Structural changes and pattern of agricultural development in punjab economy
This study analyses the structural changes and pattern of agricultural development witnessed by Punjab economy over 1981-2010 period. Typically, it presents a quantitative analysis of sectoral trends in Punjab economy and its relative economic performance with major Indian states. The study finds that Punjab is no more an agrarian state. In sectoral distribution of GSDP, share of primary sector in GSDP has declined from 40 per cent in 1980-81 to 25 per cent in 2009-10, while that of secondary and tertiary sectors has increased from 17 per cent to 30.8 per cent and 42.9 per cent to 44 per cent respectively during the same period. The GSDP growth rate during 1980-81 to 2009-10 was only 3 per cent in primary sector as against 6.6 per cent in secondary and 4.76 per cent in tertiary sector. The work force engaged in agriculture (cultivators and labourers) declined from 58 per cent in 1981 to 35 per cent in 2011. The decline in capital and development expenditure and rise in non-development expenditure has a capacity to crowd out private and public investment. The relative economic performance vis-a-vis other major Indian states shows that Punjab has slipped from a leading state to a laggard state in terms of per capita income. The down turn in economic growth ii was more severe during post reform period. The pattern of agricultural development in shows that Punjab economy has developed into highly mechanized agriculture with input usage of the highest order. There is stagnation in production of major food gain crops in Punjab. Thus, there is need to rejuvenate the Punjab economy by diversifying agricultural sector to more commercial agri- business sector which will also take care of industrialization, particularly in rural areas.