Professional Documents
Culture Documents
TERM PAPER
OF
MANAGERIAL
ECONOMICS
(ANAYAT ANSARI)
ACKNOWLEDGEMENT
First of all I would like to thank the Lovely University and take the
opportunity to do this project as a part of the M.B.A.
Many people have influenced the shape and content of this project,
and many supported me through it. I express my sincere gratitude to
Mr. Mandeep Singh for assigning me a project of Managerial
Economics, which is an interesting and exhaustive subject.
He has been an inspiration and role model for this topic. His guidance
and active support has made it possible to complete the assignment.
Last but not the least I would like to thank the Almighty for always
helping me.
PREFACE
INTRODUCTION
ECONOMY OF PUNJAB
AGRICULTURE DEVELOPMENT
INDUSTRIAL DEVELOPMENT
EDUCATION IN PUNJAB
HEALTH IN PUNJAB
POVERTY AVILIATION
INFRASTUCTURE
TOURISM
STRENGTH OF PUNJAB
PUNJAB
Capital: Chandigarh
Languages: Punjabi and Hindi. Many people are fluent in English and Urdu
Punjab, a region in Northern India and the east side of Pakistan, has a long history
and rich cultural heritage. The people of the Punjab are called Punjabis and they
speak a language called Punjabi. The three main religions in the area are Sikhism,
Hinduism, and Islam.
Since independence, life in the Punjab proves to be tragic and traumatic. The
partition resulted in riots and terror which tore up millions of homes and destroyed
many lives. The massive exodus resulting from the newly formed state of Pakistan
created problems of uncontrollable dimensions. The Punjabis trekked in blood and
shreds.
Its average growth rate of 10% is amongst the highest in the country, clearly
reflecting the progressive economy of the state .Punjab also boasts a 58% literacy
rate and the highest per capita income in India. Today's Punjab has become a land
of boundless opportunities, offering distinct advantages for investment and industry.
Since the recent liberalization of India's economy, Punjab has started making its
mark on the global business mainstream, with major players from around the world
forming joint ventures in the field of agri-business.
Today's Punjab has over 2.04 lakhs of small and medium industries and about 600
large scale industries. It leads in the manufacture of machine and hand tools; printing
and paper cutting machinery; auto parts and electrical switch gear. The state also
provides more than 75% of the country's requirement for bicycles, sewing machines,
hosiery and sports goods
ECONOMY OF PUNJAB
The overall economy of Punjab has shown a growth rate of 6.29 percent
during 2003-04(P) (P)
The Gross State Domestic Product (GSDP) has been estimated during 2005
06 as Rs.84851.44 crores and the provisional estimates of GSDP for the year
2004-05 is as Rs. 81081.36 crores.
The GSDP from Primary sector which comprises of agriculture and allied
sectors viz. livestock, forestry and fishing has been increased at a rate of
4.77% during 2005-06
The GSDP from the secondary sector which covers the manufacturing,
construction and power sector has increased at a rate of 4.57% during 2005-
06
The GSDP in tertiary sector which includes trade, transport, banking and
insurance, real estate, public administration and other services sector has
been increased at rate of 7.43 during 2005-06
Agriculture is the back bone of Indian economy. Punjab is a little state of India
because the state occupies only 1.5 per cent of the geographical area of the country
and around two-third food grains of India procured annually by Punjab. Punjab is
known as a india’s food basket. Agriculture is the mainstay of Punjab`s economy and
97 per cent of the total cultivable area is under the plough. The main crops grown
are wheat, rice and cotton. Priority is being given to sugarcane, oil seeds,
horticulture and forestry
At the time of partition of the country in 1947, Indian Punjab (which then included
present areas of States of Punjab, Haryana parts of Himachal and Chandigarh
Union Territory) was a food grain deficit area. In 1951, production of food-grains was
about 1.99 million tone only, of which wheat was 1.10 million tone and rice 0.11
million tone, Total Real Gross Domestic Product of the state at 1970-71 prices was
Rs. 655 crores only, 54.4 per cent of which originated from the agriculture sector.
Although at that time also the cropping pattern was dominated by food grain crops,
occupying 68 percent of the cropped area, yet 38 percent of the area was cropped
with pulses and coarse grains, mainly on un-irrigated lands. With net area of 3544
thousands hectare and gross cropped area of 4170 thousand hectare, intensity of
cropping was 118 per cent only. Fertilizers and pesticides were not used by the
farmers, Tube wells were conspicuous by their absence and tractors were not much
in known in the state. Only 52.3 per cent of the area was irrigated and land holdings
were quite fragmented.
After independence
The state started moving on a growth path with mandatory consolidation of land
holdings, which was considered a prerequisite for utilization of canal irrigation water
that became available through the Bhakra Nangal Canal System. Simultaneously,
availability of electric supply through Bhakra Hydel Project encouraged the
installation of tube wells on consolidated holdings that provided assured irrigation
supplementing the canal water supply. Yet even in 1960-61, the agricultural GDP of
the state (54.01 per cent of the total state GDP) at constant prices was Rs. 473.7
crore only. Production of food grain improved to 3.16 million tones of which wheat
was 1.74 million tones and rice 0.25 million tones. Balance 1.84 million tons were
coarse grain and pulses. Irrigated area increased to 54 per cent of the net sown area
and intensity of cropping improved to 121 per cent.
The cropping pattern was still dominated by wheat with 29.6 per cent of the cropped
area, pulses 19.08 per cent, coarse grains 10.52 per cent and cotton with 9.4 per
cent of the cropped area of the state. Gross Cropped Area and Net Sown Area
increased marginally from 4170 thousand hectare and 3544 thousand hectare to
4732 thousand and 3757 thousands hectare respectively. Productivity of crops
started improving but only marginally. Yield of wheat in 1960-61 was still 1. 244 tons
per ha. Rice productivity was 1.0 tone, American cotton 0.269 tone and sugarcane
36.54 tone only. This situation continued with only marginal improvements up to the
mid-60s
The total Geographical area of the state is 50.36 Lakh hectares out of which 42.24
Lakh hectares is under cultivation. The Agriculture in Punjab state is highly intensive
in terms of land, capital, energy, nutrients, agriculture inputs and water etc. With only
1.5% of geographical area of the country, Punjab has produced about 22% of
Wheat, 10% of Rice and 13% of Cotton of the total produce of these crops in the
country during 2001-02. The foodgrains contribution to the Central Pool is about 50-
70% in case of Wheat & 40-50% of Rice. The area under cultivation is about 85%
and the cropping intensity is 185%. Moreover, the fertilizer consumption is 177 Kg.
per hac. as compared to 90 kg. per hac. at the National level.
Establishment of regulated markets with network of yards and subyards helped the
farmers get better prices for their produce. This also helped the farmers to come out
from the grip of moneylenders and other petty middleman
Installation of Tubewells.
Purchase of Tractors
Soil Conservation.
.Horticulture and Grapes Cultivation
Reclamation of Alkaline Land
Dairy Development
Poultry Development
Animal Driven Carts
Farm Forestry(Poplar Plantation)
Inland Fishery Farms.
Installation of Bio-gas Plants.
Establishment of Broiler
Bee Keeping
Sheep Rearing
Mushroom Cultivation
Calf Rearin
Purchase of Threshers
Purchase of Agri. Implements.
Redemption of Mortgaged Land
Purchase of Land
Construction of Cattle Sheds/
Sand Scraping etc. Small Godowns
Non Farm Sector
Flouriculture
Purchase of Second-hand Tractor
Rearing of Rabbits
Purchase of harvester combines
Rural Godowns
.
INDUSTRIAL DEVELOPMENT
During the ‘50s and ‘60s, there was an explosion in the number of small scale units.
Most of these units produced bicycles, sewing machines, agricultural implements,
medical instruments, hosiery, machine tools and sports goods or parts for these
goods. At present Small scale industrial units number more than 0.2 million in Punjab
and they employ more than 0.9 million workers. The growth of the small scale sector
was encouraged by government policies in the Five-Year Plans and the
establishment of the Punjab Financial Corporation in 1953.
Unavailability of major raw material such as Iron or Coal, was a big problem for
establishment of large and medium scale units in Punjab. Punjab Government
stepped in to help make large & medium scale production profitable in Punjab. The
establishment of the Punjab State Industrial Development Corporation in the ‘60s
was intended to fill the gap in the development of the state. Acting as an
entrepreneur, the PSIDC, on its own promoted projects and also set up larger units
in the joint sector. These objects reached their fruition in the ‘70s and ‘80s and
included Punjab Tractors Ltd(PTL), Punjab Wireless(PUNWIRE), Punjab Alkalies ltd,
Punjab Communication ltd. (PCL) are some of them.
Punjab leads in manufacture of machines and hand tools, printing and paper
machinery, auto parts and electrical switchgears. Punjab produces around 75% of
bicycle and bicycle parts, sewing machines, Woolen and other Hosiery items,
Shoddy blanket and jacket clothes and sports goods.
Punjab export lot of things in india as well as to the other country such as
Engineering goods, hosiery items, pharmaceuticals, leather goods, food and agro
products, textiles, electronics, hand and machine tools are some of the prominent
range of products of Punjab.
Punjab pollution
The Punjab Pollution Control Board has been established as a regulatory authority
for implementing various pollution control laws. The board is committed to provide
pollution free environment to the people of Punjab. The Board has undertaken
various studies of underground water, soil and air to take remedial steps to control
pollution. The Board has also formulated time-targeted action plan to clean the
polluted cities of Ludhiana and Mandi Gobindgarh. Thus the Board wants
sustainable development i.e. industrialization of the state along with clean
environment. The Board is very conscious of its duty of providing clean and healthy
environment to the people of Punjab. To create awareness among people regarding
pollution control and its importance, the Board also conducts seminars, debates and
painting competition from time to time.
Nestle
Smithkline beecham
Pepsico
GEC< USA
Nippon
Hitachi
Fujitsu
Oki of Japan
Kenwood
Motorola
After the partition of the country in 1947, the Punjab Education Department
functioned from a camp office set up in Shimla’s Metropolis Hotel and later the office
was shifted to Chandigarh, the new capital of Punjab, At present, four Directorates
function under the Punjab Education Department, namely the Directorate of Public
Instruction, (Colleges), Directorate of Secondary Education, Directorate of Primary
Education and Directorate of State Council of Educational Research and Training
(SCERT).
With growing pace of industrialization in Punjab, the main stress has been on
expansion, modernization and reorientation of Technical Education and Industrial
Training system so as to match it with emerging technologies for ensuring quality
manpower availability to the industrial sector. The basic objective is to produce
Engineers, Technicians and Craftsmen who are welcomed as assets by the Industry
of world class capability. For this purpose, besides opening up new Engineering
colleges, Polytechnics and Industrial training in the emerging areas, the existing
institutions are being modernized by providing new equipment and machinery with
the assistance of World Bank as also the State Government. To consolidate the
development in these fields, a new full fledge 'Punjab Technical University' at
Jalandhar has been established.
According to Census 2001, Punjab's has 69.95% literacy rate of the total population.
Encouragement to Private Sector in School Education
HEALTH IN PUNJAB
POVERTY AVALIATION
During the year 1973-74, more than 28 percent population of Punjab State was living
below the poverty line which came down to 6.16 percent in 1999-2000. At the
National level, over half of the population (54.93 percent) was living below the
poverty line in 1973-74 which was reduced to 26.10 percent during the year 1999-
2000. Punjab, is thus, well on the way to tackle the problem of the poverty.
According to Planning Commission GOI during the year 1999-2000, there were
10.20 lakh families in rural areas and 4.29 lakh families in urban areas living below
the poverty line in Punjab. To tackle the problem of poverty, different schemes for
rural as well as urban areas are in operation in the State
INFRASTUCTURE
Punjab has possibly the best infrastructure in terms of rail, road and transport
network in the country.It scores 210 against a national average of 100 in the
infrastructure index of NCAER. Mohali-Chandigarh and Amritsar are connected to
rest of India by super-fast trains and domestic flights, and international connections
are proximate through airports in Delhi and Amritsar ( Raja Sansi Airport). Freight
subsidy for export and highest road density of 95 kms per100 sq.kms add value to
the robust transport network.
Road
One major reason for the tremendous development in agriculture has been these link
roads connecting almost all villages in Punjab. These all-weather, black top roads
has been used by the enterprising farmers of Punjab to transport the grain from the
fields, to feed the country..
Rail
Punjab is well connected through the network of Indian Railway. The main railway
routes passing through Punjab are:
Amritsar-Ambala-Delhi
Sriganganagar-Ambala-Delhi
Ferozepur-Ludhiana-Ambala
Pathankot-Rupnagar-Fatehgarh Sahib
Sriganganagar-Bathinda-Narwana
Air
Well connected airports at Chandigarh, Amritsar & Ludhiana, Air Cargo Complex at
Amritsar, Inland container depot at Ludhiana, Container freight station at Jalandhar,
Ludhiana, Amritsar, Bombay, container freight station Bathinda, Rajpura.
Power
Highest per capita generation in the country, which is 2.5 times the national average.
Quality power without power cuts is available at cheaper rates. Future planned
projects ensure easy availability. Concessional tariff for night loads has been
introduced in the state. Punjab has surplus electricity and industry gets electric
connections without any delay subject to system constraints. The quality of power is
also far better than any state in the Northern India and the tariff is one of the lowest.
The generation of power continues to get priority treatment from the state. All 12,484
villages in Punjab have been electrified since 1974.
Telecom
Optical Fibre Cable has been laid in whole of Punjab up-to block-level A Ku-band
earth Station at Mohali and another one in pipeline at Patiala Mobile Penetration
highest in the Country
Service provider
BSNL
RELIANCE
HFCL
SPICE TELECOM
AIRTEL
HUTCH
TATA
INET
Multiplexed Connection
Low-cost Data
International Access
Internet
Paging
ISDN (Integrated services Digital Network)
Cellular
TOURISM
Punjab is a land hallowed by saints and scarred by battles, an ancient land yielding
archaeological treasures, a land of palaces and museums. A visitor to Punjab can
see the Golden Temple at Amritsar, the sword of Hazrat Ali at Anandpur Sahib, the
world's highest straight gravity dam at Bhakra, India’s Steel City – Gobindgarh, and
the world‘s biggest grain market at Khanna. No one has ever gone back from Punjab
without leaving a part of himself behind and taking part of Punjab with him.
Access
Punjab is easy to reach by road, rail or air. From Delhi, Chandigarh, the state capital
is 246 km and Amritsar, the northernmost city of the state is 446 Kms.
Hotels offering three or four star facilities are available at Chandigarh, Ludhiana,
Jalandhar and Amritsar. Smaller towns like Patiala, Ferozepur or Bhatinda offer two
to three star facilities while in very small towns like Hoshiarpur, Sangrur and Ropar, it
would be advisable to either depend on the facilities of the Tourism Corporation or
the Government Dak Bungalows.The bigger towns have noteworthy restaurants and
caterers. The Punjab Tourism Development Corporation has developed picnic spots
at Ropar, Neelon (near Ludhiana), Ludhiana, Kartarpur (near Jalandhar), Sirhind
(near Patiala), Pathankot and operates well-run restaurants on the Grand Trunk road
and other highways as part of its highway tourism facilities.
STRENGTH OF PUNJAB
Dynamic and productive people with over-whelming zest for hard labour.
Highly educated and professional work force with abundance of skilled
workers.
High purchasing power. Punjab has the highest per capita income in India
Punjab State, with only 1.5 per cent of Geographical Area of the
Country, Produced 20 percent of wheat, 9 percent of Rice and 14
percent of Cotton of the total produce under these crops in the
country. Punjab is 1st in average per hectare yield of rice, wheat
and cotton.
The Punjab State topped all other States in India in the Kinnow
fruit production.
Punjab State Cooperative Bank has won two major national level
awards for operational efficiency and overall performance for the
year 1993-94. This award has been given after selecting
Cooperative Banks of 28 States in the country by the NABARD.
Verka milk products known for quality are largely exported to the
Middle East, Nepal, Sri Lanka, Phillipines and Bangladesh.
The per capita availability of milk in the State is 845 gms. per day,
which is the highest in the country.