Parliament Question: Impact of Industrial Decline on Youth Employment and Emigration in Punjab

GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA STARRED QUESTION NO.*210 TO BE ANSWERED ON 03RD AUGUST, 2026 IMPACT OF INDUSTRIAL DECLINE ON YOUTH EMPLOYMENT AND EMIGRATION IN PUNJAB *210. SMT. HARSIMRAT KAUR BADAL: Will the Minister of LABOUR AND EMPLOYMENT be pleased to state: (a) whether the Government is aware of the sustained decline in small and medium industry sector, particularly textiles, hosiery, sports goods and machine tools in Ludhiana, Jalandhar, Phagwara and Amritsar of Punjab and rise in youth unemployment forcing emigration; (b) the details of the current unemployment rate among educated youth between 18 to 35 years in Punjab as per the Periodic Labour Force Survey and whether it is disproportionately high compared to the national average; (c) whether any specific industrial revival package or any tax holiday including Production Linked Incentive (PLI) scheme extension to traditional industries of Punjab, enhanced credit guarantee covers for Micro, Small and Medium Enterprises (MSMEs) and infrastructure investment in industrial parks is being considered by the Government; (d) if so, the details thereof; and (e) the details of the total number of youth of Punjab who have emigrated to foreign countries on student visas, work permits and other categories during the last five years along with the Government views on the said large-scale emigration as a human capital crisis? ANSWER MINISTER OF LABOUR AND EMPLOYMENT (DR. MANSUKH MANDAVIYA) (a) to (e): A Statement is laid on the Table of the House. *STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. *210 DUE FOR REPLY ON 03.08.2026 BY SMT. HARSIMRAT KAUR BADAL, M.P. REGARDING “IMPACT OF INDUSTRIAL DECLINE ON YOUTH EMPLOYMENT AND EMIGRATION IN PUNJAB” (a) to (e): Official estimates of employment and unemployment in India are derived from the Periodic Labour Force Survey (PLFS), conducted by the Ministry of Statistics and Programme Implementation since 2017–18. As per latest PLFS report 2025, the estimated Unemployment Rate (UR) for youth of age 15-29 years on usual status has decreased from 10.9% in 2022 to 9.9% in 2025 in the country and the UR for youth of age 15-29 years has decreased from 19.1% in 2022 to 17.0% in 2025 in the State of Punjab. Further, the estimated UR for educated persons of age 15 years and above during 2025 in the country and in the State of Punjab is as follows: Unemployment Rate in 2025 (in %) Particulars All India Punjab not literate 0.3 0.8 literate & up to 0.6 1.0 primary middle 1.6 2.6 secondary & 6.5 9.3 above Source: PLFS, MoSPI The Ministry of MSME launched Udyam Registration Portal on 01.07.2020 for formalizing enterprises, expanding access to government support and strengthening the MSME ecosystem. A total of 8.9 crore (of which 23.62 lacs in the State of Punjab) Micro, Small and Medium Enterprises (MSMEs) have been registered on Udyam Registration Portal, including Udyam Assist Platform (UAP), providing employment to over 39 crore people (of which 1.01 crore in the State of Punjab) across the country.As per the information received from the Government of Punjab, over the last four years, a total of 2,990 cases has been sanctioned under PMEGP, with financial assistance amounting to Rs. 14,592.92 lakh, resulting in cumulative employment generation for 29,782 individuals, reflecting sustained support for self-employment and micro-enterprise creation across the State. Government of Punjab has also notified Industrial & Business Development Policy (IBDP – 2026) on 08/03/2026 for generating employment opportunities. The policy provides various fiscal incentive schemes such as Capital Subsidy, Employment Generation Subsidy, Investment Subsidy by way of Reimbursement of Net SGST, Exemption of Electricity Duty etc to the industrial units including MSMEs undertaking new investments or undertaking expansion/modernisation. The policy also offers incentives not linked with new investment to the existing industry in the State. Industrial land bank has also been created by Punjab Small Industries and Export Corporation (PSIEC) which has developed 52 Industrial Focal Points across the state. The Ministry of Statistics and Programme Implementation (MoSPI) conducts Annual Survey of Industries (ASI) for organized manufacturing. As per the data in latest ASI report, number of factories in manufacturing industries increased from 12726 in 2017-18 to 13166 in 2023-24 in the State of Punjab. The Government has launched Production Linked Incentive (PLI) Schemes for 14 key sectors (including Textile Products: MMF segment and technical textiles) with an approved financial outlay of ₹1.91 lakh crore to enhance India's manufacturing capabilities, attract investments, increase exports, generate employment and improve India's global competitiveness. The Department for Promotion of Industry and Internal Trade (DPIIT) acts as the nodal Department for overall coordination and monitoring of the PLI Schemes, while the respective Administrative Ministries/ Departments are responsible for implementation of their respective Schemes. As on 31.03.2026, the PLI Schemes, resulted in actual investment of over ₹2.40 lakh crore and employment generation of over 14.15 lakh (direct and indirect) in the country (including Punjab).A total of 1.47 crore credit guarantees amounting to ₹14.69 lakh crore have been extended to MSEs across the country (including Punjab), including manufacturing units, since inception in 2000 till 30.06.2026 under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Bharat Audyogik Vikas Yojana (BHAVYA) is a Central Sector Scheme notified on 10.04.2026 for development of investment-ready industrial parks in the country (including Punjab) to enable investors to ground investment with ease, thereby adding to the manufacturing capacity. The total financial outlay for the Scheme is ₹ 33,660 crore and the duration of the Scheme is for a period of 6 years. Under the Scheme, financial assistance is available for the development of 100 industrial parks. The Government maintains data in respect of Indian workers, holding Emigration Check Required (ECR) passports, who proceed for overseas employment after obtaining Emigration Clearance (EC) through e-Migrate portal to any of the notified ECR category countries. Country-wise details of migrant workers from Punjab, who have been issued Emigration Clearances (ECs) and are working in various countries including in Gulf countries may be seen at https://emigrate.gov.in/#/emigrate *****