Breaking the Mold: Thoughts on Punjab's Future Economic Development

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe economy of Punjab state in India offers an interesting case study. Punjab has been for decades -and remains -one of India's better-off states, and so it tends not be included in the primary focus of national programs meant to reduce poverty or spur economic development. But, Punjab's relative economic position within India has declined rapidly in recent years. This decline has been accompanied by environmental problems and symptoms of deep social malaise.As will be argued in this paper, Punjab is facing a multidimensional crisis that requires urgent attention. This paper provides an overview of Punjab's crisis, through an analysis of the dynamics of Punjab's economic development as shaped by its political economy, its social dynamics and exogenous events since independence. It argues that one can understand both Punjab's success in certain areas of agriculture and its subsequent relative decline in terms of the interaction of these factors. It uses this historical analysis to provide an assessment of Punjab's future economic development, in terms of the structural changes that are needed, and how these can be encouraged or implemented by policy makers within the constraints of its current political-economic equilibrium.

Assessing the Extent of Rural Development in Punjab

“…A diverse set of pull factors such as higher living standards in the advanced countries and push factors like lack of employment opportunities which suit the aspirations and qualifications of the youth has compelled them to search for greener pastures abroad instead of staying back (Government of Punjab, 2021). The inability of the rural economy to absorb the surplus labour from the agricultural sector has also encouraged the phenomenon of migration to the Western countries (Singh, 2015). Moreover, migration from rural areas is often viewed as a consequence of lack of development opportunities in rural regions (Goyal, 1990).…”

The Impact of Social Infrastructure and Physical Infrastructure on Economic Growth in Punjab, India

“…However, since the early 1990s the agriculture sector of the state has experienced a sluggish yield of major agricultural crops (Sidhu, 2002) along with lofty marginal costs of additional increments in the yield (Ghuman, 2008). Unequal access to inputs such as credit combined with the lack of broader industrial development increased the inequalities in the state (Singh, 2015). In 1991-1992, Punjab occupied the top position in terms of per capita income among the major states of India, while it has slipped down to 15th rank in 2017-2018.…”