Punjab, which is currently ranked as the 5th urbanised State after Tamil Nadu, Maharashtra, Gujarat, and Karnataka. has fallen prey to its lack of industrialisation efforts. The Smart City Mission selected only three cities from Punjab — Ludhiana, Amritsar, and Jalandhar, with the Ease of Living Index positioning them at 35th, 76th, and 77th rank respectively. Punjab is indeed mired in an urban policy gridlock.

Though urbanisation in Punjab witnessed an upward trajectory since the Green Revolution, the compound annual growth rate (CAGR) dwindled in decades following 1971. At present, it stands at 37.5 per cent (Census 2011), and is projected to grow to 46.6 per cent by 2036. Urban Punjab is expected to expand to 1.57 crore in demographic size by 2036 from 1.2 crore in 2021.

However, a vast majority of this growth is concentrated in just three cities — Ludhiana, Jalandhar, and Amritsar, as only 34 per cent of the State’s urban population lives in small and mid-sized towns.

‘What’ needs to be fixed

Firstly, both quantitative and qualitative shortages in housing hit 99 per cent of the Low Income Group (LIG) and Economically Weaker Sections (EWS). Cities like Amritsar, Ludhiana, and Jalandhar exemplify this crisis, with many housing structures in these cities being pre-partition constructions that are now dilapidated. Planning agencies in Amritsar, for instance, have collectively supplied less than 5 per cent of the developed land needed for these segments.

As a result, 30-40 per cent of the population of Ludhiana, Amritsar, and Jalandhar are living in slums. Secondly, the employment scenario in Punjab’s urban areas is complex. The Labour Force Participation Rate (LFPR) and Worker-Population Ratio (WPR) are cumulatively low, with urban unemployment rates fluctuating between 9.0 and 7.7 per cent, compared to all-India average of 6 per cent.

While Amritsar, Jalandhar, and Ludhiana have high employment potential, the quality and quantum of employment in these districts vary significantly. Even the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) has failed to address the employment challenges effectively. In response to a Lok Sabha question from MP Ravneet Singh Bittu the government revealed a troubling statistic: over the five-year period (2018-2023), only 21 per cent of individuals trained under PMKVY got jobs secured employment in Punjab.

Lastly, on account of municipal finances, per a CAG Audit report in 2021, a shortfall of 99% was also noted in terms of the finances that was sanctioned by the State Finance Commission compared to what was released. This shortfall has deprived the municipalities of the required funds to keep up the basic institutional facilities at the local level

‘How’ to fix it

Each city in Punjab should initially develop a strategic functional plan aligned with its resource capacities.

The CAG 2021 report highlights the limited involvement of Urban Local Bodies (ULBs) in executing projects under the Smart City Mission, primarily managed by three Special Purpose Vehicles (SPVs) in Amritsar, Jalandhar, and Ludhiana.

Punjab’s growth prospects will be hit without empowering its Class VI towns (populations under 5,000), which have recently emerged as hubs of population growth. The State’s urban story will see a new sunrise if adequate administrative structures are provided to these new centres of growth.

Sehaj Singh is a Policy Researcher and Co-Founder of PANJ Foundation; Anmol Rattan Singh is PhD Scholar at Panjab University, Chandigarh and Co-Founder of PANJ Foundation

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