ABSTRACT

This chapter describes the Punjabi industrialization process. It is a study of industrialization in a highly agricultural economy and an analysis of the role played by a growing agricultural sector in the development of some industries. Several implications arise from a pattern of industrialization characterized by the development and adaptation of the agro-input industries in response to agricultural stimulation. Extensive research on Punjab's industrial capacity and its historical evolution has highlighted its unsatisfactory performance relative to other states of the Indian Union. Historical factors are the key to understanding the development of Punjabi industrialization. A "division of labor" evolved within India, according to which industrial production was concentrated in the industrial belts surrounding major metropolitan areas while food production was relegated to Punjab. The chapter addresses the implications of Punjab's industrialization experience, especially with respect to the economic basis underlying the Punjabi separatist movement.