Archive · 7 Dec 2025
Punjab's Export Challenges Amid Global Trade Shifts
Punjab, a state in India, is facing challenges with its exports.
The state sends out things like basmati rice, car parts, and clothes to other countries.
Recently, changes in trade rules, higher costs, and problems in supply chains have made it harder for Punjab's exporters.
The state's exports have grown, but its share in India's total exports has decreased.
Punjab mainly sends its goods to a few countries like the USA, Saudi Arabia, and the UK.
To do better, Punjab needs to diversify its exports, improve its logistics, and adopt new technologies.
The state has improved its readiness for exports, but it still faces challenges due to its narrow market base and long distances to ports.
Punjab's exports grew from $5.79 billion (2017-18) to $6.74 billion (2023-24), but its share in India's total exports declined from 1.9% to 1.5%.
Engineering goods now dominate Punjab's export basket (41%), while textiles and agricultural products have declined.
Over one-third of Punjab's exports go to the USA, Saudi Arabia, and the UK, with half of all exports confined to 10 countries.
Punjab has improved its export preparedness, moving from rank 18 to 10 in the NITI Aayog Export Preparedness Index.
The state is expanding its logistics ecosystem and exploring overland trade through the Attari Check Post to reduce dependence on seaports.
- Who
- Punjab's exporters, particularly in basmati rice, auto components, engineering goods, textiles, and agricultural products
- What
- Global trade uncertainties, tariff realignments, sustainability norms, and supply-chain reordering are affecting Punjab's exports
- When
- The changes have been observed from 2017-18 to 2023-24, with recent disruptions due to geopolitical frictions
- Where
- Punjab, India, with key export markets in the USA, Saudi Arabia, and the UK
- Why
- Punjab's narrow export base and reliance on a limited set of markets and products make it vulnerable to global policy shocks
- Export Growth
- Punjab's exports rose from $5.79 billion (2017-18) to $6.74 billion (2023-24)
- National Export Share
- Punjab's share in India's total exports declined from 1.9% to 1.5%
- Top Export Sectors
- Engineering goods (41%), textiles (21%), agricultural products (18%)
- Key Export Markets
- USA, Saudi Arabia, UK (one-third of export value); 10 countries (half of all exports)
- Export Preparedness Rank
- Improved from 18 (2020) to 10 (2022) in NITI Aayog Index
- Logistics Infrastructure
- Inland Container Depots in Ludhiana, Jalandhar, Amritsar, Bathinda
- Overland Trade Growth
- Attari Check Post trade grew from $260 million (2022-23) to $440 million (2023-24)
- IT Exports Growth
- Increased from $50 million (2017-18) to $300 million (2023-24)