Punjab has essentially an agrarian economy with a low industrial output.
The absence of basic minerals is the main reason for low level of industrial
progress. A notable feature of the industrial scenario of the Punjab is
its small-sized industrial units. There are 194,000 small scale industrial
units in the state in addition to 586 large and medium units.
Industrial units in the state are namely divided into
1. Agro-based industrial units:- These may be
classified as food products, beverages, cotton, wood and paper industries.
2. Machinery units