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Business Opportunities In Punjab

The recent liberalization of the country's economy has pitch-forked Punjab into the mainstream of global business. Punjab's inherent strengths and efforts to attract private investment make it a land of opportunities. Its rich agricultural base has the potential to add significant value to the food processing sector. Commercial agriculture can also assist the state leverage its competitive advantage in the sector.

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Similarly, the existing industrial base of the state can be encouraged to go in for forward integration in a variety of sectors such as textiles, light engineering goods, IT, chemicals and biotechnology.

Textiles, Hosiery and Woolens
Punjab’s key competitive advantage in the textile industry is the abundance of raw material (cotton), presence of several textile and Woolens clusters and skilled labour. Punjab has a US$ 2.34 billion textile industry. It is the second largest producer of cotton and blended yarn contributing 10 per cent to the country's total industrial output in 2003-04.The production of cotton and blended yarn in the state stood at 280,000 tonnes in the same year. Punjab is the third largest producer of mill made fabrics in the country with a share of 8.1 per cent. In 2003-04, production of mill made fabric increased by 21 per cent over the previous year to 82.6 million sq mt. 40 per cent of the country's wool units are also located in Punjab.
With the global trade in textile and clothing expected to grow from the current US$ 356 billion to US$ 600 billion by 2010, the state has seen a spurt of capacity enhancements and some ambitious scale ups in anticipation of the quota-free regime. Clearly, Punjab has an opportunity to boost its existing strengths to capture a larger share of the textile market.
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