Major Unresolved Issues Confronting Punjab in 2025

Punjab today stands at a critical juncture, caught between unfulfilled promises, financial distress, and decades-old constitutional grievances. Despite frequent political changes, the core challenges that define the state’s struggle for dignity, justice, and progress remain largely unaddressed. From mounting debt and corruption to historic disputes with the Centre, Punjab’s wounds run deep and demand serious introspection and national attention.

The foremost challenge is the mounting public debt, which has crossed an alarming ₹3.5 lakh crore — a sharp rise from around ₹2.8 lakh crore when the present government assumed power in 2022. The growing debt burden has severely limited Punjab’s capacity for development and welfare spending. Alongside this, unemployment and migration continue to haunt the state. Thousands of Punjabi youths are leaving for foreign countries each year, falling prey to human traffickers and fake agents. The tragic stories of stranded or missing youth abroad reflect both administrative negligence and economic despair at home.

Punjab’s farmers remain trapped in distress, facing mounting loans, low crop prices, and shrinking water resources. Despite tall promises, no permanent solution has emerged for their financial security, diversification, or fair Minimum Support Prices (MSP). The situation is worsened by continued drug abuse and smuggling, which have infiltrated every layer of society. The narcotics trade has not only destroyed countless families but has also raised suspicions about corruption within sections of the police and bureaucracy.

The law and order situation in Punjab has also raised concern. Incidents of gang warfare, political vendettas, and organized crime have become frequent, shaking public confidence. At the same time, corruption in administration continues unabated, as evident from recent cases where senior officers were booked or suspended. The irony remains that even after constant claims of a “corruption-free Punjab,” the common citizen continues to suffer at the hands of a malfunctioning system.

On the developmental front, the state’s education and health infrastructure remains weak. The much-hyped “Delhi model” has not materialized in Punjab’s schools or hospitals. Most government schools still face a shortage of teachers, while hospitals struggle with inadequate staff and outdated equipment. Similarly, industrial growth has stagnated. Punjab’s industries are burdened by high power tariffs, poor logistics, and unstable policy frameworks, driving investors toward neighboring states like Haryana and Himachal Pradesh. Cities face serious issues of urban mismanagement, poor waste disposal, and unplanned expansion, making civic life increasingly difficult.

At the constitutional level, Punjab continues to suffer from an imbalance of power between the Centre and the State. The Anandpur Sahib Resolution of 1973, which sought genuine federalism and autonomy over subjects like agriculture, industry, and broadcasting, remains largely unimplemented. Punjab’s demand for greater control over its natural resources, including its rivers, hydropower, and land, continues to be ignored. The Bhakra Beas Management Board (BBMB) dispute is a glaring example, where officers from other states are appointed to manage Punjab’s own dams, undermining its administrative authority.

The SYL (Sutlej–Yamuna Link) Canal dispute remains another long-standing flashpoint. Punjab maintains that it has no surplus water to share, yet the Centre and Supreme Court continue to push for its completion, disregarding Punjab’s ecological and agricultural concerns. Similarly, the boundary and Chandigarh disputes, pending since the 1966 reorganization, remain unresolved. The promised transfer of Chandigarh to Punjab has never been honored, and several Punjabi-speaking areas remain outside Punjab’s administrative fold.

Another core grievance lies in the erosion of federal spirit. Central agencies like the CBI, ED, and NIA are frequently accused of political misuse, often seen as tools to pressurize state governments or opposition leaders. This undermines democratic governance and weakens the principle of cooperative federalism. Punjab’s demand for more powers in matters like taxation, education, and resource management remains unfulfilled, further fueling political alienation.

Punjab’s border areas continue to remain underdeveloped despite being of national security importance. Towns and villages along the international border face economic isolation, lack of employment, and poor infrastructure. Meanwhile, the agriculture-based economy that once fed the nation is collapsing under the weight of rising costs, debt, and environmental degradation. The failure to promote crop diversification or value-added agro-industries has left Punjab’s rural economy stagnant.

Equally concerning is the decline of cooperative institutions, once the backbone of rural Punjab. Cooperative sugar mills, banks, and milk unions have collapsed due to corruption and political interference, leaving farmers and small producers without financial support. This collapse has deepened the agrarian and unemployment crisis. Furthermore, the failure of industrial policy, combined with bureaucratic hurdles, continues to push Punjab’s youth toward migration instead of entrepreneurship.

Finally, there is a growing sense that Punjab’s linguistic, cultural, and religious identity is being neglected at the national level. The Punjabi language and Sikh heritage, once symbols of the state’s pride, are increasingly sidelined in education and policy decisions. This erosion of identity, coupled with economic despair and administrative failure, creates an atmosphere of disillusionment among the people.

In conclusion, Punjab’s challenges are not merely administrative but deeply structural — rooted in decades of economic neglect, political mismanagement, and constitutional imbalance. The path forward lies in reviving the spirit of federalism, ensuring fiscal autonomy, restoring cooperative institutions, and addressing the emotional and economic aspirations of Punjab’s people. Only a sincere, collective effort — free from partisan politics — can rebuild the trust of Punjabis in their government and in India’s democratic framework.

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