CM Mann Unveils Punjab Industrial Policy 2026, Targets ₹75,000 Crore Investment

LUDHIANA, March 7: Chief Minister Bhagwant Singh Mann on Saturday launched the Punjab Industrial Policy–2026, aiming to attract ₹75,000 crore in investments and accelerate economic growth across the state.

The policy was unveiled in the industrial city of Ludhiana in the presence of Sanjeev Arora and representatives from the business community. The state government described the initiative as a roadmap to transform Punjab into one of the country’s leading investment destinations.

Addressing industry leaders at the launch event, Mann said the new policy offers greater flexibility and long-term stability for investors.

“For the first time, investors will be able to choose from a menu of 20 different incentives and design packages suited to their projects,” he said.

The government believes that such flexibility will encourage both domestic and international companies to set up manufacturing and service units in the state.

One of the key changes in the Punjab Industrial Policy-2026 is the extension of the incentive eligibility period. Under the new framework, financial incentives for industrial units will now be available for 10 to 15 years, compared to the previous period of seven to 10 years.

The policy also introduces a capital subsidy for new industrial units, aimed at lowering the entry barrier for businesses and encouraging entrepreneurs to establish operations in Punjab.

To ensure that smaller investments can also benefit from government support, the state has significantly reduced the eligibility criteria for employment generation subsidies.

According to Industry Minister Sanjeev Arora, the minimum investment threshold has been lowered from ₹250 crore to ₹25 crore, while the minimum workforce requirement has been reduced from 1,000 employees to 50.

The government hopes this move will promote industrial growth across districts, including smaller towns and rural regions.

The policy also introduces measures aimed at promoting inclusive employment.

Industrial units will receive a standard subsidy of ₹3,000 per employee, while companies hiring women, Scheduled Caste and Scheduled Tribe candidates, and persons with disabilities will receive ₹4,000 per employee.

Officials say the move is designed to expand job opportunities and ensure broader participation in the state’s economic growth.

The government has identified several priority sectors under the policy, including electric vehicles, defence manufacturing, and information technology. Units operating in these sectors—as well as those located in border districts and the Kandi region—will receive a 25% additional incentive on top of existing benefits.

To strengthen the startup ecosystem, the state has also increased the startup seed grant from ₹3 lakh to ₹5 lakh, encouraging innovation and entrepreneurship among young businesses.

With the launch of the policy, the Punjab government hopes to revive industrial growth, create employment opportunities, and position the state as a major manufacturing and technology hub in India.