Economic Growth and Regional Disparity

The most worrisome feature of Punjab economy today is the drop in its annual
growth rate, from 5.3 per cent during 198!81 to 199!91 to ".# per cent during 1991!
9$ to 199#!98. %y comparison, growth rate at the national le&el mo&ed up from 5.' to
'.9 per cent during the same period. (n sympathy, the annual increase rate of the
state)s per capita income also came down from 3.3 to $.8 per cent.
Rural Development and Agriculture
*mong the (ndian +tates, Punjab holds place of pride for its outstanding
achie&ements in rural de&elopment. * healthy mi, of en&ironmental, institutional and
technological factors e,plains this situation, e&ol&ing since independence and pic-ing
up pace after the state)s reorgani.ation in 19''. The most stri-ing feature of the
Punjab model is the go&ernment)s manysided participation in the de&elopment
process /0hadha, 198', p.3381. (mbedded in the scheme of things was the adoption
of agriculture as the lead sector, not only in consonance with the physical attributes
of the state, but also as a response to the national demand for food. 2ith political
power in the state ha&ing been consistently rural based and drawn from a farming
bac-ground, rural de&elopment and agriculture ha&e remained a priority. 2hat is
more, a right se3uence of policies was followed for the purpose. %eginning with
consolidation of landholdings, followed by reclamation of new agricultural lands and
synchronous e,tension of irrigation through %ha-ra canals, and the process being
further strengthened by the green re&olution strategy of biochemical inputs /high
yielding &ariety seeds, chemical fertili.ers and irrigation1 and mechanical inputs
/tractors, thrashers and har&estor!combines1, Punjab agriculture continued ma-ing
rapid strides o&er the years. The agrarian structure characteri.ed by middle le&el
peasantry, with landholdings of two to four hectares, and predominance of owner
culti&ators, was no less important a factor for the success of this process. 4,ogenic
factors also played a role in the moderni.ation of Punjab agriculture. 4,posure of the
state to e,ternal influences through emigration to foreign countries, migration to other
parts of (ndia, and tradition in army ser&ice, had at least a three pronged effect5
brought in remittances which were used for augmenting agricultural infrastructure at
the household le&el6 reduced pressure on agricultural land, thereby sa&ing the
landholdings from getting &ery small6 and sto-ed a tendency towards achie&ing
higher le&els of opulence,
Urban Development and Industry
2ith 3" per cent of its total population li&ing in towns7urban agglomerations in $1,
as compared to $#.8 per cent at the national le&el, Punjab is one of the more
urbani.ed states of (ndia. The state)s 83 la-h urban population is distributed among
15# towns7urban agglomerations!139 statutory and 18 census ones. 8ourteen
towns7urban agglomerations ha&e a population of at least one la-h each, and
together account for 58." per cent of the total urban population. The urban growth
rate of Punjab, 3#.' per cent during the nineties, was significantly higher than $9 per
cent at the national le&el. (nternational e,perience suggests that urbani.ation gets a
momentum in regions after they became 3 per cent urban and simultaneously
achie&e a per capita income of 9+ : 5. Punjab has been one such case since
1991. Projections are that the state would become urban majority by $$. This
would re&erse the popular image of Punjab as a predominantly rural entity. The
implication is that urban issues are going to gradually assume greater importance. *
change in the thrust of policy would be ine&itable.
Employment
Pro&iding gainful and high!3uality employment to the unemployed and new entrants
to the labour force is one of the main targets of the Tenth Plan. Though relati&ely the
most progressi&e and prosperous state of (ndia, Punjab is not free from the twin
maladies of unemployment and underemployment. * si.eable section of the
agricultural population is being rendered surplus due to a regular decline in the si.e
of landholdings, along with the rapid growth of population. The rural ser&ice and
artisan castes are finding their &ocations inade3uate and less rewarding. 4ducated
among the rural youth are generally -een to get an urban job. ;atters are no better in
urban areas, where an increasing number of local unemployed is being joined by
unemployed migrants from rural areas. The si.e of registers at employment
e,changes is swelling.
The employment conte,t of Punjab significantly changed after its reorgani.ation in
the present form in 19''. *gricultural migration to newly reclaimed lands in other
parts of (ndia, which has been continuing since the closing decades of the nineteenth
century, &irtually came to a halt. <ecruitment in defence forces was regulated on the
basis of the share of the eligible population in different states in 19#" and this was to
the disad&antage of Punjab. The number of e,!ser&icemen, see-ing re!employment,
is much larger than the new entrants to the defence forces. ;eanwhile, a&enues of
emigration to other countries remain regulated.
Education
That Punjab, which ran-s first in per capita income, is the tenth among (ndian +tates
in terms of literacy, is a socio!economic anomaly =ere is a case of incongruity
between economic and social dimensions of de&elopment. (n the $1 0ensus, #
per cent of Punjab)s se&en!plus population was recorded as literate as compared
with 91 per cent in >erala and ## per cent in =imachal Pradesh. The all!(ndia figure
was '5 per cent.
Health
?n almost all parameters, the health infrastructure in Punjab has e,panded
phenomenally since 19''. @* new hierarchy of health outlets, including referral
hospitals, community7primary health centres, sub!centres, mother and child care
units, and family planning clinics has e&ol&ed in both rural and urban areas, through
public sector). %esides, uni&ersities and public sector underta-ings too pro&ide health
facilities to their employees.
Ao less spectacular has been the e,pansion of the pri&ate sector in health ser&ices.
@(ts participation is no longer confined to indi&idual pri&ate clinics but e,tends also to
hospitals, polyclinics, diagnostic centres, nursing homes and specialty premises). The
organi.ed pri&ate sector, in addition, caters to the health needs of its employees.
Infrastructure
*s a base and concomitant of the de&elopment process, infrastructure is fairly well
organi.ed in both rural and urban segments of Punjab. ?n the score of infrastructure
rating, the 0entre for ;onitoring (ndian 4conomy has placed Punjab on the top6 with
an inde, which is almost twice the national a&erage. Ao less than 9" per cent of the
net area sown here is irrigated, #5 per cent by tube wells and $5 per cent by canals.
Birtually all the 1$,#$9 &illages are not only electrified but also lin-ed by pucca road.
The 1"" regulated mar-ets, for disposal of agricultural produce, are spaced at an
a&erage distance of $ -m from each other, and are attached to 519 sub!yards
distributed all around. ?&er " per cent of the $,5#5 ban- branches in the state are
located in &illages. *s many as 59# rural focal points are being de&eloped to pro&ide
a &ariety of ser&ices to rural populace.
Natural Resource
The natural resource base of Punjab ! land, water and &egetation ! is under great
stress. Ao less than 85 per cent of the state)s geographical area is under culti&ation,
of which 9" per cent is irrigated. 0ropping intensity is as high as 18'.
*round " per cent of the land is said to be degraded in &arying degrees. (ncluded
herein are the gully or ra&ine lands in the northeastern hilly and submontane region6
soil!fertility depleted poc-ets in the central .one6 water!logged tracts in the
southwestern region6 and marshy land along ri&ers and streams. Aearly 11 la-h tube
wells /85C in the rural and 15C in urban areas1 regularly suc- underground water
for irrigation, domestic, industrial and other uses. Aearly one!half of the de&elopment
bloc-s /especially in the central .one where water table has gone down by fi&e to ten
metres during the last $5 years1 report o&er!e,ploitation of subsoil water. =ardly
three per cent of the total area is under actual forest co&er. +uch a situation is a sad
commentary on what is happening in an agriculturally progressi&e state, dependent
highly on soil and water. *dded to all this is the fact that almost # per cent of Punjab
is prone to floods.