastructure isavitalsector forthedevelopmentofthe industryandeconomy. The

stateoffersexcellentinfrastructureandhasbeenrankedfirstamongstthebigstatesin

termsofinfrastructure7.PunjabhasalsobeendeclaredasoneofthebeststatesinIndia

intermsofrail,roadandtransportnetwork8.

Thestategovernmentisworkingtowardsthedevelopmentofinfrastructuretopromote

industry,commerceandtradeinthestate.Tofacilitateinvestmentsinirrigation,roads,

urbandevelopment,medicaleducation,power,healthandotherimportantsectors,an

amountofRs.916crorehasbeenallocatedforFY201112.

RoadsRoadsarethemajormodeoftransportationservicesavailable inPunjab.The

statehasanextensive60881kmnetworkof roadscomprisingof1749kmofnationalhighways,

1479

km

of

state

highways,

2112

kms

of

major

district

roads,

4482

km

of

otherdistrictroadsand51059kmofvillage linkroads.Several initiativesandroadup

gradationprojectshavebeenundertakenbythestate.AsumofRs.986croreincluding

has been allocated by the state for the development of road infrastructure and

transportduringthisfiscal.

Roadinfrastructure

Categoryofroad LengthinKms

NationalHighway 1749

StateHighway 1479

Major

district

roads

2112

Otherdistrictroads 4482

Villagelinkroads 51059

Source:PHDResearchBureau,CompiledfromAnnualPlan,FY2011.

Railways Therailwaysplayasignificantrole inthestate. Itconnectsmajor industrial

unitssuchasoilrefining,cement,fertiliser,thermalpowerandmanufacturingsectorsto

suppliersandmarkets. Punjaboffersgoodrailwayinfrastructureanditsnetworkspans

over 2,098 km. The main interstate railway routes are AmritsarAmbalaDelhi,

SriganganagarAmbalaDelhi,FerozpurLudhianaAmbala,PathankotRoopnagar

fatehgarhSahibandSriganganagarBhatindaNarwana.

AviationThestatehasmadeconsiderableprogressinthefiledofcivilaviation.Punjab

hasthreedomesticairportswhichare located inChandigarh,LudhianaandPathankot.

TheInternationalflightsoperatefromtheRajaSansiInternationalAirportatAmritsar.

7CompiledfromIndiatodayTheStateoftheStatesstudy,2010byBibekDebroyandLaveeshBhandari

8AspertotheNationalCouncilofAppliedEconomicResearch(NCAER),2007


26/39



In theannualbudgetofFY201112,asumofRs.24crorehasbeenearmarked forup

gradationandextensionofairterminalsandaerodromes.ThenewGreenfieldLudhiana

airport is proposed to be developed by the state as an aerotropolis (a modernage

conceptofatownshiporientedairportsimilartotheSingaporeandFrankfurtmodels)

withatotal

outlay

of

US$

3.8

billion.

On

the

other

hand,

construction

of

new

airports

havealsobeenproposedatMohali,BathindaandLudhiana.

PowerPowerisavitalinfrastructureforeconomicdevelopmentoftheState.Thestate

haspowerdeficitof6%*whichislowerthanthenationalpowerdeficitof8.5%during

(FY2011).Whereaspercapitaconsumptionofpowerstandsataround1527KWH,which

is higher than the national figure of 779 KWh (FY2010). Power sector has been

earmarked amount of Rs. 3300 crore in annual budget for FY201112 for the

developmentofpowerscenariointhestate..

ThestatehasincreaseditsInstalledpowercapacitybyaround12%betweenFY2006and

FY2010, however the demand for power in the State is rising sharply on account of

rapidly increasing use of electrical energy for agricultural operations, progressive

industrialization, high living standard of residents and intensive rural electrification

programme. With a view to make the state selfreliant and power surplus, four new

thermalplantsnamelyTalwandiSabo1980MW,Rajpura1400MW,GoindwalSahib540

MW,Gidderbaha2640MWhavebeenundertaken.Thestatehasalsoproposedtoset

up1000MWgasbasedpowerplantatRopar.

InstalledPowerCapacity(MW)

5800

6000

6200

6400

6600

6800

7000

200506 200607 200708 200809 200910

Source:PHDResearchBureau,compiledfromeconomicsurveyofPunjab,2011,IBEF.

UrbanInfrastructureUrbaninfrastructureservices(includingwatersupply,sanitation,

drainage,solidwastemanagement)arereasonablygoodintheurbancentresofPunjab.

ThestateisfocusingonchannelisingtheinvestmentsfrombothwithinIndiaandabroad

topromoteurbandevelopmentinabigway.Newtownplanningnormsandquality*AnnualLoadGenerationBalancereport(201112)


27/39



urban bus services with public private partnership are coming up in big way to offer

modernurbaninfrastructureinthestate.

UnderJNNURM,citydevelopmentplansforAmritsartotheextentofRs.3150croreand

for

Ludhiana

to

the

tune

of

Rs.2054

crore

have

been

approved.

Under

Urban

Infrastructure Development Scheme for Smalland Medium Towns (UIDSSMT), sum of

amount Rs. 202 crore has been released for the 17 projects in the 14 towns. While

under IntegratedHousing&SlumDevelopmentProgramme(IHSDP),amountofRs.23

crorehasbeenreleasedfortheconstructionof2475housesinJalandharandRajpura.

TelecomAccordingtoTRAI,thetotalsubscriberbaseofPunjabwas3.2crorewitha

shareof3.59%inIndiastelecomsubscriberbase9. Punjabcontributesaround3.55%in

totalwirelesssubscribersinIndiaandaround4.51%inwirelineconnectivityinIndia.

Telecomsubscriberbase

NameoftheRegion Wirelesssubscriber

Wireline

subscriber Total

Punjab 30517574 1543842 32061416

India 858368708 34179478 892548186

ShareofPunjabinIndia(%) 3.55% 4.51% 3.59%Source:PHDResearchBureau,compiledfromTRAI,endJuly2011.

4.Socialinfrastructure

PovertyPunjabhasdonereasonablywelltoreduceitspoverty,withonly8.4%ofthe

populationlivingbelowthepovertyline(BPL)asagainstthenationalaverageof27.5%.

However,it

is

higher

than

that

of

hilly

state

of

Jammu

&

Kashmir

with

5.4%

population

livingbelowthepovertyline.

PopulationBelowPovertyLine(BPL):Punjabamongstotherstates

FY200405 (%Population)

0 5 10 15 20 25 30 35

Jammu&KashmirPunjabHaryana

Kerala

Gujrat

UttarPradeshKarnataka

All IndiaMaharashtra

Source:PHDResearchBureau,CompiledfromAnnualReporttoPeopleonHealth,September2010

Note: EmpoweredActionGroup (EAG) Scheme has been launched byMinistry ofHealth and FamilyWelfare and it

coverstheaboveeightstates.

9DatapertainstoendJuly,2011


28/39



UnemploymentThedegreeofunemploymentinthestatecontinuestobeacauseof

serious concern. The unemployment rate of Punjab stands at 10.5% as against the

nationalaverageof9.4%10

. Thenumberofjobseekers(botheducatedanduneducated)

on the live registers of Employment Exchanges during 2009 (as on 31.12.2009) was

3.7811

lakhs,

out

of

which

2.66

lakhs

were

educated

unemployed.

Amongst

the

educated

jobseekers,76.93%werenon technicalwhereas23.07%hadtechnicalqualifications.

EducationEducationisthesinglemostimportantinputinpromotinghumanresource

development.Thestategovernment istakingspecialmeasuresfortheupgradationof

education level inthestate.Therearemorethan14000primaryschools,3920middle

schools,morethan5000high/seniorsecondaryschools,234collegesand7universities.

A sum of Rs. 1441 crore has been earmarked for various schemes to further develop

educationalinfrastructureinthestate.

To support education among girls and increase their participation in schools, Rs. 75

crore has been allocated under Mai Bhago Vidya Scheme in the annual budget ofFY2012 .Punjab has also taken an initiative to set up 123 Adarsh schools to provide

qualityeducationtothepoorandmeritoriousstudents,15Adarshschoolshavealready

beenmadefunctional.

EducationalInfrastructure

TypeofInstitution Number

Universities 7

Arts,Commerce,HomeScience&Science

Colleges 234

High/Senior

Secondary

Schools

5146

MiddleSchools 3920

PrimarySchools 14160

Enrolmentinschool(30Sep,2009) 38.17*

Enrolmentincolleges(30Sep,2007) 271791Source:PHDResearchBureau,compiledfromPunjabStatePlanningBoard.

*InLakhs

Note:DataAson30Sep2010

TheliteracyrateofPunjabhasbeenveryimpressiveoverthelasttwodecadesanditlies

abovethenationalaverageliteracylevels.Thestatehasliteracylevelat76.7%12

,which

ishigherthanthenationalaverageofaround74.0%.

10ReportonEmploymentandUnemploymentSurvey,GovernmentofIndia.(200910)

11Thisdatapertainstoonlythoseunemployedpersonswhoregisterthemselveswiththeemployment

exchange12

AccordingtotheCensusofIndia2011.


29/39



Trendofliteracyrate:PunjabvisvisIndia

0

20

40

60

80

10 0

FY71 FY81 FY91 FY01 FY11

Punjab India

Source:PHDResearchBureau,CompiledfromEconomicSurveyofIndia201011,censusofIndia2011

Punjab ranks 15th

in literacy rate among all states of India. It is poor as compared to

states likeUttarakhand,GujaratandMaharashtra,however it isbetterthanStates like

Haryana,UttarPradeshandRajasthan.

Trendin

literacy

in

comparison

with

other

states

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

Bihar

Arunachal Pradesh

Rajasthan

Jharkhand

Andhra Pradesh

Jammu and Kashmir

Uttar Pradesh

Madhya Pradesh

Chattisgarh

Assam

Orissa

Meghalaya

Karnataka

Haryana

Punjab

West Bengal

Gujarat

Uttarakhand

Manipur

Nagaland

Tamil Nadu

Sikkim

Maharashtra

Himachal Pradesh

Delhi

Goa

Tripura

Mizoram

Kerala

Source:PHDResearchBureau,CompiledfromEconomicSurvey201011

HealthTheStateGovernmenthasgiventopprioritytoaugmenthealthinfrastructure

in terms of constructionof new buildings, purchase of equipment and recruitment of

therequiredmanpower.AsumofRs.720crorehasbeenallocatedfordevelopmentof

health infrastructure in the annual budget FY201112. Government of India in its 4th

CommonReviewMissionReporthasratedhealthinfrastructureofthestateasexcellent

andplacedthestateatnumberoneposition.

TheHealthinfrastructureinthestatecomprisesof63hospitals,129communityhealth

centres, 1309 dispensaries and 446 Primary Health Centres (PHC). Punjab has 529

Ayurvedic

and

Unani

institutions

and

107

Homeopathic

institutions.

There

are

20375

bedsinthegovernmenthospitalsofthestate.


30/39



SummaryofHealthIndicatorsPerCapitaHealthExpenditureNHA0405* Rs.1359

InfantMortalityRate* 41per1000livebirths

Lifeexpectancyatbirth(200206)* 69.4years

Birth

Rate

17.3

per

thousand

DeathRate 7.2perthousand

Hospitals(Numbers) 63

CommunityHealthCenter(Numbers) 129

Dispensaries(Numbers) 1309

PrimaryHealthCenters(Numbers) 446

AyrvedicandUnaniHospitals(Numbers) 529

HomeopathicInstitutions(Numbers) 107

BedInstalledinmedicalinstitutionAllopathy(Numbers) 20375Source:PHDResearchBureau,CompiledfromPunjabPlanningBoard,Datapertainsto.2010and*compiledfromAnnual

reporttopeopleonHealth,September2010

Thereis

ahuge

scope

to

improve

the

per

capita

expenditure

on

health

in

Punjab;

the

percapitahealthexpenditureofPunjabstandsatRs.1359whichismarginallyabovethe

national average of Rs.1201. The infant mortality rate of Punjab is also better as

comparedtothenationalaverageof53andmanyotherstateslikeGujaratandHaryana,

HoweveritishigherascomparedtostateslikeTamilNaduandMaharashtra.

InfantmortalityrateofPunjabvisvisotherstates

3133

41

49 5052

54

0

10

20

30

40

50

60

Tamil Nadu Maharshtra Punja b Ja mmu&Kashmir

Gujra t Andhra

Pradesh

Haryana

Source:PHDResearchBureau,CompiledfromAnnualReporttopeopleonHealth,September2010.

AvailabilityofSafedrinkingwater

The name "Punjab" means "land of five rivers" and derives from the Persian words

'panj,' meaning five, and 'aab,' meaning water. Punjab tops the chart among Indian

statesin

the

availability

of

safe

drinking

water

to

97.6%

households

in

Punjab

which

is

significantlyhighascomparedtothenationalaverageof77.9%.


31/39



AvailabilityofSafedrinkingwatertohouseholds (%)

0 20 40 60 80 100 120

Rajasthan

MadhyaPradesh

Maharshtra

Gujrat

Haryana

UttarPradesh

Punjab

Source:PHDResearchBureau,CompiledfromEconomicSurvey201011

5.PerformanceinthesixthrustareasfocusedbyPHDChamber

The six thrust areas of PHD Chamber are Industry, Infrastructure, Education and skill

Development, Health, Housing, Agriculture and Agribusiness. Punjab is one of the

fastest growing states of India and has done fairly well in the areas focused by PHD

Chamber.

PerformanceinsixthrustareasAgricultureand

Agribusiness

Punjab has rich and productive agricultural base coupled with conducive

agroindustrialpolicy,makinganidealdestinationforsettingupagro&food

processing industries. The state is one of the leading producers of food

grains and contributes significantly to the nations food grain basket. In

ordertoboostthefarmexports,thestatehassetupaPermanentPerishable

Cargo Centre at Amritsar international airport and Agricultural machinery

servicecentrestoprovideagriculturaltoolsoncustomhiringbases.Punjab

Agro Industries Corporation (PAIC) has been encouraging private sector

investments in agroprocessing units. The state has food park located in

FatehgarhSahibdistrict.

EducationandSkill

Development

Thestateoffersgoodeducationalinfrastructurewithliteracylevelof76.7%,

which is higher than that of national average of 74.4%. The state has

undertakenseveralinitiatesinregardstotheupliftmentanddevelopmentof

femalepopulationandisprogressingtowardsinachieving100%literacy.

Health Thesatehasdonefairlywellinprovidinghealthfacilitiesandhaspostedan

impressiveperformanceonaccountofreductionofinfantmortalityrateandimprovement in child sex ratio. The state has a goodnetwork of hospitals

andhealthcentres.Punjabhas initiatedvariousschemestoprovidehealth

servicestothepeopleresidinginfarflungareas.

Housing The state government is facilitating in constructing houses for poor by

providinggamutof incentivessuchaspurchaseof landhasbeenexempted

from stamp duty, registration fee and other related licenses fee. Punjab

UrbanDevelopmentAuthorityconstructshousesundervariousschemesfor


32/39



economicallyweakersectionsofthesocietyandprovidesthematsubsidised

rates.However,there is lottobedoneinthisregard,toprovideaffordable

houses to the dwellers of the state especially to the larger section of the

statewhoresideinruralareas.

Industry Punjab has a well diversified and stable industrial environment. Textile,

Tourism,Handicrafts,Agribusinessand IT industryarethethrust industries

ofthe

state

in

which

Punjab

has

performed

very

well.

The

state

government

hastakenspecialmeasuresfordevelopmentofindustrialsectorandisonits

waytorapidindustrializationthroughcoordinatedsetofpolicies,incentives

and excellent infrastructure. The state has set up Electronic Township at

MohaliforITindustries,Apparelparkatludhianaandhasemergedasahub

fortextileindustry.

Infrastructure Thestatehasoneoftheexcellent infrastructure in fieldof roads,aviation

and railways. However, the state is currently crippled with power deficit.

Variousprojectshavebeenundertaken inthisregardsuchassettingupof

four new thermal plants namely Talwandi Sabo 1980 MW, Rajpura 1400

MW, Goindwal Sahib540 MW, Gidderbaha2640MW, to make itapower

surplusstate.

6.BudgetHighlights

The budget 201112 has been formulated to focus and accelerate infrastructure

development especially in power, irrigation and human resource development. The

amount allocated on road infrastructure and transport, power sector, irrigation and

flood control in the annual budget of FY2012 is Rs.986 crore, Rs.3300, Rs.1030

respectively

With a view to develop agriculture and allied sectors and to promote agricultural

research,anamountofRs.453crorehasbeenearmarkedintheannualbudgetforthis

fiscal.

The state government has earmarked amount of Rs. 10 crore for the up gradation of

industrialfocalpointsintheannualbudgetofFY2012.Inadditiontothis,asumofRs.16

crorehasbeenregisteredforNIIFTMohali.

An amount of Rs. 1.50 crore has been allocated for promoting cultural, artistic and

literary activities of Punjab Lalit Kala Academy, Punjab Sangeet Natak Academy and

PunjabSahityaAcademy.

Thesocial

sectors

in

total

have

received

Rs.3314

for

education,

higher

education,

health

andsocialsecurity.AsumofRs.15crorehasbeenprovidedbythestate toestablish

Maharaja Ranjit Singh Armed Forces Preparatory Institute, with a view to generate

employmentopportunitiesandsilldevelopmentinthestate.

Greaterstresshasbeen laidonwelfareofscheduledcastesandotherweakersections

ofthesociety.AnoutlayofRs.275crorehasbeenearmarkedforwelfareofscheduled


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castes/backward classes. The pension of freedom fighters and families has been

proposedtoincreasetoRs.5000permonth.Ontheotherhand,asumofRs.142crore

hasbeenearmarkedforsportsandyouthservices.

Budgetataglance (Rs.Crore)

RECEIPTS 20112012(BE) EXPENDITURE

2011

2012(BE)

1 OpeningBalance 260.73 RevenueExpenditure 35405.75

2 RevenueReceipts 32026.76 CapitalExpenditure 5418.34

3 PublicDebt(Gross) 13122.94 PublicDebtRepayment 7686.41

4 LoansRecoveries 80.35 LoansandAdvances 84.35

5 PublicAccount(Net) 3408.81 Total 48594.85

6 CapitalReceipts(3+4+5) 16612.1 ClosingBalance 216.72

7 Total1+2+6 48378.13 Total 48378.13

Source:PHDResearchBureau,CompiledfromStatebudgetofPunjab201112

7.ConclusionsandRecommendations

Punjab,thestateendowedwithrichcultureandtraditioniswidelyacknowledgedforits

selfdependence,selfrelianceandglory.Thelandoffiverivers islocated intheNorth

Western region of India and is boundedon the West by Pakistan, on the North by

Jammu and Kashmir, on the North east by Himachal Pradesh and on the South by

HaryanaandRajasthan.

Punjabis

one

of

the

fastest

developing

states

in

India;

the

state

economy

has

grown

at

anaveragegrowthofaround8%duringthe lastdecade(2000s).Presentlythetertiary

sector contributes around 43% in the GSDP followed by the secondary and primary

sectorat29%and28%respectively.Thestateisonitswaytorapidindustrializationand

shareofindustryisalsowitnessinganupwardtrend.

GrossfiscaldeficitofthestateasapercentageofGSDPisestimatedat3.6%(FY2011).It

is lower in comparison to states like Uttar Pradesh, Tamil Nadu, West Bengal and

MadhyaPradeshandhigherthanHaryana,Maharashtra,Karnataka,Rajasthanandthe

newlyformedstateslikeChhatisgarhandJharkhand.

The economic policy of the state mainly focuses on the development of agro & food

processing industry, tourism, IT, textile and biotech. The state offers excellent

infrastructure and environment for undertaking industrial ventures and has attracted

huge industrial investmentsintherecentyears.Ludhianahasbeenregardedasoneof

thebestplacefordoingbusinessinIndia.


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Agriculture plays a significant role in states economy and is popularly known as the

wheatbasketofIndia. Punjabcontributesaconsiderableshareofwheatandricetothe

Central Pool and it stands at second rank at all India level in terms of food grain

production. The per hectare yield of food grains in the state (4148 Kg/ Hectare) is

highest

amongst

the

Indian

states.

The

agroindustrial

policy

of

the

state

is

very

supportiveandpromoteagrounitsandagriinfrastructurerelatedprojects.

Industrialpolicyofthestateoffersagamutof incentivestothe industries.Punjabhas

emergedasakeyhubfortextilebased industries includingyarn,readymadegarments

and hosiery. Special economic zones have been set up for IT and pharmaceuticals

industries. Inadditiontothis,ApparelPark issituatedatLudhianaandBiotechPark in

Chandigarh.

Inservicessector,tourism,bankingandinformationtechnologyaretheimportantareas.

ThestateisendowedwithrichheritageandisoneofthepreferredlocationsinIndiafor

pilgrimagetourism.MohalihasbeendevelopedasITandITeShubinthestaterecently.

Punjabboastsofoneofthemostwellknitanddenseroad,railandtransportnetworkin

India.Thecivilaviationinfrastructureofthestateisalsogood.

On social front, state has performed reasonably well with a very small proportion of

people livingbelow poverty line while literacy rate of the state and per capita health

expenditure is higher than the national literacy levels. However, the unemployment

situationisverycriticalandneedstobeaddressedwithmoreinvestmentincreatingjob

oriented education system. The economy has undergone several changes which have

comeabout

with

the

collaborative

efforts

of

the

government

and

other

stake

holders.

It

isallsettoscalenewheightstoemergeasaneconomywithsustainableand inclusive

growth,goingforward.

Recommendations

Punjab isoneofthefastestgrowingstatesof India.Theshareoftertiarysector inthe

statesGSDP ismost significant followedbysecondary andprimary sector. Inspiteof

beingpredominantlyanagrarianstate,itssharehasbeendecliningovertheyears.High

usage

of

fertilizers

and

chemical

has

deteriorated

the

quality

of

soil

and

rampant

construction of irrigation facilities has depleted the ground water table, which has in

turn affected the quality of soil. Diversification in the farm sector, crop rotation and

organic farming should beencouraged andpromoted in the state to improve the soil

quality and to enhance the crop productivity. The state government should promote

setting up of low cost rain water harvesting techniques such as check dams, which

wouldhelpinraisingwatertablelevels.


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Punjab has to its credit a rich agricultural base and immense potential lies for agro

basedindustriesinthestate.Therefore,stategovernmentshouldpromoteandfacilitate

insettingupspecialeconomiczonesforagroindustrialunitsandbiotechunitsalso. As

one

of

the

leading

producer

of

food

grains,

there

is

a

critical

need

to

provide

warehousingfacilitiesinthestatetostorelargescaleproduction.Itisalsonecessaryto

provide credit to farmers at easy terms to encourage them into diversification of

agriculture.Inadditiontothis,governmentofIndiashouldbringmorecropsunderthe

umbrellaofMinimumSupportPrice,whichwouldhelpfarmerstodiversifytheircrops

apartfromwheatandpaddy.

Theindustrialsectorismainlydominatedbythesmallscaleunitsinthestate,whereas

largeandmediumenterprisesaccounted foraveryminimalshare.Toattainbalanced

industrialgrowth, it isnecessarytohavesmall,mediumand large industrialunits.The

stategovernmentshouldencouragemore investmentforsettinguplargeandmedium

unitscoupledwithpackageofincentivesandpolicies.

Intheservicessector,tourismandbankingarethetwogreyareaswhichneedproper

attention.Tourism in thestate isprimarily religious,however, traditional,wildlifeand

ecotourismcangoa longway inattractingdomesticaswellas internationaltourists.

The creditdeposit ratio of commercial banks in rural area stands at a modest 57.7%.

Thusstategovernmentshouldendeavortostepituptopromotefinancialoutreachto

improveimbalancesincreditdelivery.

Therelieshugepotentialfortheexportsofhandicraftsinthestate,whichwillnotonly

cater

to

the

domestic

need,

but

also

reach

out

beyond

national

borders.

Thus,

state

government should strengthen backward and forward market linkages to revive and

support its wealthy culture. In addition to this, Punjab should also develop its agro

processing zone, to supports it rich agricultural background and exports of agro

commoditiesandfacilitateinaugmentingITexports.

Thedemandforpowerinthestateisrisingsharplyonaccountofrapidlyincreasinguse

ofelectricalenergyforagriculturaloperations,progressive industrialization,high living

standardofresidentsandintensiveruralelectrificationprogramme.Thereisavitalneed

for speedy approvals of power projects, project management techniques, rapid up

skilling

of

manpower,

strengthening

transmission

and

distribution

system

and

taking

on

alterative sources of energy like wind, bio gas, agricultural biomass, would help in

meeting the crippling demand and supply gap and to make the state self reliant and

powersurplus.


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The unemployment situation in the state is crucial and demands attention. Punjab

should promote setting up training centres, skill development centres and should

initiatejoborientededucationsystem,whichwillinturnresolvethealarmingsituation

of unemployment. It is necessary to promote agricultural allied activities, such as

livestock,

to

provide

source

of

livelihood

in

the

state.

In

this

regard,

more

emphasis

mustbelaidonupgradationofthedevelopmentofveterinaryinfrastructuretoprotect

livestock from deadly diseases and increasing their productivity. Employment can be

generatedinalliedactivitieslikefisheriesandmanyothers,whichcarryhighpotentialin

thestate.


37/39



SummaryofeconomicindicatorsGeographicalarea 50362sqkm

Population(Census2011) 2.77crore

GSDPatconstantprices(FY2011) Rs.151941crore

GSDPatcurrentprices(FY2011) Rs.228754

Economicgrowth

(FY2011)

7.78%

Percapitaincome(FY2010) Rs.61035

Growthofagriculturesector* 2.1%

Growthofsecondarysector* 12.8%

Growthofservicessector* 8.4%

CompositionofprimarysectorinrealGSDP^ 23.49%

CompositionofsecondarysectorinrealGSDP^ 32.32%

CompositionofservicessectorinrealGSDP 44.19%

Literacyrate(Census2011) 76.7%

GFD/GSDP 3.6%

RD/GSDP^ 2.2%

PD/GSDP 0.9%

Industrialinvestmentintentions^ Rs.6779cr

Source:PHDResearchBureau,compiledfromvariouspolicypapers

GFD: GrossFiscalDeficit,RD:RevenueDeficit,PD:PrimaryDeficit.

*AveragerealgrowthoverFY06FY11

^DatapertainstoFY201011

^^Datapertainsto2010AnnexureI

CommodityWiseexportsfromPunjab (Rs.Crore)S.No. Commodity FY2009 FY2010

1 Rice 1253 1808

2

ReadymadeGarments

&

Hosiery

1977

2584

3 Cycleandcycleparts 993 951

4 Foodproducts 103 182

5 Engineeringgoods 1023 1137

6 Sportsgoods 457 1196

7 Yarnandtextile 3673 3545

8 Handicrafts 6 21

9 Carpets 5 5

10 LeatherGoods 218 234

11 HandTools 713 949

12 MachineTools 389 343

13 AutoSpares 696 348

14

DieselEngine

73

91

15 SewingMachine 231 14

16 ElectricalAccessories 0 92

17 Drugs 234 814

18 Others 1845 1660

Total 13888 15972

Source:PHDResearchBureau,compiledfromDepartmentofIndustries&Commerce,Punjab

Note:Thesefiguresarepresentedasroundoff.


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SomeImportantContacts

Sector/Area KeyContact

Industry HonbleMinisterofindustries&commerce

Departmentof

industries

&

Commerce

#951,Sector39A,Chandigarh

Ph:01722740788

Infrastructure Chairman,PunjabInfrastructure

DevelopmentBoard,Punjab

Floor2,Pb.CivilSectt.,Sector2,Chandigarh

Ph:0172 2740325,2740769

DepartmentofWaterSupply&Sanitation Secretary,DepartmentofWaterSupply&

Sanitation,

MiniSecretariat,Sector9,Chandigarh

Ph:

0172

2742307

Tourism Director,PunjabTourism,

PunjabArchiveBhawan,

PlotNo3,Sector38A,

Chandigarh

Ph:+91-172-4663140

Labour AssistantLabourCommissioner,Department

ofLabourCommissioner,Punjab,

SCONo.4748,Sector 17E,

Chandigarh160017

Ph:+911722702486

InformationTechnology

Principal

secretary,

SCO

193

195,

sector

34A,

Chandigarh

Ph:01722604892,01722600971

Health&FamilyWelfare MinisterofHealth&FamilyWelfare,Civil

Secretariat,Chandigarh

Ph:01722740199

Energy ChiefExecutive,PunjabEnergyDevelopment

Agency

SolarPassiveComplex,

Plot.no.1&2,Sector33D,Chandigarh,Pin

code:160020

Ph.01722663382,28


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