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Chapter-5

Rural-Urban Structure of Agro-based Industries

Agricultural growth can play a central role in the process of overall economic

growth as well as reduction in poverty, inequality and unemployment. For some

developing countries, the rise in imports of agricultural products by developed countries

has constituted an opportunity to upgrade and diversify their agriculture and agro-based

industries, which in turn has stimulated growth.

Agro- based industries have also been viewed as a safety valve which needs to be

built within rural areas to absorb surplus labour and provide relief to the problem of large

scale disguised unemployment as well as seasonal unemployment and stop migration

from rural to urban areas. During the fifties, Indian planners entertained a hope that

promotion of agro-based industries would help in avoiding furtherance of industrial

concentration and achieve a more balanced regional dispersal of industrial activities as

well as employment.

Punjab’s industrial performance up to the end of the 1980s was much better than

that of the country as a whole. Ironically, Punjab’s long-drawn slowdown in industrial

growth began during the 1990s when the Government of India launched a process of

wide ranging economic reforms opening the Indian economy to imports as well as

domestic competition which provided larger scope to the private sector to generate

growth in the economy. To some extent, the major deceleration in agricultural growth

had a dampening effect on the industrial sector in Punjab in the 1990s. Also, even though

militancy had subsided by the mid-1990s, the government was slow to come to terms

with the emerging peace in the State and was not proactive in making the policy regime

investor-friendly. The deceleration in the growth of value added of agriculture and

industry since 1991 has meant that Punjab is no longer the first but only the fourth in per

capita income rank among the States of India (Ahluwalia et. al., 2008).

An industrial strategy for Punjab State must obviously include significant

initiatives for agro-processing and value addition for agriculture, given the rich

agricultural base of the State. These initiatives including the encouragement of private

investment in logistics and cold chains are equally important and necessary for turning

around the stagnation in the agricultural sector and enabling this sector to reach its full

118

potential. In this sense, industrial strategy is needed as much as for the revival of

agriculture as of industry (Ahluwalia et al., 2008).

Agro-based industry refer to the subset of manufacturing that processes raw-

material obtained from agriculture and its associated sectors such as animal husbandry,

forestry and logging and intermediate products derived from other industries such as

semi-processed hides and skins for manufacturing leather and leather products (Chadha

and Sahu, 2003).

District-wise distribution and types of industries in Punjab has been discussed

below. The main industrial districts in Punjab are Ludhiana, Jalandhar, Amritsar and

Bathinda. Ludhiana disrict is known for textile and hosiery products, Jalandhar and

Bathinda disticts for food products, paper and machinery and textiles.

District –wise Distribution and Types of Agro-industries in Punjab

District Concentration of types of Agro-industries in Punjab

Amritsar Power loom weaving, wood and machine screws, agricultural implements, dyes and varnishes, printing machinery, textiles

Bathinda Cotton ginning and processing, flour mills

Faridkot Agricultural implements, cottonseed oil, rice bran oil

Fatehgarh Sahib Steel re-rolling

Ferozpur Cotton ginning and processing, flour mills, milkboard and agricultural implements

Gurdaspur Agricultural implements, soap, brassware

Hoshiarpur Paints and varnish sugar, paper and paper board

Jalandhar Sports goods, hand tools, leather tanneries, publication

Kapurthala Agricultural implements, wood and machine screws, rice mills

Mansa Agricultural implements, cotton spinning

Moga Cotton yarn, rice bran oil, paper

Ludhiana Home appliances, agricultural implements, textile goods

Patiala Bakery products, biscuits, shoes

Rupnagar Agricultural implements

Sangrur Agricultural implements, milk products, chilled rolls

Source: Directorate of Industries, Chandigarh, Punjab.

This chapter deals with the rural-urban structure of agro-based industries namely food,

beverages and tobacco-based industries, textile-based industries as well as wood, paper &

119

leather-based industries in the rural and urban areas of Punjab. The relative efficiency of

small-scale agro-industries is addressed with the help of secondary data.

5.1 Rural-Urban Structure of Food, Beverages and Tobacco-based Industries in

Punjab This section deals with total number of units, fixed capital, employment and

output of food, beverages and tobacco-based industries in the rural and urban areas of

Punjab during the time period between 1980-81 to 2005-06. The food, beverages and

tobacco-based industries have continued to maintain its dominance in providing

employment. This industry has been identified as a sunrise industry which can play a

significant role in increasing the value addition of agricultural produce.

5.1.1 Total Number of Food, beverages and tobacco-based Industries (SSI) in the

Rural and Urban Areas of Punjab

District-wise total number of units of food, beverages and tobacco-based industries

in the rural and urban areas of Punjab have been presented in Table 5.1. It is clear from

table that it is a good sign for Punjab economy that maximum number of units of food,

beverages and tobacco base industries were existed in the rural areas. The district-wise

analysis reveals that the total number of units of food, beverages and tobacco-based

industries has increased in the rural and urban areas over a period except Faridkot district

where total number of units decreased from 179 in 1980-81 to 144 in 2005-06 in the

urban areas. In the year 1980-81, higher share of the number of units of food-based

industrial group in the urban areas was registered in Amritsar district (18.48 per cent)

followed by Faridkot district (17.88 per cent) and Ludhiana district (13.69 per cent). But

with the passage of time, the percentage share of these districts continuously shows the

declining trend.

In the urban areas, the lowest contribution was made by Kapurthala district. It

accounted only 2.70 per cent share in number of units. Within Punjab, the districts that

were doing well in terms of growth of the urban units of food, beverages and tobacco-

based industries was Bathinda, Hoshiarpur and Sangrur districts.

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Table 5.1: District-wise Total Number of Food, Beverages and Tobacco-based Industries (SSI) in Punjab

(In Numbers) Years→

Districts↓ 1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 CAGR

(%) Gurdaspur

Urban 49 (4.89) 105 (5.27) 170 (4.99) 192 (4.41) 203 (4.45) 206 (4.40) 206 (4.54) 5.68 Rural 45 (9.45) 120 (10.46) 278 (8.33) 330 (7.14) 367 (7.13) 379 (6.96) 381 (6.96) 8.56 Total 94 (6.36) 225 (7.17) 448 (6.64) 522 (5.82) 570 (5.88) 585 (5.78) 587 (5.78) 7.30

Amritsar Urban 185 (18.48) 349 (17.53) 566 (16.62) 633 (14.55) 606 (13.30) 612 (13.09) 614 (13.12) 4.72 Rural 117 (24.60) 186 (16.22) 328 (9.83) 465 (10.06) 456 (8.86) 469 (8.61) 472 (8.62) 5.51 Total 302 (20.45) 535(17.05) 894(13.26) 1098(12.24) 1062(10.95) 1081(10.68) 1086(10.69) 5.05

Kapurthala Urban 27 (2.70) 67(3.37) 102 (2.99) 123 (2.83) 147 (3.23) 150 (3.21) 149 (3.18) 6.79 Rural 59 (12.40) 107

(9.33) 210

(6.29) 243

(5.26) 258

(5.02) 265

(4.86) 267

(4.88) 5.98

Total 86(5.82) 174(5.55) 312(4.63) 366(4.08) 405(4.17) 415(4.10) 416(4.10) 6.25 Jalandhar

Urban 82 (8.19) 154 (7.73) 291 (8.54) 319 (7.34) 365 (8.01) 388 (8.30) 392 (8.38) 6.20 Rural 51 (10.71) 201 (17.52) 389 (11.65) 282 (6.10) 310 (6.03) 322 (5.91) 323(5.90) 7.36 Total 133(9.00) 355(11.31) 680(10.08) 601(6.70) 675(6.96) 710(7.01) 715(7.04) 6.68

Nawan Shehar*

Urban - - - 32 (0.74) 34 (0.75) 38 (0.81) 38 (0.81) 1.57 Rural - - - 225 (4.87) 229 (4.45) 229(4.20) 228 (4.16) 0.12 Total - - - 257(2.86) 263(2.71) 267(2.64) 266(2.62) 0.31

Hoshiarpur Urban 55 (5.49) 78 (3.92) 114 (3.35) 348 (8.00) 348 (7.64) 350 (7.48) 350 (7.48) 7.38 Rural 38 (7.98) 53 (4.62) 67 (2.01) 266 (5.75) 278(5.40) 279 (5.12) 279 (5.10) 7.97 Total 93(6.30) 131(4.17) 181(2.68) 614(6.84) 626(6.45) 629(6.21) 629(6.19) 7.63

Rupnagar Urban 31 (3.10) 71 (3.57) 87 (2.55) 136 (3.13) 145 (3.18) 163 (3.49) 167 (3.57) 6.69 Rural 26 (5.46) 47 (4.10) 81 (2.42) 105 (2.27) 106(2.06) 106 (1.95) 108 (1.97) 5.63 Total 57(3.86) 118(3.76) 168(2.49) 241(2.69) 251(2.58) 269(2.66) 275(2.71) 6.24

Ludhiana Urban 137 (13.69) 245 12.30) 395 (11.60) 508 (11.68) 560 (12.29) 570 (12.18) 573 (12.24) 5.66 Rural 8(1.68) 68 (5.93) 252(7.55) 346 (7.48) 389(7.56) 432 (7.93) 439 (8.02) 16.65 Total 145(9.82) 313(9.97) 647(9.59) 854(9.52) 949(9.78) 1002(9.90) 1012(9.97) 7.76

Firozpur Urban 78 (7.79) 158 (7.94) 330 (9.69) 393 (9.04) 389 (8.54) 391 (8.36) 392 (8.37) 6.41 Rural 32 (6.72) 58(5.06) 547 (16.39) 622 (13.45) 644 (12.52) 684 (12.55) 690 (12.60) 12.54 Total 110(7.45) 216(6.88) 877(13.00) 1015(11.31) 1033(10.64) 1075(10.61) 1082(10.65) 9.19

Faridkot Urban 179 (17.88) 258 (12.96) 498 (14.62) 133 (3.06) 139 (3.05) 143 (3.06) 144 (3.08) -0.83 Rural 19 (3.99) 49 (4.27) 551 (16.51) 115 (2.49) 160 (3.11) 171 (3.14) 170 (3.11) 8.79 Total 198(13.41) 307(9.78) 1049(15.55) 248(2.76) 299(3.08) 314(3.10) 314(3.09) 1.79

Muktsar* Urban - - - 192 (4.41) 212 (4.65) 219 (4.68) 203 (4.34) 0.51 Rural - - - 245 (5.30) 283 (5.50) 302(5.54) 285 (5.20) 1.38 Total - - - 437(4.87) 495(5.10) 521(5.14) 488(4.81) 1.01

Moga* Urban - - - 192(4.41) 219 (4.81) 224 (4.79) 224 (4.79) 1.41 Rural - - - 288 (6.23) 407 (7.91) 455 (8.35) 461 (8.42) 4.37 Total - - - 480(5.35) 626(6.45) 679(6.71) 685(6.75) 3.29

Bathinda Urban 35 (3.50) 97 (4.87) 204 (5.99) 295 (6.78) 317 (6.95) 321 (6.86) 323(6.90) 8.92 Rural 3(0.63) 33 (2.88) 117(3.51) 390(8.44) 417 (8.11) 430 (7.89) 434 (7.93) 21.09 Total 38(2.57) 130(4.14) 321(4.76) 685(7.63) 734(7.57) 751(7.42) 757(7.45) 12.20

Mansa* Urban - - - 105(2.41) 116 (2.54) 121 (2.59) 122 (2.61) 1.37 Rural - - - 70 (1.51) 84(1.63) 88(1.61) 89(1.62) 2.21 Total - - - 175(1.95) 200(2.06) 209(2.06) 211(2.08) 1.72

Sangrur Urban 59 (5.89) 171 (8.59) 302 (8.87) 329 (7.56) 348(7.64) 357 (7.63) 357 (7.63) 7.17 Rural 46 (9.66) 87 (7.58) 214(6.41) 265 (5.73) 340 (6.61) 379 (6.95) 382(6.98) 8.48 Total 105(7.11) 258(8.22) 516(7.65) 594(6.62) 688(7.09) 736(7.27) 739(7.28) 7.79

Patiala Urban 84 (8.39) 238 (11.95) 347 (10.19) 330 (7.59) 316 (6.93) 331 (7.08) 333 (7.11) 5.44 Rural 32 (6.72) 138 (12.03) 304 (9.10) 257 (5.56) 298 (5.79) 336 (6.17) 341 (6.23) 9.53 Total 116(7.85) 376(11.98) 651(9.65) 587(6.54) 614(6.33) 667(6.58) 674(6.64) 7.00

Fatehgarh

Sahib*

Urban - - - 89 (2.05)

93 (2.04)

93 (1.99)

93 (1.99)

0.40

Contd...

121

Rural - - - 109 (2.36) 118 (2.29) 123 (2.26) 126 (2.30) 1.33 Total - - - 198(2.21) 211(2.18) 216(2.13) 219(2.16) 0.92

Punjab Urban 1001 (100) 1991 (100) 3406 (100) 4349 (100) 4557 (100) 4677 (100) 4680 (100) 6.11

% (Urban

Areas ) 67.77 63.45 50.50 48.47 46.97 46.19 46.09

Rural 476 (100) 1147 (100) 3338 (100) 4623 (100) 5144 (100) 5449 (100) 5475 (100) 9.85

% (Rural Areas )

32.23 36.55 49.50 51.53 53.03 53.81 53.91

Total 1477(100) 3138(100) 6744(100) 8972(100) 9701(100) 10126(100) 10155(100) 7.70 Note: * these districts came into existence in later time period. Figures in parentheses represent the percentage value. Source: Directorate of Industries, Chandigarh.

The districts came into existence in later time period, they showed better

performance. It is observed from the table that the percentage as well as absolute number

of units of food, beverages and tobacco-based industry in the urban areas has increased in

some districts. In the urban areas, the absolute number of Kapurthala district increased

from 27 to 149, in Jalandhar district from 82 to 392, in Hoshiarpur district from 55 to

350, in Bathinda district from 35 to 323, in Sangrur district from 59 to 357 and finally in

Patiala district from 84 to 333 during 1980-81 to 2005-06. The compound growth rate

analysis reveals that few districts namely Amritsar, Nawan Shehar, Muktsar, Moga,

Mansa and Fatehgarh Sahib districts registered the lowest growth rate of units whereas

Faridkot district showed the negative compound growth rate in Punjab.

In the rural areas, the concentration of food, beverages and tobacco-based

industries was highest in Amritsar district, i.e., 24.60 per cent of the total rural industries

in Punjab in 1980-81. It can be observed from the table that the districts in which the

number of units were less in 1980-81 that has increased in the later time period to the

satisfactory level. The number of units of food, beverages and tobacco-based industries in

the rural Punjab shows the declining trend. In absolute terms the number of units of food,

beverages and tobacco-based industries in Gurdaspur district increased from 45 to 381, in

Amritsar district from 117 to 472, in Kapurthala district from 59 to 267, in Jalandhar

district from 51 to 323, in Hoshiarpur district from 38 to 279, in Ludhiana district from 8

to 439, in Faridkot district from 19 to 170 during 1980-81 to 2005-06. The highest

growth rate of units was registered by Bathinda district (21.09 per cent per annum) in the

rural areas followed by Ludhiana district (16.65 per cent per annum). In the year 2005-

06, the highest concentration of number of units of food, beverages and tobacco-based

industries was registered in Amritsar district. Only 38 units were running in Bathinda

district in the initial year of the study. With the passage of time, the share of these

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industries increased in this district. In the year 2005-06, although the share of Amritsar

district was highest, i.e., 10.69 per cent, but its percentage share in number of units

declined from the initial year. The reason behind the decline of number of units of food,

beverages and tobacco-based industries was that the share of textile-based industrial

group and wood, paper and leather-based industries was relatively much higher during

this period. It is also clear from the above analysis that the districts that came into

existence after 1991 have very less number of units of the food, beverages and tobacco-

based industries.

It is analysised that some districts were showing exceptional performance in the

development of small-scale agro-based industries in Punjab. As the number of units of

food, beverages and tobacco based industries in the rural areas of the districts showed the

increasing trend, therefore growth rate of number units in these districts was highest. At

the State level as a whole, the number of units of food, beverages and tobacco based

industries has increased approximately four times in the urban areas during 1980-81 to

2005-06 by registering the growth rate of 6.11 per cent per annum. The rural-urban

analysis shows that the rural areas registered the highest growth rate for the whole time

period under study. This study reveals that percentage share of agro food, beverages and

tobacco-based industry in urban areas has decreased whereas for the rural areas it has

been rising continuously over a time period. The concentration of more industries in the

rural areas was mainly due to easy availability of agricultural raw-material and other

inputs as compared to the urban areas. From the table 5.1, it emerges that at the State

level, the number of units of food, beverages and tobacco-based industries increased

from 1001 in 1980-81 to 4680 in 2005-06 in the urban areas (more than four times) and

total number of these units in rural area increased from 476 in 1980-81 to 5475 in 2005-

06 (more than eleven times).

The percentage share of food, beverages and tobacco-based industry in the urban

areas has declined between 1980-81 to 2005-06 (from 67.77 per cent to 46.09 per cent)

whereas for the rural areas it has been rising continuously over the period of time, i.e.,

from 32.33 per cent in 1980-81 to 53.91 per cent in 2005-06. During 1980-81, the

majority of industries were concentrated in the urban areas of State but with the passage

of time, the total number of industries has increased in the rural areas mainly due to

increase in agriculture production and productivity, availability of raw-material and

123

labour as well as government efforts and special packages for establishing industries in

the rural areas for reducing regional disparities.

5.1.2 Total Fixed Capital in Food, Beverages and Tobacco-based Industries (SSI) in the Rural and Urban Areas of Punjab

District-wise total fixed capital in food, beverages and tobacco-based industries in

the rural and urban areas of Punjab have been presented in Table 5.2. Total fixed capital

in these industries in Punjab as a whole increased from Rs. 11174.37 lakh in 1980-81 to

Rs. 55327.15 lakh in 2005-06 by registering the growth rate of 6.35 per cent per annum.

In 1980-81, out of the fixed capital investment Rs.6791.60 lakh (60.78 per cent) was

invested in food, beverages and tobacco-based industries concentrated in the urban areas

and the remaining Rs.4382.77 lakh (39.22 per cent) was invested in these industries

concentrated in the rural areas. In the year 1980-81, the highest percentage share of fixed

capital was registered by Jalandhar district, i.e., Rs. 2085.46 lakh by occupying the 18.66

per cent share of the total capital followed by Firozpur district, i.e., 1996.79 lakh (17.87

per cent). In the rural areas, the absolute value of fixed capital was highest in Jalandhar

district i.e. Rs.879.83 lakh (20.07 per cent) whereas in the urban areas Firozpur district

ranked first with a share of Rs.1415.01 lakh (20.83 per cent). Whereas the lowest fixed

capital was invested in the rural and urban areas of Bathinda district, i.e., Rs.138.15 lakh

which constituted only 1.24 percentage share of fixed capital in 1980-81.

In 2005-06, the percentage share of fixed capital investment was highest in

Firozpur district, i.e., 23.71 per cent followed by Sangrur district, i.e., 10.71 per cent and

Patiala district, i.e., 10.02 per cent whereas this percentage was lowest in Nawan Shehar

district (0.70 per cent) followed by Fatehgarh Sahib district (1.10 per cent) and Mansa

district (1.62 per cent).

This analysis further reveals that out of total fixed capital investment of

Rs.55327.15 lakh in 2005-06, Rs.15424.45 lakh (27.88 per cent) was invested in food,

beverages and tobacco-based industries concentrated in the urban areas and the remaining

Rs.39902.7 lakh (72.12 per cent) was invested in these industries in the rural areas. It is

clear from the table that the growth rate of total fixed capital in these industries was

highest (8.87 per cent per annum) in the rural areas as compared to the growth rate of

fixed capital investment in the urban areas (3.21 per cent per annum).

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Table 5.2: District-wise Total Fixed Capital in Food, Beverages and Tobacco-based Industries (SSI) in Punjab (At Constant Prices 1993-94=100)

(Value Rs. In lakhs) Years→ Districts↓

1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 CAGR (%)

Gurdaspur Urban 334.03

(4.92) 541.90 (4.40)

560.44 (4.17)

538.94 (4.35)

738.49 (4.54)

692.14 (4.34)

658.33 (4.27)

2.80

Rural 349.95 (7.98)

641.37 (7.53)

758.80 (7.73)

1244.04 (10.25)

2310.46 (7.07)

2335.15 (5.72)

2283.36 (5.72)

7.48

Total 683.98 (6.12)

1183.28 (5.68)

1319.24 (5.67)

1782.98 (7.27)

3048.95 (6.23)

3027.29 (5.33)

2941.69 (5.32)

5.77

Amritsar Urban 399.01

(5.88) 697.08 (5.66)

1082.70 (8.05)

955.91 (7.71)

1019.28 (6.26)

973.01 (6.10)

940.78 (6.10)

3.35

Rural 278.44 (6.35)

583.41 (6.85)

888.87 (9.05)

1434.05 (11.81)

2158.07 (6.61)

2490.34 (6.10)

2385.35 (5.98)

8.61

Total 677.45 (6.06)

1280.49 (6.15)

1971.57 (8.47)

2389.95 (9.74)

3177.36 (6.49)

3463.35 (6.10)

3326.13 (6.01)

6.31

Kapurthala Urban 213.62

(3.15) 552.30 (4.49)

589.69 (4.38)

487.61 (3.93)

678.06 (4.17)

703.22 (4.41)

663.23 (4.30)

4.45

Rural 309.73 (7.07)

551.11 (6.47)

639.63 (6.51)

493.78 (4.07)

1029.96 (3.15)

1250.64 (3.06)

1215.39 (3.05)

5.40

Total 523.35 (4.68)

1103.41 (5.29)

1229.32 (5.28)

981.39 (4.00)

1708.02 (3.49)

1953.86 (3.44)

1878.62 (3.40)

5.04

Jalandhar Urban 1205.64

(17.75) 1138.24 (9.25)

958.80 (7.13)

587.61 (4.74)

964.55 (5.93)

1010.55 (6.34)

973.33 (6.31)

-0.82

Rural 879.83 (20.07)

1215.68 (14.27)

1220.97 (12.44)

696.58 (5.74)

920.61 (2.82)

958.47 (2.35)

913.01 (2.29)

0.14

Total 2085.46 (18.66)

2353.92 (11.30)

2179.77 (9.37)

1284.19 (5.23)

1885.16 (3.85)

1969.02 (3.47)

1886.34 (3.41)

-0.39

Nawan Shehar* Urban - - - 19.71

(0.16) 34.98 (0.21)

47.06 (0.30)

44.76 (0.29)

7.74

Rural - - - 380.77 (3.14)

444.77 (1.36)

394.04 (0.97)

343.42 (0.86)

-0.93

Total - - - 400.48 (1.63)

479.75 (0.98)

441.10 (0.78)

388.18 (0.70)

-0.28

Hoshiarpur Urban 366.15

(5.39) 586.09 (4.76)

642.48 (4.78)

604.76 (4.88)

649.47 (3.99)

624.04 (3.91)

604.00 (3.92)

1.94

Rural 330.11 (7.53)

460.13 (5.40)

389.60 (3.97)

302.09 (2.49)

614.70 (1.88)

483.27 (1.18)

459.66 (1.15)

1.28

Total 696.26 (6.23)

1046.23 (5.02)

1032.08 (4.44)

906.85 (3.70)

1264.17 (2.58)

1107.30 (1.95)

1063.66 (1.92)

1.64

Rupnagar Urban 157.23

(2.32) 219.79 (1.79)

176.06 (1.31)

341.42 (2.75)

556.97 (3.42)

757.41 (4.75)

765.56 (4.96)

6.28

Rural 114.38 (2.61)

151.61 (1.78)

244.71 (2.49)

425.13 (3.50)

412.47 (1.26)

361.87 (0.87)

438.22 (1.10)

5.30

Total 271.61 (2.43)

371.41 (1.78)

420.77 (1.81)

766.55 (3.12)

969.44 (1.98)

1119.28 (1.97)

1203.78 (2.18)

5.89

Ludhiana Urban 432.46

(6.37) 1021.73 (8.30)

1071.94 (7.97)

1108.26 (8.94)

1406.62 (8.64)

1306.15 (8.19)

1312.33 (8.51)

4.36

Rural 58.22 (1.33)

523.49 (6.14)

583.41 (5.94)

937.97 (7.73)

1822.61 (5.58)

2412.64 (5.91)

2419.21 (6.06)

15.41

Total 490.68 (4.39)

1545.23 (7.42)

1655.35 (7.11)

2046.23 (8.34)

3229.23 (6.60)

3718.79 (6.55)

3731.54 (6.74)

8.12

Firozpur Urban 1415.01

(20.83) 2633.15 (21.39)

2772.03 (20.61)

2377.03 (19.16)

3131.88 (19.24)

2806.26 (17.60)

2724.27 (17.66)

2.55

Rural 581.78 (13.27)

1237.23 (14.52)

1256.62 (12.80)

1472.90 (12.13)

8836.23 (27.05)

10640.35 (26.07)

10393.50 (26.05)

11.73

Total 1996.79 (17.87)

3870.37 (18.58)

4028.65 (17.31)

3849.93 (15.69)

11968.11 (24.45)

13446.61 (23.69)

13117.77 (23.71)

7.51

Contd...

125

Faridkot Urban 996.53

(14.67) 1385.80 (11.26)

1469.12 (10.92)

269.95 (2.18)

431.37 (2.65)

440.68 (2.76)

426.13 (2.76)

-3.21

Rural 118.82 (2.71)

531.07 (6.23)

925.68 (9.43)

314.90 (2.59)

1977.36 (6.05)

2238.16 (5.48)

2124.68 (5.32)

11.73

Total 1115.35 (9.98)

1916.88 (9.20)

2394.80 (10.29)

584.85 (2.38)

2408.73 (4.92)

2678.84 (4.72)

2550.81 (4.61)

3.23

Muktsar* Urban - - - 441.75

(3.56) 488.98 (3.00)

475.49 (2.98)

441.37 (2.86)

-0.01

Rural - - - 124.99 (1.03)

1333.03 (4.08)

1937.08 (4.75)

1835.58 (4.60)

27.67

Total - - - 566.74 (2.31)

1822.01 (3.72)

2412.57 (4.25)

2276.95 (4.12)

13.48

Moga* Urban - - - 497.82

(4.01) 642.45 (3.95)

644.39 (4.04)

612.92 (3.97)

1.91

Rural - - - 910.10 (7.50)

2515.83 (7.70)

4752.42 (11.64)

4605.51 (11.54)

15.88

Total - - - 1407.92 (5.74)

3158.28 (6.45)

5396.81 (9.51)

5218.43 (9.43)

12.65

Bathinda Urban 125.55

(1.85) 713.66 (5.79)

1095.90 (8.15)

626.54 (5.05)

1320.97 (8.12)

1260.44 (7.91)

1233.13 (7.99)

9.18

Rural 12.60 (0.29)

101.13 (1.19)

235.30 (2.40)

434.99 (3.58)

1061.20 (3.25)

1554.81 (3.81)

1541.30 (3.86)

20.31

Total 138.15 (1.24)

814.80 (3.91)

1331.19 (5.72)

1061.53 (4.33)

2382.16 (4.87)

2815.24 (4.96)

2774.42 (5.01)

12.23

Mansa* Urban - - - 364.70

(2.94) 434.58 (2.67)

395.60 (2.48)

390.99 (2.53)

0.94

Rural - - - 78.68 (0.65)

455.59 (1.39)

447.14 (1.10)

504.23 (1.26)

13.37

Total - - - 443.38 (1.81)

890.16 (1.82)

842.74 (1.48)

895.22 (1.62)

7.01

Sangrur Urban 766.06

(11.28) 1314.23 (10.68)

1716.07 (12.76)

1153.10 (9.29)

1333.11 (8.19)

1361.26 (8.54)

1294.77 (8.39)

2.04

Rural 743.74 (16.97)

1053.42 (12.36)

1332.81 (13.57)

1106.00 (9.11)

3522.46 (10.78)

4735.86 (11.60)

4631.03 (11.61)

7.29

Total 1509.80 (13.51)

2367.65 (11.37)

3048.88 (13.10)

2259.10 (9.21)

4855.57 (9.92)

6097.12 (10.74)

5925.80 (10.71)

5.40

Patiala Urban 380.30

(5.59) 1505.58 (12.23)

1314.19 (9.77)

1852.35 (14.94)

2255.13 (13.86)

2278.96 (14.29)

2180.80 (14.14)

6.95

Rural 605.17 (13.81)

1469.34 (17.25)

1342.39 (13.67)

1669.60 (13.75)

2979.20 (9.12)

3391.23 (8.31)

3360.58 (8.42)

6.82

Total 985.46 (8.82)

2974.92 (14.28)

2656.58 (11.42)

3521.95 (14.35)

5234.33 (10.69)

5670.19 (9.99)

5541.38 (10.02)

6.87

Fatehgarh Sahib*

Urban - - - 175.11 (1.41)

189.04 (1.16)

165.85 (1.04)

157.75 (1.02)

-0.40

Rural - - - 112.82 (0.93)

277.12 (0.85)

436.60 (1.07)

448.68 (1.12)

5.45

Total - - - 287.93 (1.17)

466.16 (0.95)

602.45 (1.06)

606.43 (1.10)

2.91

Punjab Urban 6791.60

(100) 12309.60 (100)

13449.42 (100)

12402.57 (100)

16275.9 (100)

15942.5 (100)

15424.45 (100)

3.21

% urban 60.78 59.10 57.80 50.54 33.25 28.09 27.88 Rural 4382.77

(100) 8519.01 (100)

9818.8 (100)

12139.39 (100)

32671.7 (100)

40820.0 (100)

39902.7 (100)

8.87

% rural 39.22 40.90 42.20 49.46 66.75 71.91 72.12 Total 11174.37

(100) 20828.61 (100)

23268.22 (100)

24541.96 (100)

48947.59 (100)

56762.68 (100)

55327.15 (100)

6.35

Note: * these districts came into existence in later time period. Figures in parentheses represent the percentage value. Source: Directorate of Industries, Chandigarh.

126

In the rural areas of Punjab, the percentage share of fixed capital was

continuously increasing and touched the level of 72.12 per cent in the year 2005-06 by

recording the growth rate of 8.87 per cent per annum. In the year 2005-06, in the urban

areas the highest percentage share of fixed capital was in Firozpur district, i.e., 17.66 per

cent and it was lowest in Nawan Shehar district (0.29 per cent) followed by Fatehgarh

Sahib district (1.02 per cent). Whereas in the rural areas the percentage value of fixed

capital was highest (26.05) in Firozpur district and it was lowest in Rupnagar district, i.e.,

1.10 per cent of the total fixed capital. So, it may be concluded that economic reforms

had not affected the growth of fixed investment in food, beverages and tobacco-based

industries.

5.1.3 Total Number of Employment in Food, Beverages and Tobacco-based

Industries (SSI) in the Rural and Urban Areas of Punjab

Table 5.3 represents the district-wise total number of employment in food,

beverages and tobacco-based industries in the rural and urban areas of Punjab. During

early 1980’s the largest employment in food, beverages and tobacco-based industries was

generated in Faridkot district (15.75 per cent) followed by Gurdaspur district (11.73 per

cent), Sangrur district (11.70 per cent) and Jalandhar district (11.61 per cent). Over the

time period, the share of employment in these districts decreased.

The percentage share of Bathinda district in total employment in Punjab in this

industrial group was lowest only 0.60 per cent during 1980-81 in the rural areas. The

percentage share of employment in all the districts was highest before the nineties. The

percentage share of employment of some districts declined because of the existence of

new districts in the year 1992-93 and 1995-96. Because Muktsar, Moga, Mansa, Nawan

Shehar and Fatehgarh Sahib districts came into existence in later time period, but these

districts showed better performance in employment over the period of time. In the urban

areas, the contribution of employment in food, beverages and tobacco-based industries

was highest in Faridkot district, i.e., 21.39 per cent in the year 1980-81 and it has

decreased over a period of time with minor fluctuations in between and finally came

down to 4.53 per cent in 2005-06 and registered a negative rate of growth of employment

during 1980-81 to 2005-06.

127

Table 5.3: District-Wise Employment of Food, beverages and tobacco-based Industries (SSI) in Punjab

(in numbers) Years→ Districts↓

1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 CAGR (%)

Gurdaspur Urban 588

(7.85) 924 (6.39) 1276

(5.79) 1377 (4.99)

1459 (5.05)

1537 (5.14)

1537 (5.13)

6.35

Rural 741 (19.34)

1472 (16.14)

1973 (11.48)

2503 (10.73)

2883 (9.05)

3052 (8.08)

3065 (7.99)

5.61

Total 1329 (11.73)

2396 (10.16)

3249 (8.29)

3880 (7.63)

4342 (7.15)

4589 (6.79)

4602 (6.73)

4.89

Amritsar Urban 651

(8.68) 1231 (8.51)

2167 (9.84)

3560 (12.92)

2503 (8.67)

2524 (8.45)

2535 (8.45)

5.37

Rural 471 (12.29)

748 (8.20)

1862 (10.83)

2940 (12.61)

3269 (10.26)

3522 (9.33)

3552 (9.25)

8.08

Total 1122 (9.90)

1979 (8.39)

4029 (10.27)

6500 (12.78)

5772 (9.50)

6046 (8.94)

6087 (8.90)

6.72

Kapurthala Urban 231

(3.08) 562

(3.89) 780

(3.54) 872

(3.16) 1158 (4.01)

1144 (3.83)

1132 (3.77)

6.30

Rural 332 (8.66)

700 (7.68)

1006 (5.85)

1057 (4.53)

1135 (3.56)

1195 (3.17)

1207 (3.14)

5.09

Total 563 (4.97)

1262 (5.35)

1786 (4.55)

1929 (3.79)

2293 (3.77)

2339 (3.46)

2339 (3.42)

5.63

Jalandhar Urban 902

(12.03) 1364 (9.43)

1828 (8.30)

1850 (6.71)

2140 (7.41)

2278 (7.62)

2309 (7.70)

3.68

Rural 413 (10.78)

906 (9.94)

1478 (8.60)

1232 (5.28)

1470 (4.61)

1564 (4.14)

1576 (4.11)

5.29

Total 1315 (11.61)

2270 (9.63)

3306 (8.43)

3082 (6.06)

3610 (5.94)

3842 (5.68)

3885 (5.68)

4.25

Nawan Shehar* Urban - - - 102

(0.37) 114

(0.39) 166

(0.55) 166

(0.55) 4.53

Rural - - - 490 (2.10)

526 (1.65)

531 (1.41)

528 (1.37)

0.68

Total - - - 592 (1.16)

640 (1.05)

697 (1.03)

694 (1.02) 1.46

Hoshiarpur Urban 543

(7.24) 625

(4.32) 1043 (4.74)

1599 (5.80)

1617 (5.59)

1767 (5.91)

1767 (5.89)

4.64

Rural 204 (5.32)

482 (5.28)

731 (4.25)

784 (3.36)

945 (2.97)

1051 (2.78)

1051 (2.74)

6.51

Total 747 (6.59)

1107 (4.69)

1774 (4.52)

2383 (4.68)

2562 (4.21)

2818 (4.17)

2818 (4.12)

5.24

Rupnagar Urban 330

(4.40) 459

(3.17) 475

(2.16) 738

(2.68) 843

(2.92) 808

(2.70) 831

(2.77) 3.62

Rural 133 (3.47)

227 (2.49)

302 (1.75)

416 (1.78)

417 (1.31)

417 (1.11)

438 (1.14)

5.21

Total 463 (4.09)

686 (2.91)

777 (1.98)

1154 (2.27)

1260 (2.07)

1225 (1.81)

1269 (1.86)

3.95

Ludhiana Urban 648

(8.64) 1596

(11.03) 2379

(10.80) 2998

(10.88) 3310

(11.46) 3468

(11.61) 3513

(11.71) 6.72

Rural 65 (1.69)

557 (6.11)

1731 (10.07)

2153 (9.23)

2570 (8.07)

3145 (8.33)

3269 (8.52)

16.26

Total 713 (6.29)

2153 (9.13)

4110 (10.48)

5151 (10.12)

5880 (9.68)

6613 (9.78)

6782 (9.92)

9.05

Firozpur Urban 552

(7.36) 1468

(10.15) 2421

(10.99) 2828

(10.26) 3168

(10.97) 3197

(10.69) 3226

(10.76) 7.03

Rural 161 (4.20)

525 (5.76)

1361 (7.92)

1779 (7.63)

3798 (11.92)

4557 (12.08)

4662 (12.14)

13.82

Total 713 (6.29)

1993 (8.45)

3782 (9.64)

4607 (9.06)

6966 (11.47)

7754 (11.46)

7888 (11.54)

9.69

Contd...

128

Faridkot Urban 1603

(21.39) 2161

(14.95) 3196

(14.51) 1251 (4.54)

1299 (4.49)

1340 (4.48)

1358 (4.53)

-0.64

Rural 181 (4.72)

513 (5.62)

2287 (13.30)

1155 (4.95)

1906 (5.98)

2236 (5.93)

2207 (5.75)

10.10

Total 1784 (15.75)

2674 (11.34)

5483 (13.98)

2406 (4.73)

3205 (5.28)

3576 (5.29)

3565 (5.21)

2.70

Muktsar* Urban - - - 1335

(4.84) 1524 (5.28)

1569 (5.25)

1474 (4.91)

0.90

Rural - - - 679 (2.91)

1564 (4.92)

2041 (5.41)

2016 (5.25)

10.40

Total - - - 2014 (3.96)

3088 (5.09)

3610 (5.34)

3490 (5.11)

1.34

Moga* Urban - - - 1403

(5.09) 1630 (5.64)

1680 (5.62)

1680 (5.60)

1.65

Rural - - - 1981 (8.50)

2832 (8.89)

3677 (9.74)

3742 (9.75)

5.65

Total - - - 3384 (6.65)

4462 (7.35)

5357 (7.92)

5422 (7.93)

4.38

Bathinda Urban 181

(2.41) 603 (4.17) 1476

(6.70) 1268 (4.60)

1502 (5.20)

1556 (5.21)

1569 (5.23)

8.66

Rural 23 (0.60)

131 (1.44)

371 (2.16)

992 (4.25)

1484 (4.66)

1740 (4.61)

1849 (4.82)

18.38

Total 204 (1.80)

734 (3.11)

1847 (4.71)

2260 (4.44)

2986 (4.92)

3296 (4.87)

3418 (4.99)

11.45

Mansa* Urban - - - 878

(3.19) 965

(3.34) 998

(3.34) 1036 (3.45)

1.52

Rural - - - 242 (1.04)

488 (1.53)

578 (1.53)

591 (1.54)

8.46

Total - - - 1120 (2.20)

1453 (2.39)

1576 (2.33)

1627 (2.38)

3.45

Sangrur Urban 601

(8.02) 1378 (9.53)

2321 (10.54)

2491 (9.04)

2565 (8.88)

2662 (8.91)

2662 (8.88)

5.89

Rural 725 (18.91)

1061 (11.64)

1637 (9.52)

1933 (8.29)

2875 (9.03)

4060 (10.76)

4137 (10.78)

6.93

Total 1326 (11.70)

2439 (10.35)

3958 (10.09)

4424 (8.69)

5440 (8.96)

6722 (9.94)

6799 (9.94)

6.49

Patiala Urban 665

(8.87) 2086

(14.43) 2660

(12.08) 2437 (8.84)

2495 (8.64)

2601 (8.70)

2610 (8.70)

5.40

Rural 383 (9.99)

1795 (19.68)

2453 (14.26)

2577 (11.05)

3204 (10.05)

3807 (10.08)

3881 (10.11)

9.32

Total 1048 (9.25)

3881 (16.46)

5113 (13.04)

5014 (9.86)

5699 (9.38)

6408 (9.48)

6491 (9.49)

7.27

Fatehgarh Sahib*

Urban - - - 568 (2.06)

585 (2.03)

585 (1.96)

585 (1.95)

0.27

Rural - - - 404 (1.73)

484 (1.52)

564 (1.49)

602 (1.57)

3.69

Total - - - 972 (1.91)

1069 (1.76)

1149 (1.69)

1187 (1.74)

1.83

Punjab Urban 7495

(100) 14457 (100)

22022 (100)

27555 (100)

28877 (100)

29880 (100)

29990 (100)

5.48

% age (urban) 66.17 61.33 56.16 54.17 47.55 44.19 43.87 Rural 3832

(100) 9117 (100)

17192 (100)

23317 (100)

31850 (100)

37737 (100)

38373 (100)

9.27

% age Rural 33.83 38.67 43.84 45.83 52.45 55.81 56.13 Total 11327

(100) 23574 (100)

39214 (100)

50872 (100)

60727 (100)

67617 (100)

68363 (100)

7.16

Note: * these districts came into existence in later time period. Figures in parentheses represent the percentage value. Source: Directorate of Industries, Chandigarh.

129

It is observed from the table that Bathinda district generated the highest growth

rate of employment (18.38 per cent per annum) in the rural areas. The employment in this

district rose from 23 in 1980-81 to 1849 in 2005-06. The decline in employment in this

district before nineties was because of relatively less number of units of this industry. In

the year 2005-06, in the rural areas the largest employment providing district was

Firozpur district. The absolute number of employment in this district increased from 161

in 1980-81 to 525 in the year 1985-86 and finally rose to 4662 in 2005-06. This district

recorded 13.82 per cent per annum growth rate of employment.

This analysis reveals that the district that had less number of units in the initial

years of the study, with the passage of time the number of units of food, beverages and

tobacco-based industries increased and they generated large number of employment.

Ludhiana district had large number of units of these industries in the rural areas as

compared to the urban areas. These industries recorded 16.26 and 6.72 per cent per

annum growth rate of employment in the rural and urban areas of Ludhiana district

respectively during 1980-81 to 2005-06. This table further shows that the absolute

number of employment increased in Punjab during the whole time-period. In the rural

areas, the districts that grew at faster pace also showed better results in terms of growth in

number of units and fixed capital as well as generated more employment. The percentage

share of employment of food, beverages and tobacco-based industries in the urban areas

was 66.17 per cent in 1980-81 and later on it declined continuously with minor

fluctuations in between. Whereas the percentage share of employment in this industrial

group was 33.83 per cent in 1980-81, rose to 45.83 per cent in 1995-96 and finally

increased to 56.13 per cent in 2005-06 in the urban areas. During 1980-81 to 2005-06, at

the state level the percentage share of employment in food, beverages and tobacco-based

industries has declined in the urban areas whereas increased in rural areas. The growth

rate of employment was highest in the rural areas (9.27 per cent per annum) as compared

to urban areas (5.48 per cent per annum) in Punjab. It was mainly due to increase in the

number of food, beverages and tobacco-based industries in the rural areas of Punjab.

130

5.1.4 Total Output in Food, Beverages and Tobacco-based Industries (SSI) in the Rural and Urban Areas of Punjab

District-wise total output in food, beverages and tobacco-based industries in the

rural as well as urban areas of Punjab have been presented in Table 5.4. It is observed

from table 5.4 that the percentage share of total output in food, beverages and tobacco-

based industries has decreased in the urban areas whereas the percentage share of total

output increased in the rural areas. In absolute terms, the value of total output has

increased from Rs.19829.3 lakh in 1980-81 to Rs. 92238.80 lakh in 2005-06 in the urban

areas by recording the growth rate of 6.09 per cent per annum whereas in the rural areas,

the value increased from Rs.12201.78 lakh to Rs.154687.81 lakh by registering 10.26 per

cent per annum growth rate of output respectively. In the State as a whole, the percentage

share of total output of food, beverages and tobacco-based industries in the urban areas

was 61.91 per cent in 1980-81, decreased to 56.65 per cent in 1990-91, further decreased

to 44.96 per cent in 2000-01 and finally came down to 37.35 per cent in 2005-06. At the

State level, the growth rate of output was 8.17 per cent per annum. The highest growth

rate of output was recorded in Ludhiana district (20.92 per cent per annum) followed by

Bathinda district (20.46 per cent per annum) whereas the lowest growth rate of output

was registered in Kapurthala district, i.e., 1.30 per cent per annum for the whole time

period. In the urban areas in 1980-81, Faridkot district occupied the first rank in output

(30.24 per cent) followed by Firozpur district (15.92 per cent). In absolute terms, the

value of output in urban areas was highest in Faridkot district, i.e., Rs.5995.99 lakh in

1980-81, followed by Rs.3156.10 lakh in the Firozpur district in the urban areas. Whereas

the value of output was lowest in Bathinda district, i.e., Rs.180.89 lakh followed by

Hoshiarpur district (Rs.224.37 lakh).

In the rural areas, the value of output in absolute terms was highest in Sangrur district

(Rs.3904.34 lakh) in eighties and followed by Kapurthala district (Rs.1850.32 lakh) and

in the year 2005-06, the percentage share of total output was highest in Sangrur district

(Rs.32846.93 lakh) followed by Firozepur district (Rs.19049.77 lakh).

The percentage share of output was lowest in Faridkot, Hoshiarpur and Nawan

Shehar districts. In rural areas, the percentage share of total output was highest in Sangrur

district, i.e., 21.23 per cent whereas it was lowest in Hoshiarpur district (0.71 per cent),

Jalandhar district (1.08 per cent) and Rupnagar district, i.e., 1.15 per cent.

131

Table 5.4: District-wise Total Output in Food, Beverages and Tobacco-based Industries (SSI) in Punjab At Constant Prices 1993-94=100

(Value Rs. In lakhs) Years→ Districts↓

1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 CAGR (%)

Gurdaspur Urban 794.77

(4.01) 1155.75 (2.56)

1460.68 (2.87)

1752.15 (2.63)

2117.38 (2.71)

2213.37 (2.42)

2189.58 (2.37)

3.97

Rural 1460.10 (11.97)

1962.22 (5.92)

2652.47 (6.81)

8956.09 (15.06)

10633.82 (11.10)

11214.64 (8.01)

11135.41 (7.19)

8.13

Total 2254.87 (7.04)

3117.97 (3.99)

4113.15 (4.58)

10708.24 (8.65)

12751.21 (7.33)

13428.01 (5.81)

13324.99 (5.40)

7.07

Amritsar Urban 1078.52

(5.45) 2085.14 (4.62)

2439.71 (4.79)

11906.34 (17.86)

14155.48 (18.10)

15253.73 (16.70)

15096.60 (16.37)

10.68

Rural 664.93 (5.44)

1139.01 (3.44)

3156.27 (8.10)

8483.21 (14.83)

12201.77 (12.74)

16196.35 (11.57)

16043.33 (10.37)

13.02

Total 1743.45 (5.44)

3224.14 (4.12)

5595.98 (6.23)

20389.55 (16.47)

26357.25 (15.15)

31450.08 (13.60)

31139.93 (12.61)

11.72

Kapurthala Urban 464.74

(2.34) 1285.65 (2.85)

2023.46 (3.98)

1868.02 (2.80)

2200.06 (2.81)

1960.01 (2.15)

1927.64 (2.09)

5.62

Rural 1850.32 (15.16)

2410.57 (7.28)

3070.37 (7.88)

2581.25 (4.51)

2547.14 (2.66)

2582.68 (1.84)

2587.12 (1.67)

1.30

Total 2315.06 (7.23)

3696.22 (4.73)

5093.83 (5.67)

4449.27 (3.59)

4747.21 (2.73)

4542.70 (1.94)

4514.76 (1.83)

2.60

Jalandhar Urban 1905.27

(9.61) 2771.56 (6.14)

2210.43 (4.34)

1289.38 (1.94)

1667.99 (2.13)

2076.81 (2.27)

2259.94 (2.45)

0.66

Rural 625.79 (5.13)

1608.29 (4.85)

1832.45 (4.71)

1289.54 (2.25)

1862.69 (1.95)

1540.65 (1.10)

1676.42 (1.08)

3.86

Total 2531.06 (7.90)

4379.85 (5.60)

4042.88 (4.50)

2578.92 (2.08)

3530.68 (2.03)

3617.46 (1.56)

3936.36 (1.59)

1.71

Nawan Shehar*

Urban - - - 119.57 (0.18)

121.53 (0.16)

190.96 (0.21)

188.91 (0.20)

3.89

Rural - - - 1016.15 (1.78)

1282.91 (1.34)

1359.63 (0.97)

1338.80 (0.87)

2.54

Total - - - 1135.72 (0.92)

1404.44 (0.81)

1550.59 (0.67)

1527.71 (0.62)

2.73

Hoshiarpur Urban 224.37

(1.13) 887.99 (1.97)

1292.87 (2.54)

1754.48 (2.63)

1795.87 (2.30)

1725.789 (1.89)

1758.12 (1.91)

8.24

Rural 134.33 (1.10)

711.04 (2.15)

586.44 (1.51)

926.74 (1.62)

974.93 (1.02)

1075.53 (0.77)

1103.56 (0.71)

8.44

Total 358.71 (1.12)

1599.03 (2.04)

1879.32 (2.09)

2681.23 (2.17)

2770.81 (1.59)

2801.32 (1.21)

2861.68 (1.16)

8.31

Rupnagar Urban 507.39

(2.56) 653.08 (1.45)

625.72 (1.23)

1778.75 (2.67)

2299.36 (2.94)

2328.61 (2.55)

2517.43 (2.73)

6.35

Rural 692.99 (5.68)

882.29 (2.66)

677.46 (1.74)

1371.92 (2.40)

1754.02 (1.83)

1634.80 (1.17)

1778.95 (1.15)

3.69

Total 1200.39 (3.75)

1535.37 (1.96)

1303.17 (1.45)

3150.67 (2.54)

4053.38 (2.33)

3963.41 (1.71)

4296.38 (1.74)

5.03

Ludhiana Urban 641.04

(3.23) 6396.08 (14.18)

5115.55 (10.05)

5399.77 (8.11)

6719.64 (8.59)

9979.13 (10.93)

11241.4 (12.19)

11.65

Rural 67.11 (0.55)

4612.33 (13.93)

3730.78 (9.58)

3626.81 (6.34)

5761.63 (6.02)

8523.89 (6.09)

9362.78 (6.05)

20.92

Total 708.15 (2.21)

11008.41 (14.07)

8846.34 (9.85)

9026.58 (7.29)

12481.27 (7.17)

18503.02 (8.00)

20604.19 (8.34)

13.84

Firozpur Urban 3156.10

(15.92) 8180.38 (18.14)

11182.07 (21.97)

10320.50 (15.49)

14778.68 (18.89)

13350.49 (14.62)

13235.86 (14.35)

5.67

Rural 1477.38 (12.10)

3908.65 (11.80)

4297.17 (11.03)

3900.69 (6.82)

7961.62 (8.31)

19168.10 (13.70)

19049.77 (12.31)

10.33

Total 4633.48 (14.47)

12089.03 (15.46)

15479.24 (17.23)

14221.19 (11.49)

22740.29 (13.07)

32518.59 (14.06)

32285.63 (13.07)

7.75

Contd...

132

Faridkot Urban 5995.99

(30.24) 7270.89 (16.12)

7057.63 (13.87)

818.92 (1.23)

857.10 (1.10)

982.78 (1.08)

1030.18 (1.12)

-6.55

Rural 645.49 (5.28)

2222.58 (6.71)

4584.32 (11.77)

2009.84 (3.51)

5051.74 (5.28)

6401.71 (4.57)

6333.57 (4.09)

9.18

Total 6641.48 (20.73)

9493.48 (12.14)

11641.94 (12.96)

2828.76 (2.41)

5908.84 (3.40)

7384.49 (3.19)

7363.74 (2.98)

0.40

Muktsar* Urban - - - 1918.24

(2.88) 1882.38 (2.41)

1937.36 (2.12)

2084.84 (2.26)

0.76

Rural - - - 667.82 (1.17)

2956.21 (3.09)

4222.98 (3.02)

4677.60 (3.02)

19.36

Total - - - 2586.06 (2.28)

4838.59 (2.78)

6160.34 (2.66)

6762.44 (2.74)

9.13

Moga* Urban - - - 2572.29

(3.86) 3019.83 (3.86)

2852.68 (3.12)

2823.22 (3.06)

0.85

Rural - - - 4334.10 (7.58)

9160.51 (9.57)

15077.75 (10.77)

15252.44 (9.86)

12.12

Total - - - 6906.39 (5.58)

12180.34 (7.00)

17930.42 (7.75)

18075.66 (7.32)

9.14

Bathinda Urban 180.89

(0.91) 1910.69 (4.24)

4095.02 (8.05)

1691.61 (2.54)

3036.67 (3.88)

3757.69 (4.11)

4084.80 (4.43)

12.74

Rural 63.74 (0.52)

737.89 (2.23)

1901.97 (4.88)

3184.33 (5.57)

5017.69 (5.24)

7594.77 (5.43)

8052.69 (5.21)

20.46

Total 244.63 (0.76)

2648.58 (3.39)

5996.99 (6.68)

4875.94 (3.94)

8054.36 (4.63)

11352.46 (4.91)

12137.49 (4.92)

16.20

Mansa* Urban - - - 10687.46

(16.05) 11557.94 (14.78)

10718.28 (11.74)

10138.55 (10.99)

-0.48

Rural - - - 818.33 (1.43)

3049.59 (3.18)

3605.37 (2.58)

3973.87 (2.57)

15.45

Total - - - 11505.8 (9.29)

14607.5 (8.40)

14323.65 (6.19)

14112.42 (5.72)

1.84

Sangrur Urban 2494.14

(12.58) 8754.99 (19.41)

10043.94 (19.74)

7107.76 (10.67)

5936.06 (7.59)

15948.24 (17.46)

15776.86 (17.10)

7.35

Rural 3904.34 (31.99)

6678.69 (20.17)

6504.57 (16.70)

6505.08 (11.37)

13631.78 (14.23)

26733.77 (19.10)

32846.93 (21.23)

8.54

Total 6398.48 (19.98)

15433.68 (19.73)

16548.51 (18.42)

13612.84 (10.99)

19567.84 (11.25)

42682.02 (18.46)

48623.79 (19.69)

8.11

Patiala Urban 2386.06

(12.03) 3749.83 (8.31)

3339.93 (6.56)

3087.49 (4.64)

3173.47 (4.06)

3226.99 (3.53)

3085.41 (3.35)

0.99

Rural 615.26 (5.04)

6243.42 (18.85)

5952.09 (15.28)

6548.19 (11.45)

10105.19 (10.55)

10882.79 (7.78)

11383.48 (7.36)

11.88

Total 3001.31 (9.37)

9993.25 (12.77)

9292.02 (10.34)

9635.67 (7.78)

13278.66 (7.63)

14109.78 (6.10)

14468.89 (5.86)

6.24

Fatehgarh Sahib*

Urban - - - 2532.70 (3.80)

2902.13 (3.71)

2829.90 (3.10)

2799.49 (3.03)

0.91

Rural - - - 982.21 (1.72)

1807.32 (1.89)

2118.35 (1.51)

8091.06 (5.23)

21.23

Total - - - 3514.91 (2.84)

4709.45 (2.71)

4948.25 (2.14)

10890.55 (4.41)

10.83

Punjab Urban 19829.3

(100) 45102.1

(100) 50887.0

(100) 66605.4

(100) 78221.6

(100) 91332.8

(100) 92238.80

(100) 6.09

% urban area 61.91 57.66 56.65 53.80 44.96 39.49 37.35 Rural 12201.78

(100) 33117.0

(100) 38946.38

(100) 57202.31

(100) 95760.55

(100) 139933.79

(100) 154687.81

(100) 10.26

% rural area 38.09 42.34 43.35 46.20 55.04 60.51 62.65 Total 32031.08

(100) 78219.10

(100) 89833.39

(100) 123807.71

(100) 173982.13

(100) 231266.69

(100) 246926.64

(100) 8.17

Note: * these districts came into existence in later time period. Figures in parentheses represent the percentage value. Source: Directorate of Industries, Chandigarh.

133

In the rural areas, the absolute value of output in Sangrur district was Rs.3904.34 lakh in

1980-81, increased to Rs.6505.08 lakh in 1995-96 and then jumped up to Rs.32846.93

lakh in the last year of the study period. In the urban areas the absolute value of output in

Fatehgarh Sahib district was Rs.2532.70 lakh in 1995-96, increased to Rs. 2902.13 lakh

in 2000-01and declined to Rs.2799.49 lakh in 2005-06.

This analysis reveals that the percentage share of output of food, beverages and

tobacco-based industries has declined in the urban areas whereas it has increased in the

rural areas of Punjab. The share of output has declined from 61.91 percent in 1980-81 to

37.35 percent in 2005-06 in urban areas whereas it has increased from 38.09 per cent to

62.65 in the rural areas of Punjab respectively. The overall annual growth rate of output

of food, beverages and tobacco-based industries was highest (10.26 per cent per annum)

in the rural areas as compared to the urban areas (6.09 per cent per annum). At the state

level as a whole, the growth of output was 8.17 per cent per annum. The district-wise

analysis shows that the growth rate of output of this industrial group was highest (13.84

per cent per annum) in Ludhiana district and lowest (0.40 per cent per annum) in Faridkot

district. In absolute terms, the value of output of food, beverages and tobacco-based

industries has increased in the urban as well as rural areas of Punjab. Almost all the

districts showed positive growth rate except two districts namely Mansa and Faridkot,

these districts registered negative growth rate of output in the urban areas.

The above analysis establishes the fact that the pattern of food, beverages and

tobacco-based industry has experienced changes at a rapid rate in the rural areas. So it

was beneficial for the State that more agro-based industries should be established in the

rural areas. The factors responsible for the declining growth rate of food, beverages and

tobacco-based industries in Punjab in the eighties, were liberalisation of industrial sector

(1985) leading to increased competition from the large firms and due to drought in the

State.

5.2 Rural-Urban Structure of Textile-based Industries in Punjab This section deals with total number of units, fixed capital, employment and

output of textile-based industries in the rural and urban areas of Punjab during 1980-81 to

2005-06.

134

5.2.1 Total Number of Textile-based Industries (SSI) in the Rural and Urban Areas of Punjab

Table 5.5 presents district-wise total number of units of textile-based industries

in the rural and urban areas in Punjab. The district-wise analysis shows that the total

number of units of textile-based industries increased in the urban as well as in the rural

areas over the time period. The percentage share of these industries has declined in the

urban areas whereas it has shown an upward trend in the rural areas. In 1980-81, larger

number of industries was mainly concentrated in Ludhiana district (87.86 per cent).

Whereas in case of the rural areas 56.84 per cent of textile-based industries were

concentrated in Jalandhar district followed by Patiala district (13.68 per cent) and

Amritsar district (9.47 per cent). It is observed from table that the districts like

Gurdaspur, Hoshiarpur, Firozpur, Faridkot and Bathinda had no textile-based industries

in 1980s.

Some districts namely Amritsar, Jalandhar, Hoshiarpur, Ludhiana, Faridkot,

Moga, Bathinda, Sangrur and Patiala revealed significant growth in the number of units

of textile-based industries in the urban areas. The percentage share of textile units in

urban area has been continuously increasing in these districts except Faridkot and

Bathinda districts. It was mainly due to the reason that these districts were not suitable

for textile industry because of soil texture and climatic conditions in the urban area.

However, a remarkable shift has been seen from 1985-86 onwards in the rural areas of

Ludhiana, Amritsar, Kapurthala and Sangrur districts.

In the nineties, the highest share of number of units of textile-based industries was

registered in urban areas of Ludhiana district (70.79 per cent) followed by Amritsar

district (12.44 per cent) district.

At the district level, , the districts doing well in growth rate of number of units of

textile-based industries were Sangrur district (18.46 per cent per annum), Rupnagar

district (17.53 per cent per annum) and Kapurthala district (16.82 per cent per annum).

The absolute number of textile units in these districts was 15, 7, and 13 in the year 1980-

81 and rose to 1228, 467 and 740 in the year 2005-06 respectively. The highest growth

rate of number of units was registered by Sangrur district (16.37 per cent per annum) in

the urban areas during 1980-81 to 2005-06 followed by Rupnagar district (16.27 per cent

per annum) and Kapurthala district (15.18 per cent per annum).

135

Table 5.5: District-wise Total Number of Units of Textile- based Industries (SSI) in Punjab (in numbers)

Years→ Districts↓

1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 CAGR (%)

Gurdaspur Urban 1

(0.03) 1

(0.02) 4

(0.05) 5

(0.05) 11

(0.09) 14

(0.12) 15

(0.13) 10.97

Rural -

1 (0.12)

2 (0.10)

2 (0.07)

6 (0.19)

7 (0.22)

7 (0.22)

8.09**

Total 1 (0.03)

2 (0.03)

6 (0.06)

7 (0.05)

17 (0.12)

21 (0.14)

22 (0.15)

12.62

Amritsar Urban 218

(6.79) 450

(9.04) 928

(12.44) 1357

(13.08) 1522

(13.42) 1661

(14.29) 1704

(14.57) 8.23

Rural 9 (9.47)

37 (4.53)

190 (9.54) 338 (11.18)

360 (11.44)

398 (12.29)

404 (12.44)

15.75

Total 227 (6.86)

487 (8.41)

1118 (11.83)

1695 (12.65)

1882 (12.99)

2059 (13.86)

2108 (14.11)

8.95

Kapurthala Urban 7

(0.22) 36

(0.72) 83

(1.11) 185

(1.78) 273

(2.41) 274

(2.36) 276

(2.36) 15.18

Rural 6 (6.31)

380 (46.51)

363 (18.22)

447 (14.79)

467 (14.84)

464 (14.34)

464 (14.29)

18.20

Total 13 (0.39)

416 (7.18)

446 (4.72)

632 (4.72)

740 (5.11)

738 (4.97)

740 (4.95)

16.82

Jalandhar Urban 83

(2.58) 188

(3.78) 389

(5.21) 536

(5.17) 597

(5.26) 626

(5.39) 628

(5.37) 8.09

Rural 54 (56.84)

137 (16.77)

241 (12.09)

268 (8.86)

286 (9.09)

294 (9.08)

294 (9.06)

6.73

Total 137 (4.14)

325 (5.61)

630 (6.66)

804 (6.00)

883 (6.09)

920 (6.19)

922 (6.17)

7.61

Nawan Shehar*

Urban - - - 6 (0.06)

12 (0.10)

12 (0.10)

12 (0.10)

6.50

Rural - - - 24 (0.79)

24 (0.76)

24 (0.74)

24 (0.74)

-

Total - - - 30 (0.22)

36 (0.25)

36 (0.24)

36 (0.24)

1.67

Hoshiarpur Urban 4

(0.12) 12

(0.24) 25

(0.33) 67

(0.65) 69

(0.61) 65

(0.56) 65

(0.55) 11.32

Rural - 3 (0.37)

11 (0.55)

20 (0.66)

21 (0.66)

18 (0.55)

18 (0.55)

12.79***

Total 4 (0.12)

15 (0.26)

36 (0.38)

87 (0.65)

90 (0.62)

83 (0.56)

83 (0.55)

12.37

Rupnagar Urban 3

(0.09) 8

(0.16) 52

(0.69) 125

(1.20) 142

(1.25) 151

(1.29) 151

(1.29) 16.27

Rural 4 (4.21)

17 (2.08)

266 (13.35)

316 (10.45)

316 (10.04)

316 (9.76)

316 (9.73)

18.30

Total 7 (0.21)

25 (0.43)

318 (3.36)

441 (3.29)

458 (3.16)

467 (3.14)

467 (3.13)

17.53

Ludhiana Urban 2822

(87.86) 4093

(82.25) 5282

(70.79) 6921

(66.73) 7505

(66.17) 7596

(65.36) 7624

(65.18) 3.89

Rural 8 (8.42)

158 (19.33)

570 (28.61)

906 (29.97)

940 (29.88)

993 (30.68)

997 (30.71)

20.39

Total 2830 (85.57)

4251 (73.38)

5852 (61.91)

7827 (58.43)

8445 (58.29)

8589 (57.81)

8621 (57.69)

4.38

Firozpur Urban 7

(0.22) 5

(0.10) 11

(0.15) 18

(0.17) 19

(0.17) 16

(0.14) 16

(0.14) 3.23

Rural - 1 (0.12)

1 (0.05)

3 (0.09)

4 (0.13)

4 (0.12)

4 (0.12)

5.70**

Total 7 (0.21)

6 (0.10)

12 (0.13)

21 (0.16)

23 (0.16)

20 (0.13)

20 (0.13)

4.12

Contd...

136

Faridkot Urban 25

(0.78) 47

(0.94) 118

(1.58)24

(0.23)24

(0.21)25

(0.22)25

(0.21) -

Rural 1 (1.05) 7 (0.86) 60 (3.01) 29 (0.96) 31 (0.99) 31 (0.96) 31 (0.96) 14.12Total 26

(0.78) 54

(0.93) 178

(1.88)53

(0.39)55

(0.38)56

(0.38)56

(0.37) 2.99

Muktsar* Urban - - - 76

(0.73)85

(0.75)82

(0.71)82

(0.70) 0.69

Rural - - - 44(1.45)

46(1.46)

46(1.42)

46 (1.42)

0.40

Total - - - 120(0.89)

131(0.90)

128(0.86)

128 (0.86)

0.59

Moga* Urban - - - 61

(0.59)65

(0.57)67

(0.58)67

(0.57) 0.86

Rural - - - 41(1.35)

44(1.39)

45(1.39)

45 (1.38)

0.85

Total - - - 102(0.76)

109(0.75)

112(0.75)

112 (0.75)

0.85

Bathinda Urban 6

(0.19) 20

(0.40) 61

(0.82)128

(1.23)133

(1.17)134

(1.15)135

(1.15) 12.72

Rural - 4 (0.49)

16(0.80)

34(1.12)

35(1.11)

35(1.08)

35 (1.08)

10.88*****

Total 6 (0.18)

24 (0.41)

77(0.81)

162(1.21)

168(1.16)

169(1.14)

170 (1.14)

13.72

Mansa* Urban - - - 23

(0.22)26

(0.23)31

(0.27)31

(0.26) 2.75

Rural - - - 12(0.39)

15(0.47)

17(0.52)

17 (0.52)

3.22

Total - - - 35(0.26)

41(0.28)

48(0.32)

48 (0.32)

2.91

Sangrur Urban 15

(0.47) 80

(1.61) 475

(6.37)755

(7.28)767

(6.76)773

(6.65)773

(6.61) 16.37

Rural - 39 (4.77)

244 (12.24)

461 (15.24)

464 (14,75)

455 (14.06)

455 (14.01)

17.56****

Total 15 (0.45)

119 (2.05)

719(7.61)

1216 (9.08)

1231 (8.49)

1228 (8.26)

1228 (8.22)

18.46

Patiala Urban 21

(0.65) 36

(0.72) 33

(0.44)80

(0.77)86

(0.76)89

(0.76)88

(0.75) 5.66

Rural 13 (13.68)

33 (4.04)

28(1.41)

38(1.26)

45(1.43)

48(1.48)

48 (1.48)

5.15

Total 34 (1.03)

69 (1.19)

61(0.64)

118(0.88)

131(0.90)

137(0.92)

136 (0.91)

5.48

Fatehgarh Sahib*

Urban - - - 5(0.05))

5(0.04)

5(0.04)

5 (0.04)

-

Rural - - - 40(1.32)

41(1.30)

41(1.27)

41 (1.27)

0.22

Total - - - 45(0.33)

46(0.32)

46(0.31)

46 (0.31)

0.20

Punjab Urban 3212

(100) 4976 (100)

7461 (100)

10372 (100)

11341 (100)

11621 (100)

11697 (100)

5.09

% urban area 97.13 85.90 78.93 77.43 77.29 78.22 78.28 Rural 95

(100) 817

(100) 1992 (100)

3023 (100)

3145 (100)

3236 (100)

3246 (100)

14.55

% n rural area 2.87 14.10 21.07 22.57 21.71 21.78 21.72 Total 3307

(100) 5793 (100)

9453 (100)

13395 (100)

14486 (100)

14857 (100)

14943 (100)

5.97

Note: * these districts came into existence in later time period, CGR is calculated from the period 1995-96 to 2005-06. ** CGR is calculated from the period 1981-82 to 2005-06, because there was no existence of any industry in the year 1980-81.

*** CGR is calculated from the period 1982-83 **** CGR is calculated from the period 1983-84. ***** CGR is calculated from the period 1985-86 Figures in parentheses represent the percentage value. Source: Directorate of Industries, Chandigarh.

137

While the lowest growth rate in the urban areas was registered in Muktsar district

(0.69 per cent per annum) followed by Moga district (0.86 per cent per annum) and

Mansa district (2.75 per cent per annum) and Firozepur district (3.23 per cent per

annum). Because, there was marginal increase in the number of units of textile-based

industries in these districts. This might be due to the withdrawal of certain

concessions/subsidies for backward districts under the new economic policy and also due

to the curbing of new districts in Punjab.

In 2005-06, the lowest percentage share of number of units of textile-based

industries was registered in Fatehgarh Sahib, Muktsar, Moga, Nawan Shehar districts in

the rural areas. Whereas in urban areas, it was lowest in Gurdaspur district (0.13 per cent)

followed by Faridkot district (0.21 per cent), Hoshiarpur district (0.55 per cent), Firozpur

district (0.14 per cent) and Patiala district (0.75 per cent). There was also decline in the

percentage ratio in Muktsar, Moga and Fatehgarh Sahib districts.

For the overall Punjab, the high concentration of textile-based industries was

registered in the urban areas as compared to the rural areas. As the absolute number of

textile-based industry increased from 3212 in 1980-81 to 11697 in 2005-06 in the urban

areas by registering the 5.09 per cent per annum growth rate. In the rural areas, the total

number of units of textile-based industry was 95 in 1980-81, increased to 1992 in the year

1990-91 and finally the number of these units rose to 3246 in the year 2005-06.

It is clear from above analysis that the percentage share of textile-based industry

was highest in the urban area as compared to the rural areas over the time period. But the

growth rate of number of units in the rural areas was highest, i.e., 14.55 per cent per

annum as compared the urban area, i.e., 5.09 per cent per annum. At the State level as

whole, the growth rate of the number of units of textile-based industries was 5.97 per cent

per annum.

5.2.2 Total Fixed Capital of Textile-based Industries (SSI) in the Rural and Urban

Areas of Punjab

Table 5.6 shows the district-wise total fixed capital in textile-based industries in

the urban and rural areas of Punjab during 1980-81 to 2005-06. It is observed from the

table that the percentage share of fixed capital in textile-based industries was highest in

Ludhiana district in the urban areas. In 1980-81, Rs. 7093.01 lakh was invested in this

district for the development of textile-based industries in the urban areas. With the

138

passage of time, total investment in this district increased by 3.84 per cent per annum.

But Faridkot, Muktsar, Moga and Fatehgarh Sahib districts registered negative growth

rate of fixed capital for the whole time period. It happened mainly due to the reason that

the share of number of units in these districts decreased during 1980-81 to 2005-06.

The urban areas require more fixed capital than the rural areas. As Ludhiana and

Amritsar districts are known as the industrial hub of Punjab, so more fixed capital has

been invested in these districts in both the rural as well as in urban areas. In the eighties,

the fixed investment was lowest in Kapurthala district, i.e., Rs. 0.57 lakh and further

increased to Rs. 165.94 lakh in the year 2005-06 in the urban areas. For the rural areas,

this district registered the diminishing trend but the growth rate of fixed investment was

19.39 per cent per annum during 1980-81 to 2005-06. The overall growth rate of textile-

based industries was quite satisfactory as compared to the food, beverages and tobacco-

based industries in Punjab.

Some districts namely Gurdapur, Kapurthala, Rupnagar, Amritsar and Bathinda

have played a significant role in the development of textile-based industries. The growth

rate of fixed capital investment in these districts ranged between 15.81 per cent per

annum to 23.80 per cent per annum during 1980-81 to 2005-06. And Muktsar, Moga and

Faridkot districts registered the lowest growth rate of fixed investment 1.90, 1.95 and

3.48 per cent per annum. In the urban areas, almost all the districts registered the growth

rate at the satisfactory level except Faridkot, Muktsar, Moga and Fatehgarh Sahib

districts because these districts registered negative rate of growth of fixed capital.

During the period 1985-86, Ludhiana district registered the highest percentage

share of fixed capital, i.e., 91.70 per cent whereas it was lowest in Firozpur district (0.01

per cent) in the urban areas. But in rural areas, Ludhiana district had the highest share of

fixed capital. It is observed from table that Rupnagar district constituted very little

percentage of fixed capital but the growth rate of this district was highest among all the

districts in both the rural and urban areas of Punjab.

In the urban areas, the fixed capital analysis showed the fluctuating trends upto

the period 1995-96, then it continuously increased upto the period of 2004-05, but finally

the value of fixed capital declined to Rs. 30896.91 lakh in 2005-06 by registering the

139

Table 5.6: District-wise Total Fixed Capital in Textile-based Industries (SSI) in Punjab (at Constant Prices 1993-94=100)

(Value Rs. In lakhs) Years→ Districts↓

1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 CAGR

Gurdaspur Urban 1.57

(0.01) 3.92 (0.04)

6.05 (0.05)

4.16 (0.03)

18.94 (0.07)

99.32 (0.31)

103.07 (0.33)

17.46

Rural - 3.82 (1.21)

6.77 (0.60)

6.60 (0.39)

53.19 (0.98)

46.84 (0.60)

44.55 (0.58)

12.00**

Total 1.57 (0.01)

7.74 (0.08)

12.82 (0.09)

10.76 (0.07)

72.13 (0.22)

146.16 (0.37)

147.62 (0.38)

19.09

Amritsar Urban 236.17

(3.16) 444.49 (4.54)

1082.80 (8.58)

1571.25 (11.58)

7109.48 (25.94)

9139.22 (28.85)

9209.46 (29.81)

15.13

Rural 14.35 (25.72)

33.29 (10.53)

141.33 (12.70)

189.98 (11.35)

1537.50 (28.32)

2719.69 (34.84)

2802.22 (36.35)

22.49

Total 250.52 (3.32)

477.78 (4.73)

1224.13 (8.91)

1761.23 (11.56)

8646.98 (26.32)

11858.91 (30.03)

12011.68 (31.11)

16.05

Kapurthala Urban 0.57

(0.01) 10.69 (0.11)

29.40 (0.23)

100 (0.74)

176.98 (0.65)

170.14 (0.54)

165.94 (0.54)

24.39

Rural 0.63 (1.12)

38.89 (12.30)

40.40 (3.63)

83.48 (5.03)

110.08 (2.03)

66.47 (0.85)

63.22 (0.81)

19.39

Total 1.20 (0.01)

49.58 (0.49)

69.80 (0.51)

183.48 (1.20)

287.06 (0.87)

236.61 (0.60)

229.16 (0.59)

22.36

Jalandhar Urban 23.23

(0.31) 80.77 (0.82)

152.53 (1.20)

372.67 (2.74)

530.38 (1.93)

618.00 (1.95)

595.60 (1.92)

13.29

Rural 18.53 (33.21)

46.41 (14.68)

59.85 (5.38)

61.23 (3.69)

104.69 (1.92)

131.37 (1.68)

124.91 (1.61)

7.61

Total 41.76 (0.55)

127.18 (1.25)

212.38 (1.54)

433.90 (2.84)

635.07 (1.93)

749.37 (1.89)

720.51 (1.86)

11.57

Nawan Shehar* Urban - - - 1.26

(0.01) 26.50 (0.09)

23.54 (0.07)

22.39 (0.07)

29.89

Rural - - - 4.86 (0.30)

4.72 (0.09)

5.63 (0.07)

5.36 (0.07)

0.89

Total - - - 6.12 (0.04)

31.22 (0.10)

29.17 (0.07)

27.75 (0.07)

14.73

Hoshiarpur Urban 28.60

(0.38) 34.66 (0.35)

78.85 (0.63)

93.94 (0.69)

93.11 (0.34)

126.30 (0.39)

120.13 (0.39)

5.67

Rural - 5.09 (1.61)

9.13 (0.81)

8.47 (0.57)

8.21 (0.15)

21.54 (0.28)

20.49 (0.27)

6.01***

Total 28.60 (0.38)

39.75 (0.39)

87.98 (0.64)

102.42 (0.68)

101.32 (0.31)

147.84 (0.37)

140.62 (0.36)

6.32

Rupnagar Urban 2.48

(0.03) 5.44 (0.06)

207.30 (1.64)

178.23 (1.31)

525.78 (1.92)

757.35 (2.39)

720.35 (2.33)

24.37

Rural 0.60 (1.08)

5.97 (1.89)

123.63 (11.11)

91.08 (5.49)

88.28 (1.63)

77.45 (0.99)

73.67 (0.96)

20.32

Total 3.08 (0.04)

11.41 (0.11)

330.93 (2.41)

269.31 (1.77)

614.06 (1.87)

834.80 (2.11)

794.02 (2.06)

23.80

Ludhiana Urban 7093.01

(94.83) 8966.03 (91.70)

10454.97 (82.89)

10414.61 (76.80)

17790.80 (64.91)

19653.42 (62.05)

18906.11 (61.19)

3.84

Rural 20.88 (37.42)

165.46 (52.35)

480.91 (43.21)

628.80 (37.89)

2346.89 (43.23)

3523.02 (45.13)

3418.78 (44.35)

21.66

Total 7113.88 (94.41)

9131.49 (90.43)

10935.88 (79.60)

11043.42 (72.49)

20137.70 (61.29)

23176.45 (58.69)

22324.89 (57.81)

4.49

Firozpur Urban 4.22

(0.06) 1.13 (0.01)

7.80 (0.06)

21.70 (0.16)

21.26 (0.07)

17.58 (0.05)

16.73 (0.05)

5.44

Rural - 0.15 (0.05)

0.33 (0.03)

0.61 (0.04)

10.05 (0.18)

17.64 (0.23)

16.78 (0.22)

20.45

Total 4.22 (0.06)

1.28 (0.01)

8.13 (0.05)

22.31 (0.14)

31.31 (0.09)

35.22 (0.08)

33.51 (0.08)

8.29

Contd...

140

Faridkot Urban 26.33

(0.35) 43.59 (0.44) 89.93

(0.71) 13.37 (0.09)

12.96 (0.04)

22.75 (0.07)

21.64 (0.07)

-0.75

Rural 0.03 (0.05)

1.12 (0.34)

19.01 (1.71)

3.99 (0.23)

50.56 (0.92)

44.77 (0.57)

42.59 (0.55)

32.20

Total 26.36 (0.35)

44.71 (0.44)

108.94 (0.79)

17.36 (0.11)

63.52(0.19)

67.52 (0.17)

64.23 (0.17)

3.48

Muktsar* Urban - - - 29.19

(0.22)34.94 (0.13)

29.23 (0.09)

27.80 (0.09)

-0.44

Rural - - - 7.54(0.45)

20.85(0.38)

18.30 (0.23)

17.40 (0.23)

7.89

Total - - - 36.73 (0.24)

55.79(0.17)

47.53 (0.12)

45.20 (0.12)

1.90

Moga* Urban - - - 61.82

(0.46)67.73(0.24)

62.14 (0.20)

59.10 (0.19)

-0.41

Rural - - - 13.92(0.84)

41.24(0.76)

36.33 (0.47)

34.55 (0.45)

8.61

Total - - - 75.74 (0.50)

108.97 (0.33)

98.47 (0.25)

93.66 (0.24)

1.95

Bathinda Urban 9.24

(0.12) 54.47 (0.56)

158.29 (1.25)

256.46 (1.89)

381.98 (1.39)

342.79 (1.08)

345.81 (1.12)

14.94

Rural - 1.18 (0.36) 10.87 (0.98)

90.91(5.48)

88.85 (1.64)

77.43 (0.99)

73.65 (0.96)

21.75****

Total 9.24 (0.12)

55.65 (0.55)

169.16 (1.23)

347.37 (2.28)

470.83 (1.43)

420.22 (1.06)

419.46 (1.08)

15.81

Mansa* Urban - - - 76.39

(0.56)207.87(0.76)

220.44 (0.70)

209.67 (0.68)

9.61

Rural - - - 1.68 (0.12)

72.88(1.34)

74.72 (0.96)

71.06 (0.92)

40.55

Total - - - 78.07(0.51)

280.75(0.85)

295.16 (0.75)

280.74 (0.73)

12.34

Sangrur Urban 19.19

(0.27) 62.66 (0.64)

296.75(2.35)

274.27(2.02)

294.24 (1.07)

274.34 (0.87)

260.94 (0.84)

10.56

Rural - 9.59 (3.04)

128.54 (11.55)

155.50(9.37)

198.37(3.65)

329.92 (4.23)

313.81 (4.07)

24.58***

Total 19.19 (0.27)

72.25 (0.72)

425.28(3.10)

429.77(2.82)

492.61(1.50)

604.27 (1.53)

574.75 (1.49)

13.97

Patiala Urban 34.21

(0.46) 69.00 (0.71)

48.22(0.38)

89.87(0.66)

111.76(0.41)

116.26 (0.37)

110.58 (0.36)

4.61

Rural 0.78 (1.40)

5.09 (1.61)

92.12(8.28)

307.79 (18.55)

650.50 (11.98)

578.10 (7.41)

549.86 (7.13)

28.69

Total 34.99 (0.46)

74.09 (0.73)

140.34(1.02)

397.66(2.61)

762.26(2.32)

694.36 (1.76)

660.44 (1.71)

11.96

Fatehgarh Sahib*

Urban - - - 1.86 (0.01)

1.89 (0.01)

1.65 (0.01)

1.57 (0.01)

-1.53

Rural - - - 3.12 (0.18)

42.28 (0.77) 37.10 (0.47)

35.28 (0.46)

24.67

Total - - - 4.98 (0.03)

44.17 (0.13)

38.75 (0.09)

36.85 (0.01)

19.95

Punjab Urban 7479.62

(100) 9776.86 (100)

12612.89 (100)

13561.05 (100)

27406.61 (100)

31674.48 (100)

30896.91 (100)

5.61

% Urban area 99.33 96.82 91.80 89.01 83.41 80.20 80.01 Rural 55.79

(100) 316.06 (100)

1112.88 (100)

1659.58(100)

5429.17 (100)

7806.34 (100)

7708.20 (100)

20.87

% Rural area 0.67 3.18 8.20 10.99 16.59 19.80 19.99 Total 7535.41

(100) 10092.91 (100)

13725.77(100)

15220.63 (100)

32835.78 (100)

39480.82 (100)

38605.11 (100)

6.48

Note:* these districts came into existence in later time period. ** CGR is calculated from the period 1981-82 to 2005-06, because there was no existence of any industries in the year 1980-81. *** CGR is calculated from the period 1983-84. **** CGR is calculated from the period 1985-86. Figures in parentheses represent the percentage value. Source: Directorate of Industries, Chandigarh.

141

growth rate of 5.61 per cent per annum. But the value of fixed capital in the rural areas

has increased over the period of time by recording the growth rate of 20.87 per cent per

annum.

This analysis reveals that the percentage share of fixed investment has decreased

from 99.33 per cent in 1980-81 to 80.01 per cent in 2005-06 in the urban Areas whereas

it has increased from 0.67 per cent to 19.99 per cent in the rural areas respectively. More

than 80 per cent of fixed capital was invested in textile-based industries in the urban areas

in 2005-06. The compound growth rate of fixed investment was highest in the rural areas

(20.87) as compared to the urban areas (5.67 per cent per annum). The district-wise

analysis reveals that the compound growth rate of fixed investment was highest in

Rupnagar district, i.e., 23.80 per cent per annum and lowest in Moga district i.e. 1.95 per

cent per annum.

5.2.3 Total Number of Employment in Textile-based Industries (SSI) in the Rural and Urban Areas of Punjab

District-wise total employment of small-scale textile-based industries in the rural

and urban areas of Punjab have been presented in table 5.7. The district-wise analysis

reveals that the total employment of textile-based industries has increased in the rural and

urban areas over the time period. It is observed from table that in the year 1980-81, the

highest employment generating district was Ludhiana (95.40 per cent) followed by

Jalandhar district (2.08 per cent) in the urban areas of Punjab whereas the remaining

districts have negligible contribution in employment generation because initially the

textile-based industries were concentrated mainly in Ludhiana district.

But with the passage of time, the percentage share in employment in other

districts has continuously showed an increasing trend. It was mainly due to increase in

number of units of textile-based industries and fixed capital invested in these districts. In

the urban areas, the absolute number of employment increased in all the districts. It is

clear from table that some districts had no number of units of textile-based industries in

the eighties.

The growth rate of employment in textile-based industries was higher in the rural

areas as compared to urban areas. The analysis further reveals that Faridkot, Amritsar,

Ludhiana, Kapurthala and Rupnagar districts registered the highest compound growth

rate of employment in textile-based industries in the rural areas.

142

Table 5.7: District-wise Total Employment of Textile-based Industries (SSI) in Punjab (in numbers)

Years→ Districts↓

1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 CAGR (%)

Gurdaspur Urban 23

(0.06) 28 (0.05)

41 (0.06)

43 (0.05)

70 (0.07)

104 (0.10)

111 (0.11)

6.24

Rural - 7 (0.34)

11 (0.19)

11 (0.13)

44 (0.42)

47 (0.39)

47 (0.39)

8.58**

Total 23 (0.05)

35 (0.06)

52 (0.07)

54 (0.06)

114 (0.11)

151 (0.13)

158 (0.14)

7.6

Amritsar Urban 639

(1.57) 1424 (2.38)

3585 (4.91)

5180 (6.07)

7086 (7.47)

8012 (8.06)

8281 (8.27)

10.35

Rural 27 (7.46)

124 (5.99)

1211 (21.28)

1641 (18.95)

2089 (20.05)

2627 (22.06)

2735 (22.48)

19.43

Total 666 (1.62)

1548 (2.50)

4796 (6.09)

6821 (7.26)

9175 (8.71)

10639 (9.55)

11016 (9.81)

11.39

Kapurthala Urban 43

(0.11) 84 (0.14)

183 (0.25)

462 (0.54)

739 (0.78)

728 (0.73)

750 (0.75)

11.62

Rural 9 (2.49)

423 (20.43)

511 (8.98)

649 (7.49)

721 (6.92)

680 (5.71)

680 (5.59)

18.09

Total 52 (0.13)

507 (0.82)

694 (0.88)

1111 (1.18)

1460 (1.39)

1408 (1.26)

1430 (1.27)

13.59

Jalandhar Urban 850

(2.08) 1569 (2.62)

2032 (2.78)

1830 (2.14)

2203 (2.32)

2421 (2.43)

2437 (2.43)

4.13

Rural 249 (68.78)

900 (43.48)

1123 (19.73)

1830 (21.14)

1921 (18.43)

1956 (16.42)

1956 (16.07)

8.25

Total 1099 (2.67)

2469 (3.99)

3155 (4.01)

3660 (3.89)

4124 (3.91)

4377 (3.93)

4393 (3.91)

5.47

Nawan Shehar* Urban - - - 30

(0.03) 83 (0.09)

83 (0.08)

83 (0.08)

9.69

Rural - - - 53 (0.61)

53 (0.51)

53 (0.45)

53 (0.44)

-

Total - - - 83 (0.09)

136 (0.13)

136 (0.12)

136 (0.12)

4.59

Hoshiarpur Urban 32

(0.08) 81 (0.13)

129 (0.18)

277 (0.32)

268 (0.28)

259 (0.26)

259 (0.26)

8.37

Rural - 19 (0.91)

60 (1.05)

96 (1.11)

98 (0.94)

84 (0.70)

84 (0.69)

12.47***

Total 32 (0.08)

100 (0.16)

189 (0.24)

373 (0.39)

366 (0.35)

343 (0.31)

343 (0.31)

9.55

Rupnagar Urban 38

(0.09) 23 (0.04)

110 (0.15)

405 (0.47)

684 (0.72)

872 (0.88)

870 (0.87)

12.79

Rural 9 (2.48)

36 (1.74)

350 (6.15)

442 (5.11)

442 (4.24)

442 (3.71)

442 (3.63)

16.15

Total 47 (0.11)

59 (0.09)

460 (0.58)

847 (0.90)

1126 (1.07)

1314 (1.18)

1312 (1.17)

13.66

Ludhiana Urban 38845

(95.40) 55883 (93.46)

65067 (89.07)

73614 (86.25)

79929 (84.24)

82974 (83.46)

83368 (83.26)

2.98

Rural 52 (14.36)

419 (20.24)

1916 (33.67)

2784 (32.15)

3474 (33.34)

4069 (34.17)

4219 (34.67)

18.42

Total 38897 (94.69)

56302 (91.01)

66983 (85.07)

76398 (81.27)

83403 (79.21)

87043 (78.19)

87587 (77.99)

3.17

Firozpur Urban 30

(0.07) 16 (0.03)

36 (0.05)

73 (0.08)

74 (0.08)

66 (0.07)

66 (0.06)

3.08

Rural - 3 (0.14)

3 (0.05)

8 (0.09)

28 (0.27)

45 (0.37)

45 (0.37)

11.44**

Total 30 (0.07)

19 (0.03)

39 (0.05)

81 (0.09)

102 (0.09)

111 (0.09)

111 (0.09)

5.16

Faridkot Urban 60

(0.15) 125 (0.21)

264 (0.36)

55 (0.06)

55 (0.06)

127 (0.13)

127 (0.13)

2.93

Contd...

143

Rural 1 (0.28)

9 (0.43)

80 (1.41)

40 (0.46)

103 (0.99)

103 (0.86)

103 (0.85)

19.51

Total 61 (0.15)

134 (0.22)

344 (0.44)

95 (0.10)

158 (0.15)

230 (0.21)

230 (0.20)

5.24

Muktsar* Urban - - - 145

(0.17) 164 (0.17)

157 (0.16)

157 (0.16)

0.72

Rural - - - 56 (0.65)

63 (0.60)

63 (0.53)

63 (0.52)

1.07

Total - - - 201 (0.21)

227 (0.21)

220 (0.19)

220 (0.19)

0.82

Moga* Urban - - - 155

(0.18) 178 (0.19)

188 (0.19)

188 (0.19)

1.77

Rural - - - 61 (0.70)

90 (0.86)

92 (0.77)

92 (0.76) 3.81

Total - - - 216 (0.23)

268 (0.25)

280 (0.25)

280 (0.25)

2.39

Bathinda Urban 21

(0.05) 132 (0.22)

305 (0.42)

619 (0.73)

681 (0.72)

687 (0.69)

698 (0.70)

14.42

Rural - 9 (0.43)

32 (0.56)

105 (1.21)

108 (1.03)

108 (0.91)

108 (0.89)

12.56*****

Total 21 (0.05)

141 (0.23)

337 (0.43)

724 (0.77)

789 (0.75)

795 (0.71)

806 (0.72)

15.06

Mansa* Urban - - - 333

(0.39) 426 (0.45)

447 (0.45)

447 (0.45)

1.14

Rural - - - 21 (0.24)

84 (0.81)

101 (0.85)

101 (0.83)

6.23

Total - - - 354 (0.38)

510 (0.48)

548 (0.49)

548 (0.49)

1.69

Sangrur Urban 43

(0.11) 294 (0.49)

1156 (1.58)

1780 (2.08)

1830 (1.93)

1821 (1.83)

1821 (1.82)

15.49

Rural - 60 (2.89)

290 (5.09)

585 (6.75)

608 (5.83)

893 (7.49)

893 (7.34)

17.47****

Total 43 (0.10)

354 (0.57)

1446 (1.84)

2365 (2.52)

2438 (2.32)

2714 (2.44)

2714 (2.42)

17.28

Patiala Urban 92

(0.23) 135 (0.23)

141 (0.19)

329 (0.39)

385 (0.41)

451 (0.45)

451 (0.45)

6.30

Rural 15 (4.14)

61 (2.95)

104 (1.83)

234 (2.70)

415 (3.98)

466 (3.91)

466 (3.83)

14.13

Total 107 (0.26)

196 (0.32)

245 (0.31)

563 (0.59)

800 (0.76)

917 (0.82)

917 (0.82)

8.61

Fatehgarh Sahib*

Urban - - - 15 (0.02)

17 (0.02)

17 (0.02)

17 (0.02)

1.14

Rural - - - 42 (0.48)

80 (0.77)

80 (0.67)

80 (0.66)

6.03

Total - - - 57 (0.06)

97 (0.09)

97 (0.09)

97 (0.09)

4.95%

Punjab Urban 40716

(100) 59794 (100)

73049 (100)

85345 (100)

94872 (100)

99414 (100)

100131 (100)

3.52

% Urban area 99.12 96.65 92.77 90.79 90.10 89.30 89.17 Rural 362

(100) 2070 (100)

5691 (100)

8658 (100)

10421 (100)

11909 (100)

12167 (100)

14.47

% Rural area 0.88 3.35 7.23 9.21 9.90 10.70 10.83 Total 41078

(100) 61864 (100)

78740 (100)

94003 (100)

105293 (100)

111323 (100)

112298 (100)

3.94

Note:* these districts came into existence in later time period. ** CGR is calculated from the period 1981-82 to 2005-06, because there was no existence of any industries in the year 1980-81. *** CGR is calculated from the period 1982-83. **** CGR is calculated from the period 1983-84. *****CGR is calculated from the period 1985-86. Figures in parentheses represent the percentage value. Source: Directorate of Industries, Chandigarh.

144

It is also clear from the above analysis, that the districts that came into existence in the

later time period (after 1991) constituted smaller part of growth rate of employment of

textile industries in the rural areas of Punjab.

It may be concluded from table that the growth of employment in the rural areas

shows consistency as the employment in absolute number has increased in these districts

over the time period. In Ludhiana district, employment increased from 52 to 4219, in

Amritsar district from 27 to 2735, in Kapurthala district from 9 to 680, in Rupnagar

district from 9 to 442, in Faridkot district from 1 to 103 and in Patiala district from 15 to

466 during 1980-81 to 2005-06. The performance of these districts in textile-based

industries in the rural areas was comparatively better. The major contribution of

employment in regard to textile-based industries was highest in Ludhiana district (34.67

per cent) followed by Amritsar district (22.48 per cent) in the year 2005-06 whereas the

contribution of Firozpur district was lowest (0.37 per cent).

From the table 5.7, it emerges that at the State level, total employment of textile-

based industries increased from 41078 in 1980-81 to 112298 in 2005-06. In the urban

areas, it jumped up approximately two and half times during the period 1980-81 to 2005-

06. Whereas in the rural areas, the total employment in textile-based industries increased

more than 33 times by registering 14.47 per cent per annum growth rate of employment

for the whole time period. The percentage share of employment in textile-based

industries has declined from 99.12 per cent in 1980-81 to 89.17 per cent in 2005-06 in the

urban areas whereas the percentage share of employment has increased from 0.88 per

cent in 1980-81 to 10.83 per cent in 2005-06 in the rural areas. Punjab as a whole

registered 3.94 per cent per annum growth rate of employment in textile-based industries.

5.2.4 Total Output of Textile-based Industries (SSI) in the Rural and Urban Areas of Punjab

District-wise output of textile-based industries in the rural and urban areas of

Punjab has been presented in table 5.8. This table reveals that the value of total output of

textile-based industries was highest in the urban areas as compared to the rural areas. The

contribution of Ludhiana district in total output was highest (94.33 per cent) whereas this

value was lowest in Firozpur district (0.02 per cent) in the eighties.

145

Table 5.8: District-wise Total Output of Textile-based Industries (SSI) in Punjab At Constant Prices 1993-94=100

(Value Rs. In lakhs) Years→ Districts↓

1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2 005-06 CAGR (%)

Gurdaspur Urban 19.91

(0.09) 16.75 (0.05) 26.24 (0.06) 18.21

(0.02) 79.02 (0.05)

650.68 (0.27)

755.19 (0.27)

15.01

Rural - 10.49 (1.81) 16.06 (0.54) 11.50 (0.22)

294.76 (1.62)

316.73 (1.14)

331.90 (1.07)

14.88

Total 19.91 (0.09)

27.24 (0.08)

42.30 (0.09)

29.71 (0.04)

373.78 (0.22)

967.41 (0.36)

1087.09 (0.35)

16.63

Amritsar Urban 914.35

(4.25) 1516.38 (4.29)

2678.84 (5.73)

4027.80 (5.35)

13702.01 (8.89)

24707.61 (10.35)

27042.26 (9.77)

13.91

Rural 25.46 (31.89)

108.58 (18.74)

961.05 (32.40)

995.62 (19.09)

5455.30 (30)

12073.04 (43.52)

13454.92 (43.58)

27.27

Total 939.81 (4.35)

1624.96 (4.52)

3639.89 (7.32)

5023.42 (6.24)

19157.31 (11.12)

36780.65 (13.81)

40497.18 (13.16)

15.57

Kapurthala Urban 6.13

(0.03) 43.65 (0.12)

47.87 (0.10)

3481.29 (4.62)

2803.94 (1.82)

2545.26 (1.07)

2738.93 (0.99)

26.45

Rural 0.60 (0.75)

82.52 (14.24)

65.87 (2.22) 154.13 (2.95)

2863.26 (15.75)

2522.81 (9.09)

2643.59 (8.56)

38.09

Total 6.73 (0.03)

126.17 (0.35)

113.74 (0.23)

3635.42 (4.51)

5667.20 (3.29)

5068.07 (1.90)

5382.52 (1.75)

29.32

Jalandhar Urban 140.97

(0.65) 354.07 (1.00)

662.34 (1.42)

675.90 (0.89)

1274.69 (0.83)

1551.92 (0.65)

1813.54 (0.65)

10.32

Rural 35.42 (44.36)

165.44 (28.55)

191.51 (6.46)

160.86 (3.08)

414.27 (2.28)

422.07 (1.52)

486.50 (1.58)

10.60%

Total 176.39 (0.82)

519.51 (1.45)

853.85 (1.72)

836.75 (1.04)

1688.96 (0.98)

1973.99 (0.74)

2300.04 (0.75)

10.38

Nawan Shehar* Urban - - - 1.86

(0.002) 16.68 (0.01)

18.42 (0.01)

19.30 (0.01)

23.69

Rural - - - 10.26 (0.19)

20.60 (0.11)

28.00 (0.10)

29.34 (0.09)

10.02

Total - - - 12.12 (0.01)

37.28 (0.02)

46.42 (0.02)

48.64 (0.02)

13.46

Hoshiarpur Urban 20.12

(0.09) 36.16 (0.10)

66.73 (0.14)

102.30 (0.14)

135.03 (0.09)

154.53 (0.06)

169.27 (0.06)

8.5

Rural - 9.75 (1.68)

21.71 (0.73)

26.95 (0.52)

42.20 (0.23)

48.49 (0.17)

56.22 (0.18)

16.77***

Total 20.12 (0.09)

45.91 (0.13)

88.44 (0.18)

129.25 (0.16)

177.23 (0.10)

203.02 (0.07)

225.48 (0.07)

9.74

Rupnagar Urban 8.33

(0.04) 17.48 (0.05)

173.02 (0.37)

388.01 (0.51)

1545.20 (1.00)

1895.73 (0.79)

2184.36 (0.79)

23.88

Rural 3.29 (4.12)

11.04 (1.91)

159.54 (5.38)

130.58 (2.50)

265.49 (1.46)

285.71 (1.03)

301.39 (0.98)

18.97

Total 11.62 (0.06)

28.52 (0.08)

332.56 (0.67)

518.59 (0.64)

1810..69 (1.05)

2181.44 (0.82)

2485.75 (0.81)

22.92

Ludhiana Urban 20311.45

(94.33) 32484.36 (91.94)

40959.10 (87.61)

62508.26 (82.96)

126807.92 (82.27)

197505.75 (82.76)

231787.64 (83.74)

9.82

Rural 9.26 (11.59)

158.81 (27.41)

787.54 (26.55)

968.68 (18.56)

4178.15 (22.98)

6812.45 (24.56)

7993.05 (25.88)

29.84

Total 20320.71 (94)

32643.17 (90.9)

41746.64 (84)

63476.94 (78.8)

130986.07 (76.02)

204318.20 (76.7)

239781.69 (77.93)

9.96

Firozpur Urban 4.39

(0.02) 7.91

(0.02) 18.63 (0.04)

35.83 (0.05)

60.88 (0.04)

51.58 (0.02)

54.05 (0.02)

10.14

Rural - 4.78 (0.83)

4.49 (0.15)

8.21 (0.16)

27.52 (0.15)

33.16 (0.12)

34.75 (0.11)

8.37**

Total 4.39 (0.02)

12.69 (0.04)

23.12 (0.05)

44.04 (0.05)

88.40 (0.05)

84.74 (0.03)

88.80 (0.03)

12.26

Contd...

146

Faridkot Urban 19.77

(0.09) 89.49(0.25)

128.07 (0.27)

15.57 (0.02)

21.90 (0.01)

88.33 (0.04)

92.86 (0.04)

6.13

Rural 0.05 (0.06)

0.81(0.16)

26.97(0.91)

7.55(0.14)

49.68(0.27)

59.05 (0.21)

61.97 (0.20)

31.51

Total 19.82 (0.09)

90.30(0.25)

155.04(0.31)

23.12(0.03)

71.58(0.04)

147.38 (0.40)

154.83(0.40)

8.23

Muktsar* Urban - - - 48.70

(0.06)64.09(0.04)

64.85 (0.03)

69.50 (0.02)

3.28

Rural - - - 14.22(0.27)

18.81(0.10)

21.29 (0.08)

23.47 (0.08)

4.86

Total - - - 63.92(0.08)

82.90(0.05)

86.14 (0.03)

92.97 (0.03)

3.52

Moga* Urban - - - 73.60

(0.09)106.35 (0.07)

97.28 (0.04)

102.08 (0.04)

3.02

Rural - - - 12.56(0.24)

40.78(0.22)

37.57 (0.13)

39.53 (0.13)

10.98

Total - - - 86.16(0.11)

147.13(0.08)

134.85 (0.05)

141.61(0.05)

4.57

Bathinda Urban 13.40

(0.06) 587.36 (1.66)

798.55 (1.71)

1246.45 (1.65)

1816.26 (1.18)

2139.28 (0.89)

2508.11 (0.91)

22.29

Rural -

2.02(0.35)

8.09(0.28)

757.77 (14.52)

853.11 (4.69)

955.05 (3.44)

1098.84 (3.56)

34.98*****

Total 13.40 (0.06)

589.38(1.64)

806.64(1.62)

2004.22(2.49)

2669.37(1.55)

3094.33 (1.16)

3606.95(1.17)

24.01

Mansa* Urban - - - 1635.29

(2.17)4225.19 (2.74)

5391.30 (2.26)

5603.09 (2.02)

11.85

Rural - - - 2.50(0.05)

149.71 (0.82)

221.29 (0.79)

231.89 (0.75)

50.95

Total - - - 1637.79(2.03)

4374.90(2.54)

5612.59 (2.10)

5834.98(1.89)

12.24

Sangrur Urban 54.21

(0.25) 112.44 (0.32)

1103.18 (2.36)

920.79 (1.22)

1192.66 (0.77)

1336.70 (0.56)

1400.70 (0.51)

13.32

Rural - 16.75 (2.89) 640.33 (21.59)

702.25 (13.46)

886.57 (4.88)

1434.48 (5.17)

1503.16 (4.87)

24.12****

Total 54.21 (0.25)

129.19(0.36)

1743.51(3.51)

1623.04(2.01)

2079.23(1.21)

2771.18 (1.04)

2903.86(0.94)

16.55

Patiala Urban 18.54

(0.09) 66.62(0.19)

91.46(0.19)

164.22 (0.22)

272.23 (0.18)

429.62 (0.18)

450.19 (0.16)

13.05

Rural 5.76 (7.22)

8.45(1.46)

82.97(2.80)

1247.77 (23.92)

2363.26 (13)

2190.86 (7.90)

2295.75 (7.44)

25.89

Total 24.30 (0.11)

75.07(0.21)

174.43(0.35)

1411.99(1.75)

2635.49(1.53)

2620.48 (0.98)

2745..94(0.89)

19.94

Fatehgarh Sahib*

Urban - - - 3.36(0.003)

6.67(0.004)

14.52 (0.01)

15.21 (0.01)

14.71

Rural - - - 5.25(0.10)

259.88 (1.43)

277.30 (0.99)

290.58 (0.94)

44.03

Total - - - 8.61(0.01)

266.55(0.15)

291.81 (0.11)

305.79(0.09)

38.34

Punjab Urban 21531.60

(100) 35332.66

(100)46754.04

(100)75347.46

(100)154130.74

(100)238643.37

(100) 276806.31

(100) 10.32

% Urban Area 99.13 95.19 87.27 84.75 79.14 47.02 47.16 Rural 79.84

(100) 579.44 (100)

2966.14(100)

5216.65 (100)

18183.37 (100)

27739.39 (100)

30876.86 (100)

25.75

% Rural Area 0.87 4.81 12.73 15.25 20.86 52.98 52.84 Total 21611.44

(100) 35912.11

(100)49720.18

(100)80564.10

(100)172314.11

(100)266382.76

(100) 307683.17

(100) 10.75

Note: * these districts came into existence in later time period. (Figures in parentheses represent the percentage value). ** CGR is calculated from the period 1981-82 to 2005-06, because there was no existence of any industries in the year 1980-81. *** CGR is calculated from the period 1982-83., **** CGR is calculated from the period 1983-84., *****CGR is calculated from the period 1985-86. Figures in parentheses represent the percentage value. Source: Directorate of Industries, Chandigarh.

147

During 2005-06, in the rural areas, the highest value for output of textile-based

industries was occupied by Amritsar district (43.58 per cent) followed by Ludhiana

district (25.88 per cent) in Punjab whereas in the urban areas, Ludhiana district

contributed highest share, i.e., 83.74 per cent of the total output in Punjab. This analysis

reveals that textile-based industries were mainly established in Ludhiana district. The

lowest value for output of textile-based industries was generated by Fatehgarh Sahib

district, i.e., only 0.01 per cent in 2005-06 in the urban areas.

While analysing the growth rate of output of textile-based industries among

districts, this table further indicates that the highest growth rate of output was recorded by

Kapurthala district (38.09 per cent per annum) followed by Faridkot district (31.51 per

cent per annum) for the rural areas. It is clear that all the districts in textile-based

industries registered positive growth rate for the rural as well as urban areas. In the urban

side, Kapurthala district recorded (26.45 per cent per annum) growth rate of output. The

highest value of output of textile-based industries was registered in Kapurthala district

both in the rural and urban areas. So this district is more suitable for the development of

textile-based industries in Punjab.

This table further reveals that the State as a whole registered 10.75 per cent per

annum growth rate of output of textile-based industries. In absolute terms, the value of

output increased from Rs. 21531.60 lakh in 1980-81 to Rs. 276806.31 lakh in the year

2005-06 in the urban areas whereas, in the rural areas, the value of output increased from

Rs.79.84 lakh to Rs.30876.86 lakh during 1980-81 to 2005-06 by witnessing 25.75 per

cent per annum growth rate of output. It is also clear from table that in the eighties, 99 per

cent output was generated in the urban areas. But with the passage of time, the trend

revealed more growth rate in the rural areas as compared to the urban areas. In the last

two years of the study period, the fifty per cent share of output came from the rural areas

of Punjab. It is also clear from the table that the growth rate of the rural areas was two

and half times more, i.e., 25.75 per cent per annum than the growth rate of the urban

areas, i.e., 10.32 per cent per annum over the time period in Punjab.

148

5.3 Rural-Urban Structure of Wood, Paper and Leather -based Industries in Punjab

This section deals with total number of units, fixed capital, employment and

output of wood, paper and leather-based industries in rural and urban areas of Punjab

during the 1980-81 to 2005-06.

5.3.1 Total Number of Units of Wood, Paper and Leather -based Industries (SSI) in the Rural and Urban Areas of Punjab

District-wise total number of units of wood, paper and leather-based industries in

the rural and urban areas of Punjab have been presented in table 5.9. The district-wise

analysis reveals that the total number of units of wood, paper and leather-based industrial

group has increased in rural and urban areas over the period of time except in few

districts. In the initial year of the study, the highest share of the number of units of wood,

paper and leather-based industry was registered in Sangrur district (18.23 per cent)

followed by Amritsar district (17.56 per cent) and Jalandhar district (17.25 per cent).

Mostly the wood, paper and leather-based industrial units were established in these

districts during the eighties. But with the passage of time, the pattern of this industry has

changed. In 1995-96, the concentration of wood, paper and leather-based industry was in

Ludhiana district which had 18.01 per cent share in the total number of units in Punjab. In

the year 2005-06, the percentage share of Ludhiana district has declined to 16.61 per cent

whereas the share of Jalandhar district has increased, i.e., 16.98 per cent. As for as the

growth rate of number of units is concerned it was higher in Firozpur district (10.26 per

cent per annum) as compared to Kapurthala (9.49 per cent per annum) and Ludhiana

districts(8.32 per cent per annum) wheras lowest in Fatehgarh Sahib district (0.49 per

cent per annum).

The lowest contribution was made by Firozpur district in the eighties. Within

Punjab, during 1980-81 to 2005-06, the districts that were doing worse in terms of

percentage share of number of units of wood, paper and leather-based industries were

Nawan Shehar, Firozpur, Faridkot, Mansa and Fatehgarh Sahib. It is observed from table

that absolute number of units of wood, paper and leather-based industry increased in the

rural as well as urban areas over a time period whereas the percentage share of these

industries has decreased in the urban areas and it has increased in rural areas over the

time period.

149

Table 5.9: District-wise Total Number of Wood, Paper and Leather-based Industries (SSI) in Punjab

(in numbers) Years→ Districts↓

1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 CAGR

Gurdaspur Urban 220

(5.99) 662

(6.95) 793

(5.97) 829

(5.45) 841

(5.33) 1022 (5.23)

1022 (5.18)

6.09

Rural 105 (5.05)

421 (5.30)

668 (5.49)

722 (5.30)

757 (5.41)

859 (5.86)

860 (5.81)

8.42

Total 325 (5.65)

1083 (6.20)

1461 (5.74)

1551 (5.38)

1598 (5.37)

1881 (5.50)

1882 (5.45)

6.9

Amritsar Urban 575

(15.66) 1388

(14.58) 2020

(15.22) 2248

(14.78) 2294

(14.53) 3254

(16.66) 3260

(16.53) 6.90

Rural 435 (20.93)

845 (10.64)

1326 (10.90)

1455 (10.69)

1474 (10.54)

1637 (11.16)

1640 (11.08)

5.24

Total 1010 (17.56)

2233 (12.79)

3346 (13.16)

3703 (12.85)

3768 (12.66)

4891 (14.3)

4900 (14.19)

6.26

Kapurthala Urban 67

(1.82) 294

(3.09) 348

(2.62) 389

(2.56) 414

(2.62) 469

(2.40) 469

(2.38) 7.77

Rural 39 (1.88)

334 (4.20)

535 (4.40)

579 (4.25)

585 (4.18)

650 (4.43)

651 (4.40)

11.43

Total 106 (1.84)

628 (3.59)

883 (3.47)

968 (3.35)

999 (3.35)

1119 (3.27)

1120 (3.24)

9.49

Jalandhar Urban 724

(19.72) 1626

(17.08) 2291

(17.26) 2660

(17.48) 2822

(17.88) 4272

(21.87) 4293

(21.77) 7.08

Rural 268 (12.89)

956 (12.03)

1372 (11.28)

1255 (9.22)

1332 (9.52)

1567 (10.69)

1568 (10.60)

7.03

Total 992 (17.25)

2582 (14.78)

3663 (14.40)

3915 (13.58)

4154 (13.95)

5839 (17.08)

5861 (16.98)

7.07

Nawan Shehar* Urban - - - 122

(3.32) 126

(1.32) 141

(1.06) 141

(0.93) 1.32

Rural - - - 516 (24.83)

524 (6.60)

544 (4.47)

545 (4.00)

0.50

Total - - - 638 (11.09)

650 (3.72)

685 (2.69)

686 (2.38)

0.66

Hoshiarpur Urban 179

(4.87) 482

(5.06) 643

(4.84) 704

(4.63) 716

(4.54) 832

(4.26) 832

(4.22) 6.09

Rural 171 (8.23)

548 (6.89)

919 (7.56)

850 (6.24)

861 (6.16)

906 (6.17)

906 (6.12)

6.62

Total 350 (6.09)

1030 (5.90)

1562 (6.14)

1554 (5.39)

1577 (5.30)

1738 (5.08)

1738 (5.04)

6.36

Rupnagar Urban 87

(2.37) 311

(3.27) 422

(3.18) 528

(3.47) 586

(3.71) 703

(3.60) 709

(3.60) 8.40

Rural 156 (7.50)

498 (6.27)

738 (6.07)

709 (5.21)

713 (5.09)

745 (5.08)

745 (5.03)

6.19

Total 243 (4.23)

809 (4.63)

1160 (4.56)

1237 (4.29)

1299 (4.36)

1448 (4.23)

1454 (4.21)

7.12

Ludhiana Urban 647

(17.62) 1479

(15.53) 2016

(15.19) 2390

(15.71) 2491

(15.78) 2832

(14.50) 2839

(14.40) 5.85

Rural 71 (3.42)

1617 (20.36)

2521 (20.73)

2800 (20.57)

2819 (20.15)

2893 (19.73)

2893 (19.55)

15.32

Total 718 (12.48)

3096 (17.73)

4537 (17.84)

5190 (18.01)

5310 (17.84)

5725 (16.74)

5732 (16.61)

8.32

Firozpur Urban 60

(1.63) 213

(2.24) 391

(2.94) 445

(2.93) 452

(2.86) 540

(2.76) 540

(2.74) 8.82

Rural 15 (0.72)

170 (2.14)

320 (2.63)

408 (2.99)

403 (2.88)

410 (2.79)

411 (2.78)

13.58

Total 75 (1.30)

383 (2.19)

711 (2.79)

853 (2.96)

855 (2.87)

950 (2.78)

951 (2.75)

10.26

Contd...

150

Faridkot Urban 206

(5.61) 626

(6.57) 912

(6.87) 305

(2.00) 318

(2.01) 368

(1.88) 368

(1.87) 2.26

Rural 94 (4.52)

591 (7.44)

850 (6.99)

142 (1.04)

149 (1.06)

155 (1.06)

155 (1.05)

1.94

Total 300 (5.22)

1217 (6.96)

1762 (6.93)

447 (1.55)

467 (1.57)

523 (1.53)

523 (1.51)

2.16

Muktsar* Urban - - - 413

(11.25) 438

(4.60) 517

(3.89) 497

(3.27) 1.70

Rural - - - 233 (11.21)

249 (3.13)

257 (2.11)

237 (1.74)

3.82

Total - - - 646 (11.23)

687 (3.93)

774 (3.04)

734 (2.55)

1.17

Moga* Urban - - - 252

(6.86) 280

(2.94) 350

(2.64) 350

(2.30) 3.03

Rural - - - 629 (30.27)

683 (8.60)

707 (5.81)

707 (5.20)

1.07

Total - - - 881 (15.32)

963 (5.51)

1057 (4.16)

1057 (3.67)

1.67

Bathinda Urban 166

(4.52) 301

(3.16) 526

(3.96) 405

(2.66) 418

(2.65) 330

(1.69) 493

(2.50) 4.27

Rural 70 (3.37)

184 (2.32)

377 (3.10)

318 (2.33)

328 (2.34)

210 (1.43)

349 (2.36)

6.37

Total 236 (4.10)

485 (2.77)

903 (3.55)

723 (2.51)

746 (2.51)

540 (1.57)

842 (2.44)

5.01

Mansa* Urban - - - 211

(5.75) 231

(2.43) 255

(1.92) 255

(1.68) 1.74

Rural - - - 194 (9.34)

206 (2.59)

213 (1.75)

213 (1.57)

0.85

Total - - - 405 (7.04)

437 (2.50)

468 (1.84)

468 (1.62)

1.32

Sangrur Urban 569

(15.49) 1389

(14.59) 1820

(13.71) 1932

(12.69) 1954

(12.38) 2186

(11.19) 2187

(11.09) 5.31

Rural 479 (23.05)

1233 (15.52)

1645 (13.53)

1749 (12.85)

1786 (12.77)

1772 (12.08)

1774 (11.99)

5.16

Total 1048 (18.23)

2622 (15.01)

3465 (13.62)

3681 (12.77)

3740 (12.56)

3958 (11.57)

3961 (11.47)

5.25

Patiala Urban 172

(4.68) 750

(7.88) 1092 (8.23)

1229 (8.08)

1247 (7.90)

1302 (6.67)

1303 (6.61)

8.09

Rural 175 (8.42)

546 (6.87)

888 (7.30)

874 (6.42)

935 (6.69)

953 (6.50)

954 (6.45)

6.74

Total 347 (6.03)

1296 (7.42)

1980 (7.78)

2103 (7.30)

2182 (7.33)

2255 (6.59)

2257 (6.54)

7.47

Fatehgarh Sahib*

- - -

Urban - - - 151 (4.11)

154 (1.62)

158 (1.19)

158 (1.04)

0.41

Rural - - - 176 (8.47)

182 (2.29)

186 (1.53)

187 (1.37)

0.55

Total 327 (5.69)

336 (1.92)

344 (1.35)

345 (1.20)

0.49

Punjab Urban 3672

(100) 9521 (100)

13274 (100)

15213 (100)

15782 (100)

19531 (100)

19716 (100)

6.68

% urban area 63.86 54.52 52.19 52.78 53.02 57.12 57.13 Rural 2078

(100) 7943 (100)

12159 (100)

13609 (100)

13986 (100)

14664 (100)

14795 (100)

7.84

% rural area 36.14 45.48 47.81 47.22 46.98 42.88 42.87 Total 5750

(100) 17464 (100)

25433 (100)

28822 (100)

29768 (100)

34195 (100)

34511 (100)

7.14

Note: * these districts came into existence in later time period. Figures in parentheses represent the percentage value. Source: Directorate of Industries, Chandigarh.

151

In the rural areas, the more concentration of wood, paper and leather-based

industry was registered in Sangrur and Amritsar districts in the eighties. But with the

passage of time, the percentage share of these industries has increased in Ludhiana

district (19.55 per cent) in 2005-06.

In the urban areas, the concentration of wood, paper and leather-based industries

was highest in Jalandhar district (19.72 per cent) followed by Ludhiana district (17.62

per cent) in the eighties. With the passage of time, the share of these districts in wood,

paper and leather-based industries declined. In absolute terms, there was slight increase in

the number of units of wood, paper and leather-based industries in Faridkot, Muktsar and

Fatehgarh Sahib districts. The number of units increased from 206 to 368 in Faridkot

district, from 413 to 497 in Muktsar district and in Fatehgarh Sahib district the number of

units of wood, paper and leather-based industries marginally increased from 151 to 158

during 1980-81 to 2005-06.

In the urban areas, the number of units of wood, paper and leather-based

industries in Bathinda district has increased approximately by 3 times, in Ludhiana,

Hoshiarpur and Sangrur districts, increased by 4 times, in Gurdaspur district increased by

5 times, in Amritsar and Jalandhar districts increased by 6 times, and in Rupnagar

district it increased by 8 times during 1980-81 to 2005-06.

In the rural areas, the number of units of wood, paper and leather-based industries

increased from 2078 in 1980-81 to 12159 in 1990-91 and further reached at the level of

14795 in the year 2005-06 by recording 7.84 per cent per annum growth rate. It is

observed from table that there were many ups and downs in the percentage share of this

industry group in the rural areas. The percentage share of number of units was higher in

the nineties and declined to 42.87 per cent in the year 2005-06 in the rural areas of

Punjab. There was 7 times increase in the number of units in the rural areas. In urban

areas, the number of units increased from 3672 in 1980-81 to 19716 in 2005-06 (5 times

increase) by witnessing 6.68 per cent per annum growth rate. It is clear from table that the

rural areas registered more growth rate for the number of units of wood, paper and

leather-based industries than the urban areas of Punjab.

152

5.3.2 Total Fixed Capital in Wood, Paper and Leather -based Industries (SSI) in the Rural and Urban Areas of Punjab

District-wise total fixed capital in wood, paper and leather-based industries in the

rural and urban areas of Punjab has been presented in table 5.10. This table indicates that

the value of fixed capital in rural as well as in urban areas increased over the period of

time. In the year 1980-81, the percentage share of fixed capital was highest in Ludhiana

district and lowest in the Kapurthala district of Punjab. But in the nineties, the share of

fixed capital was highest in Ludhiana district (22.36 per cent) followed by Amritsar

district (17.13 per cent) district. In 2005-06, the largest value of fixed capital was in

Jalandhar district (21.92 per cent) with 6.56 per cent per annum growth rate followed by

Ludhiana district (16.84 per cent) and this district registered 4.98 per cent per annum

growth rate of fixed capital. It is analysed from the table that districts where large number

of units of wood, paper and leather-based industries were established, more capital was

invested in those districts.

In the rural areas, the value of fixed capital in absolute terms increased in all the

districts of Punjab over the period of time. During eighties, in the rural areas, more

concentration of fixed capital was registered in Amritsar district. It occupied

approximately 50 per cent out of the total fixed capital. The lowest share of fixed capital

was recorded in Firozpur district (0.49 per cent). The reason may be that this district has

recorded less number of units in the eighties, therefore less fixed capital was invested in

these wood, paper and leather-based industries. But in the year 2005-06, the value of

fixed capital increased in Amritsar district approximately 3 times from the initial year of

the study. Patiala district registered the highest percentage share of fixed capital in the

rural areas of Punjab. It occupied 19.37 percentage share by registering 14.74 per cent per

annum growth rate. But the highest growth rate of fixed capital was witnessed by

Firozpur district (16.25 per cent per annum) followed by Ludhiana district (15.15 per cent

per annum) in the rural areas.

In the urban areas, in 1980-81 the share of fixed capital was highest in Ludhiana

district (31.68 per cent) followed by Jalandhar district (28.04 per cent) whereas the

lowest share of fixed capital was observed in Firozpur district. This table further indicates

that Ludhiana district has the highest amount of fixed capital during 1980-81 to 2005-06.

153

Table 5.10: District-wise Total Fixed Capital in Wood, Paper and Leather-based Industries (SSI) in Punjab (At Constant Prices 1993-94=100 )

(Value Rs. In lakhs) Years→ Districts↓

1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 CAGR (%)

Gurdaspur Urban 138.31

(3.08) 387.90 (5.13)

432.41 (4.80)

451.57 (5.10)

501.76 (3.92)

545.21 (2.95)

523.78 (2.92)

5.25

Rural 48.54 (4.32)

246.62 (7.83)

304.89 (6.46)

567.34 (10.54)

934.33 (8.32)

1056.67 (7.77)

1009.81 (7.57)

12.38

Total 186.85 (3.33)

634.52 (5.92)

737.30 (5.37)

1018.91 (7.16)

1436.09 (5.97)

1601.88 (4.99)

1533.59 (4.91)

8.44

Amritsar Urban 867.69

(19.32) 1108.28 (14.66)

1544.17 (17.14)

1357.36 (15.34)

1817.94 (14.22)

3197.39 (17.31)

3093.98 (17.27)

5.01

Rural 559.76 (49.78)

671.63 (21.33)

806.14 (17.09)

799.23 (14.85)

1304.14 (11.61)

1678.84 (12.35)

1821.58 (13.66)

4.64

Total 1427.45 (25.42)

1779.91 (16.62)

2350.31 (17.13)

2156.59 (15.16)

3122.08 (13.00)

4876.23 (15.21)

4915.56 (15.73)

4.87

Kapurthala Urban 43.92

(0.98) 112.63 (1.49)

116.43 (1.29)

99.06 (1.12)

125.15 (0.98)

130.06 (0.70)

123.70 (0.69)

4.06

Rural 23.49 (2.09)

95.69 (3.04)

131.58 (2.79)

97.93 (1.82)

109.37 (0.97)

160.93 (1.18)

160.04 (1.20)

7.66

Total 67.41 (1.20)

208.32 (1.94)

248.01 (1.81)

196.99 (1.38)

234.52 (0.97)

290.99 (0.91)

283.74 (0.91)

5.68

Jalandhar Urban 1259.60

(28.04) 1593.17 (21.07)

1536.31 (17.06)

1666.25 (18.84)

2926.41 (22.89)

6110.81 (33.08)

5863.49 (32.72)

6.09

Rural 54.67 (4.86)

185.53 (5.89)

284.24 (6.03)

277.39 (5.15)

562.59 (5.01)

999.14 (7.35)

987.79 (7.41)

11.77

Total 1314.27 (23.40)

1778.70 (16.61)

1820.55 (13.27)

1943.64 (13.66)

3489.00 (14.53)

7109.95 (22.17)

6851.28 (21.92)

6.56

Nawan Shehar* Urban - - - 31.24

(0.35) 45.28 (0.35)

50.72 (0.27)

48.24 (0.27)

4.03

Rural - - - 180.25 (3.35)

302.37 (2.69)

353.93 (2.60)

344.78 (2.58)

6.07

Total - - - 211.49 (1.49)

347.65 (1.45)

404.65 (1.26)

393.02 (1.26)

5.80

Hoshiarpur Urban 47.73

(1.06) 396.55 (5.24)

520.57 (5.78)

427.15 (4.83)

464.67 (3.63)

622.89 (3.37)

592.46 (3.31)

10.17

Rural 74.27 (6.60)

498.81 (15.84)

701.68 (14.88)

470.81 (8.75)

680.47 (6.06)

910.39 (6.69)

865.92 (6.50)

9.91

Total 122.00 (2.17)

895.36 (8.36)

1222.25 (8.91)

897.96 (6.31)

1145.14 (4.77)

1533.27 (4.78)

1458.38 (4.67)

10.01

Rupnagar Urban 92.67

(2.06) 229.63 (3.04)

319.90 (3.55)

512.46 (5.79)

1156.01 (9.04)

1580.56 (8.56)

1544.91 (8.62)

11.43

Rural 67.67 (6.02)

150.07 (4.76)

428.60 (9.09)

259.38 (4.82)

284.20 (2.53)

433.41 (3.19)

412.24 (3.09)

7.20

Total 160.34 (2.85)

379.70 (3.54)

748.50 (5.45)

771.84 (5.42)

1440.21 (6.00)

2013.97 (6.28)

1957.15 (6.26)

10.10

Ludhiana Urban 1423.04

(31.68) 2035.34 (26.91)

2117.49 (23.51)

1824.22 (20.62)

2609.86 (20.41)

2923.68 (15.83)

2815.22 (15.71)

2.66

Rural 62.47 (5.56)

634.35 (20.14)

950.84 (20.16)

1090.14 (20.25)

1600.36 (14.25)

2571.59 (18.92)

2445.98 (18.35)

15.15

Total 1485.51 (26.45)

2669.69 (24.92)

3068.33 (22.36)

2914.36 (20.48)

4210.22 (17.53)

5495.27 (17.14)

5261.20 (16.84)

4.98

Firozpur Urban 40.45

(0.90) 113.71 (1.50)

231.29 (2.57)

242.95 (2.75)

270.63 (2.12)

261.47 (1.42)

248.70 (1.39)

7.24

Rural 5.48 (0.49) 33.72 (1.07)

62.01 (1.31)

157.07 (2.92)

488.58 (4.35)

286.60 (2.11)

274.74 (2.06)

16.25

Total 45.93 (0.82)

147.43 (1.38)

293.29 (2.14)

400.03 (2.81)

759.21 (3.16)

548.07 (1.71)

523.44 (1.67)

9.81

Contd...

154

Faridkot Urban 195.96

(4.36) 474.74 (6.28)

533.48 (5.92)

170.24 (1.92)

237.39 (1.86)

264.69 (1.43)

251.76 (1.41)

0.97

Rural 22.00 (1.96)

112.57 (3.57)

151.10 (3.20)

57.70 (1.07)

63.52 (0.57)

130.04 (0.96)

123.69 (0.93)

6.87

Total 217.95 (3.88)

587.31 (5.48)

684.59 (4.99)

227.94 (1.60)

300.91 (1.25)

394.74 (1.23)

375.45 (1.20)

2.11

Muktsar* Urban - - - 161.38

(1.82) 239.03 (1.87)

250.91 (1.36)

228.83 (1.28)

3.23

Rural - - - 79.18 (1.47)

234.41 (2.09)

221.13 (1.63)

208.51 (1.56)

9.20

Total - - - 240.56 (1.69)

473.44 (1.97)

472.04 (1.47)

437.34 (1.40)

5.59

Moga* Urban - - - 123.42

(1.39) 235.31 (1.84)

254.64 (1.38)

242.20 (1.35)

6.32

Rural - - - 104.26 (1.94)

307.23 (2.73)

254.86 (1.87)

242.41 (1.82)

7.97

Total - - - 227.68 (1.60)

542.54 (2.26)

509.50 (1.59)

484.61 (1.55)

8.95

Bathinda Urban 123.20

(2.74) 255.83 (3.38)

382.30 (4.24)

270.22 (3.05)

390.56 (3.05)

370.15 (2.00)

516.60 (2.88)

5.67

Rural 39.27 (3.49)

107.71 (3.42)

140.80 (2.99)

86.55 (1.61)

103.27 (0.92)

142.97 (1.05)

206.02 (1.55)

6.58

Total 162.47 (2.89)

363.54 (3.39)

523.10 (3.81)

356.77 (2.51)

493.83 (2.05)

513.12 (1.60)

722.62 (2.31)

5.91

Mansa* Urban - - - 113.51

(1.28) 176.30 (1.38)

161.53 (0.87)

153.64 (0.86)

2.79

Rural - - - 47.86 (0.89)

140.61 (1.25)

90.56 (0.67)

86.14 (0.65)

5.49

Total - - - 161.37 (1.13)

316.91 (1.32)

252.09 (0.79)

239.78 (0.77)

3.67

Sangrur

Urban 187.16 (4.17)

491.70 (6.50)

498.28 (5.53)

414.80 (4.69)

499.63 (3.91)

556.68 (3.01)

534.76 (2.98)

4.12

Rural 110.65 (9.84)

209.85 (6.66)

325.48 (6.90)

460.36 (8.55)

1432.37 (12.75)

1434.65 (10.55)

1397.43 (10.48)

10.25

Total 297.81 (5.30)

701.55 (6.55)

823.76 (6.00)

875.16 (6.15)

1932.00 (8.04)

1991.33 (6.21)

1932.19 (6.18)

7.46

Patiala Urban 72.34

(1.61) 362.87 (4.80)

774.40 (8.60)

914.11 (10.33)

1013.25 (7.93)

1103.42 (5.97)

1054.27 (5.88)

10.85

Rural 56.21 (4.99)

202.27 (6.42)

428.79 (9.09)

604.05 (11.22)

2607.37 (23.21)

2706.82 (19.91)

2582.77 (19.37)

14.74

Total 128.55 (2.28)

565.15 (5.28)

1203.19 (8.76)

1518.16 (10.67)

3620.62 (15.07)

3810.27 (11.88)

3637.04 (11.64)

13.72

Fatehgarh Sahib*

Urban - - - 66.52 (0.75)

75.63 (0.59)

86.31 (0.47)

82.10 (0.46)

1.93

Rural - - - 42.57 (0.79)

78.76 (0.70)

160.03 (1.18)

161.44 (1.21)

12.88

Total - - - 109.08 (0.77)

154.40 (0.64)

246.34 (0.77)

243.53 (0.77)

7.57

Punjab Urban 4492.07

(100) 7562.35

(100) 9007.04

(100) 8846.47

(100) 12784.84

(100) 18471.14

(100) 17918.65

(100) 5.47

% urban area 79.98 70.60 65.63 62.17 53.23 57.61 57.34 Rural 1124.48

(100) 3148.82

(100) 4716.15

(100) 5382.06

(100) 11233.93

(100) 13592.57

(100) 13331.29

(100) 9.98

% rural area 20.02 29.40 34.37 37.83 46.77 42.39 42.66 Total 5616.54

(100) 10711.16

(100) 13723.19

(100) 14228.53

(100) 24018.77

(100) 32063.72

(100) 31249.94

(100) 6.82

Note: * these districts came into existence in later time period. Figures in parentheses represent the percentage value. Source: Directorate of Industries, Chandigarh.

155

The value of fixed capital in wood, paper and leather-based industries increased

from Rs.138.31 lakh in 1980-81 to Rs.523.78 lakh in 2005-06 (3.78 times) in the urban

areas of Gurdaspur district, in Amritsar district it increased by 4.65 times, in Hoshiarpur

district increased by 12.41 times, in Ludhiana district by 1.98 times, in Sangrur district by

2.85 times and in Patiala district increased by 14.57 times in the urban areas during

1980-81 to 2005-06. The highest contribution in the growth rate of fixed capital was

registered by the Rupnagar district (11.43 per cent per annum) in the urban areas.

It can be concluded from table that the total number of units of wood, paper and

leather-based industries registered highest growth rate in the urban areas whereas the

growth rate of fixed capital was lowest in the urban areas (5.47 per cent per annum) as

compared to the rural areas (9.98 per cent per annum). It means due to increase in number

of units of wood, paper and leather-based industries in the rural areas, the more capital

was invested with the passage of time. It is a good sign in the context of location of agro-

based industries in the rural areas of Punjab. The growth rate of fixed capital was highest

(9.98 per cent per annum) as compared to the urban areas (5.47 per cent per annum) in

the rural areas whereas for the state as a whole, Punjab registered 6.82 per cent per

annum growth rate of fixed capital over the period of time. It is clear from the above

analysis that the percentage share of fixed capital in wood, paper and leather-based

industries has decreased in the urban areas whereas it has increased in the rural areas of

Punjab during 1980-81 to 2005-06 with minor fluctuations in between.

5.3.3 Total Employment in Wood, Paper and Leather -based Industries (SSI) in the

Rural and Urban Areas of Punjab

Table 5.11 shows the district-wise analysis of employment in wood, paper and

leather-based industries in the rural and urban areas of Punjab. It is clear from table that

highest employment was generated in the urban areas, but the compound growth rate was

highest in the rural areas. Jalandhar district provided the highest share of employment in

wood, paper and leather-based industries. Its absolute as well as percentage share

increased over the period of time. In the eighties, the share of Jalandhar district was

highest (34.38 per cent) followed by Ludhiana district (14.88 per cent) district. The

lowest employment generating district was Firozpur. With the passage of time, the

percentage share of this district has declined.

156

Table 5.11: District-wise Total Employment of Wood, Paper and Leather-based

Industries (SSI) in Punjab (in numbers)

Years→ Districts↓

1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 CAGR

Gurdaspur Urban 914

(6.07) 2000 (5.95)

2380 (5.14)

2620 (4.94)

2687 (4.71)

3561 (4.56)

3171 (4.86)

4.90

Rural 324 (5.35)

1077 (5.75)

1629 (5.83)

2048 (6.29)

2333 (6.39)

2937 (6.63)

2595 (6.49)

8.33

Total 1238 (5.86)

3077 (5.87)

4009 (5.40)

4668 (5.45)

5020 (5.36)

6498 (5.31)

5766 (5.47)

6.09

Amritsar Urban 1679

(11.15) 3625

(10.78) 6181

(13.36) 6927

(13.06) 7203

(12.63) 10547 (13.51)

9177 (14.06)

6.75

Rural 988 (16.31)

2115 (11.28)

3937 (14.09)

4419 (13.58)

4708 (12.90)

5687 (12.85)

5118 (12.80)

6.53

Total 2667 (12.63)

5740 (10.96)

10118 (13.64)

11346 (13.26)

11911 (12.74)

16234 (13.27)

14295 (13.58)

6.67

Kapurthala Urban 351

(2.33) 831

(2.47) 948

(2.05) 1077 (2.03)

1152 (2.02)

1267 (1.62)

1021 (1.56)

4.19

Rural 94 (1.55)

600 (3.20)

862 (3.09)

943 (2.90)

978 (2.68)

1078 (2.43)

1037 (2.59)

9.67

Total 445 (2.11)

1431 (2.73)

1810 (2.44)

2020 (2.36)

2130 (2.27)

2345 (1.92)

2058 (1.95)

6.07

Jalandhar Urban 5352

(35.55) 10629 (31.61)

12770 (27.60)

14079 (26.54)

15386 (26.98)

27129 (34.76)

24059 (36.87)

5.95

Rural 1907 (31.48)

5196 (27.72)

6283 (22.49)

5782 (17.76)

6106 (16.73)

7645 (17.27)

7469 (18.67)

5.39

Total 7259 (34.38)

15825 (30.22)

19053 (25.68)

19861 (23.2)

21492 (22.98)

34774 (28.43)

31528 (29.95)

5.81

Nawan Shehar* Urban - - - 380

(0.72) 405

(0.71) 485

(0.62) 405

(0.62) 0.58

Rural - - - 1316 (4.04)

1389 (3.81)

1513 (3.42)

1396 (3.49)

0.54

Total - - - 1696 (1.98)

1794 (1.92)

1998 (1.63)

1801 (1.71)

0.55

Hoshiarpur Urban 423

(2.81) 1226 (3.64)

1917 (4.14)

2147 (4.05)

2254 (3.95)

2857 (3.66)

2412 (3.69)

6.92

Rural 325 (5.36)

954 (5.09)

1895 (6.78)

1933 (5.94)

2174 (5.96)

2480 (5.60)

2107 (5.27)

7.45

Total 748 (3.54)

2180 (4.16)

3812 (5.14)

4080 (4.76)

4428 (4.73)

5337 (4.36)

4519 (4.29)

7.16

Rupnagar Urban 302

(2.01) 814

(2.42) 1186 (2.56)

1962 (3.69)

2459 (4.31)

3143 (4.03)

2398 (3.67)

8.29

Rural 292 (4.82)

880 (4.70)

1291 (4.62)

1269 (3.90)

1293 (3.54)

1528 (3.45)

1425 (3.56)

6.28

Total 594 (2.81)

1694 (3.24)

2477 (3.34)

3231 (3.77)

3752 (4.01)

4671 (3.82)

3823 (3.63)

7.42

Ludhiana Urban 2882

(19.14) 6650

(19.77) 8782

(18.98) 9999

(18.85) 10692 (18.75)

12634 (16.19)

8916 (13.66)

4.44

Rural 260 (4.29)

3192 (17.03)

5078 (18.18)

5761 (17.70)

6064 (16.62)

9612 (21.71)

8975 (22.44)

14.59

Total 3142 (14.88)

9842 (18.79)

13860 (18.68)

15760 (18.41)

16756 (17.92)

22246 (18.19)

17891 (16.99)

6.92

Firozpur Urban 195

(1.29) 744

(2.21) 1201 (2.59)

1421 (2.68)

1459 (2.56)

1614 (2.07)

1293 (1.98)

7.55

Rural 45 (0.74)

466 (2.49)

727 (2.60)

898 (2.76)

1067 (2.92)

1983 (2.45)

959 (2.40)

12.48

Total 240 (1.14)

1210 (2.31)

1928 (2.59)

2319 (2.71)

2526 (2.70)

2697 (2.20)

2252 (2.14)

8.99

Contd...

157

Faridkot Urban 633

(4.20) 1730 (5.14)

2411 (5.21)

901 (1.69) 1010 (1.77)

1197 (1.53)

924 (1.42)

1.46

Rural 149 (2.46)

816 (4.35)

1183 (4.23)

332 (1.02)

356 (0.98)

406 (0.92)

317 (0.79)

2.95

Total 782 (3.70)

2546 (4.86)

3594 (4.84)

1233 (1.44)

1366 (1.46)

1603 (1.31)

1241 (1.18)

1.79

Muktsar* Urban - - - 1119

(2.11) 1258 (2.21)

1507 (1.93)

1318 (2.02)

1.50

Rural - - - 659 (2.02)

757 (2.07)

780 (1.76)

711 (1.78)

0.69

Total - - - 1778 (2.07)

2015 (2.15)

2287 (1.87)

2029 (1.93)

1.21

Moga* Urban - - - 702

(1.32) 853

(1.50) 1083 (1.39)

885 (1.36)

2.13

Rural - - - 947 (2.91)

1195 (3.27)

1290 (2.91)

1231 (3.07)

2.41

Total - - - 1649 (1.93)

2048 (2.19)

2373 (1.94)

2116 (2.01)

2.29

Bathinda Urban 497

(3.30) 881

(2.62) 1535 (3.31)

1322 (2.49)

1393 (2.44)

1153 (1.48)

1179 (1.81)

3.38

Rural 154 (2.54)

365 (1.95)

693 (2.48)

617 (1.90)

653 (1.79)

444 (1.00)

798 (2.00)

6.53

Total 651 (3.08)

1246 (2.38)

2228 (3.00)

1939 (2.26)

2046 (2.18)

1597 (1.31)

1977 (1.88)

4.36

Mansa* Urban - - - 533

(1.00) 657

(1.15) 770

(0.98) 707

(1.08) 2.60

Rural - - - 296 (0.91)

389 (1.07)

390 (0.88)

372 (0.93)

2.10

Total - - - 829 (0.97)

1046 (1.12)

1160 (0.95)

1079 (1.02)

2.43

Sangrur Urban 1240

(8.24) 2634 (7.83)

4069 (8.79)

4332 (8.16)

4435 (7.78)

5100 (6.53)

4475 (6.86)

5.05

Rural 1168 (19.28)

2209 (11.79)

2841 (10.17)

3231 (9.93)

3652 (10.01)

3784 (8.55)

3139 (7.85)

3.87

Total 2408 (11.41)

4843 (9.25)

6910 (9.31)

7563 (8.84)

8087 (8.65)

8884 (7.26)

7614 (7.23)

4.53

Patiala Urban 586

(3.89) 1866 (5.54)

2888 (6.24)

3141 (5.92)

3316 (5.82)

3592 (4.60)

2532 (3.88)

5.79

Rural 352 (5.81)

872 (4.65)

1518 (5.43)

1759 (5.40)

2996 (8.21)

3225 (7.28)

1980 (4.95)

6.87

Total 938 (4.44)

2738 (5.23)

4406 (5.94)

4900 (5.72)

6312 (6.75)

6817 (5.57)

4512 (4.29)

6.23

Fatehgarh Sahib* Urban - - - 384

(0.72) 398

(0.70) 411

(0.53) 377

(0.58) -0.17

Rural - - - 338 (1.04)

387 (1.06)

390 (0.88)

369 (0.92)

0.80

Total - - - 722 (0.84)

785 (0.84)

801 (0.65)

746 (0.71)

0.30

Punjab Urban 15054

(100) 33630 (100)

46268 (100)

53046 (100)

57017 (100)

78050 (100)

65249 (100)

5.80

% (urban area) 71.31 64.21 62.35 61.97 60.97 63.81 62.00 Rural 6058

(100) 18742 (100)

27937 (100)

32548 (100)

36497 (100)

44272 (100)

39998 (100)

7.53

% (rural area) 28.69 35.79 37.65 38.03 39.03 36.19 38.00 Total 21112

(100) 52372 (100)

74205 (100)

85594 (100)

93514 (100)

122322 (100)

105247 (100)

6.37

Note: * these districts came into existence in later time period. Figures in parentheses represent the percentage value. Source: Directorate of Industries, Chandigarh.

158

In the rural areas, the highest growth rate of employment was observed in

Ludhiana district (14.59 per cent per annum) followed by Firozpur district (12.48 per cent

per annum). In Ludhiana district, employment increased by 34.51 times and in Firozpur

district increased by 21.31 times during 1980-81 to2005-06. The districts that emerged in

later time period, they showed a better performance during 1995-96 to 2005-06. In the

nineties, the highest employment was provided by Jalandhar district (22.49 per cent),

followed by Ludhiana district (18.18 per cent) and Amritsar district (14.09 per cent). But

after this period, these districts showed the decreasing trend because of the existence of

new districts. And later on, Ludhiana district occupied the first position in providing

employment, i.e., 22.44 per cent in 2005-06 in the rural areas of Punjab. Whereas the

lowest percentage share of employment was generated in Fatehgarh Sahib, Mansa and

Muktsar districts. In the urban areas, the highest percentage share of employment in

wood, paper and leather-based industries was recorded in Jalandhar district. It registered

5.95 per cent per annum compound growth rate. In Jalandhar district, total number of

employment increased from 5352 in 1980-81 to 24059 in 2005-06 (4.49 times).

It is clear from the above analysis that there was more concentration of wood,

paper and leather-based industries in this district. As against it, it was noticed that

Kapurthala, Nawan Shehar, Firozepur, Fatehgarh Sahib and Bathinda districts employed

very few people over the period of time. All the districts showed positive growth rate

except the Fatehgarh Sahib district in the urban areas. The highest growth rate was

observed in Rupnagar district as it accounted 8.29 per cent per annum growth rate of

employment.

Table 5.11 indicates that the percentage share of employment in wood, paper and

leather-based industries was highest in the urban areas as compared to rural areas of

Punjab. The employment increased by 6.60 times in the rural areas whereas in urban area,

it increased by 4.33 times during 1980-81 to 2005-06. The absolute number of workers in

rural areas increased from 6058 in 1980-81 to 39998 in 2005-06. The share of

employment in wood, paper and leather-based industries in the rural areas has increased

but not consistently. In urban areas employment was continuously decreasing over the

period of time with minor fluctuations in between. The percentage share of employment

in urban areas has decreased from 71.31 per cent in 1980-81 to 62 per cent in the year

2005-06 by registering 5.80 per cent per annum growth rate. In the rural areas, it has

159

increased from 28.69 per cent in 1980-81 to 38.00 per cent in 2005-06 by registering a

growth rate of 7.53 per cent per annum. The total number of employment has increased

from 21112 in 1980-81 to 105247 in 2005-06 by registering the 6.37 per cent per annum

growth rate at the State level as a whole.

5.3.4 Total Output in Wood, Paper and Leather -based Industries (SSI) in the Rural and Urban Areas of Punjab

District-wise total output in wood, paper and leather-based industries (SSI) in

rural and urban areas of Punjab has been presented in table 5.12. This table depicts that

out of total value of output, i.e., Rs. 26849.9 lakh, Rs. 20064.12 lakh (74.73 per cent) was

produced in these industries located in the urban areas whereas Rs. 6785.77 lakh (25.27

per cent) was produced in the rural areas in 1980-81. In 2005-06, total value of output

produced rose to Rs.103979.5 lakh, out of which Rs.70406.15 (67.71 per cent) was

produced in the urban areas and remaining Rs.33573.35 lakh, i.e., 32.29 per cent was

produced in the rural areas.

This analysis reveals that the percentage value of total output produced in wood,

paper and leather-based industries has decreased in the urban areas whereas this

percentage share has slightly increased in the rural areas between 1980-81 to 2005-06

with minor fluctuations in between. This is clear from above analysis that majority of

wood, paper and leather-based industries were concentrated in urban areas therefore, the

contribution of these industries was highest in the urban areas as compared to the rural

areas during the whole time period under study.

The district-wise analysis shows that in the year 1980-81, the percentage share of

output was highest in Jalandhar district, i.e., 58.81 per cent whereas it was 56.97 per cent

and 64.26 per cent in the urban and rural areas respectively. It was followed by Ludhiana

district, i.e., 14.13 per cent whereas in case of the urban areas this percentage was

highest, i.e., 17.62 per cent as compared to the rural areas, i.e., 3.81 per cent. It is clear

from the above analysis that during the year 2005-06, the pecentage share of Jalandhar

district was highest (36.26 per cent) in total production of wood, paper and leather-based

industries followed by Amritsar district (16.99 per cent), Ludhiana district (14.49 per

cent) and Patiala district (7.12 per cent) whereas the percentage share of Nawan Shehar

160

Table 5.12: District-wise Total Output in Wood, Paper and Leather-based Industries (SSI) in Punjab (At Constant Prices 1993-94=100)

(Value Rs. In lakhs) Years→ Districts↓

1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 CAGR (%)

Gurdaspur Urban 260.99

(1.30) 586.66 (2.20)

870.67 (2.85)

1109.08 (3.74)

661.75 (2.01)

1332.69 (1.91)

1262.88 (1.79)

6.25

Rural 115.22 (1.70)

314.11 (2.86)

711.51 (4.70)

1532.58 (10.73)

2197.67 (10.19)

3032.45 (8.91)

2856.26 (8.51)

11.85

Total 376.21 (1.40)

900.77 (2.39)

1582.18 (3.46)

2641.66 (6.01)

2859.42 (5.25)

4365.14 (4.20)

4119.14 (3.96)

9.64

Amritsar Urban 2330.18

(11.61) 2648.29 (9.95)

4141.62 (13.55)

3721.79 (12.54)

3885.55 (11.81)

10661.57 (15.27)

10170.60 (14.45)

5.83

Rural 1357.33 (20.00)

1636.33 (14.88)

2554.68 (16.87)

2228.54 (15.60)

2943.12 (13.64)

7596.84 (22.31)

7499.43 (22.34)

6.80

Total 3687.51 (13.73)

4284.62 (11.38)

6696.30 (14.65)

5950.33 (13.53)

6828.67 (12.54)

18258.41 (17.58)

17670.03 (16.99)

6.21

Kapurthala Urban 309.12

(1.54) 389.11 (1.46)

442.64 (1.45)

809.60 (2.73)

696.87 (2.12)

798.56 (1.14)

748.18 (1.06)

3.46

Rural 38.97 (0.57)

217.83 (1.98)

481.68 (3.18)

218.50 (1.53)

244.49 (1.13)

466.26 (1.37)

443.11 (1.32)

9.80

Total 348.09 (1.30)

606.94 (1.61)

924.32 (2.02)

1028.10 (2.34)

941.36 (1.73)

1264.82 (1.22)

1191.28 (1.15)

4.85

Jalandhar Urban 11431.16

(56.97) 14670.54 (55.10)

13115.07 (42.92)

12220.12 (41.17)

13448.34 (40.89)

33060.39 (47.35)

33553.56 (47.66)

4.23

Rural 4360.26 (64.26)

5805.12 (52.79)

5266.27 (34.78)

3019.76 (21.14)

2841.73 (13.17)

4362.86 (12.81)

4152.25 (12.37)

-0.19

Total 15791.42 (58.81)

20475.66 (54.42)

18381.34 (40.22)

15239.88 (34.66)

16290.07 (29.91)

37423.25 (36.03)

37705.81 (36.26)

3.40

Nawan Shehar* Urban - - - 53.47

(0.18) 61.47 (0.19)

112.50 (0.16)

105.20 (0.15)

6.35

Rural - - - 383.61 (2.69)

417.01 (1.93)

523.31 (1.54)

502.28 (1.50)

2.48

Total - - - 437.08 (0.99)

478.48 (0.88)

635.81 (0.61)

607.48 (0.58)

3.04

Hoshiarpur Urban 240.27

(1.20) 550.03 (2.07)

868.85 (2.84)

619.22 (2.09)

719.73 (2.19)

1175.60 (1.68)

1152.44 (1.64)

6.22

Rural 137.65 (2.03)

478.24 (4.35)

1108.66 (7.32)

616.98 (4.32)

708.60 (3.28)

1018.81 (2.99)

985.72 (2.94)

7.87

Total 377.92 (1.41)

1028.28 (2.73)

1977.50 (4.33)

1236.20 (2.81)

1428.33 (2.62)

2194.41 (2.11)

2138.16 (2.06)

6.89

Rupnagar Urban 271.33

(1.35) 576.17 (2.16)

848.74 (2.78)

2025.67 (6.82)

2737.46 (8.32)

4126.27 (5.91)

4288.37 (6.09)

11.20

Rural 77.74 (1.15)

238.42 (2.17)

794.97 (5.25)

557.30 (3.90)

831.33 (3.85)

1205.85 (3.54)

1232.32 (3.67)

11.21

Total 349.07 (1.30)

814.59 (2.17)

1643.71 (3.60)

2582.97 (5.87)

3568.79 (6.55)

5332.12 (5.13)

5520.69 (5.31)

11.20

Ludhiana Urban 3535.71

(17.62) 3952.99 (14.85)

4621.07 (15.12)

4386.76 (14.77)

5599.13 (17.02)

10445.07 (14.96)

11228.99 (15.95)

4.54

Rural 258.39 (3.81)

833.35 (7.58)

1295.86 (8.56)

1735.70 (12.15)

2044.03 (9.48)

3664.29 (10.76)

3835.44 (11.42)

10.93

Total 3794.10 (14.13)

4786.34 (12.72)

5916.93 (12.94)

6122.46 (13.93)

7643.16 (14.03)

14109.36 (13.58)

15064.43 (14.49)

5.45

Firozpur Urban 64.49

(0.32) 125.93 (0.47)

314.03 (1.03)

484.11 (1.63)

400.81 (1.22)

649.47 (0.93)

610.07 (0.87)

9.03

Rural 13.80 (0.20)

52.60 (0.48)

159.15 (1.05)

213.82 (1.50)

249.57 (1.16)

325.87 (0.96)

309.83 (0.92)

12.71

Total 78.29 (0.29)

178.53 (0.47)

473.18 (1.04)

697.93 (1.59)

650.38 (1.19)

975.34 (0.94)

919.90 (0.88)

9.94

Contd...

161

Faridkot Urban 414.74

(2.07) 652.57 (2.45)

791.25 (2.59)

190.16 (0.64)

299.36 (0.91)

520.11 (0.74)

488.67 (0.69)

0.63

Rural 36.33 (0.54)

266.98 (2.43)

332.02 (2.19)

71.67 (0.50)

78.16 (0.36)

245.64 (0.72)

234.83 (0.70)

7.44

Total 451.07 (1.68)

919.56 (2.44)

1123.27 (2.45)

261.83 (0.60)

377.52 (0.69)

765.75 (0.74)

723.50 (0.70)

1.83

Muktsar* Urban - - - 237.37

(0.80) 221.12 (0.67)

393.19 (0.56)

378.19 (0.54)

4.33

Rural - - - 86.91 (0.61)

194.32 (0.90)

281.07 (0.83)

265.32 (0.79)

10.68

Total - - - 324.28 (0.74)

415.44 (0.76)

674.26 (0.65)

643.51 (0.62)

6.43

Moga* Urban - - - 138.92

(0.47) 365.91 (1.11)

435.95 (0.62)

409.97 (0.58)

10.34

Rural - - - 144.86 (1.01)

363.14 (1.68)

469.62 (1.38)

436.51 (1.30)

10.55

Total - - - 283.78 (0.64)

729.05 (1.34)

905.57 (0.87)

846.48 (0.81)

10.45

Bathinda Urban 303.34

(1.51) 499.52 (1.88)

683.71 (2.24)

614.02 (2.07)

468.79 (1.43)

688.10 (0.98)

876.05 (1.24)

4.16

Rural 77.33 (1.14)

174.00 (1.58)

223.30 (1.47)

91.56 (0.64)

107.88 (0.50)

810.72 (2.38)

966.64 (2.88)

10.20

Total 380.67 (1.42)

673.52 (1.79)

907.01 (1.98)

705.58 (1.60)

576.67 (1.06)

1498.82 (1.44)

1842.69 (1.77)

6.25

Mansa* Urban - - - 310.28

(1.05) 447.65 (1.36)

695.28 (1.00)

646.21 (0.92)

7.97

Rural - - - 87.83 (0.61)

222.62 (1.03)

299.90 (0.88)

279.58 (0.83)

11.10

Total - - - 398.11 (0.91)

670.27 (1.23)

995.79 (0.96)

925.79 (0.89)

8.33

Sangrur

Urban 620.43 (3.09)

986.34 (3.70)

1121.21 (3.67)

874.91 (2.95)

899.70 (2.74)

1772.13 (2.54)

1689.50 (2.40)

3.93

Rural 233.94 (3.45)

442.83 (4.03)

784.48 (5.18)

1274.95 (8.92)

2631.43 (12.20)

3348.44 (9.83)

3457.41 (10.30)

10.91

Total 854.37 (3.18)

1429.17 (3.80)

1905.69 (4.17)

2149.86 (4.89)

3531.13 (6.48)

5120.57 (4.93)

5146.91 (4.95)

7.15

Patiala Urban 282.35

(1.41) 986.78 (3.71)

2736.66 (8.96)

1508.69 (5.08)

1513.49 (4.60)

2365.94 (3.39)

2244.57 (3.19)

8.30

Rural 78.80 (1.16)

537.07 (4.88)

1429.08 (9.44)

1870.56 (13.09)

5157.87 (23.91)

5404.94 (15.87)

5161.61 (15.37)

17.45

Total 361.15 (1.35)

1523.85 (4.05)

4165.74 (9.12)

3379.25 (7.69)

6671.36 (12.25)

7770.88 (7.48)

7406.18 (7.12)

12.32

Fatehgarh Sahib*

Urban - - - 377.36 (1.27)

464.36 (1.41)

593.71 (0.85)

552.69 (0.79)

3.53

Rural - - - 150.27 (1.05)

338.27 (1.57)

995.93 (2.93)

954.81 (2.84)

18.31

Total - - - 527.63 (1.20)

802.63 (1.47)

1589.64 (1.53)

1507.05 (1.45)

10.01

Punjab Urban 20064.12

(100 26624.92

(100 30555.52

(100 29681.53

(100 32891.49

(100) 69826.54

(100) 70406.15

(100) 4.95

% ( urban area) 74.73 70.77 66.87 67.51 60.39 67.22 67.71 Rural 6785.77

(100) 10996.90

(100) 15141.66

(100) 14285.42

(100) 21571.25

(1000 34052.80

(100) 33573.35

(1000 6.34

% rural area 25.27 29.23 33.13 32.49 39.61 32.78 32.29 Total 26849.9

(100) 37621.8

(100) 45697.2

(100) 43966.9

(100) 54462.7

(100) 103879.3

(100) 103979.5

(100) 5.35

Note: * these districts came into existence in later time period. Figures in parentheses represent the percentage value. Source: Directorate of Industries, Chandigarh.

162

district was lowest (0.58 per cent) followed by Muktsar district (0.62 per cent) and Moga

district (0.81 per cent) and Firozepur district (0.88 per cent).

During, 1980-81 to 2005-06, the compound growth rate of output in wood, paper

and leather-based industries was 5.35 per cent per annum whereas the growth rate was

highest in the rural areas, i.e., 6.34 per cent per annum as compared to the urban areas,

i.e., 4.95 per cent per annum in Punjab State as a whole. The district-wise analysis shows

that the compound growth rate of output in these districts was highest in Patiala district

(12.32 per cent), followed by Rupnagar district (11.20 per cent), Firozepur district (9.94

per cent) and Gurdaspur district (9.64 per cent), whereas it was lowest in Nawan Shehr

district (1.27 per cent) followed by Faridkot district (1.83 per cent) while the average

growth rate of State as a whole was 5.34 per cent per annum over the time period.

The district-wise analysis of the rural areas shows that the annual growth rate in

wood, paper and leather-based industry was highest in Patiala district, i.e., 17.45 per cent

followed by Firozpur district (12.71 per cent), Gurdaspur district (11.85 per cent) and

Rupnagar district (11.21 per cent) and it was negative in Jalandhar district (-0.19 per

cent), because the percentage of total output in this district has decreased from 64.26 per

cent in 1980-81 to 12.37 per cent in 2005-06. The growth rate of output was lowest in

Nawan Shehar district (2.48 per cent) while Punjab State registered a growth rate of 6.34

per cent in the rural areas as a whole.

The district-wise analysis of the urban areas reveal that the annual growth rate of

output in wood, paper and leather-based industries was highest in Rupnagar district

(11.20 per cent) followed by Firozepur district (9.03 per cent per annum), Patiala district

(8.30 per cent per annum) and Gurdaspur district (6.25 pe cent per annum) and it was

lowest in Faridkot district (0.63 per cent per annum) whereas Punjab State registered an

annual growth rate of output of 4.95 per cent per annum in these industries located in the

urban areas over a time period.

In the nutshell, it can be concluded that food processing industry is one of the

important industry in Punjab. Emerging scenario of industry in Punjab reveals that

Punjab is a labour-intensive State, so it is for the benefit of the State that it should start

more rural agro-based industries in order to solve the various economic problems like

poverty, unemployment and inequality. It emerges from above discussion that the Punjab

State has diversified over the time in favour of textile-based industries. The maximum

163

number of food, beverages and tobacco; textile and wood, paper and leather-based

industries were concentrated mainly in the rural areas mainly due to increase in

agriculture production and availability of raw-material and special packages by

government. In case of food, beverages and tobacco-based industries, major

concentration was found in Amritsar district. Ludhiana district occupied the first position

in textile-based industries. In wood, paper and leather-based industries, Jalandhar and

Amritsar districts emerged as industrial hubs. In terms of fixed investment, Ludhiana,

Firozepur, Patiala and Bathinda districts have been the major centers of industry in the

State because Ludhiana, Patiala and Amritsar lie on the Delhi-Amritsar rail road link and

enjoy better connectivity (Raikhy and Nanda, 2006). With the passage of time,

Hoshiarpur, Kapurthala and Rupnagar districts have also emerged as industrial centers.

Thus, government should provide better connectivity to other districts also for proper

development of agro-based industries in the State. It is clear from the analysis that textile

units were mainly located in Ludhiana district whereas food, beverages and tobacco-

based units as well as wood, paper and leather-based industries were located in all district

of the State. To sum up, special efforts are required on the part of the State as well as

central governments to develop Punjab as an agro-based industrially advanced State in

the rural and urban areas.

164

References

Ahluwalia, Isher Judge, et al. (2008), Punjab Industrial Review, 2007-2008, Available at : http ://www.unido.org/fileadmin/user_media/Publications/Pub_free/ (Accessed on 25th may, 2011) .

Chadha, G.K. and P. P. Sahu (2003), Small-Scale Agro-Industry in India: Low Productivity is Its Achilles’ Heel, Indian Journal of Agricultural Economics, Vol. 58, No. 3, p. 518.

Raikhy, P. S. and Paramjit Nanda (2006), Impact of WTO Regime on Punjab Industry, Guru Nanak Dev University Press, Amritsar, p. 75.