The state is bordered by the Pakistani province of Punjab to its west, Jammu & Kashmir in the north, Himachal Pradesh in the northeast, Haryana in the south and southeast, and Rajasthan in the southwest. Punjab is also known as the ‘Bread Basket of India’ and led to first Green Revolution in the country. By 2025, it is expected that the state will be among the leading producers of non-food grains as well as exporter of various agri-products.

At current prices, the primary sector contributed 29.08 per cent of the state’s Gross Value Added in 2018-19A. Food processing is considered to be a focus area in the state and the government has made various efforts in aiding deserving investments for the food processing industry. Basmati rice is the most exported commodity from the state. Its exports reached US$ 597.22 million in FY19 and US$ 304.28 million between Apr-Sept 2019.

Total merchandise exports from Punjab were US$ 6.03 billion in FY19 and reached US$ 2.69 billion during April-September 2019. According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows to Punjab1 between April 2000-March 2019 amounted to US$ 2.09 billion and in Q1FY20 US$ 60 million. During 2019 (up to October 2019), Punjab Government received 49 IEMs with proposed investments of Rs 1,745 crore (US$ 249.68 million).