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Punjab Land of Five Rivers

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Punjab Land of Five Rivers PUNJAB LAND OF FIVE RIVERS NOVEMBER 2015 For updated information, please visit www.ibef.org 1 PUNJAB LAND OF FIVE RIVERS Executive Summary……………………. 3 Advantage State………………………... 4 Punjab Vision …………………………... 5 Punjab – An Introduction………………. 6 Annual Budget …………………...…….17 Infrastructure Status…………………….20 Business Opportunities……………..….40 Doing Business in Punjab……………...55 State Acts and Policies……………….....62 NOVEMBER 2015 For updated information, please visit www.ibef.org 2 PUNJAB LAND OF FIVE RIVERS EXECUTIVE SUMMARY • The state government of Punjab is continuously focusing on the usage of renewable Rising focus on sources of energy. As of October 2015, 503.42 MW was contributed by the renewable energy as compared to a contribution of 493.42 MW in June 2015. As per Punjab Investor renewable energy Summit 2015, the total investment potential for renewable energy is expected to reach US$ 6 billion by 2022 with a target capacity of 5,400 MW. • Punjab has emerged as a key hub for textile-based industries including yarn, readymade garments and hosiery. With the development of apparel parks, favourable textile policies Textile hub and other incentives for the creation of textile infrastructure, the state offers opportunities for investment. • Punjab has been ranked first in India in terms of infrastructure facilities offered. Punjab’s Best infrastructure road, rail and air transport network, connectivity, construction of bridges and infrastructure facilities facilities are among the best. • Punjab has strong agriculture base with the huge production of principal crops such as Strong agriculture rice, maize, sugarcane and barley. In 2014-15, the production of sugarcane was 7,200 production thousand metric tonnes, which is estimated to be around 8,640 thousand metric tonnes during 2015-16. Source: Department of Agriculture, Government of Punjab, TechSci Research, Central Electricity Authority NOVEMBER 2015 For updated information, please visit www.ibef.org 3 PUNJAB LAND OF FIVE RIVERS ADVANTAGE PUNJAB Policy and fiscal incentives Fertile andGrowing productive demand land • In October 2015, the Government of Punjab • The confluence of five rivers makes Punjab’s announced plans to draft a Make in India policy agricultural land rich and productive. Approximately 82 for the growth of the industrial sector. per cent of the state’s land is under cultivation • Punjab offers industries with a wide range of compared with the national average of 40 per cent. fiscal and policy incentives under the Industrial • Punjab is one of the largest wheat and rice producers in Policy 2013. India. It is also a leading exporter of rice, including the well known Basmati variety. • In order to improve the current cropping pattern and restructure the incentives, the state government introduced Agriculture Policy for Punjab 2013. Advantage Punjab High economic Strong infrastructure growth • Punjab has a well developed social and industrial infrastructure. Its transport network is one of the best in • The state’s GSDP increased at a compound annual India, with easy access to key markets such as the growth rate (CAGR) of 10.38 per cent between 2004- Delhi-NCR region. Punjab has witnessed impressive 05 and 2014-15. growth in the number of clusters and hubs, with the • The state provides investment opportunities in sectors establishment of several PPPs. such as textiles, agro-based industries, IT & ITeS, • In the 2015-16 budget, the Government of Punjab automotive and auto components, sports goods and announced plans to invest US$ 1,258.46 million to light engineering goods. provide water supply to all the urban local bodies in the state. PPP: Public-Private Partnership, GSDP - Gross State Domestic Product NOVEMBER 2015 For updated information, please visit www.ibef.org 4 PUNJAB LAND OF FIVE RIVERS PUNJAB VISION 2022 • Connect all major towns by • Provide quality education to all developing four-lane and six- people, even in rural areas, by lane highways. building one school after every 2 km. • Establish Bus Rapid • Aim to provide education with Transport Systems (BRTS) in practical knowledge through all major cities in the state. workshops and industrial visits. • Establish PHCs and specialty • Encourage SMEs through hospitals covering wider adequate financing and policy areas. Transport Education initiatives to increase • Establish medical and nursing employment. institutions to produce • Set up an SEZ in each region qualified healthcare Health Industries and develop backward and professionals. Vision border areas. 2022 Investment • Check the diversion of • Computerise government Environment departments and adopt e- promotion agriculture/forest land for governance to enhance the urbanisation and ease of doing business. industrialisation. Agriculture Infrastructure • Attract investments from agro- • Ensure that industries adopt based and service sector eco-friendly technologies and industries. rainwater harvesting. • Diversify into other crops after considering their global market • Adopt a mix of energy sources demand. for power generation and at least • Adopt technology in all areas of one captive nuclear power plant. agriculture and encourage • Build international airports in organic farming. each of the regions of Majha, Malwa and Doaba. Source: Confederation of Indian Industry SME: Small and Medium Enterprises, PHS: Primary Health Centres NOVEMBER 2015 For updated information, please visit www.ibef.org 5 PUNJAB LAND OF FIVE RIVERS PUNJAB FACT FILE The state has three major seasons – summer (April-June), rainy season (July-September) and winter (October-March). Due to the presence of large rivers, most of the state is a fertile plain. The state has three major rivers flowing through it: Ravi, Beas and Satluj. Parameters Punjab Capital Chandigarh Geographical area (sq km) 50,362 Administrative districts (No) 22 Population density (persons per sq km) 551 Total population (million) 27.7 The state is bordered by the Pakistani province of Punjab to Male population (million) 14.6 its west, Jammu & Kashmir in the north, Himachal Pradesh Female population (million) 13.1 in the northeast, Haryana in the south and southeast, and Rajasthan in the southwest. Sex ratio (females per 1,000 males) 893 Literacy rate (%) 76.7 The most commonly spoken language of the state is Punjabi. Hindi and English are the other widely used languages. Amritsar, Ludhiana, Jalandhar, Bhatinda, Mohali, Pathankot Source: Government of Punjab, and Patiala are some of the major cities in the state. Census 2011 NOVEMBER 2015 For updated information, please visit www.ibef.org 6 PUNJAB LAND OF FIVE RIVERS PUNJAB IN FIGURES … (1/2) Parameter Punjab All states Source Economy 2014-15 2014-15 Directorate of Economics & Statistics of Punjab, GSDP as a percentage of all states’ GSDP 2.8 100.0 Central Statistics Office, TechSci Research Directorate of Economics & Statistics of Punjab, GSDP growth rate (%) 10.26 7.3 Central Statistics Office, TechSci Research Directorate of Economics & Statistics of Punjab, Per capita GSDP (US$) 1,867 1,389.61 Central Statistics Office, TechSci Research Physical Infrastructure Installed power capacity (MW) 11,255.44 282,023.39 Central Electricity Authority, as of November 2015 Telecom Regulatory Authority of India, as of October Wireless subscribers (No) 30,818,748 1,003,487,792 2015 Telecom Regulatory Authority of India, as of June Internet subscribers (No) 12,680,000 319,420,000 2015 NHAI & Road & Building Department, Government of National Highway length (km) 2,239.15 96,214 India Airports (No) 5 125 Airports Authority of India NOVEMBER 2015 For updated information, please visit www.ibef.org 7 PUNJAB LAND OF FIVE RIVERS PUNJAB IN FIGURES … (2/2) Parameter Punjab All states Source Social Indicators Literacy rate (%) 76.7 73.0 Census 2011 Birth rate (per 1,000 population) 15.7 21.6 SRS Bulletin Ease of Doing Business Department of Industrial Policy & Promotion, FDI equity inflows (US$ billion) 1.351 265.14 April 2000 to September 2015 Outstanding investments (US$ billion) 33.17 165.89 ASSOCHAM INDIA Industrial Infrastructure PPP projects completed & operational (no) 37 1,382 DEA, Ministry of Finance, Government of India Ministry of Commerce & Industry, Department Operational SEZs (No) 2 199 of Commerce PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System, 1Includes Chandigarh, Punjab, Himachal Pradesh and Haryana NOVEMBER 2015 For updated information, please visit www.ibef.org 8 PUNJAB LAND OF FIVE RIVERS ECONOMIC SNAPSHOT – GSDP Punjab’s gross state domestic product (GSDP) was US$ GSDP of Punjab at current prices (in US$ billion) 58.03 billion at current prices in 2014-15 as against US$ 21.6 billion in 2004-05. CAGR 54.7 58.0 The state’s GSDP increased at a compound annual growth 10.38% 49.6 52.5 52.6 41.6 rate (CAGR) of10.39 per cent between 2004-05 and 2014- 37.8 37.7 15. 28.2 21.6 24.6 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Source: Directorate of Economics & Statistics of Punjab, Central Statistics Office NOVEMBER 2015 For updated information, please visit www.ibef.org 9 PUNJAB LAND OF FIVE RIVERS ECONOMIC SNAPSHOT – NSDP NSDP of Punjab at current prices (in US$ billion) Punjab’s net state domestic product (NSDP) at current prices was US$ 51.06 billion in 2014-15 as against US$ 19.2 billion in 2004-05. CAGR 10.28% Between 2004-05 and 2014-15, NSDP increased at a 48.5 51.06 CAGR of 10.28 per cent. 44.3 46.4 46.6 37.2 33.7 33.6 25 19.2 21.7 Source: Directorate of Economics & Statistics of Punjab, Central Statistics Office NOVEMBER 2015 For updated information, please visit www.ibef.org 10 PUNJAB LAND OF FIVE RIVERS ECONOMIC SNAPSHOT – PER CAPITA GSDP The state’s per capita GSDP at current prices was US$ GSDP per capita of Punjab at current prices 1,867.0 in 2014-15, up from US$ 830.7 in 2004-05. (in US$) Punjab’s per capita GSDP expanded at a CAGR of 8.43 per CAGR 1849 1867 cent between 2004-05 and 2014-15.
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