Punjab in Crisis: A State Bleeding Through Economic, Social, and Law & Order Challenges

Punjab, once hailed as India’s breadbasket and a symbol of prosperity during the Green Revolution, is today struggling under the weight of economic stagnation, deteriorating law and order, and growing public disillusionment. Across all communities, people express frustration and fear, feeling unsafe in their own land and struggling to meet basic daily needs. The gap between the rich and poor is widening alarmingly, and many see no hope without urgent and sustained intervention.

Punjab’s economy has been steadily declining. From contributing significantly to India’s GDP in the 1970s, the state’s economic output has now slipped to just above the national average. The debt-to-GSDP ratio has soared to a staggering 44.1% in 2024–25, placing Punjab among the most financially burdened states in India. Despite massive subsidies—especially in agriculture—the state is failing to invest adequately in health, education, or employment-generating infrastructure. This lack of balanced development is contributing to widespread unemployment and economic frustration, especially among the youth.

The unemployment crisis is particularly acute. As per the Periodic Labour Force Survey, the unemployment rate among Punjab’s urban youth (ages 15–29) rose from 12.2% to 14.9% between July and December 2024. The situation is worse for women, with female unemployment reaching a disheartening 21.7%. With no job prospects, thousands of young Punjabis are looking abroad for opportunities. Deportation data reveals that out of 332 people recently returned to India, 126 were from Punjab—an alarming indicator of the desperation pushing young people to seek risky immigration routes.

Law and order in the state are also under severe strain. Drug addiction continues to ravage families and communities. The government’s anti-drug campaign, “Yudh Nashian De Virudh,” has led to more than 14,500 arrests in 2025 alone. However, critics argue the effort is more cosmetic than effective. Drug-related deaths continue to rise, and disturbing reports suggest complicity of police and officials in the narcotics network. The Punjab and Haryana High Court has had to step in, ordering the formulation of new Standard Operating Procedures (SOPs) to tackle the surge in organized crime, which includes gang violence, extortion, and human trafficking.

The state’s farmers, too, are in distress. Rising input costs, inadequate Minimum Support Prices (MSP), and mounting debt have left thousands struggling to survive. Recent farmer protests have demanded legal guarantees for MSP, pensions, and the implementation of recommendations from the MS Swaminathan Committee. These protests, while necessary, reflect the deep-rooted agrarian crisis that continues to haunt Punjab—a state that once fed the nation.

Social inequality and urban poverty are on the rise. While official figures suggest relatively low income inequality, the lived reality paints a different picture. Mechanization of farming has reduced rural employment opportunities, and there is little industrial growth to absorb the workforce. Poor infrastructure, inadequate healthcare, and underfunded education systems are leaving a large segment of the population behind. As the rich grow richer, the poor are left to run from pillar to post in search of basic necessities.

Punjab today is at a crossroads. The current crisis is not the result of a single factor but a combination of systemic failures over decades—poor governance, economic mismanagement, lack of vision, and widespread corruption. To reverse the decline, bold reforms are urgently needed: creating jobs, investing in public services, tackling organized crime, and restoring public trust in institutions. Without decisive action, Punjab risks losing not just its youth but also its identity as a vibrant and progressive state.

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