Factors Affecting Industrial Development of Punjab

Industrial development is crucial for the development and restructuring of an economy. Industrialisation significantly impacts economic diversification, raising employment, income, standard of living and hence improvement in welfare. Along these lines, every nation needs to create a suitable environment to promote the process of industrialization. The present study makes an attempt to explore various factors affecting industrial development of Punjab using cross-sectional approach at three points of time namely 1991, 2001 and 2014. It has been revealed that infrastructural facilities always remained important factor affecting industrialisation in Punjab where as with passage of time energy has gained the most important place in industrial development of Punjab. The presence of banking institutions ensuring better allocation of funds and loan facilities have also reinforced industrial development in Punjab. In addition to this, telecommunication facilities have also contributed in accelerating pace of industrialization at par with other basic physical infrastructural facilities and level of urbanization in Punjab. However, skilled human resources added the least in industrial development of Punjab. Thus need of the hour is to update modern technology as well as communication facilities and to offer adequate financial facilities for rapid industrialization in Punjab.