Punjab Crisis: Heading Towards Disaster
July 15, 2025
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Home Bharat

Punjab Crisis: Heading Towards Disaster

by Tarun Chugh
Dec 22, 2021, 03:30 pm IST
in Bharat, Opinion, Punjab
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In the next five years, it is estimated that Punjab’s public debt would rise. The State’s per capita income has slid below the national average, and its per capita capital expenditure is the lowest, claims another data. These statistics are a sign of worry for the State that is already facing massive drug menace

 

Known as a sword arm and the bread-basket of the country, Punjab has always shown a path of development and prosperity through its vibrant and healthy culture to the rest of the world. But, over the past few years, the State has been facing severe problems which every Punjabi is feeling pain about. Ironically, these pressing problems are the result of maladministration, lack of political will and vision on the part of the ruling dispensation.

The land of Gurus today is passing through difficult times. Economic growth is in shatters; unemployment is sky-high, the agrarian sector is in the doldrums; farmers are committing suicides and are under the burden of debt traps while the State has been reeling under heavy debt.

Economic Disaster in The Making

The root cause of these problems is sluggish economic development, which gives rise to many other problems like drug trafficking, which needs an immediate solution.  

The economy of Punjab has historically been agrarian. After the Independence, the economy of Punjab got a boost in the form of the Green revolution. It made Punjab the number one State as far as per capita income is concerned, and Punjab enjoyed this title for more than two decades. Ironically, this Green Revolution led to the lop-sided development of various regions, sectors and sections of society. 

Data over the last three decades, shows that the agricultural growth rate has been less in Punjab than in other parts of the country. As of today, Punjab is the 15th largest State in terms of GDP and 16 in terms of per capita GDP. Punjab has focused on rice and wheat cultivation and has not been able to diversify its agrarian sectors as well as its economy. It could not take benefits of opening up the economy in 1991, which had a huge potential considering the State’s economic prosperity. Even the push given by either the Green Revolution or reforms of 1991 did not lead to any industrial or manufacturing or service industry in Punjab. It is a classic case where the economic benefits of one sector of agriculture could not trickle down to the other sectors.

This lack of transition to either the industrial or service sector has been the main reason for unemployment as well as the emigration of youth to other countries for greener pasture and job opportunities. 

The public exchequer of Punjab is in the doldrums. As per a recent projection by the CAG, Punjab’s public debt would double in the next five years. The CAG further states that Punjab is using its new borrowings to repay the earlier loans, leaving little for capital expenditure.

As per the data of NITI Aayog, Punjab’s per capita income has slid to below the national average, and its per capita capital expenditure is among the lowest in the country. At this stage, we need an overhauling of our agriculture sector. Crop-diversification is a must, and focusing on fruit crops as Himachal has been doing must be scrupulously done. In this regard, Punjab must develop a viable Industrial policy tapping immense potential in tourism, agriculture-related industries, dairy, sugar and farming activities etc. Evenly spread cluster of industries and linking them with the export market so as to increase the outreach of the industries should be the focus. Also, we need to fully tap the foreign remittance sent by almost one-crore strong Punjabi-diaspora.

Drug Menace

After winning its war against militancy, Punjab has been  facing a major internal threat in the form of drug trafficking. None of the three regions of Punjab viz, the Malwa, Majha and Doaba have remained immune from the scourge of drug trafficking. As a transit route for drug trafficking, Punjab has slowly become a victim of drug abuse, which has permeated deep in to it’s socio-political fabric. As per NCR Bureau, Punjab recorded 11,654 cases under Narcotic Drugs and Psychotropic Substances (NDPS) Act 1985 in 2018, as 2nd highest in the country and accounting for 19 per cent of all such cases registered countrywide. Punjab is adjacent to the Golden Crescent (area of Pak, Afgan and Iran), which is the largest opium-producer area of the world and shares a 553-km border with Pakistan. It has emerged as a destination as well as a transit point for drug smuggling from Afghanistan. 

As per NCR Bureau, Punjab recorded 11,654 cases under Narcotic Drugs and Psychotropic Substances (NDPS) Act 1985 in 2018, as 2nd highest in the country and account for 19 per cent of all such cases registered countrywide. Punjab has emerged as a destination  and a transit point for drug smuggling from Afghanistan

As per one report, opium-based drugs such as heroin and poppy husk, cannabis and pharmaceutical sedatives are the most used narcotics in the State. Surprisingly, Punjab neither produces plant-based natural substances like opium, cannabis and their derivatives nor manufactures the precursor chemicals which are processed into synthetic and psychotropic drugs. It means that drug in Punjab originates from outside the State through a supply network controlled by the local, inter-state, and international drug traffickers. Further, as per one study, the young population has been the worst sufferers of this menace. Although contrabands have spread their tentacles in all parts, the scourge of drugs has been concentrated in certain localities, clusters, and villages.

The issue of drug menace has been an election issue, but nothing concrete has been done in the last four years to eradicate its scourge. The State administration has miserably failed in either forming a viable policy or taking effective steps to stop the use of these drugs.  

The State needs a political will and must address the nexus of drug trafficking and money laundering and check illegal and anti-national activities. Also, strict enforcement of the law and hitting hard on traffickers is a must. Further, popular culture through songs that promote drug use should also be banned. 

 

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