With a growth rate of 6.30 percent, the agriculture sector is set to deaden the impact of the pandemic on Punjab’s economy in 2020-21. As per the state’s economic survey, agriculture is the only sector, which has contributed positively to the overall GSVA (Gross State Value Added) and this shows that agricultural activities for both rabi harvesting and Kharif sowing were largely not affected by the lockdown.
On the contrary, the manufacturing sector was hit hard but has picked up though mining still remains impacted. The construction and services sector
were hit the hardest owing to the pandemic-induced requirements of social distancing and minimizing personal interaction.
Punjab though sheltered by the relatively resilient agriculture sector is anticipated to experience informal labor shocks in the services sector.
According to the survey, yet unlike the national economy, agriculture and allied activities in the state continue to contribute a large share in the state’s overall value-added, exceeding the share of the industry. In 2019-20, the agriculture and allied sectors are expected to contribute a share of 28.68 percent of the state’s GSVA.
Like the national economy, the services sector has contributed the largest share in the state’s gross value added. Over the past five years (2015-16 to 2019-20), the services sector in Punjab has contributed an average share of 46.5 percent annually. Quick estimates for 2019-20 indicate an increase in the share of the services sector in Punjab’s GSVA to 47.18 percent in 2019-20.
The survey points out that since 2013-14 growth rate in the state was slower than the national average, Punjab’s GSDP grew at 3.98 percent in 2019-20 (quick estimates) as compared to 5.76 percent in 2018-19 (provisional). However, in 2019-20 (quick estimates), the growth rate at the all-India level and Punjab was more or less the same at 4 percent.
