At 6.8%, Punjab's growth below national average

Vijay C Roy

Chandigarh, March 5

According to advance estimates, Punjab’s economy is expected to grow at 6.8 per cent at constant prices in 2023-24 and likely to touch Rs 4.93 lakh crore. While the state economy grew at 6.4 per cent in 2022-23 (quick estimates), growth rate of Punjab and at the national level have shown some signs of recovery in 2023-24.

According to Economic Survey 2023-24, despite moderation in growth rates over the past few years, Punjab’s economy is expected to grow on par with the national average in 2023-24. Since 2013-14, growth rate in Punjab has been slower than the national average. However, estimates for 2020-21 indicated a shift in this trend. The quick estimates for 2022-23 indicated that growth in GSDP of Punjab was 6.4%, as compared to 7.2% of all-India level at constant prices. Advance estimates for 2023-24 indicated that growth in GDP at all-India level would be 7.3% against 6.8% in Punjab.

The growth in agriculture & allied sector was 2.4% in 2023-24, following 2.7% in 2022-23. Even though services sector has grown to bag the largest share, industry and agriculture continue to have a significant share in the GSVA (Gross State Value Added), contributing 27% of GSVA of the state in 2023-24 (advance estimates). Agriculture and allied activities employed 25% of the labour force in Punjab.

The agriculture sector drives growth in the economy, which propels industry and services sector in the state. Industry sector contributes 27% of GSVA and has grown at more than 5.6% during last five years. Manufacturing sector, which contributes over 16% share of the GSVA, grew at 7.2% in 2023-24 (A). Construction sector GSVA, electricity and other utility services GSVA also contributed 7. % and 3.5%, respectively.

The service sector has remained the key driver of economic growth as well as a major contributor to GSVA and employment generation. The growth in this sector increased from 7.1% in 2022-23 to 7.2% in 2023-24.