Infrastructural Inequalities In Punjab And Haryana – Differentials In Pace Of Development

Abstract

Historically, Punjab and Haryana are similar economically in terms of natural resources like water availability, land quality, other natural resource and also in economic growth. Since 2000-01 Haryana State has crossed the Punjab economy in terms of per capita, growth of gross state domestic product, volume of GSDP and in some other areas. The Punjab and Haryana states are generally known as agriculturally developed states where maximum GDSP generated through agricultural sector, but the structure of both economies has changed during 1980-81 of 2014 -15.

Their economic structure is divided into three sectors namely Agricultural, Industry and service sector which are driver of the economy. The first pillar of GSDP of both states are agricultural sector which is contributing 18.6 per cent in Haryana and 26.1 per cent in Punjab 2014-15 and it is providing employment more than 40.0 per cent population in Haryana and 36 per cent Punjab. The growth of agricultural of both states is hovering less than 2 per cent from 2010-11 to 2014-15.

In Agricultural sector, the dairy sector is the 2nd contributor in agricultural GSDP after the crop sector. The second pillar of economy is an industry sector, as it was growing at more than 6.50 per cent rate and contributing 23.6 per and 26 per cent in gross State domestic product in Punjab and Haryana economy respectively.

Industry sector is leading by sub sectors namely manufacturing and construction which was growing with good growth rate in Haryana compared to Punjab. Approximately, 30 per cent population is sustaining their livelihood from the industry sector.

Third sector is a service sector which is main driver of the GSDP of Punjab and Haryana. This sector is contributing more than half in GSDP in both economies. Service sector is main contributor in GSDP but at the same time the sector providing only 30 per cent employment.

The average land holding of Punjab and Haryana is approximately 3.77 hectare and 2.25 hectare respectively. The objective of the study is to know the comparative behavior of both economies as a whole and sector sub-sector wise. Furthermore, to find the areas which are providing a strong push to Haryana economy, the study is explores the growth paths of the two States.