Author's Name: Jyoti Bala
Subject Area: Other
Subject Other
Section Case Studies


Economic development, Punjab, Haryana, NSDP, Primary Sector, CGR.


Strong agricultural base is prerequisite for the strong economic development of a country so is the case for the economic development of India. Punjab and Haryana occupy an extremely important place in agriculture in India. Both of these two states are regarded as the Breadbasket of India and have contributed substantially to the country’s food security. However, both face some major challenges which require some reorientation of priorities and new development strategies. Haryana which was initially at a lower level of economic development picked up subsequently. Now, a stage appears to have reached where Haryana’s per capita income compares favorably with that of Punjab. Agricultural development has taken at a very fast rate in Punjab and Haryana especially after the mid-sixties due to Green Revolution.. Haryana economy witnessed a very healthy annual real growth of 9.1%, as compared to 6.7% of Punjab and 7.9% of India during 11th Plan (2007-12). In 2012-13, the growth of real Gross State Domestic Product (GSDP) of Punjab was 5.2% only as compared to 7.1% of Haryana. There has been a relative deceleration in Punjab economy. During 1966-2013, the contribution of primary sector in GSDP of Punjab and Haryana went down from 58% to 21.8%, and 56.6% to 16%, respectively. Among all States the maximum growth in the workforce took place in the State of Haryana (2.83 percent) followed by the State of Punjab (2.53 per cent). Farm employment in Haryana has improved significantly in contrast with that in Punjab, but there are regional disparities in farm income in Haryana. Punjab once one of the richest Indian States, is now fast becoming poor amid economic challenges like shrinking land holdings, migration and the absence of big industries. On the other hand Haryana today is one of the fastest growing economies in the country. Experts ascribe the slow growth in Per Capita Income in Punjab to sluggishness in the agriculture sector.

Download Full Paper