Last updated: Jan, 2024
Introduction
Punjab, one of the northernmost states of India, is bordered by the Pakistani province of Punjab to its west, Jammu & Kashmir in the north, Himachal Pradesh in the northeast, Haryana in the south and southeast, and Rajasthan in the southwest.
The state’s GSDP (in Rs.) increased at a CAGR of 7.54% between 2015-16 and 2023-24.
As of September 2023, Punjab has a total installed power generation capacity of 14,349.59 MW, with 3,923.69 MW under the central sector, 3,281.20 MW under state utilities, and 7,144.70 MW under the private sector. Of the total installed power generation capacity, 8,364 MW was contributed by thermal power, 3,818.28 MW by hydropower, and 1,970.50 MW was generated from renewable energy.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in the state stood at US$ 1,031.59 million between October 2019-June 2023.
Recent Developments in Key Sectors:
- The Punjab Cabinet has approved Punjab Electric Vehicle Policy (PEVP)-2022 with a move to check the environmental pollution due to emission from vehicles. The policy desires to reduce vehicular emission, create infrastructure, manufacturing, research and development, job creation, ensuring sustainability, besides establishing Punjab as a favored destination for manufacturing of electric vehicles, components and batteries.
- In October 2022, Punjab Minister Mr. Aman Arora stated that the state government would release a new affordable housing policy, the draft of which has been posted on the official website for public comments.
- In October 2022, Mr. Harjot Singh Bains, the Minister of Education for Punjab, announced that a first tranche of Rs. 17.49 crore (US$ 2.12 million) had been released to address the lack of classroom space in 17 districts' public schools.
- In September 2022, the Punjab government announced that TestingXperts, the world’s fifth-largest pure-play quality assurance and software testing firm, will open an ‘Innovation and Delivery Centre’ in Mohali with an investment of Rs. 160 crore (US$ 19.44 million).
- In September 2022, the World Bank approved a US$ 150 million loan to Punjab to enhance access to public services and assist the state in managing its budgetary resources better.
- In September 2022, the Housing and Urban Development Department announced that it would soon decentralise the authority to provide building plans, completion certificates, and change of land use (CLU) certificates to allow quicker turnaround times for cases.
- Total merchandise exports from Punjab stood at US$ 7.09 billion in FY22, and US$ 6.58 billion in FY23.
- On April 27, 2022, Punjab Director General of Police (DGP), Mr. VK Bhawra, inaugurated a state-of-the-art ‘Punjab Road Safety and Traffic Research Centre’ in Mohali to reduce road accident fatalities using futuristic scientific tools of artificial AI and machine learning.
- In April 2022, Punjab’s Minister of Health, Dr. Vijay Singla, announced plans to set up 333 urban wellness centres in urban and semi-urban areas across the state.
- In September 2021, the Punjab government approved a policy to develop 50-acre townships in New Chandigarh (Mullanpur) due to the rising demand for affordable housing in Chandigarh and Mohali.
- Under the Samagra Shiksha initiative, the Union Ministry of Education authorised a budget of Rs. 1,126 crore (US$ 152.91 million) for school education and teacher training in Punjab for FY22.
- In June 2021, the National Highways Authority of India (NHAI) announced planned infrastructure development work worth Rs. 1,417 crore (US$ 194 million) in Punjab for the current fiscal (FY22). The annual plan will cover 295 kms of national highways.
- In March 2021, Union Minister of Education Ramesh Pokhriyal ‘Nishank’ announced opening of a new Kendriya Vidyalaya in Punjab.
- Under the State Budget 2021-22:
- Rs. 2,449 crore (US$ 337.46 million) has been allocated for roads and bridges, of which funds worth Rs. 575 crore (US$ 79.23 million) were allocated to upgrade, construct and repair 560 kms of roads and bridges in FY22.
- Total funds worth Rs. 160 crore (US$ 22.05 million) were proposed for improvement of 124 rural roads.
- A total of Rs. 250 crore (US$ 34.45 million) has been set aside, under the Central Road Fund (CRF) scheme, for various works on 308 kms of road.
- Rs. 3,822 crore (US$ 526.65 million) has been allocated for health and family welfare to strengthen the health infrastructure of the state.
- Rs. 1,600 crore (US$ 220.47 million), Rs. 1,400 crore (US$ 192.91 million) and Rs. 114 crore (US$ 15.71 million) have been allocated for Smart Cities, AMRUT and Swachh Bharat Mission (Urban), respectively.
- In 2021-22, the total production of horticulture crops in the state was estimated to be 8,106.77 thousand metric tonnes and area under production was 439.56 thousand hectares. In 2021-22, the total production of vegetables and fruits was estimated at 5,758.47 thousand metric tonnes and 2,202.10 thousand metric tonnes, respectively.
- In FY22, basmati rice exports from the state stood at US$ 318.27 million.
- In the Rabi Marketing Season 2021-22, Punjab was the country’s top wheat procurer, with 132 lakh metric tonnes (LMT) of procurement at minimum support price.
- The state has emerged as a key hub for textile-based industries including yarn, readymade garments, and hosiery. With the development of apparel parks, favourable textiles policy and other incentives for the creation of textile infrastructure, the state offers numerous opportunities for investment. Punjab is the source of 95% of India’s woollen knitwear production, 85% of India’s sewing machine production, and 75% of India’s sports goods production.
- In FY22, Punjab exported cotton yarn worth US$ 674.58 million and ready-made garments (manmade fibres) worth US$ 136.60 million.
