Punjab:TheStateProfile

Punjab:TheStateProfile

November2011

PHD Research Bureau

PHDChamberofCommerceandIndustry
PHDHouse,4/2SiriInstitutionalArea,AugustKrantiMargNewDelhi110016 Phone:911149545454,Fax:911126855450,26863135 Email:research@phdcci.in,Website:www.phdcci.in
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Punjab:TheStateProfile

Disclaimer Punjab:TheStateProfileispreparedbyPHDChamberofCommerceandIndustryto 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 thisreport.PHDChamberofCommerceandIndustryshallinnoway,beliableforany directorindirectdamagesthatmayariseduetoanyactoromissiononthepartofthe ReaderorUserduetoanyrelianceplacedorguidancetakenfromanyportionofthis publication. Copyright2011 PHDChamberofCommerceandIndustry ALLRIGHTSRESERVED. 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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Foreword
PunjabiswidelyacknowledgedastheGranaryofIndia.Sincethelandisfertileandits free from physical undulation, agriculture has been undertaken very profitable in the state. Although, the state receives scanty rainfall, the rivers in the region provide respite.Majorcropsincludewheat,rice,sugarcane,cottonandoilseeds.Punjabisthe second largest producer of wheat in India. Fodder crops like jowar and bajra are cultivated to a large extent. Oilseed production has a prominent role to play in the state'seconomy. Industrialgrowthinrecentyearshasbeenamajorcontributortothestateseconomy. The excellent infrastructural framework namely connectivity by road, rail and air has paved way for industrial prosperity. The prime industries are textile, food processing, beverages,sportsgoods,engineeringgoods,chemicals,handicrafts,tourismandITand electronics. Punjab offers conducive milieu for industrial investments by providing various policy incentives and good industrial infrastructure. The state is abound with rich cultural traditionandheritagecoupledwithgoodinfrastructure,whichmakesthestate,oneof thefavorabledestinationbydomesticandinternationaltourists.Tourismisoneofthe prominentsectorsofthestateandthereliesimmensepotentialtopromotetraditional tourism. Withtherichagriculturalbasetoitscredit,riceremainstheprominentexportitemfrom thestate.Othermajorprincipalexportsitemsfromthestatearereadymadegarments andhosiery,engineeringgoods,sportsgoodsandyarnandtextile,handtools.Ludhiana, AmritsarandJalandharaccountsmaximumshareinthestatesexports. On social front, state has performed reasonably well with a very small proportion of peoplelivingbelowpovertylineandliteracyrateofthestateishigherthanthenational literacy levels. However, the unemployment situation is critical and needs to be addressed with more investment in creating job oriented education system. The economyhasundergoneseveralchangeswhichhavecomeaboutwiththecollaborative effortsofthegovernmentandotherstakeholders.Itisallsettoscalenewheightsto emergeasaneconomywithsustainableandinclusivegrowth,goingforward. SalilBhandari President

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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 studyhelpsinfurtherpolicyformulatationinthestate,soastoserveasavehicleforits 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. Ihopethatthisreportservesasahandyandinformativereadersguide!

SusmitaShekhar DeputySecretaryGeneral

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Contents
Sr.No
1 2 3 4 5 6 7

Topic

Pageno.

Structureoftheeconomy10 Economicpolicy19 Infrastructure25 Socialinfrastructure27 PerformanceinsixthrustareasfocusedbyPHDChamber31 PunjabBudget20111232 Conclusionsandrecommendations33

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Tables
Tables Grossstatedomesticproductanditscomposition Summaryofsocioeconomicindicators Fiscalindicators IndustrialInvestmentsproposalsinPunjabvisvisIndia PatterninattractingFDI(equity)inflows:Chandigarhregion Summaryofagrostatistics FoodgrainproductioninPunjabvisvisIndia ProductionofwheatandriceinPunjabvisvisIndia Thekeystrategicthrustareas BankingscenarioinPunjab BankstotalcreditanddepositinPunjab InvestmentopportunitiesinPunjab Roadinfrastructure Telecomsubscriberbase Educationalinfrastructure Summaryofhealthindicators Performanceinsixthrustareas Budgetataglance Summaryofeconomicindicators AnnexureI PageNo. 10 11 14 16 16 17 18 19 20 22 23 24 25 27 28 30 31 32 37 37

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Charts
Title GrowthofrealGSDP Compositerankingofthestate Socioeconomicrankingofthestate ComparisonofPunjabwithotherstatesinOverallEconomicFreedom(2009) PatternofpercapitaincomeoftheIndianstates(FY2008) ComparisonofGrossFiscalDeficitasa%ofGSDP(FY2011) Regional(Chandigarh)shareofFDIinIndiastotalFDIinflows ShareofPunjabsfoodgrainproductioninIndiasfoodgrainproduction ShareofPunjabinwheatandriceproductionofIndia Installedpowercapacity(MW) Populationbelowpovertyline(BPL):Punjabamongstotherstates Trendofliteracyrate:PunjabvisvisIndia InfantmortalityrateofPunjabvisvisotherstates Availabilityofsafedrinkingwatertohouseholds PageNo. 10 12 12 13 14 15 16 18 19 26 27 29 29 31

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Abbreviations
BPL BelowPovertyLine BnBillion CDRatio CreditDepositRatio FY FinancialYear GDP GrossDomesticProduct GFD GrossFiscalDeficit GSDP GrossStateDomesticProduct J&KJammuandKashmir IT InformationTechnology IMRInfantMortalityRate ITES InformationTechnologyEnabledServices mnmillion MTMillionTonnes MNCsMultinationalCompanies NSDP NetStateDomesticProduct PD PrimaryDeficit PHC PrimaryHealthCentre PRB PrimaryRevenueBalance PWD PublicWorksDepartment RD RevenueDeficit SEZSpecialEconomicZone TRAI TelecomRegulatoryAuthorityofIndia

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Punjab:TheStateProfile

Punjab

Punjabisastateendowedwithrichculture,tradition,religionandacknowledgedforits selfdependence, selfreliance and glory. It is located in the NorthWestern region of IndiaandisboundedontheWestbyPakistan,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 ofAmritsar, 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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Punjab:TheStateProfile

1.Structureoftheeconomy
Punjab is one of the fastest developing states in India. The state has posted a steady growthduringthelastdecade.TheaveragerealGSDPofthestatehasgrownataround 8% during the last decade (FY02FY11) and has increased more than twofold from aroundRs.71146croreinFY2002toaroundRs.151941croreinFY2011. GrowthofRealGSDP
12 10 8 6 4 2 0 FY2007 FY2008 FY2009 FY2010 FY2011

Source:PHDResearchBureau,compiledfromDepartmentofPlanning,GovernmentofPunjab

Tertiary sector contributes a significant share of around 42% in the GSDP followed by 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 GSDPatcurrentprices(Rscrore) 96694 NSDPatcurrentprices(Rs.Crore) 85703 EconomicGrowth%(GSDPatconstant 24.6 prices) SectoralContributioninGSDPatcurrentprices(%) Primary* 32.5 Secondary** 24.8 Tertiary*** 42.7 FY08 152772 135822 9.25 FY11 228754 203446 7.78

31.2 27.6 41.2

28.0 29.4 42.6

Source: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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Punjab:TheStateProfile

Summaryofsocioeconomicindicators
StateCapital Area(Sq.km) Population(Census2011) PopulationDensity(Sq.Km)Census2011 No.ofDistricts# ImportantRivers Prominenttouristdestinations GSDPatCurrentPrices(FY201011) GSDPatConstantPrices(FY201011) GrowthofGSDPatConstantPrices(FY201011) PercapitaGSDP(200910) FiscalDeficit(FY2011)* Poverty(FY200405) NationalHighwaylength(200910) RailLength(200506) DomesticAirport Internationalairport PerCapitaHealthExpenditure(200405)** LiteracyRate(2011Census) SexRatio(2011Census) KeyIndustries Chandigarh 50,362sq.km 2.77crore 550 22 Ravi,Beas,Satluj,IndusandJhelum Goldentemple,WagahBorder,Anandpur Sahib,JallianwalaBagh. Rs.228754crore Rs.151941crore 7.78% Rs.61,035 3.6% 8.4% 1749kms 2133kms. Chandigarh,LudhianaandPathankot RajaSansiInternationalAirport,Amritsar Rs.1359 76.7% 893 Agroandfoodprocessing,Beverages,ITand knowledge,Textiles,Hoisery,Wollengarments Tourism,Handicrafts,Automobile,Chemicals, MetalandLightEngineering. Ludhiana,Jalandhar,Amritsar,andMohali 10thrank 2ndrank 1strank 5thrank 18thrank 1strank 1strank 11thrank 18thrank 12thrank

MainIndustrialCities Investmentenvironment^ Compositerankingofthestate^ Agriculture^ Macroeconomy^ Labourlaws(2009)^^ Consumermarkets^ Infrastructure^ Legalsystem^^ Labourregulation^^ Overalleconomicfreedomindex^^

Source:PHDResearchBureau,compiledfromDepartmentofPlanning,GovernmentofPunjab,Census2011, GovernmentofIndia,*RBI,**AnnualreporttopeopleonHealth,September2010 #ThestateofPunjabhas22districtswhichcomprisesofsubdivisions,tehsilsandblocks. th ^IndiaToday,29 Nov2010,anarticlebyBibekDebroyandLaveeshBhandari,^^EconomicFreedomoftheStatesof India2011,byLaveeshBhandari,BibekDebroyandSwaminathanAiyarandvariouspolicypapersofGovernment.

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Punjab:TheStateProfile

Compositerankingofthestate

Punjab stands 2nd on the basis of various socioeconomic parameters viz. macro economy, investment environment, infrastructure, agriculture, primary education and consumermarkets. CompositeRankingofthestate
25 20 15 10 5 0
P ra de sh G uj ra t H ar ya n a Ja Ka rn m at m ak u & a K as hm M ah ir a ra A nd sh hr tr a a P ra de sh U tta ra kh an d R aj as th W an e st M B ad e ng h ya al P ra d es h P un ja Ta b m il N ad u O ris sa P ra de C sh hh at is ga rh A ss am Jh ar kh an d a K er al B ih ar

H im ac ha l

Source: PHD Research Bureau, Compiled from India Today, 29 Nov 2010, an article by BIbek Debroy and Laveesh Bhandari Note:Onlybigstateshavebeentakenupwithareaover35000sq.km.andwithpopulationoverfivemillion.

th

Socioeconomicrankingofthestate
Thestatehasbeenranked1stinagriculture,infrastructure,andconsumermarkets,5thin macro economy, 7th in primary health services and 10th in primary education and industrialinvestments.

Socioeconomicrankingofthestate
Infrastructure ConsumerMarkets Agriculture Macroeconomy PrimaryHealth Services IndustrialInvestment PrimaryEducation 0 2 4 6 8 10 12

U tta r

Source:PHDResearchBureau,CompiledfromIndiaToday,29November2010,anarticlebyBibekDebroyandLaveesh Bhandari.Chartdepictingareawithhighestranktothelowestrank

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Punjab:TheStateProfile

The state has been ranked 5th in terms of size, 11th in legal system, 12th in overall economicfreedomand18thinlabourregulation. ComparisonofPunjabwithotherstatesinoveralleconomicfreedom
T ami l Nadu Guj r at A ndhr a P r adesh Har y ana Hi mac hal P r adesh M adhy a P r adesh Raj ast han J har k hand J ammu & K as hmi r K er al a M ahar as ht r a P unj ab K ar nat aka Ut t ar P r adesh Wes t B engal Chhat i sgar h Or i s sa A s sam Ut t ar akhand B i har 0 5 10 15 20 25

Source: PHD Research Bureau, Compiled from Economic Freedom of the States of India 2011, by Laveesh Bhandari, Bibek DebroyandSwaminathanAiyar. Note:Datapertainsto2009

Competitivenessrankingofthestate
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,5thintermsofitseconomicstrength and6thingovernancequality.

Percapitaincome
PercapitaincomeofPunjabisRs.61,035(FY2010),whichisaround38%higherthanthe national average of Rs. 44,345. As per the latest comparable data2 during FY2008, Punjabisrankedatthe5thintermsofpercapitaincomeamongalltheIndianstates.

1 2

CompiledfromStatecompetitivenessreport2004byNationalProductivityCouncil LatestComparabledataofstatesavailablefor2008,EconomicSurveyofGovt.ofIndia201011
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PatternofpercapitaincomeoftheIndianstates
Goa Delhi Haryana Maharasht ra Punjab Gujrat Kerala T amil nadu Himachal Pradesh Karnat aka A ndhra Pradesh Ut t arakhand Sikkim W est Bengal Meghalaya Chhat isgarh A runachal Pradesh T ripura Mizoram Orissa Jammu & Kashmir Rajast han A ssam Jharkhand Manipur Madhya Pardesh Ut t ar Pradesh Bihar 0 20000 40000 60000 80000 100000 120000

Source:PHDResearchBureau,compiledfromeconomicsurveyofIndia201011. DatapertainstoFY2008

FiscalDeficit
Gross fiscal deficit of the state as a percentage of GSDP has increased to 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 less same of around 2% during the same period. Whereas primary revenuebalancehasdeclinedmarginallyfrom0.6%to0.5%duringthesameperiod. FiscalIndicators (%ofGSDP)
Fiscalcomponents GFD/GSDP RD/GSDP PD/GSDP PRB/GSDP FY200508 (Average) 3.1 1.7 0.2 1.6 FY2009 4.0 2.3 1.1 0.6 FY2010(RE) 3.4 2.2 0.6 0.6 FY2011(BE) 3.6 2.2 0.9 0.5

Source:PHDResearchBureau,CompiledfromRBI. RD:RevenueDeficit,GFD:GrossFiscalDeficit,PD:PrimaryDeficit,PRB:PrimaryRevenueBalance. BE:BudgetedEstimates,RE:RevisedEstimates,()signreferstosurplus.

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Punjab:TheStateProfile

Comparisonoffiscalpositionwithotherstates
GrossfiscaldeficitofstateislowerincomparisontostateslikeHimachalPradesh,West Bengal,J&k,UttarPradesh,MadhyaPradeshandTamilNaduandhigherthanthestates like Haryana, Rajasthan, Gujarat, Orissa, Andhra Pradesh, Bihar, Maharashtra ChhatisgarhandJharkhand. ComparisonofGrossFiscalDeficitasa%ofGSDP
Sikkim A s s am Tripura Goa H im ac hal P rades h Wes t Bengal Jam m u & Kas hm ir U ttar P rades h M adhy a P rades h Tam N il adu P unjab H ary ana Kerala R ajas than Gujrat M anipur N agaland Oris s a U ttarakhand Karnataka A ndhra P rades h M eghalay a C hhattis garh Bihar M aharas htra A runac hal P rades h M iz oram Jharkhand

10

12

Source:PHDResearchBureau,compiledfromRBI. DatapertainstoFY2011

Investmentenvironment
Punjab offers conducive milieu for industrial investments by providing various policy incentives and good industrial infrastructure. The state has been able to attract more than Rs. 31000 crore as industrial investment proposals in last four years. However, share of Punjab in Indias industrial investment proposals has remained steady at around0.6%(average20072010)duringtherecentyears. ThestateishometomanylargeIndiancompanies&MNCssuchasRanbaxy,M&M,HCL, Nestle, Dell, IDS Infotech, Hero Group, Gujarat Ambuja and many more. Ludhiana has beenregardedasthebestplacefordoingbusinessinIndia3andisacknowledgeforits readymadegarments,woolengarmentsandhosierygoodsanditsispopularlyknownas Manchester of India. While Jalandhar is widely known for its sports goods, leather products, hand tools, rubber goods, auto parts and electrical goods. Mohali has been developedasITITeShubinthestate.
3

AccordingtoWorldBankStudy2009.
15

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IndustrialInvestmentsproposalsinPunjabvisvisIndia(RsCrore)
Year 2007 2008 2009 2010 2011(uptoJuly) Punjab 5172 9482 9731 6779 10144 India 834249 1523852 1040259 1736322 1199856 Shareof PunjabinIndiastotalinvestment proposals 0.62 0.62 0.94 0.39 0.85

Source:PHDResearchBureau,CompiledfromDepartmentofIndustrialPolicyandPromotion,Govt.ofIndia

FDIinflows
During recent years, the FDI inflows (Chandigarh region)4 in the state have posted an impressivegrowth.However,theregionconstitutesaround1%ofthetotalFDIinflows inIndia. Regional(Chandigarh)shareofFDI*inIndiastotalFDIinflows
Mumba i Ba nga l ore Ahmeda ba d Cha ndi ga rh Pa na ji Ka npur

10

15

20

25

30

35

40

Source:PHDResearchBureau,compiledfromDIPP

FDI inflows in Chandigarh region has increased to US$416 million during FY2011 from US$ 224 million during FY2010 marked growth of more than 85%. The cumulative inflowsfromApril00toJuly11constitutearoundUS$1059million. PatterninattractingFDI(equity)inflows:ChandigarhRegion
Year FY200910 FY201011 CumulativeInflowsfrom (FY01toJulyFY11) FDIinflows(US$mn) 224 416 1059

Source:PHDResearchBureau,CompiledfromDepartmentofIndustrialPolicyandPromotion,Govt.ofIndia.
4

PertainstoPunjab,HaryanaandHimachalPradesh
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Exports
Themajorprincipalcommodityexportitemsfromthestatearereadymadegarments and hosiery, engineering goods, sports goods and yarn and textile, machine tools and handtools.Ludhiana,AmritsarandJalandharconstitutetobetheleadingexportshub withinthestate.Thetotalestimatedcommoditywiseexports5fromthestatestandsat aroundUS$3.5bn6duringFY2010. Themaincropsgrowninthestatearewheat,paddyandsugarcane.Thestatepossesses hugepotentialinagroexports,duetoitsextensivepresenceofagriculturalbase.Rice accountsastheprominentexportitemfromthestate.PunjabhassetupaPermanent Perishable Cargo centre at Amritsar international airport to facilitate and boost the exportoffarmproducts

Agriculture
Thestateeconomyispredominantlyanagrarianeconomyanditispopularlyknownas thewheatbasketofIndia.Thestatecontributesaconsiderableshareinnationalfood 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. Summaryofagrostatistics
Sr.No Components Growth/ratio/production Rs64045Crore 2.69% 27.9% 27224(ThousandTonnes) 11.26% 2nd 4148Kg/Hectare 7724000(Hectare) Twothird 10837(ThousandTonnes) 15828(ThousandTonnes) 540(ThousandTonnes) 18(ThousandTonnes) 71(ThousandTonnes) 4170(ThousandTonnes) 3rd 2nd 1 AgricultureGSDPatCurrentprices(FY2011) 2 GrowthofAgriculture&AlliedrealGSDP(Avg.fromFY2003toFY2011) 3 AgriculturalsectorscontributioninGSDP(FY2011) 4 FoodGrainproduction(FY2010) 5 6 7 8 10 11 12 13 14 15 16 17 Statescontributiontonationalfoodgrainproduction(FY2011) Statesrankinnationalfoodgrainsproduction(FY2011) Yieldtotalfoodgrains(FY2010) Grossareairrigated(FY2009) RiceProduction(FY2011) WheatProduction(FY2011) CoarseCereals(FY2011) Pulses(FY2011) OilSeeds(FY2011) Sugarcane(FY2011) RankinRiceproduction(FY2011) RankinWheatproduction(FY2011)

9 Populationdependentonagriculture

Source:PHDResearchBureau,CompiledfromRBI&MinistryofAgriculture.
5 6

CommoditywiseexportsfromthestatearestatedinAnnexureI Theexchangerateistakenat1US$=Rs.45.73pertainingto2010 17

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PunjabstandsatsecondpositionatallIndialevelintermsoffoodgrainproduction.The states food grain production has grown from 25.32 million tonne in FY2001 to 27.22 milliontonnesinFY11,markingagrowthofmorethan7%. FoodgrainproductioninPunjabvisvisIndia
Year (FY) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Punjab (Million Tonnes) 25.32 24.88 23.49 24.72 25.67 25.18 25.31 26.81 27.32 27.32 27.22 India (Million Tonnes) 196.81 212.85 174.78 213.19 198.36 208.59 217.28 230.78 234.47 218.2 241.56 ShareofPunjabin India(%) 12.86 11.68 13.43 11.59 12.94 12.07 11.64 11.61 11.65 12.52 11.26

Source:PHDResearchBureau,compiledfromRBI,MinistryofAgriculture ShareofPunjabinfoodgrainproductionhasdeclinedovertheyears.Ithascomedown toaround11%inFY2011fromaround13%inFY2001. ShareofPunjabsfoodgrainproductioninIndiasfoodgrainproduction(%Share)

14 13.5 13 12.5 12 11.5 11 10.5 10 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Source:PHDResearchBureau,compiledfromRBI,MinistryofAgriculture

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
Year (FY) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Punjab(MillionTonnes) Rice Wheat 9.15 15.55 8.81 15.49 8.88 14.17 9.65 14.48 10.43 14.69 10.19 14.49 10.13 14.59 10.48 15.72 11.00 15.73 11.23 15.54 10.83 15.82 India(MillionTonnes) Rice Wheat 85.06 69.75 93.43 72.83 72.66 65.10 88.61 72.22 83.13 68.63 91.79 69.35 93.35 75.80 96.69 78.57 99.18 80.67 89.30 80.98 95.32 85.92 ShareofPunjabinIndia (%) Rice Wheat 10.75 22.29 9.42 21.26 12.22 21.76 10.89 20.04 12.54 21.40 11.10 20.89 10.85 19.24 10.83 20.00 11.09 19.49 12.57 19.18 11.36 18.41

Source:PHDResearchBureau,compiledfromRBI,MinistryofAgriculture

TheshareofPunjabintheIndiastotalriceproductionhasremainedmoreorlesssame during the last decade. While share in wheat production of India has declined from around22%duringFY2001toaround18%inFY2011. ShareofPunjabinWheatandRiceproductionofIndia(%)
25 20 15 10 5 0 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Ri ce Whe a t

Source:PHDResearchBureau,compiledfromRBI,MinistryofAgriculture

2.EconomicPolicy
Punjab has immense potential to emerge as one of the most economically developed stateinIndia.Thestateofferswiderangeofsubsidies,fiscalandpolicyincentivesand 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, readymade garments and hosiery. The state has successfully established Food Park at Fatehgarhdistrict,ElectronicsTownship(ELTOP)atMohaliforpromotionandgrowthof ITandelectronicsindustryinthestateandBiotechparkinChandigarh.
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Punjab:TheStateProfile

Thekeystrategicthrustareas
Agroindustries Rich agricultural base; competitive advantage in wheat, paddy, cotton, potatoes, citrus,chilly. Highfertility Agroproduceexports Foodpark Textilehub Dominatedbysmallscaleunits NIIFT has been set up in Mohali for providing qualitative manpower to textile industry ApparelparkatLudhiana. ElectronicsTownship(ELTOP)atMohali ITSEZParksatJalandhar,KapurthalaandRupnagar Powertarifftobechargeatindustrialrateandonactualunitsconsumed 100%stampdutyreimbursementandexemptiontodeveloper Exemptionfromlandusezoningregulationsandconversioncharges Richculturaltraditionandheritage Single window clearances facility for speedy approvals and availability of land for constructinghotels. ImmensepotentialtobeaTouristhub

Textile

ITandElectronic

Tourism

Source: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: Special package of incentives and concession are provided for agro based 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.

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Punjab:TheStateProfile

AgroIndustriespolicy,2009 Punjab has been in the forefront of the Green revolution in the late sixties and the seventies,withabundantagrobase.Withaviewtodevelopagroindustries,thestate, governmenthasannounceditsagroindustrypolicyin2009.Majorincentivesprovided 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 technologiesinareaofagroprocessingindustries,internationalstandardscertification andforpatentregistration. ThestateisloweringthethresholdlimitforinvestmentfromRs.100croretoRs.25 croreformegaprojectsrelatedtoagrounits. Toincreaseexportsoffruitsandvegetablesandvalueaddedagriproducts.

Services
During the last decade, the services sector has performed significantly better and has come out to be as a major segment in contributing to its economic growth. 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 providing conducive environment to foster the growth of IT industry. Punjab provides gamutofincentivesinordertomakethestateapreferreddestinationforemergingIT businessopportunities.Someofthekeyincentivesofferedbythestateareexemption from electricity duty for five years, statutory power cuts and restriction of peak load. hours,reimbursementofstampdutytoITunits,providingcapitalsubsidies,andother incentivestoITUnitsforqualitycertifications. The state has extended venture capital fund with corpus of Rs. 20 crore along with a 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.
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Punjab:TheStateProfile

Tourism Punjab Tourism policy of 2003 aims at promoting tourism in the state to enhance employment and economic growth. The state has a rich culture and heritage coupled with good tourism infrastructure, which makesit one of the favorabledestinations 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,followedbyprivatesectorbankswith 428branches,regionalruralbankswith251branchesandforeignbankswith8branches. BankingscenarioinPunjab(March2011)
BanksinPunjab No.ofofficesin No.ofoffices Punjab inIndia 2268 822 428 251 8 3777 43908 17899 11347 15658 298 89110 OfficesinPunjab as%oftotal 5.2 4.6 3.8 1.6 2.7 4.2

NationalisedBanks SBIanditsassociates PrivateSectorBanks RegionalRuralBanks ForeignBanks Total

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 the same period. However, credit deposit ratio in rural areas stands at around 57.7%.
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Punjab:TheStateProfile

BankstotalcreditanddepositsinPunjab(March2011)
Components Deposit Punjab Credit Deposit Credit deposit ratio(%) 83.6 1171917 78.9 58.4 69.4 55.4 77.3 2875049 236405 163928 979,212 5426510 India Credit Credit deposit ratio(%) 77.1 74.9 83.7 59.9 74.0 75.1

SBIanditsassociates NationalisedBanks ForeignBanks RegionalRuralBanks PrivateSectorBanks Total

40518 93058 471 3031 16659 153,737

33865 73430 275 2102 9235 118,906

902979 2153335 197959 98244 724,351 4076868

Source:PHDResearchBureau,compiledfromRBI

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Punjab:TheStateProfile

InvestmentopportunitiesinPunjab
Agrobased,food processing& beverages Punjab is endowed with rich agricultural base and it is popularly known as wheat basket of India. The state offers rich fertility, gamut of incentives and packages for the growth of agricultural output and carry immense potential for setting up agro basedindustrialunits.Thestateisoneoftheleadingproducersoffoodgrainsand contributes significantly to the nations food grain basket. The state has food park locatedinFatehgarhSahibdistrict.Inordertospeeduptheinvestments,thestate haslowereditsthresholdlimitforinvestmentfromRs.100croretoRs.25crorefor megaprojects. Thestateisaleadingproducerofbicycleandbicyclepartsanditisalsoamongstthe majorproduceroftractor,autoandtwowheelerparts.Italsocaterstotheneedsof foreignautomarket. To facilitate biotech industries, state has provided special package of incentives underitsBiotechpolicy,2006.Provisionforsettingupnewbiotechnologyinstitutes for research anddevelopment,creation of PunjabBiotech Promotion Board(PBPB) to attract investments are the key initiatives taken up by the state. The state has establishedBiotechparksituatedinChandigarhtoprovidefavorableenvironment. Punjabhasadistinguishedtraditionofartandculture.ThestatehassetupPunjab SmallIndustries&ExportCorporationLimitedtoprovideconduciveenvironmentand supporttodevelopsmallscaleindustriesandtomarketthehandicraftsproducts,the corporation has openeda chain of emporia named as Phulkari in major cities of Punjab. State government is highly focused on developing necessary Infrastructure, development of human capital, proactive engagement with investors and effective policy implementation so as to create a conducive milieu for IT industry. The state has offered a gamut of 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 the knowledge based industries. Land has been already acquired for twoselfcontainedmixeduseandintegratedinformationtechnologyandknowledge industry parks spread over 1350 acres at Rajpura and 226 acres at village Jhall ThikriwalaindistrictKapurthala.ElectronicsTownship(ELTOP)hasbeenestablished atMohaliforpromotionandgrowthofITandelectronicsindustryinthestate. ThestatehasemergedasahubfortextileindustryandhassetupApparelparkat Ludhiana.Textilepolicyofthestateofferagamutofincentivessuchascreationof infrastructure through cluster development, maximum utilization of Central GovernmentsTechnologyUpgradationFundScheme(TUFS),reductionofelectricity duties and assistance in acquiring land for textile related projects. Northern India Institute of Fashion Technology has been set up in Mohali for providing qualitative manpower to textile industry. Ludhiana is known for its readymade garments, woolengarmentsandhosierygoods. Tourismindustryhasbeenaccordedasoneofthekeythrustareasinthestate.With rich cultural tradition and heritage coupled with good infrastructure, the state has emergedasoneofthefavorabletouristdestination.Thestatehasprovidedvarious incentives under its Tourism policy such as tax incentives, single window clearance facility and provision of loans for Tourism related projects. The government of Punjab has set constituted the Punjab Heritage & Tourism Promotion Board under chairmanshipofChiefMinister.ThestategovernmenthasallocatedgrantofRs.100 crore, for preservation and maintenance of heritage buildings in annual budget for thisfiscal.

Autoparts industry Biotechnology

Handicrafts

Information technology& knowledge industry

Textiles

Tourism

Source:PHDResearchBureau,compiledfromvariouspolicypapers

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3.Infrastructure
Infrastructureisavitalsectorforthedevelopmentoftheindustryandeconomy.The stateoffersexcellentinfrastructureandhasbeenrankedfirstamongstthebigstatesin termsofinfrastructure7.PunjabhasalsobeendeclaredasoneofthebeststatesinIndia intermsofrail,roadandtransportnetwork8. Thestategovernmentisworkingtowardsthedevelopmentofinfrastructuretopromote industry,commerceandtradeinthestate.Tofacilitateinvestmentsinirrigation,roads, urbandevelopment,medicaleducation,power,healthandotherimportantsectors,an amountofRs.916crorehasbeenallocatedforFY201112. RoadsRoadsarethemajormodeoftransportationservicesavailableinPunjab.The state has an extensive 60881 km network of roads comprising of 1749 km of national highways, 1479 km of state highways, 2112 kms of major district roads, 4482 km of otherdistrictroadsand51059kmofvillagelinkroads.Severalinitiativesandroadup gradationprojectshavebeenundertakenbythestate.AsumofRs.986croreincluding has been allocated by the state for the development of road infrastructure and transportduringthisfiscal.
Roadinfrastructure Categoryofroad LengthinKms NationalHighway 1749 StateHighway 1479 Majordistrictroads 2112 Otherdistrictroads 4482 Villagelinkroads 51059
Source:PHDResearchBureau,CompiledfromAnnualPlan,FY2011.

RailwaysTherailwaysplayasignificantroleinthestate.Itconnectsmajorindustrial unitssuchasoilrefining,cement,fertiliser,thermalpowerandmanufacturingsectorsto suppliersandmarkets.Punjaboffersgoodrailwayinfrastructureanditsnetworkspans over 2,098 km. The main interstate railway routes are AmritsarAmbalaDelhi, SriganganagarAmbalaDelhi,FerozpurLudhianaAmbala,PathankotRoopnagar fatehgarhSahibandSriganganagarBhatindaNarwana. AviationThestatehasmadeconsiderableprogressinthefiledofcivilaviation.Punjab hasthreedomesticairportswhicharelocatedinChandigarh,LudhianaandPathankot. TheInternationalflightsoperatefromtheRajaSansiInternationalAirportatAmritsar.
7 8

CompiledfromIndiatodayTheStateoftheStatesstudy,2010byBibekDebroyandLaveeshBhandari AspertotheNationalCouncilofAppliedEconomicResearch(NCAER),2007
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Punjab:TheStateProfile

In the annual budget of FY201112, a sum of Rs. 24 crore has been earmarked for up gradationandextensionofairterminalsandaerodromes.ThenewGreenfieldLudhiana airport is proposed to be developed by the state as an aerotropolis (a modernage conceptofatownshiporientedairportsimilartotheSingaporeandFrankfurtmodels) withatotaloutlayofUS$3.8billion.Ontheotherhand,constructionofnewairports 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)
7000 6800 6600 6400 6200 6000 5800 200506 200607 200708 200809 200910

Source:PHDResearchBureau,compiledfromeconomicsurveyofPunjab,2011,IBEF.

UrbanInfrastructureUrbaninfrastructureservices(includingwatersupply,sanitation, drainage,solidwastemanagement)arereasonablygoodintheurbancentresofPunjab. ThestateisfocusingonchannelisingtheinvestmentsfrombothwithinIndiaandabroad topromoteurbandevelopmentinabigway.Newtownplanningnormsandquality

*AnnualLoadGenerationBalancereport(201112)

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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 Small and Medium Towns (UIDSSMT), sum of amount Rs. 202 crore has been released for the 17 projects in the 14 towns. While underIntegratedHousing&SlumDevelopmentProgramme(IHSDP),amountofRs.23 crorehasbeenreleasedfortheconstructionof2475housesinJalandharandRajpura. TelecomAccordingtoTRAI,thetotalsubscriberbaseofPunjabwas3.2crorewitha shareof3.59%inIndiastelecomsubscriberbase9.Punjabcontributesaround3.55%in totalwirelesssubscribersinIndiaandaround4.51%inwirelineconnectivityinIndia. Telecomsubscriberbase
NameoftheRegion Punjab India ShareofPunjabinIndia(%) Wirelesssubscriber 30517574 858368708 3.55% Wireline subscriber 1543842 34179478 4.51% Total 32061416 892548186 3.59%

Source:PHDResearchBureau,compiledfromTRAI,endJuly2011.

4.Socialinfrastructure
PovertyPunjabhasdonereasonablywelltoreduceitspoverty,withonly8.4%ofthe populationlivingbelowthepovertyline(BPL)asagainstthenationalaverageof27.5%. However,itishigherthanthatofhillystateofJammu&Kashmirwith5.4%population livingbelowthepovertyline. PopulationBelowPovertyLine(BPL):Punjabamongstotherstates FY200405(%Population)
Maharas htra Al l Indi a Karnataka UttarPrades h Guj rat Keral a Haryana Punj ab Jammu&Kas hmi r 0 5 10 15 20 25 30 35

Source:PHDResearchBureau,CompiledfromAnnualReporttoPeopleonHealth,September2010 Note: Empowered Action Group (EAG) Scheme has been launched by Ministry of Health and Family Welfare and it coverstheaboveeightstates.

DatapertainstoendJuly,2011
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Punjab:TheStateProfile

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 3.7811lakhs,outofwhich2.66lakhswereeducatedunemployed.Amongsttheeducated jobseekers,76.93%werenontechnicalwhereas23.07%hadtechnicalqualifications. Education Educationisthesinglemostimportantinputinpromotinghumanresource development.Thestategovernmentistakingspecialmeasuresfortheupgradationof educationlevelinthestate.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 of FY2012 .Punjab has also taken an initiative to set up 123 Adarsh schools to provide qualityeducationtothepoorandmeritoriousstudents,15Adarshschoolshavealready beenmadefunctional. EducationalInfrastructure
TypeofInstitution Universities Arts,Commerce,HomeScience&Science Colleges High/SeniorSecondarySchools MiddleSchools PrimarySchools Enrolmentinschool(30Sep,2009) Enrolmentincolleges(30Sep,2007) Number 7 234 5146 3920 14160 38.17* 271791

Source:PHDResearchBureau,compiledfromPunjabStatePlanningBoard. *InLakhs Note:DataAson30Sep2010

TheliteracyrateofPunjabhasbeenveryimpressiveoverthelasttwodecadesanditlies abovethenationalaverageliteracylevels.Thestatehasliteracylevelat76.7%12,which ishigherthanthenationalaverageofaround74.0%.

ReportonEmploymentandUnemploymentSurvey,GovernmentofIndia.(200910) Thisdatapertainstoonlythoseunemployedpersonswhoregisterthemselveswiththeemployment exchange 12 AccordingtotheCensusofIndia2011.
11 10

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Punjab:TheStateProfile

Trendofliteracyrate:PunjabvisvisIndia
100 80 60 40 20 0 FY71 FY81 FY91 Punjab India FY01 FY11

Source:PHDResearchBureau,CompiledfromEconomicSurveyofIndia201011,censusofIndia2011

Punjab ranks 15th in literacy rate among all states of India. It is poor as compared to stateslikeUttarakhand,GujaratandMaharashtra,howeveritisbetterthanStateslike Haryana,UttarPradeshandRajasthan. Trendinliteracyincomparisonwithotherstates
K erala M iz ram o Tripura G oa Delhi Himachal Pradesh M aharashtra S ikkim Tamil Nadu Nagaland M anipur U ttarakhand G ujarat W est Bengal Punjab Hary ana K arnataka M eghalay a O rissa Assam Chattisgarh M adhy a Pradesh U ttar Pradesh Jammu and K ashmir Andhra Pradesh Jharkhand Rajasthan Arunachal Pradesh Bihar 0. 00% 1 00% 0. 20. 00% 30. 00% 40. 00% 50. 00% 60. 00% 70. 00% 80. 00% 90. 00% 1 00. 00%

Source:PHDResearchBureau,CompiledfromEconomicSurvey201011

HealthTheStateGovernmenthasgiventopprioritytoaugmenthealthinfrastructure in terms of construction of 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.
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SummaryofHealthIndicators
PerCapitaHealthExpenditureNHA0405* InfantMortalityRate* Lifeexpectancyatbirth(200206)* BirthRate DeathRate Hospitals(Numbers) CommunityHealthCenter(Numbers) Dispensaries(Numbers) PrimaryHealthCenters(Numbers) AyrvedicandUnaniHospitals(Numbers) HomeopathicInstitutions(Numbers) BedInstalledinmedicalinstitutionAllopathy(Numbers) Rs.1359 41per1000livebirths 69.4years 17.3perthousand 7.2perthousand 63 129 1309 446 529 107 20375

Source:PHDResearchBureau,CompiledfromPunjabPlanningBoard,Datapertainsto.2010and*compiledfromAnnual reporttopeopleonHealth,September2010

There is a huge scope to improve the percapita 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
60 50 40 30 20 10 0 Ta mi l Na du Ma ha rs htra Punja b Ja mmu& Ka s hmi r Gujra t Andhra Pra de s h Ha rya na 31 33 49 41 50 52 54

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 statesintheavailabilityofsafedrinkingwaterto97.6%householdsinPunjabwhichis significantlyhighascomparedtothenationalaverageof77.9%.
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Punjab:TheStateProfile

AvailabilityofSafedrinkingwatertohouseholds(%)
Punjab UttarPradesh Haryana Gujrat Maharshtra MadhyaPradesh Rajasthan 0 20 40 60 80 100 120

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. Performanceinsixthrustareas
Agricultureand 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. Thestateoffersgoodeducationalinfrastructurewithliteracylevelof76.7%, which is higher than that of national average of 74.4%. The state has undertakenseveralinitiatesinregardstotheupliftmentanddevelopmentof femalepopulationandisprogressingtowardsinachieving100%literacy. Thesatehasdonefairlywellinprovidinghealthfacilitiesandhaspostedan impressiveperformanceonaccountofreductionofinfantmortalityrateand improvement in child sex ratio. The state has a good network of hospitals andhealth centres. Punjabhas initiated various schemes to provide health servicestothepeopleresidinginfarflungareas. The state government is facilitating in constructing houses for poor by providinggamutofincentivessuchaspurchaseoflandhasbeenexempted from stamp duty, registration fee and other related licenses fee. Punjab UrbanDevelopmentAuthorityconstructshousesundervariousschemesfor
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EducationandSkill Development

Health

Housing

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Punjab:TheStateProfile economicallyweakersectionsofthesocietyandprovidesthematsubsidised rates.However,thereislottobedoneinthisregard,toprovideaffordable houses to the dwellers of the state especially to the larger section of the statewhoresideinruralareas. Punjab has a well diversified and stable industrial environment. Textile, Tourism,Handicrafts,AgribusinessandITindustryarethethrustindustries ofthestateinwhichPunjabhasperformedverywell.Thestategovernment hastakenspecialmeasuresfordevelopmentofindustrialsectorandisonits waytorapidindustrializationthroughcoordinatedsetofpolicies,incentives and excellent infrastructure. The state has set up Electronic Township at MohaliforITindustries,Apparelparkatludhianaandhasemergedasahub fortextileindustry. The statehas one ofthe excellent infrastructure in field of roads, aviation and railways. However, the state is currently crippled with power deficit. Variousprojectshavebeenundertakeninthisregardsuchassettingupof four new thermal plants namely Talwandi Sabo 1980 MW, Rajpura 1400 MW, Goindwal Sahib 540 MW, Gidderbaha 2640 MW, to make it a power surplusstate.

Industry

Infrastructure

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. ThesocialsectorsintotalhavereceivedRs.3314foreducation,highereducation,health and social security. A sum of Rs. 15 crore has been provided by the state to establish Maharaja Ranjit Singh Armed Forces Preparatory Institute, with a view to generate employmentopportunitiesandsilldevelopmentinthestate. Greaterstresshasbeenlaidonwelfareofscheduledcastesandotherweakersections ofthesociety.AnoutlayofRs.275crorehasbeenearmarkedforwelfareofscheduled
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Punjab:TheStateProfile

castes/backward classes. The pension of freedom fighters and families has been proposedtoincreasetoRs.5000permonth.Ontheotherhand,asumofRs.142crore hasbeenearmarkedforsportsandyouthservices. Budgetataglance(Rs.Crore)
1 2 3 4 5 6 7 RECEIPTS OpeningBalance RevenueReceipts PublicDebt(Gross) LoansRecoveries PublicAccount(Net) CapitalReceipts(3+4+5) Total1+2+6 20112012(BE) 260.73 32026.76 13122.94 80.35 3408.81 16612.1 48378.13 EXPENDITURE RevenueExpenditure CapitalExpenditure PublicDebtRepayment LoansandAdvances Total ClosingBalance Total 2011 2012(BE) 35405.75 5418.34 7686.41 84.35 48594.85 216.72 48378.13

Source:PHDResearchBureau,CompiledfromStatebudgetofPunjab201112

7.ConclusionsandRecommendations
Punjab,thestateendowedwithrichcultureandtraditioniswidelyacknowledgedforits selfdependence,selfrelianceandglory.ThelandoffiveriversislocatedintheNorth 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. PunjabisoneofthefastestdevelopingstatesinIndia;thestateeconomyhasgrownat anaveragegrowthofaround8%duringthelastdecade(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 hugeindustrialinvestmentsintherecentyears.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. Industrialpolicyofthestateoffersagamutofincentivestotheindustries.Punjabhas emergedasakeyhubfortextilebasedindustriesincludingyarn,readymadegarments and hosiery. Special economic zones have been set up for IT and pharmaceuticals industries.Inadditiontothis,ApparelParkissituatedatLudhianaandBiotechParkin 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 living below 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 comeaboutwiththecollaborativeeffortsofthegovernmentandotherstakeholders.It isallsettoscalenewheightstoemergeasaneconomywithsustainableandinclusive growth,goingforward. Recommendations PunjabisoneofthefastestgrowingstatesofIndia.Theshareoftertiarysectorinthe states GSDP is most significant followed by secondary and primary sector. In spite of 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 be encouraged and promoted 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 large and medium enterprises accounted for a very minimal share. To attain balanced industrialgrowth,itisnecessarytohavesmall,mediumandlargeindustrialunits.The stategovernmentshouldencouragemoreinvestmentforsettinguplargeandmedium unitscoupledwithpackageofincentivesandpolicies. Intheservicessector,tourismandbankingarethetwogreyareaswhichneedproper attention. Tourism in the state is primarily religious, however, traditional, wildlife and eco tourism can go a long way in attracting domestic as well as international tourists. 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,progressiveindustrialization,highliving standardofresidentsandintensiveruralelectrificationprogramme.Thereisavitalneed for speedy approvals of power projects, project management techniques, rapid up skillingofmanpower,strengtheningtransmissionanddistributionsystemandtakingon 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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Punjab:TheStateProfile

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.

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Punjab:TheStateProfile

Summaryofeconomicindicators
Geographicalarea Population(Census2011) GSDPatconstantprices(FY2011) GSDPatcurrentprices(FY2011) Economicgrowth(FY2011) Percapitaincome(FY2010) Growthofagriculturesector* Growthofsecondarysector* Growthofservicessector* CompositionofprimarysectorinrealGSDP^ CompositionofsecondarysectorinrealGSDP^ CompositionofservicessectorinrealGSDP^ Literacyrate(Census2011) GFD/GSDP^ RD/GSDP^ PD/GSDP^ Industrialinvestmentintentions^^ 50362sqkm 2.77crore Rs.151941crore Rs.228754 7.78% Rs.61035 2.1% 12.8% 8.4% 23.49% 32.32% 44.19% 76.7% 3.6% 2.2% 0.9% Rs.6779cr

Source:PHDResearchBureau,compiledfromvariouspolicypapers GFD:GrossFiscalDeficit,RD:RevenueDeficit,PD:PrimaryDeficit. *AveragerealgrowthoverFY06FY11 ^DatapertainstoFY201011 ^^Datapertainsto2010 AnnexureI

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. PHDResearchBureau
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Punjab:TheStateProfile

SomeImportantContacts
Sector/Area Industry KeyContact HonbleMinisterofindustries&commerce Departmentofindustries&Commerce #951,Sector39A,Chandigarh Ph:0172 2740788 Chairman,PunjabInfrastructure DevelopmentBoard,Punjab Floor2,Pb.CivilSectt.,Sector2,Chandigarh Ph:01722740325,2740769 Secretary,DepartmentofWaterSupply& Sanitation, MiniSecretariat,Sector9,Chandigarh Ph:01722742307 Director,PunjabTourism, PunjabArchiveBhawan, PlotNo3,Sector38A, Chandigarh Ph:+91-172-4663140 AssistantLabourCommissioner,Department ofLabourCommissioner,Punjab, SCONo.4748,Sector17E, Chandigarh160017 Ph:+911722702486 Principalsecretary,SCO193195,sector34A, Chandigarh Ph:01722604892,01722600971 MinisterofHealth&FamilyWelfare,Civil Secretariat,Chandigarh Ph:01722740199 ChiefExecutive,PunjabEnergyDevelopment Agency SolarPassiveComplex, Plot.no.1&2,Sector33D,Chandigarh,Pin code:160020 Ph.01722663382,28

Infrastructure

DepartmentofWaterSupply&Sanitation

Tourism

Labour

InformationTechnology

Health&FamilyWelfare

Energy

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Punjab:TheStateProfile

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