AI Generated Summary
- Punjab is sharpening its industrial strategy with a renewed focus on high-technology and heavy manufacturing, signalling a shift aimed at positioning the state as a major industrial hub in northern India.
- Punjab is on the cusp of a fresh phase of industrial growth,” Arora said, adding that the government is determined to create an ecosystem that supports future-ready industries.
- All incentives and policy details are expected to be announced ahead of the Invest Punjab Summit, scheduled to take place from March 14 to 16, which the government hopes will draw significant domestic and international investment.
Punjab is sharpening its industrial strategy with a renewed focus on high-technology and heavy manufacturing, signalling a shift aimed at positioning the state as a major industrial hub in northern India. Alongside traditional heavy industry, the state is actively courting investments in semiconductors, electric vehicles (EVs) and steel production.
A comprehensive master industrial policy, along with a set of sector-specific policies, is expected to be rolled out in January. Officials say these frameworks will be backed by a mix of fiscal and non-fiscal incentives designed to make Punjab more competitive than rival states. The incentive packages are being finalised after extensive consultations with industry experts and advisory agencies.
According to state Industry Minister Sanjeev Arora, global and domestic semiconductor players are competing for the opportunity to modernise the Semi-Conductor Laboratory in Mohali, a move that could significantly upgrade Punjab’s technological capabilities. He also revealed that leading industrial groups, including automobile and engineering conglomerates, have expressed strong interest in setting up manufacturing units for light commercial electric vehicles in the state.
“These discussions are at an advanced stage, and memorandums of understanding will be signed soon. Punjab is on the cusp of a fresh phase of industrial growth,” Arora said, adding that the government is determined to create an ecosystem that supports future-ready industries.
To attract large investments, the state plans to offer a range of incentives, including exemptions from electricity duty, production-linked incentives, subsidies on fixed capital investment and refunds on state GST. The government is also considering extending capital subsidies to cover the construction of labour housing, recognising the importance of workforce welfare in industrial development.
Officials emphasise that incentives are being benchmarked against those offered by other states to ensure Punjab remains an attractive destination for investors. “Our objective is to provide a package that is not just competitive, but clearly superior,” Arora said, pointing to Punjab’s growing reputation for ease of doing business.
All incentives and policy details are expected to be announced ahead of the Invest Punjab Summit, scheduled to take place from March 14 to 16, which the government hopes will draw significant domestic and international investment.
While large industrial projects are a key focus, the government has stressed that micro, small and medium enterprises will not be left behind. MSMEs, described by the minister as the backbone of Punjab’s industrial economy, will be eligible for the same sector-specific incentives as larger units, ensuring inclusive industrial growth across the state.
