Foreign Investment from Japan, Korea Can Transform Punjab’s MSME Ecosystem: CICU
December 16, 2025
Ikramudin / Ludhiana
The Chamber of Industrial & Commercial Undertakings (CICU) has welcomed the Punjab Government’s recent official visit to Japan and South Korea, stating that the outreach has the potential to bring significant investment, technology transfer and employment opportunities for the State’s micro, small and medium enterprises (MSMEs).
CICU, Ludhiana, on Tuesday praised the high-level delegation led by Chief Minister Bhagwant Singh Mann for effectively projecting Punjab as an investor-friendly and globally competitive industrial destination. The delegation, which included Industry Minister Sanjiv Arora, senior bureaucrats and officials from Invest Punjab and the Punjab Development Commission, held meetings with leading corporations to attract foreign investment and strengthen industrial ties.
According to CICU, the visit succeeded in generating strong interest from major Japanese companies such as Yamaha Motor, Fujitsu, Toray, Toppan, Honda Motors and Daichi Steel. These companies have shown willingness to explore investments in key sectors including electric vehicles, data centres, artificial intelligence, skill development, research and development and information technology, all of which align with Punjab’s long-term industrial growth plans.
The industry body said South Korean firms also expressed positive intent during the outreach. Daewoo showed interest in infrastructure development projects, while Pangyo proposed setting up a startup valley in Mohali. Another Korean company conveyed interest in establishing a sports university in Jalandhar, which CICU said could strengthen the State’s education and sports ecosystem.
CICU believes the entry of global majors into Punjab will create a strong multiplier effect for MSMEs by enabling technology transfer, integration into global supply chains and access to new markets. The organisation said this would lead to enhanced manufacturing capabilities, increased investments and large-scale employment generation across the State.
Highlighting Ludhiana’s strengths, CICU said the city’s engineering and auto component industry stands to benefit the most. Ludhiana hosts over 20,000 Tier-I, Tier-II and Tier-III component manufacturers serving the automotive and tractor sectors. Global manufacturers such as Yamaha, Honda, Daewoo and Yanmar, known for two-wheelers, cars, tractors and agricultural machinery, could significantly boost local vendor development.
Referring to Yanmar, CICU noted that the Japanese company has already acquired a plant near Morinda and may further expand its operations in Punjab following the Chief Minister’s outreach. The organisation added that Yamaha’s global presence and collaborations in India could also open doors for advanced manufacturing in the State.
CICU President Upkar Singh Ahuja said the visit marked a decisive shift in Punjab’s industrial trajectory and sent a strong message that the State is ready for high-technology investments. He said global partnerships would act as a catalyst for MSME growth, job creation and Punjab’s emergence as a modern manufacturing hub.
Despite certain locational challenges, CICU pointed out that Punjab continues to enjoy advantages such as a skilled workforce, a strong ancillary base and cost competitiveness. Citing a recent CICU survey, the body said tractors manufactured in Punjab are nearly ₹1 lakh cheaper than those produced in several other States, highlighting the State’s manufacturing efficiency.
CICU also stressed the need for Punjab to move away from low-value traditional manufacturing to high-end, technology-driven production. It said exposure to advanced technologies and collaboration with global companies and institutions, especially those explored during the Japan visit, could play a transformative role in this transition.
On behalf of the MSME fraternity, CICU assured the Punjab Government of its full cooperation in translating the outcomes of the Japan–Korea visit into concrete investments, technological upgradation and sustainable industrial growth in the State.
Punjab Japan Korea Visit CICU Ludhiana Punjab MSMEs Bhagwant Mann Foreign Investment Yamaha Honda Punjab MSME Growth Punjab
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