Agriculture still backbone of Punjab economy
Chandigarh: Agriculture continues to remain the backbone of Punjab’s economy despite the rapid expansion of the services and industrial sectors, according to the latest Economic Survey presented ahead of the state budget.
The survey highlights that agriculture and allied activities still play a crucial role in sustaining rural livelihoods and ensuring food security in the state. Punjab, often referred to as the “granary of India,” contributes significantly to the country’s foodgrain production, accounting for a substantial share of wheat and rice supplied to the central pool.
The report notes that agriculture remains a major contributor to the state economy and employment. In recent years, the sector has accounted for roughly one-fourth of Punjab’s Gross State Value Added (GSVA), while also supporting a large portion of the rural workforce.
The survey also emphasises Punjab’s high agricultural productivity, achieved through extensive irrigation networks, fertile soil, and adoption of advanced farming practices since the Green Revolution. Wheat and paddy continue to dominate the cropping pattern, though the government is increasingly encouraging crop diversification toward maize, pulses, and horticulture to ensure sustainability and reduce pressure on groundwater resources.
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Despite its strong agricultural base, the survey warns that the sector faces several challenges, including declining groundwater levels, climate variability, and overdependence on the wheat–paddy cycle. Policymakers have stressed the need for diversification, value addition, and agri-entrepreneurship to boost farmers’ incomes and ensure long-term growth.
The report concludes that while Punjab’s economy has diversified over the years, agriculture remains central to its socio-economic structure, supporting millions of farmers and continuing to drive rural development across the state.
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