Revitalization in Punjab: An Industrial Policy Perspective

Economic development of a country is directly related to the level of industrial growth. The expansion of industrial sector leads to a greater utilization of natural resources, production of goods and services, creation of employment opportunities and improvement in the general standard of living. India has also been striving to develop the country's industrial base over since independence. It has framed various policies aimed at development of industries in the public and private sectors. As agriculture and small scale sector continue to be major employers in the state, they need to be protected, rejuvenated and developed. Industry in particular has not stepped in to give the economy the impetus it needs. Linkage between agriculture and industry need to be strengthened. Small scale industry is an important segment of Indian economy in particular in Punjab's economy, which had received substantial protection and concessions during import substitution regime. Punjab has not paid adequate attention to the development of modern industry. Punjab's industrial sector is mainly dominated by small scale units with medium and large industries accounted for a minimal share. Overall, the industry's growth in Punjab is stagnant and declining for some industries. There is a need for the government to rethink and restructure the policies of the government to revitalize the industry. To regain its place, Punjab's politicians need to abandon old myths about why it is in trouble and face up to some ugly realities. Moreover, government policies should encourage investments which can lead to the adoption of new technologies.