Punjab Launches Industrial & Business Development Policy 2026 to Boost Investment and Jobs
March 7, 2026
ETT News / Ludhiana
The Punjab government on Saturday launched the Industrial & Business Development Policy 2026, aiming to accelerate industrial growth, attract large-scale investments and create employment opportunities across the state. Chief Minister Bhagwant Singh Mann unveiled the policy in Ludhiana in the presence of Industries and Commerce Minister Sanjeev Arora and nearly 200 industrialists and industry representatives.
The new policy seeks to strengthen Punjab’s position as a major destination for manufacturing, services and emerging technology sectors. It introduces a comprehensive incentive framework designed to make the state more competitive and investor-friendly while encouraging industrial expansion and modernization.
One of the major features of the policy is a flexible, investor-driven incentive structure that allows investors to select from up to 20 different incentives and design customised packages based on their investment plans. The government has also introduced capital subsidy for eligible industries in Punjab for the first time, with incentives available up to 100 percent of Fixed Capital Investment through a combination of benefits.
The policy is supported by 24 sector-specific policies that address the needs of different industries. Dedicated policies have been introduced for sectors such as IT and IT-enabled services, Global Capability Centres (GCC), electric vehicles, electronics system design and manufacturing, semiconductors, filmmaking and tourism.
The government has also expanded the eligibility criteria for the Employment Generation Subsidy by lowering the threshold to investments of ₹25 crore and 50 workers, making the incentives accessible to a larger number of industries. Additional employment incentives have been announced for women, SC/ST communities, persons with disabilities and the IT and GCC sectors.
Industries located in border districts and the Kandi region, along with nine identified thrust sectors, will receive 25 percent additional incentives under the policy. The government has also included land, labour housing, research and development facilities, environmental infrastructure and related investments within the calculation of Fixed Capital Investment for incentives.
To promote exports, the policy introduces freight and marketing subsidies while also providing support for industrial modernization and expansion projects. Investors will also have the option to avail incentives for up to 15 years, ensuring long-term policy stability.
The policy also focuses on strengthening Punjab’s startup ecosystem through enhanced seed grants and the establishment of a government startup hub in Mohali. Additionally, the state government has announced reforms in power supply, labour regulations and building approvals to further improve the ease of doing business.
Speaking at the launch, Industries and Commerce Minister Sanjeev Arora said the policy sends a strong message to investors that Punjab is ready to welcome business and investment from across India and abroad.
He said the investor-driven framework allows industries to choose the incentives they want to avail and the period over which they wish to receive them, making it one of the most flexible industrial policies in the country.
The Punjab government also invited domestic and global investors to explore opportunities in the state and participate in the Progressive Punjab Investors’ Summit 2026, scheduled to be held from March 13 to 15 at Plaksha University in Mohali, where the state will showcase its new industrial vision and investment opportunities.
Punjab Industrial Policy 2026 Bhagwant Singh Mann Sanjeev Arora Punjab Industry Punjab Investment Policy Industrial And Business Development Policy 2026
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