Economy of Punjab, India

Economy of Punjab
Mohali, the city is the IT hub of Punjab
CurrencyIndian Rupee (INR, ₹)
1 April – 31 March
Statistics
PopulationAround 27.7 million (2011 Census of India)
GDP  8.91 lakh crore (US$110 billion)(nominal; 2025 est.) $441.7 billion(PPP; 2025 est.)
GDP rank16th
GDP growth
9.9% (2025-26 est.)
GDP per capita
  $3,413(nominal; 2025 est.) $14,385(PPP; 2025 est.)
GDP per capita rank
19th
GDP by sector
Agriculture 25%
Industry 25%
Services 50% (2020-21)
3.55% (February 2025)
6.0% (as on 12 July 2019)
Population below poverty line
8.26% (2017–18) (5th)
0.725 high (2024) (21st)
Unemployment 5.9% (2023–2024) (13th)
Public finances
44.8% of GSDP (2025-26 est.)
34,201 crore (US$4.0 billion) (3.84% of GSDP) (2025-26 est.)
Revenues 112,431 crore (US$13 billion) (2025-26 est.)
Expenses 146,632 crore (US$17 billion) (2025-26 est.)
All values, unless otherwise stated, are in US dollars.

The economy of Punjab is the 16th largest state economy in India with 8.91 lakh crore (US$110 billion) in gross domestic product (GDP) for the 2025-26 fiscal year. It's GDP ranks 16th amongst Indian states with US$2720 (2,27,950) per capita.

Punjab ranked first in GDP per capita amongst Indian states in 1981 and fourth in 2001, but has experienced slower growth than the rest of India in recent years, having the second-slowest GDP per capita growth rate of all Indian states and union territories (UTs) between 2000 and 2010, behind only Manipur. Between 1992 and 2014, Punjab's life expectancy also grew slower than most Indian states, rising from 69.4 to 71.4 years. During this period, Punjab's rank amongst Indian states in life expectancy at birth fell from first to sixth.

The state's economy is dominated primarily by agricultural production and small and medium-sized enterprises. Punjab has the ninth highest ranking among Indian states and UTs in human development index as of 2018.