Representational image. Moneycontrol

Any economy of a state is composed of three broad sectors: primary, secondary and service sectors which correspond to agriculture, industrial and services sectors respectively. The state of Punjab is known as the bread-basket of our country, India. Punjabis have been in the forefront in defending the nation from any foreign invasions and also been the wheat-bowl of India. Thanks to the Green-revolution, the state of Punjab grew as a prosperous, rich and wealthy society. 

Punjab was the richest in the country in terms of per capita income and held this title for more than 20 years. Interestingly, this title was primarily on account of Punjab’s agriculture sector which at one point of time contributed more than 50% in the GDP of Punjab.

Notably, over the years, a narrative has been evolved that Punjab is an agrarian economy where farmers, peasants and people related to agrarian sectors exclusively added to the development and growth projectiles of the state and its economic prosperity. There are various reasons for this narrative. For more than three-four decades, the economy of Punjab was overshadowed and overwhelmed by the agrarian sector. This narrative suited the political dispensation that enjoyed the support of the rich peasants and zamidars (landlords).

But, if we go by the facts and figures, this narrative is far from the truth. Both agrarian and industrial sectors contribute equally. The latest economic data of Punjab shows contribution of the 3 sectors in the economy of Punjab in F.Y. 2020-21 as under:

In FY 2021-22, the state has allocated 12.5 per cent of its total expenditure towards agriculture and allied activities. Interestingly, in F.Y. 2021-22, State Goods and Services Tax (SGST) revenue is estimated to be the largest source of the state’s own tax revenue (43 per cent).  There is no denying the fact that farmers have played a leading role in the development of Punjab. But, this is the time to acknowledge, appreciate and recognize the role of the entrepreneurs of Punjab. 

As per the latest stats, the economy of Punjab is the 16th largest state economy in India with ₹5.29 lakh crores GDP value in FY 2020-21. Though the basket of tradable-products is very small as compared to other states, the business community still marks its presence in the national and international arena. The major industries of Punjab are Textile, Sugar, Dairy; and Machinery and Equipment-industry. The major exports of Punjab are manufacturing of clothing and textiles (53.% share), machinery and equipment (15%), food products (13.1%) and motor vehicles, trailers and semi-trailers (6.5% share) of Punjab’s manufacturing exports.

 The Role of Punjabi Industrialist:

The business class of Punjab consists of small, medium and big businessmen, traders, industrialists. Whatever progress has been made by the industry is primarily on account of own efforts by these entrepreneurs. The Punjabi industry which has been set up by the hard-working Punjabi entrepreneurs in the background of partition of India and being a border state with hostile neighbours with whom we had to fight three wars.

Why the situation of Punjabi Industrialist is different than the rest of India:

–          There is hardly any good source of natural resources or minerals making it difficult to set up mineral based industries. So, they lack primary sources.

–          The political regimes for the last 75 years have supported the agriculture sector much more than the industrial sector and business-sector.

–          Punjab being a border state with a hostile neighbour and has to bear the brunt of all the wars with Pakistan. The trade of Punjab with and through Pakistan is almost non- existent.

–          Punjab is a land-locked state and does not have any port.

Though Punjab does not have any substantial chunk of natural resources like ores and minerals, Punjabi entrepreneurs have with their skills, business acumen and grit have created an industrial hub and industrial culture. The major share of employment in Punjab is taken care of by the Textile sector where the direct and indirect employment of textile industry in the state of Punjab is estimated at 20 lakhs workers. Batala and Mandi Govindgarh are bustling towns of iron-castings. 

Batala was once called the “Iron bird of Asia” as it produced the highest amount of C.I. casting, agricultural and mechanical machinery and is still one of the leading cities in Northern India in manufacturing of C.I. casting and mechanical machinery. Ludhiana is known as Manchester of India because of the efforts of its industrious entrepreneurs. It marks its presence in terms of Textile exports in the whole of the world.

Despite all these odds, the Punjabi businessmen have not only survived but marked its presence in the development of Punjab and India. As per a recent report in the Hindustan Times, Punjab based entrepreneurs are among the rich people of India. Out of the top rich businessmen in India, Punjab based owner of Trident Group (Barnala , Ludhiana) who is into textiles and paper industry, ranks 127th in the country.  LD Mittal of Sonalika Group (Hoshiarpur) is the 71st wealthiest Indian having a net worth of $2.92 billion and S.P. Oswal of Vardhman Textiles (Ludhiana) stands second in Punjab (₹4,600 crore). The other prominent family owned business are Oswal Family (Ludhiana), RN Gupta & Co, (Ludhiana) ( ₹2,800 crore), Avon Cycles Group( Ludhiana) owned by Onkar Singh Pahwa (₹1,700 crore), Shiv Prasad Mittal and Family of Aarti Steels (₹1,700 crore), Bector Foods (Ludhiana) owned by Anoop Bector (₹1,200 crore), Pankaj Munjal, of Hero Cycles, (₹9,000 crore) who are among country’s richest persons.

Ironically, the political dispensation in Punjab has not only been pro-agriculture, but has been apathetically indifferent to the industrial and business sectors. There is hardly a viable industrial policy in Punjab. It is the time to acknowledge, recognize and appreciate the role played by Punjabi entrepreneurs in the development of Punjab. They should be given their due credit. Not only a resilient industrial policy but a culture of industry should be developed. 

The writer is an independent commentator. Views are personal.

Read all the Latest News, Trending News, Cricket News, Bollywood News,
India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.