2020-21 agitation, other protests dented Punjab’s growth: Studies

Tribune News Service

Chandigarh, February 9

Although the state is yet to recover from the aftermath of 2020-21 farm agitation and other protests in the past three years, another protest has been planned on February 13. According to experts, various developmental parameters such as investment, industries, transportation, etc. have been adversely impacted in the aftermath of 2020-21 agitation.

Revenue loss

Punjab, which was known for the highest per capita income state in the country, stood at the 16th position in 2020-21. The state has clocked consistent revenue deficit in the past five years. As much as 70 per cent of the total debt taken by Punjab in the past five years has been diverted towards revenue deficit financing, leaving lesser resources for high quality capital expenditure like infrastructure development. The ever-increasing gap between the receipt and expenditure is being filled by taking hefty borrowings. This is pushing Punjab towards financial distress. According to Assocham, economies of Punjab, Haryana, Himachal Pradesh and Jammu and Kashmir bore losses to the tune of Rs 3,500 crore daily during the farmers’ agitation.

Investment declined

According to a study conducted by MSME Export Promotion Council and the Confederation of Organic Food Producers & Marketing Agencies, investment in Punjab has declined by 85 per cent to Rs 3,492 crore in the year 2022-23 as compared to Rs 23,655 crore in the year 2021-2022. The investment in the year 2018-19 was around Rs 43,323 crore.

Industry hit

The impact of agitations was also felt on the ease of doing business. Even the service sector has seen a slow pace of growth of around 7 per cent in Punjab as compared to around 10 per cent in neighbouring state of Haryana.

Transportation bump

In December 2021, the National Highways Authority of India informed Parliament that Punjab suffered a loss of Rs 1,269.42 crore since October 2020 as the farmers’ agitation affected toll plaza collection. Also, the public relation department, Northern Railways, cited revenue loss to the tune of Rs 891 crore and total earning loss of Rs 2,200 crore due to suspension of goods and passenger trains in Punjab during the stir.

The coal supply was hit severely due to ‘Rail roko’ which had subsequent ramifications in power outages and rampant load shedding in Punjab. The Punjab Industries and Commerce Department estimated loss to the tune of Rs 16,730 crore in Ludhiana alone (major hub of industrial activities in Punjab) due to non-movement of trains.

Agri sector affected

The Union Ministry of Commerce and Industry shared the data with the Lok Sabha on April 5, 2023, that the export of farm products from Punjab saw a dip of $567 million between 2017-18 and 2021-22.

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