ABSTRACT
Agro-industrialisation of agrarian economies is almost indisputable. Developing the right type of agro-industries generates strong impulses for broad-based, sustained growth, generation of wealth and the improvement of wellbeing. This chapter identifies the potential for agro-processing industries in Punjab, which is based mainly on the comparative advantage of the existing agro-industries in the state; and availability and capability of the state agriculture to generate adequate quantum of raw material that can be processed for industry. The analysis of the growth and performance of agro-processing in Punjab is based on the information collected during the annual survey of industries for registered factory sector units. Industry wise comparison during the 1980s and the 1990s reveals that Total Factor Productivity Growth improved significantly for food products and beverages industries. A high and rising profitability reflected the evolution of incentives to invest in these industries.
