Located in north-west India, Punjab has made notable accomplishments in various sectors conducive to its economic growth. Punjab was the first state in the country to use agricultural technology to engineer a "green revolution". With rich agricultural resources and favourable climate, the state continues to be one of the largest producers of food grains and cash crops in the country. Not only this, the state is the second-largest producer of cotton and blended-yarn and the third-largest producer of mill-made fabrics in India.
The state’s GDP grew at an impressive CAGR of 13 per cent between 1999-2000 to 2006-07 to reach US$ 30.93 billion. Households in the state have higher disposable incomes as compared to the rest of the country. The per capita income of Punjab was US$ 679.2 in 2004-05 while the all-India average was US$ 514.2. Attracting investments to a great extent, the outstanding investment in the state was roughly US$ 19.4 billion as on June 1, 2008. There were immense inflow of investments in the manufacturing sector including textiles, paper, paper products and pulp and chemicals. While, telecom and IT have attracted maximum investments in the services sector.
