Deteriorating growth in Punjab: The state should consider alternatives to boost income and employment

Abstract

PUNJAB has been slipping in the ranking of Indian states in the last few decades. The growth rate of Punjab has suffered over the years and the per capita income of Punjab is no more the highest in the country. The per capita income of Kerala, Gujarat, Maharashtra, Haryana, Himachal Pradesh, Sikkim, Tamil Nadu and Uttarakhand exceeds that of Punjab.

An analysis of the components of the gross domestic product of Punjab reveals that agriculture continues to play a prominent role unlike many other states that are recording high growth. The role of manufacturing and services has increased but is much slower than that recorded in other competing states. In the case of agriculture, growth has been largely stubborn and stagnating. In the aggregate, agriculture accounts for nearly one-fourth of the gross state domestic product (GSDP) in Punjab which is in sharp contrast to that of Gujarat, Tamil Nadu, Maharashtra, Sikkim, Kerala and Uttarakhand, where agriculture accounts for less than 10 per cent of GSDP. Even in the case of Haryana, where agriculture has been more productive than Punjab, its share is around 15 per cent of the GSDP. In Haryana, the service sector is nearly four times that of agriculture, while in Punjab it is just about two times. Therefore, given the composition of GSDP and that Punjab is sliding in economic growth relative to the other States, it would be the right strategy to consider alternatives to the existing model of agriculture-dominated growth in Punjab. Read more at: https://www.tribuneindia.com/2014/20140503/edit.htm#6