Punjab: Service sector leads the state’s growth charts

Punjab: The services sector has emerged as the largest contributor to Punjab’s economy, accounting for nearly 48 per cent of gross state value added – a measure of the value of goods and services produced within a state. According to Punjab’s Economic Survey Report (2024-25), the sector employed 41 per cent of the workforce against the national average of 30 per cent. The sector’s contribution to total output has increased from 43.8 per cent in 2011-12.

Agriculture share stable

Meanwhile, the share of agriculture and allied sector in gross state value added (GSVD) has remained stable at 24.53 per cent, down 0.42 per cent from 24.95 per cent recorded in 2023-2024. The agriculture sector employs 27 per cent of the labour force, 1 per cent less than the industry’s contribution of 28 per cent. According to the survey, the contribution of the services sector is still much lower than the national average of 55.30 per cent, while its growth rate this fiscal has been 6.8 per cent. Trade, hospitality and repair work have been the dominant themes in the services sector, which has seen a growth of 21.6 per cent. These sub-sectors employed 37.7 per cent of the total workforce in the region. Education, health and recreation services employed 35.9 per cent of the sector’s workforce, followed by transport, storage and communication services at 12.7 per cent. The hotel industry has seen significant growth in tourism, with tourist arrivals increasing by 22 per cent between 2010 and 2023, driven mainly by domestic tourists. Amritsar witnessed 42 per cent of the total tourist arrivals. In 2023, a total of 3.64 crore tourists visited Punjab, of which 1.53 crore visited Amritsar. Vehicle density increased manifold
Motor vehicle registrations recorded a growth of 4.7 per cent in 2023-2024. As of March 2024, 1.44 crore vehicles were registered in the state, as against 1.37 crore registered a year ago. Two-wheelers accounted for 74.99 per cent of the total number of vehicles, while light motor vehicles accounted for 12.07 per cent. Vehicle density has increased manifold with the increasing share of private vehicles. Ludhiana, Jalandhar and Amritsar have the highest number of registered vehicles.