With targeted policy support, infrastructure investment and global market integration, Punjab can play a transformative role in India’s trade success story
India has vast industrial and agricultural capabilities across 800 districts, yet 40% of its merchandise exports originate from only 10 districts. Gujarat dominates this landscape with five key contributors: Jamnagar, Surat, Ahmedabad, Bharuch, and Kachchh. The other significant players include Mumbai and Pune in Maharashtra, Bengaluru in Karnataka, Kanchipuram in Tamil Nadu, and NOIDA in Uttar Pradesh. Alarmingly, Punjab—home to a robust industrial base in textiles, bicycles, sports goods, engineering goods, tractors, agricultural implements and food processing—is conspicuously absent from this export powerhouse.
The 'One District-One Product' (ODOP) initiative was introduced to rectify this imbalance, but meaningful progress has yet to materialise. If India is serious about reaching its ambitious target of $1 trillion in exports by 2030, it must expand its export landscape beyond this handful of districts.
The next wave of growth will undoubtedly come from unlocking the potential of industrial hubs like Ludhiana, Jalandhar, Amritsar, Hoshiarpur and Mohali. These regions must receive robust, targeted policy support, a conducive environment and infrastructure development, and substantial financial support to enable Punjab’s industries to compete with the country’s top export-driven districts.
India's Global Export ChallengeIndia's share of global exports has stagnated for decades, hovering around 2% and currently at 1.8% as of 2024. Ranked 17th among the world's top exporters, India falls behind various developing nations like Mexico, which ranks 9th.
To achieve the goal of at least doubling India's merchandise export value from $437 billion in FY 2023-24 to $874 billion by FY 2030, a strategic overhaul is essential—one that prioritises the establishment of export hubs in underrepresented regions, particularly Punjab, entire of potential.
The Imperative for a Decentralised Export Strategy
Punjab accounts for a mere 2% of India's total exports, but this share holds immense growth potential. To unlock this potential, the ‘Districts as Export Hubs’ initiative must go beyond paper & policy discussions and be actively and aggressively pursued. The government should prioritise transforming Punjab into a significant export player, leveraging the state’s industrial cities, which are primed for expansion.
Punjab's Key Districts with High Export Potential
Ludhiana: The Unrivaled Textile and Bicycle Powerhouse Ludhiana dominates India's bicycle exports with an astounding 80% market share. However, India's presence in the global $33.3 billion bicycle market is alarmingly low, standing at less than 1%, while China effortlessly commands 60%. Similarly, in the textiles, apparel, and hosiery sector—valued at $1.7 trillion—India's share languishes at a mere 5%, compared to China's commanding 37%. With strategic branding, robust trade facilitation, and decisive policy support, Ludhiana is poised to become a global leader in these vital sectors.
Jalandhar: The Untapped Giant in Sports Goods
Exports Jalandhar produces an impressive 45% of India's sports goods and contributes 75% of the country's sports-related exports. Yet, India holds a mere 0.56% share in the global sports goods market, valued at $220.57 billion, while China captures a staggering 42.2%. Jalandhar must actively integrate into international supply chains to aggressively penetrate markets in the USA, UK, Brazil, Germany, Mexico, and South Africa.
Hoshiarpur and Mohali: The Manufacturing Titans Hoshiarpur and Mohali are home to one-third of India's Original Equipment Manufacturers (OEMs) and are the undisputed leaders in tractor exports. The global tractor market, valued at $62.7 billion, is dominated by Germany with a 16% share, while India barely scrapes by with 2.2%. Mohali is also emerging as a significant tech and pharmaceutical hub, which is crucial for high-value exports that will fuel economic growth.
Amritsar: The Strategic Gateway to Global Trade
Amritsar, a historic trade hub, can leverage its advantageous proximity to the Wagah-Attari border to significantly enhance cross-border trade with Pakistan, Afghanistan, and Central Asia. By expanding trade policies, Punjab and northern India can assertively access high-demand markets in the Gulf, Turkey, and Europe. The International North-South Transport Corridor (INSTC) will further solidify Amritsar's role as a pivotal player in global trade.
Basmati Export Zone:
A Major Global Opportunity Punjab leads the charge by contributing 40% of India's basmati rice exports, which account for 65% of the global market. Amritsar, Tarn Taran and Gurdaspur must be developed into a dedicated Basmati Export Zone under the One District, One Product (ODOP) scheme. With the correct branding and compliance, Punjab has the potential to tap into previously unexplored markets.
Tackling Key Export Challenges Head-On
1. Infrastructure and Logistics: Access to ports is strategically essential to any state when engaging in international trade, as landlocked regions face the comparative disadvantage of high trade costs and hindrances in the freedom of transit from the seas. Punjab's landlocked status must not be a hindrance. The Amritsar-Kolkata Industrial Corridor (AKIC) needs to be expedited to enhance dry ports and logistics hubs under the Trade Infrastructure for Exports Scheme (TIES). Introducing state-owned wagons will be a game-changer for bolstering Punjab's exports and addressing the freight burdens associated with shipping.
2. Cost of Industrial Land: Land prices in Ludhiana and Mohali are prohibitively high, ranging from Rs. 5-7 crore per acre, stifling expansion. Authorities must prioritise the allocation of vacant industrial plots in focal points and Panchayati Raj-owned land for industrial use to establish a viable industrial land bank.
3. Global Market Compliance: With 18% of India's exports directed toward the European Union (EU), Punjab's industries require substantial support to meet evolving international regulations, including the EU's carbon border adjustment mechanism and stringent deforestation laws.
4. Leveraging Free Trade Agreements: Many exporters in Tier-2 and Tier-3 cities are currently unaware of India's FTAs. Local chambers and business federations must launch aggressive awareness campaigns to maximise these agreements among entrepreneurs.
5. Boosting MSMEs: Punjab's micro, small, and medium enterprises (MSMEs) need targeted financial support and strong market linkages to thrive in global trade. District Export Promotion Councils(DEPCs) headed by respective deputy-commissioners (DCs) are underperforming as DCs are already overburdened with multiple administrative tasks, and dedicated senior officials to be assigned to formulate District Export Action Plans (DEAPs) to bolster MSMEs. 6. Promoting Geographical Indications (GIs):
Punjab's GI-tagged products, such as Basmati rice, Phulkari embroidery, Amritsari Papad, and Jalandhar sports goods, possess immense global potential. Establishing dedicated stalls at international airports and providing financial backing for branding will amplify their presence in international markets.
Visit Bharat Demands Viksit Districts: India's ambitious export targets can only be realised through a decisive, decentralised approach centred around its more districts. With Punjab's rich industrial and agricultural heritage, it is positioned to emerge as a key export powerhouse. By fortifying district industries, enhancing trade infrastructure, and driving global market integration, Punjab will play a crucial role in India's export-led growth narrative. For India to achieve a truly 'Viksit Bharat', its districts must assume a more prominent role in export activities. This strategic shift will reshape India's global trade landscape and ignite widespread economic development and employment generation.
(The Author is Vice-Chairman of Sonalika ITL Group, Vice-Chairman of the Punjab Economic Policy and Planning Board and Chairman of ASSOCHAM Northern Region Development Council. Views expressed are personal)
