{"id":61480,"date":"2026-03-07T16:20:25","date_gmt":"2026-03-07T10:50:25","guid":{"rendered":"https:\/\/punjabenews.com\/English\/?p=61480"},"modified":"2026-03-07T20:42:11","modified_gmt":"2026-03-07T15:12:11","slug":"cm-bhagwant-singh-mann-launches-industrial-business-development-policy-2026-to-make-punjab-no-1-investment-destination","status":"publish","type":"post","link":"https:\/\/punjabenews.com\/English\/punjab\/cm-bhagwant-singh-mann-launches-industrial-business-development-policy-2026-to-make-punjab-no-1-investment-destination\/","title":{"rendered":"CM Bhagwant Singh Mann launches Industrial & Business Development Policy 2026 to make Punjab No. 1 investment destination"},"content":{"rendered":"

Punjab launches most progressive Industrial Policy in country, investors can choose incentives suited to their business model: CM Bhagwant Singh Mann<\/span><\/p>\n

\"\"<\/p>\n

Ludhiana News:<\/span> Punjab Chief Minister Sardar Bhagwant Singh Mann on Saturday unveiled the landmark Industrial & Business Development Policy 2026 in Ludhiana, asserting that his government is determined to make Punjab the No. 1 investment destination in the country through bold reforms and a flexible incentive framework designed around the needs of industry. The Chief Minister asserted the Punjab Government has fundamentally restructured its industrial policy to accelerate industrial growth, attract large-scale investment and generate employment across Punjab.<\/p>\n

Highlighting that Punjab is already witnessing record investment, the Chief Minister said the new policy allows investors to choose up to 20 incentives and design customised packages suited to their business models, introduces capital subsidy for the first time in Punjab, offers incentives of up to 100% of Fixed Capital Investment and reduces Employment Generation Subsidy eligibility to \u20b925 crore investment and 50 workers, thereby opening industrial incentives to a much wider base of businesses while strengthening Punjab\u2019s position as a leading destination for manufacturing, services and emerging technology sectors.<\/p>\n

Addressing the gathering, CM Bhagwant Singh Mann said that the policy represents a major shift in the way industrial incentives are structured in Punjab. \u201cEvery other state in India hands investors a fixed menu and says take it or leave it, but Punjab has changed that. Now an investor can pick up to 20 incentives and build a package around their own business model.\u201d<\/p>\n

Explaining the rationale behind this approach, the Chief Minister said that different industries have different operational realities and cost structures. \u201cPharmaceutical companies need different support than an EV manufacturer, a data centre has different costs than a textile plant. The new policy acknowledges that and builds around it.\u201d<\/p>\n

He said the framework allows investors to optimise incentives according to their sector, cost structure and scale of operations. \u201cThe incentive package can be optimised for their specific cost structure, their specific sector and their specific scale. That is money on the table that wasn\u2019t there before.\u201d<\/p>\n

Highlighting another major feature of the policy, the Chief Minister stated that for the first time in Punjab\u2019s history the government has introduced a capital subsidy. \u201cIf someone is planning a \u20b9100 crore plant, without capital subsidy \u20b9100 crore is their risk. With capital subsidy, the government co-invests a portion upfront and their capital at risk drops.\u201d<\/p>\n

He added this significantly improves investment economics. \u201cThis means the same revenue with lower investment. Punjab is the first state in the country to offer that.\u201d<\/p>\n

The Chief Minister further observed that most industrial policies in other states are largely designed to attract new investors while existing businesses often receive little attention. \u201cMost industrial policies in other states are drafted for outsiders with new investors, greenfield projects and companies being wooed from other states. Businesses already operating, already paying taxes and already employing people are usually an afterthought.\u201d<\/p>\n

He said the new policy corrects this imbalance by extending incentives to modernisation and expansion projects as well. \u201cPunjab\u2019s new policy changes that as modernisation and expansion projects are now eligible for incentives. A Ludhiana manufacturer who wants to upgrade machinery, add a production line or expand capacity now gets policy support alongside new investors.\u201d<\/p>\n

The Chief Minister also highlighted that the policy provides long-term stability to investors through an extended incentive period. \u201cIncentive support has been extended up to 15 years whereas most state policies run five to 10 years.\u201d<\/p>\n

He said this provision is particularly important for capital-intensive sectors. \u201cThis is a big boon for heavy industry, semiconductors, pharmaceuticals, data centres and others as these are not businesses that return profit in year two but they are decade-long commitments.\u201d<\/p>\n

Explaining the financial significance of this provision, he stated, \u201cFifteen years changes the Net Present Value along with the total present value of all future incentives dramatically. For capital-intensive sectors this could be the single most important number in the entire policy.\u201d<\/p>\n

The Chief Minister further asserted that the definition of Fixed Capital Investment has been expanded, which will increase the base on which incentives are calculated. \u201cFixed Capital Investment has been redefined as the base on which all incentives are calculated and it now includes land, labour housing, R&D facilities, effluent treatment plants, sewage treatment plants and zero liquid discharge systems.\u201d<\/p>\n

He said this ensures that investments in sustainability and compliance are financially supported. \u201cEvery rupee the investors spend on building a compliant, sustainable facility now works harder for them. Incentives will now be calculated on a larger base. Punjab has made compliance financially rewarding.\u201d<\/p>\n

The Chief Minister noted the policy also focuses on making industrial incentives more accessible to smaller businesses. \u201cEmployment Generation Subsidy eligibility has been reduced to \u20b925 crore investment and 50 workers.\u201d<\/p>\n

He explained that earlier thresholds excluded many small and medium enterprises. \u201cPreviously the threshold was higher keeping many small and medium businesses outside the subsidy framework.\u201d<\/p>\n

Emphasising the importance of smaller industries to Punjab\u2019s economy, he said, \u201cPunjab\u2019s industrial backbone is not only large plants. It is the thousands of small manufacturers in Ludhiana, Jalandhar, Batala and Gobindgarh who employ 30, 40 or 50 people on thin margins.\u201d<\/p>\n

\u201cBy bringing them inside the EGS framework, we are putting real money into the businesses that employ the most workers per rupee of investment,\u201d he added.<\/p>\n

The Chief Minister said the policy also promotes inclusive employment practices. \u201cPunjab has made inclusion a financial decision, not just a social one by ensuring higher Employment Generation Subsidy for businesses employing women, SC\/ST and Persons with Disabilities workers and for IT\/ITeS and GCC units.\u201d<\/p>\n

He added that this aligns with the expectations of global investors. \u201cFor companies with ESG commitments and global investors watching diversity metrics, this is a policy feature that speaks directly to boardroom priorities in 2026.\u201d<\/p>\n

The Chief Minister further said that the government has introduced additional incentives to promote industrialisation in regions that require greater investment. \u201cTwenty-five percent additional incentives have been provided for nine thrust sectors and for industries located in border and Kandi areas.\u201d<\/p>\n

He said border districts such as Pathankot, Gurdaspur, Amritsar, Ferozepur and Fazilka have historically seen lower levels of investment. \u201cThese districts have historically seen lower investment because of perceived geographical risk. Punjab is now compensating investors for that risk in rupees, not reassurances.\u201d<\/p>\n

\u201cFor a first-mover willing to set up in these areas, the incentive stack becomes genuinely compelling,\u201d he added.<\/p>\n

The Chief Minister also announced that several key sectors will now have dedicated policy frameworks. \u201cIT\/ITeS, GCC, EVs, ESDM, semiconductor, filmmaking, tourism and others each gets a dedicated sectoral policy.\u201d<\/p>\n

He said these policies have been prepared through extensive industry consultations. \u201cNot a paragraph in an omnibus document but a standalone framework built by an industry committee chaired by a sector expert. This means the government has consulted the industry and built incentives that fit their cost structure.\u201d<\/p>\n

Highlighting Punjab\u2019s growing investment momentum, the Chief Minister said that since 2022 Punjab has attracted \u20b91.55 lakh crore in investment, of which \u20b955,000 crore came in the last year alone.<\/p>\n

\u201cTata, Infosys, Vardhman, Trident, HMEL and Fortis are all committing investment in the same twelve month window,\u201d he said.<\/p>\n

He further said that under the policy investors can avail incentives up to 100 percent of their Fixed Capital Investment including land, machinery, buildings, R&D and ETP. \u201cThe policy is designed so that the Punjab Government\u2019s growth and the investor\u2019s return move together.\u201d<\/p>\n

The Chief Minister said that the policy was launched in the presence of nearly 200 leading industrialists, industry leaders and representatives from various sectors, reflecting strong industry participation and confidence in Punjab\u2019s industrial growth trajectory.<\/p>\n

Describing the initiative as one of the most progressive industrial policy frameworks in the country, he added that the policy will significantly strengthen Punjab\u2019s position as a leading destination for manufacturing, services and emerging technology sectors.<\/p>\n

The Chief Minister said the policy also strengthens the startup ecosystem through enhanced startup seed grants and the establishment of a Government Startup Hub in Mohali.<\/p>\n

He further said that freight and marketing subsidy support has been introduced to promote exports from Punjab and that a customised package committee has been established to facilitate mega investment projects.<\/p>\n

The Chief Minister added that major reforms have also been introduced in power supply, labour regulations and building approvals to further improve ease of doing business. \u201cThis policy sends a clear message to investors across India and the world that Punjab is open for business. With one of the most comprehensive incentive frameworks in the country, the state is creating the right ecosystem for industry to grow, invest and generate employment.\u201d<\/p>\n

The Chief Minister said the policy represents a significant shift in empowering investors. \u201cFor the first time this policy truly puts the power in the hands of investors. Investors can choose the incentives they want to avail and the time period over which they wish to avail them.\u201d<\/p>\n

\u201cThis flexibility and investor-driven framework is unprecedented and reflects Punjab\u2019s commitment to becoming the most investor-friendly state in India.\u201d<\/p>\n

Reaffirming the broader vision behind the initiative, the Chief Minister said that the Industrial & Business Development Policy 2026 will play a transformative role in accelerating industrial growth, strengthening Punjab\u2019s competitiveness and creating large-scale employment opportunities for the youth of Punjab.<\/p>\n

In his address, Minister for Power, Industries, Commerce, and Investment Promotion Minister Sanjeev Arora invited domestic and global investors to explore opportunities in Punjab and participate in the Progressive Punjab Investors\u2019 Summit 2026 scheduled to be held from 13\u201315 March 2026 at Plaksha University in Mohali. \u201cIn this summit the state will showcase its new industrial vision and investment opportunities,\u201d said Minister Sanjeev Arora.<\/p>\n

*The policy introduces a number of significant features that fundamentally reshape how industrial incentives are structured in Punjab.*<\/p>\n

Key Features of Punjab\u2019s New Industrial Policy<\/span><\/p>\n

*\u2022 Investor-designed incentive packages*<\/p>\n

For the first time, investors will be able to select up to 20 incentives and create customised incentive packages suited to their own business models. This flexible framework recognises that industries such as pharmaceuticals, electric vehicles, data centres and textiles operate with very different cost structures, allowing incentives to be optimised according to sector, scale and operational requirements.<\/p>\n

\u2022 Capital subsidy introduced for the first time in Punjab<\/p>\n

The Punjab Government has introduced capital subsidy for the first time in the state\u2019s history. This effectively allows the government to share part of the upfront investment burden, reducing capital risk for investors and improving the Internal Rate of Return of projects even before production begins.<\/p>\n

\u2022 Existing industries now eligible for incentives<\/p>\n

The policy recognises the contribution of industries already operating in Punjab. Modernisation, machinery upgrades, capacity expansion and new production lines undertaken by existing manufacturers will now qualify for incentives, placing them on equal footing with new investors.<\/p>\n

\u2022 Incentive support extended up to 15 years<\/p>\n

Incentive support under the policy can extend up to fifteen years, significantly longer than the typical five to ten year support period offered by many other states. This makes Punjab particularly attractive for capital-intensive sectors such as semiconductors, pharmaceuticals and data centres that require long gestation periods before generating returns.<\/p>\n

\u2022 Expanded definition of Fixed Capital Investment<\/p>\n

The policy expands the definition of Fixed Capital Investment, which forms the basis for calculating incentives. Investments in land, labour housing, research and development facilities, effluent treatment plants, sewage treatment plants and zero liquid discharge systems will now be included, ensuring that investments in sustainable and compliant infrastructure contribute to the incentive base.<\/p>\n

\u2022 Greater support for small and medium enterprises<\/p>\n

Eligibility for Employment Generation Subsidy has been reduced to \u20b925 crore investment and 50 workers. This change brings thousands of small and medium manufacturing units into the incentive framework, particularly in industrial clusters such as Ludhiana, Jalandhar, Batala and Gobindgarh where many businesses operate with workforces of 30 to 50 employees.<\/p>\n

\u2022 Inclusion linked to financial incentives<\/p>\n

Higher Employment Generation Subsidy will be available for companies employing women, Scheduled Castes, Scheduled Tribes, persons with disabilities and workers in IT, ITeS and Global Capability Centres. By linking incentives to workforce diversity, the policy integrates inclusion into the financial architecture of industrial development.<\/p>\n

\u2022 25 percent additional incentives for thrust sectors and priority regions<\/p>\n

Nine thrust sectors as well as border and Kandi regions will receive an additional 25 percent incentive support. Border districts such as Pathankot, Gurdaspur, Amritsar, Ferozepur and Fazilka will benefit from these enhanced incentives aimed at encouraging industrial activity in historically underinvested regions.<\/p>\n

\u2022 Flexible incentive period based on project timelines<\/p>\n

Investors will have the option to extend their incentive support period up to fifteen years and can decide when their incentive window begins depending on the gestation period of their project. This allows incentives to align with the actual lifecycle of investments rather than fixed policy timelines.<\/p>\n

\u2022 Dedicated sectoral policies introduced<\/p>\n

Separate policy frameworks have been launched for major sectors including IT and ITeS, Global Capability Centres, electric vehicles, electronics system design and manufacturing, semiconductors, filmmaking and tourism. Each sector now has a dedicated policy developed through consultation with industry experts and sector committees to ensure incentives align with sector-specific needs.<\/p>\n

The new industrial policy comes at a time when Punjab is witnessing a significant rise in investment momentum. Since 2022, Punjab has attracted investment proposals worth \u20b91.55 lakh crore, including \u20b955,000 crore in the last year alone. Major companies including Tata, Infosys, Vardhman, Trident, HMEL and Fortis have expanded investments in Punjab, reflecting growing confidence in the industrial ecosystem being built by the Punjab Government.<\/p>\n

With its focus on investor flexibility, long-term incentives, support for existing industries, inclusive employment strategies and targeted regional development, the New Industrial Policy represents a major step forward in strengthening Punjab\u2019s industrial growth, job creation and economic transformation.<\/p>\n","protected":false},"excerpt":{"rendered":"

Punjab launches most progressive Industrial Policy in country, investors can choose incentives suited to their business model: CM Bhagwant Singh Mann Ludhiana News: Punjab Chief Minister Sardar Bhagwant Singh Mann on Saturday unveiled the landmark Industrial & Business Development Policy 2026 in Ludhiana, asserting that his government is determined to make Punjab the No. 1 […]<\/p>\n","protected":false},"author":4,"featured_media":61481,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,20],"tags":[],"class_list":["post-61480","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest","category-punjab"],"yoast_head":"\nCM Bhagwant Singh Mann launches Industrial & Business Development Policy 2026 to make Punjab No. 1 investment destination - PunjabENews<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/punjabenews.com\/English\/punjab\/cm-bhagwant-singh-mann-launches-industrial-business-development-policy-2026-to-make-punjab-no-1-investment-destination\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CM Bhagwant Singh Mann launches Industrial & Business Development Policy 2026 to make Punjab No. 1 investment destination - 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