About Punjab
The first known documentation of the word ‘Punjab’ is in the writings of Ibn Batuta, who visited the region in the fourteenth century. The term came into wider use in the second half of the sixteenth century, and was used in the book Tarikh-e-Sher Shah Suri (1580), which describes the construction of a fort by ‘Sher Khan of Punjab’.
Reference of ‘Punjab’ can also be found in volume one of “Ain-e-Akbari”, written by Abul Fazal, where ‘Punjab’ describes the territory that can be divided into provinces of Lahore and Multan. Similarly, in the second volume of Ain-e-Akbari, the title of a chapter includes the word ‘Panjnad’ in it.
However, the first mentioning of Sanskrit equivalent of ‘Punjab’ occurs in the great epic, the Mahabharata, where it is described as pancha-nada, which means ‘country of five rivers’. The Mughal King Jahangir also mentions the word Panjab in ‘Tuzk-i-Janhageeri’, derived from Persian and introduced by the Turkic conquerors of India, literally means “five” (panj) “waters” (ab), i.e., the Land of Five Rivers, referring to the five rivers which go through it. It was because of this that it was made the granary of British India.
It is one of the most ancient civilizations in the world with a distinguished culture. Punjabi language has its origins in the Indo-European family of languages which included Persian and Latin. A land of ethnic and religious diversity, it is birth place of a number of religious movements. Some of the prominent ones include Sikhism, Buddhism and many Sufi schools of Islam.
The Indian State of Punjab was created in 1947, when the partition of India split the former Raj province of Punjab between India and Pakistan. The mostly Muslim western part of the province became Pakistan’s Punjab Province; the mostly Sikh eastern part became India’s Punjab state. The partition saw many people displaced and much intercommunal violence, as many Sikhs and Hindus lived in the west, and many Muslims lived in the east. Several small Punjabi princely states, including Patiala, also became part of Indian Punjab.
Agriculture is the mainstay of Punjab’s economy. Other major industries include manufacturing of scientific instruments, electrical goods, financial services, machine tools, textiles, sewing machines etc.
Punjab has made considerable economic progress after Independence despite the setback it suffered in 1947. It contributes nearly two thirds to the total production of food grains and a third of milk production in the country. It is the leading producer of wheat, thereby contributing to the national food security. The initiative of Green revolution (a major agricultural initiative) has been keenly taken forward by the people of Punjab. Even though Punjabis account for less than 2.5% of the Indian population, they are one of the most prosperous races in India. Their per capita income is twice the national average.
Punjab is considered to have the best infrastructure in India; this includes road, rail, air and river transport links that are extensive throughout the region.
| Demographic label | Value |
|---|---|
| Districts | 23 |
| Sub-divisions | 93 |
| Tehsils | 91 |
| Sub-tehsils | 81 |
| Blocks | 153 |
| Area (2012 Census) | 50,362 Sq.Km |
| Towns (2012 Census) | 166 |
| Total Villages (2011 Census) | 12953 |
| Population (2011 Census) | |
| Actual Population | 277.43 (in lakhs) |
| Rural | 173.44 |
| Urban | 103.99 |
| Male | 146.39 |
| Female | 131.03 |
| Total Child Population (0-6 Age) | 30.7 |
| Male Population (0-6 Age) | 16.6 |
| Female Population (0-6 Age) | 14.1 |
Infrastructure
Punjab is considered to have the best infrastructure in India; this includes road, rail, air transport network, connectivity, construction of bridges and infrastructure facilities that are extensive throughout the region. Under the State Budget 2021-22, 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. With an average growth rate of 10%, Punjab infrastructure is impressive and healthy due to the advantageous natural resources the state is blessed with.
The state has taken several steps for developing industrial infrastructure to achieve consistent economic growth, below are some of the initiatives:
- Punjab is extensively connected by mettled roads. Almost 55,000 km of roads run across the length and breadth of Punjab connecting 99% of its villages. Punjab also has access to National Highways, Provincial Roads, State Highways, District Roads, and Link Roads.
- In September 2020, the state government initiated 12 major projects to improve road connectivity in the state, under the central road and infrastructure fund (CRIF) at a cost of Rs. 211.22 crore (US$ 28.86 million).
- In March 2020, the Punjab government allocated an outlay of Rs. 100 crore (US$ 7.45 million) under a ‘Smart School Policy’ for smart schools and digital education.
- Three mega food parks and one food park in Punjab was notified by the Ministry of Food Processing Industries, out of which, one mega food park is already operational and second one started partial operation since April 2019.
- Punjab’s IT policy and the incentives offered to the IT industry are aimed at promoting Punjab as an attractive destination for the industry. Mohali has been developed as an IT and ITeS hub in the state.
- Under Budget 2021-22, Rs. 3,822 crore (US$ 526.65 million) has been allocated for health and family welfare to strengthen health infrastructure of the state.
Power: As of April 2021, Punjab had a total installed power generation capacity of 14,388.69 MW, of which 4,214.54 MW was under the central sector, 3,281.20 MW (state utilities) and 6,892.95 MW (private sector).
Of the total installed power-generation capacity, 8,765.51 MW was contributed by thermal power, 3,809.12 MW by hydropower and 1,617.25 MW by renewable energy.
Transport: Punjab, with a total area of 50,362 square kilometer, has one of the best infrastructure systems in India, be it in any sphere. It boasts of different modes of transport, like buses, taxis, auto-rickshaws and cycle-rickshaws, which connect various parts of the state. These modes of commutation make it easy for people to travel within the state. Roadways and railways are the main modes of transportation within the state. There is a broad road network of 60,825 kilometers, which passes through the state. It has a number of both state and national highways. At the same time, there are many intercity trains, for going from one place to the other.
Punjab Transport Department is pioneer in using Information Technology for providing citizen centric services. Computerization of department started 10 years ago with the implementation of VAHAN and SARATHI along with computerization of all the managerial functions of the Transport Department. Punjab is the First state to successfully implement Vahan 4.0 web application & Sarathi web application across the state.
Roads 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.
Railways in Punjab: Punjab ranks third in terms of route kms per 1000 sq. kms of area, only after Chattisgarh and West Bengal, with more than 45 route kms per 1000 sq. km. This is more than double the national average of 20 route kms per 1000 sq. km. The railway density in terms of route kms per lakh population, the state has around 8.19 route kms per lakh population which is more than the national average at 5.44. The high railway density in the state clearly indicates availability of well-developed railway infrastructure in the state. Punjab is also a part of the Dedicated Freight Corridor (DFC) planned between Delhi and Mumbai. With construction of the DFC currently planned till Ludhiana, several trade opportunities are expected to open up in the state.
Agriculture of Punjab
Agriculture is the mainstay of the Punjab infrastructure. Known as the ‘Breadbasket of India’, the state led to first Green Revolution in the country. It is an incredible fact that though Punjab accounts for only 1.5% of India’s geographical area, it produces more than 2/3rd of India’s total food grain output. Wheat, rice, cotton, grapes, eggs, milk, honey and vegetables are the main agricultural produces of Punjab.
The confluence of five rivers makes Punjab’s agricultural land rich and productive. Approximately 82% of the state’s land is under cultivation compared with the national average of 40%.
- Punjab alone contributes to 19% (wheat), 11% (rice), 5% (cotton), 10% (milk), 20% (honey) and 48% (mushrooms) grown in the country.
- Punjab is among the largest producers of cotton and blended yarn as well as mill-made fabrics in India. Ludhiana is often referred to as the ‘Manchester of India.
- In FY21 (until January 2021), Punjab exported cotton yarn worth US$ 323.66 million and ready-made garments (man-made fibres) worth US$ 123.55 million.
- Basmati rice is the most exported commodity and exports reached US$ 535.77 million in between April 2020 and January 2021 in the state.
- By 2025, it is expected that the state will be among the leading producers of non-food grains as well as exporter of various agri-products.
The two main crops cultivated in Punjab agriculture are Kharif and Rabi. The Kharif crops of Punjab comprise of maize, cotton, rice, sugarcane, pulses (grams excluded), bajra, peas, jowar, and vegetables such as gourd, onions, and chillies. The Punjab government has undertaken initiatives such as integrated pest management, diversification of cropping pattern, bee-keeping, and bio-fertilizers to boost Punjab’s agricultural output.
| Agriculture 2017-18 | ||
|---|---|---|
| Net area sown | Hectares | 7825 |
| Area sown more than once | Hectares | 3720 |
| Cropping Intensity | %age | 189 |
| Production of crops | ||
| Total cereals | Tonnes | 31692 |
| Total pulses | Tonnes | 26 |
| Total food grains | Tonnes | 31665 |
| Total oil seeds | Tonnes | 59 |
| Irrigation (2018-19) | ||
| Net Area Irrigated | Hectares | 4125 |
| Gross Area irrigated | Hectares | 7877 |
| Area irrigated by Well Tube wells | Hectares | 2948 |
| Area irrigated by Canals | Hectares | 1176 |
| Animal Husbandry (2016-17) | ||
| Veterinary Hospitals | Number | 1367 |
| Veterinary Dispensaries | Number | 1489 |
| Area Stocked for Fisheries | Number | 14794 |
| Total Live Stock (2012) | Number | 8117 |
| Total Poultry (2012) | Number | 16069 |
Major Issues in Agriculture of Punjab: One of the green revolution states, Punjab has come a long way in food production. The last few decades have seen some radical changes in the agriculture sector of the state and production and productivity have increased many folds. Earlier, the primary focus of agriculture in the State had been to increase food production and to improve livelihood of farmers, now agriculture sector is gradually becoming a technologically driven dynamic profession.
Natural Resource Management
Soil Resources: Intensive cultivation had led to deteriorating soil health in terms of major and minor nutrients. Due to the non-application of micronutrients, there have also been increasing incidences of soil micronutrient depletion. Answer to the problem lies in making balanced use of chemical fertilizers and also in substitution of organic fertilizers for chemical fertilizers to the maximum extent possible, including farm yard manure, compost, green manure, ploughing in crop residues and bio-fertilizers. There is dire need to detoxify the soils, through integrated pest management and integrated nutrient management, based on soil tests.
Water Resources: The state of Punjab has been contributing 40-50% rice and 60-65% wheat to the central pool since last three decades. During last 35 years, the area under food grains has increased from 39,200 sq km ha to 63,400 sq km and the production of rice and wheat has increased from 0.18 to 0.32 kg/m2 and 0.22 to 0.43 kg/m2 respectively. This change in cropping pattern has increased irrigation water requirement tremendously and the irrigated area has increased from 71 to 95% in the state. Also the number of tube wells has increased from 0.192 to 1.165 million in the last 35 years. The excessive indiscriminate exploitation of ground water has created a declining water table situation in the state. The problem is most critical in central Punjab. This has resulted in extra power consumption, affects the socio-economic conditions of the small farmers, destroy the ecological balance and adversely affect the sustainable agricultural production and economy of the state. Thus, suitable strategies which include shift of cropping pattern, delay in paddy transplantation, precision irrigation and rainwater harvesting for artificial groundwater recharge need to be adopted to arrest declining water table for sustainable agriculture in Punjab.
Cropping Pattern: Punjab State which has earned a name of “Food Basket of the Country” & “Granary of India” has been contributing 40 percent of rice and 50-70 percent of wheat for the last two decades. Rice is the principal crop of Kharif season and wheat is the principal crop of Rabi season. Punjab is not only self- sufficient in producing food grains but also contributes around 60% food grains to the central pool. The Agriculture in Punjab state is highly intensive in terms of land, capital, energy, nutrients, agriculture inputs and water etc. The largest area is under wheat crop. Other important crops of the state are rice, cotton, sugarcane, pearl millet, maize, barley and fruit.
Farm Mechanisation: The agriculture and allied sector continue to be significant for the inclusive and sustainable growth of the Indian economy. Indian Agriculture Sector not only ensures food security but also provides employment for substantial volume of population, directly & indirectly. Farmers’ income has not been able to keep pace, such as to cater to increasing costs of production including that of rising labour wages. Hence, there is a strong case for labour-substituting farm/agriculture machinery. Parallelly, it is also important to note, that several activities are highly time-bound and unless executed as per schedule, the farmer is likely to suffer loss. Agriculture mechanization is an appropriate answer to such challenges. Farm mechanization, more appropriately agriculture mechanization will also let off the wage labour as also the farmer of the drudgery involved in manual operations, besides enhancing manpower productivity since skills are integral to machine-based operations. Although the State Govt. is trying to re-orient agriculture through diversification policy and other measures, however, a paradigm shift in agricultural mechanization is required to realize the goal of eco-friendly sustainable agriculture with reduced cost of production and high quality of produce.
Industries of Punjab
The State of Punjab is known for the enterprising spirit of its people which brought about the ‘green revolution’ and also made Punjab a hub of small and medium enterprise. The State is now on a threshold of transition to a new culture of innovation and technology driven enterprise. Top-notch infrastructure, excellent connectivity, premium educational institutes and conductive government policy add to the strength of the State.
Agriculture is the mainstay of Punjab’s economy. 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 investment opportunities in sectors such as textiles, agro-based industries, IT & ITeS, automotive & auto components, sports goods and light engineering goods.
Further, the tourism industry in Punjab has been doing particularly well in the past few years, thanks to the religious monuments in the state such as the Golden Temple, Anandpur Sahib, Durgiana Mandir, Ram Tirath, and Rauza Sharif. Apart from these there a lot of historical forts and palaces in Punjab that attracts thousands of tourists from across the world every year.
Recent Developments:
- Total merchandise exports from Punjab stood at US$ 5.61 billion in FY20 and US$ 5.29 billion in FY21.
- According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in the state stood at US$ 741.23 million between October 2019 and March 2021.
Key Sectors:
- Punjab leads in the areas of Cycle & Cycle Component Manufacturing, tractor & Agriculture Machinery, Cotton & Blended Yarn, Hand Tools Manufacturing, Production of Rice Including Basmati Rice and provides business unlimited potentials to setup Punjab as their base.
- 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 FY21, Punjab exported cotton yarn worth US$ 323.66 million and ready-made garments (man-made fibres) worth US$ 123.55 million.
- In the state, Basmati rice is the most exported commodity and exports reached US$ 535.77 million in between April 2020 and January 2021.
- Punjab’s IT policy and the incentives offered to the IT industry are aimed at promoting Punjab as an attractive destination for the industry. Mohali has been developed as an IT and ITeS hub in the state.
- Punjab is among the largest producers of cotton and blended yarn as well as mill-made fabrics in India. Ludhiana is often referred to as the ‘Manchester of India.