Services sector leads Punjab’s growth numbers
The services sector has emerged as the largest contributor to Punjab’s economy, accounting for the around 48 per cent of the gross state value added — a measure of the value of goods and services produced within a state.
The segment has also given employment to 41 per cent of the workforce against the national average of 30 per cent, according to Punjab’s Economic Survey Report (2024-25). The contribution of the segment in the total output has risen from 43.8 per cent in 2011-12.
Agriculture share stagnant
In the meantime, the share of the agriculture and allied sector in the gross state value added (GSVD) has remained stagnant at 24.53 per cent, a 0.42 per cent dip from 24.95 per cent recorded in 2023-2024.
The farming sector employs 27 per cent of the labour force, 1 per cent less than the industry’s contribution of 28 per cent.
According to the survey, the services sector’s contribution is still much less the national average of 55.30 per cent despite it clocking a growth rate of 6.8 per cent this fiscal.
Among the services segment, trade, hospitality and repair works have remained the dominant theme witnessing an expansion of 21.6 per cent. These sub-sectors have employed 37.7 per cent of the total workforce in the segment.
Education, health and entertainment services gave employment to 35.9 per cent of the sector workforce, followed by 12.7 per cent engaged in transport, storage and communication services.
The hotel industry has seen a significant increase in tourism with tourist arrivals increasing by 22 per cent between 2010 and 2023, driven primarily by domestic tourists.
Amritsar witnessed 42 per cent of the total tourist inflow. In 2023, a total of 3.64 crore tourists arrived in Punjab, of whom 1. 53 crore visited Amritsar.
Vehicle density up manifold
Motor vehicle registration recorded a 4.7 per cent growth in 2023-2024. As on March 2024, 1.44 crore vehicles were registered in the state against 1.37 crore registered a year ago.
Two-wheelers accounted for 74.99 per cent of the total volume of vehicles followed by 12.07 per cent of light motor vehicles. The vehicle density has increased manifold with an increasing share of personal vehicles. Ludhiana, Jalandhar and Amritsar have the highest number of registered vehicles.
