Punjab's Net State Domestic Product (NSDP) stood at US$ 8.6 billion in 2004 and has been growing at a Compounded Annual Growth Rate of 4.06 per cent since 1998.
Source: Punjab Statistical Abstract 2003 and Punjab Budget
Reflecting a great scope for developing industry and services sectors in Punjab, the state's agriculture accounts for 38 per cent of the Gross Domestic Product (GDP). The industrial sector in Punjab grew at 5 per cent per annum while the services sector grew at 7 per cent per annum, between 1994 and 2003.
Punjab has consistently been ranked first in the country on the Infrastructure Development Index. According to Centre for Monitoring Indian Economy (CMIE) report (2000-01), on a national average of 100, Punjab's relative infrastructure index was the highest at 186.
The state enjoyed a per capita income of US$ 574 in 2004. Punjab ranked second on the Human Development Index, in the Human Development Report (2001), reflecting a strong performance on the social development front.
Punjab has been aiming at the development of its human resources by building skills. The Census (2001) highlights that the state has successfully diverted its workforce to non-agricultural activities. Only 39.36 per cent workers were found to be cultivators or agricultural labourers, of its total workforce.
Source: Punjab Economic Survey 2003-04
In 2004-05, the per capita income of Punjab was US$ 679.2 whereas the all-India average was US$ 514.2. The state attracted huge investments among which the outstanding one was approximately US$ 19.4 billion as on June 1, 2008. The tertiary sector has been the fastest growing, driven by growth in sub-sectors like transport, storage and communication (having 20 percent share in tertiary sector) and financial services (having 16 percent share).