Economy of Punjab, India
economy of the region
The economy of Punjab is the 16th largest state economy in India with 8.91 lakh crore (US$110 billion) in gross domestic product (GDP) for the 2025-26 fiscal year. Its GDP ranks 16th amongst Indian states with US$2720 (2,27,950) per capita.
Until the early 1970s, Punjab had a high rate of economic growth but has since lagged behind. Punjab ranked first in GDP per capita amongst Indian states in 1981 and fourth in 2001, but has experienced slower growth than the rest of India in recent years, having the second-slowest GDP per capita growth rate of all Indian states and union territories (UTs) between 2000 and 2010, behind only Manipur. Between 1992 and 2014, Punjab's life expectancy also grew slower than most Indian states, rising from 69.4 to 71.4 years. During this period, Punjab's rank amongst Indian states in life expectancy at birth fell from first to sixth.
The state's economy is dominated primarily by agricultural production and small and medium-sized enterprises. Punjab has the ninth highest ranking among Indian states and UTs in human development index as of 2018.
History
In the year 1981, Punjab had the highest per capita GDP in comparison with other states in India, and in 2001, it stood at number four. However, since then, growth in Punjab has been slower than the growth in India's overall economy.
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