Policy offers up to 100% incentives on Fixed Capital Investment with investor-driven incentive framework
This policy sends a clear message to investors across India and the world; Punjab is open for business: Sanjeev Arora
Industrial & Business Development Policy 2026 to strengthen Punjab’s position as leading destination for manufacturing, services & emerging technologies: Sanjeev Arora
CHANDIGARH, 7th March 2026:
Punjab took a major step towards strengthening its industrial growth trajectory on Saturday with the launch of the Industrial & Business Development Policy 2026, a comprehensive framework aimed at accelerating industrial expansion, attracting large investments and generating employment opportunities across Punjab. The policy was formally unveiled by Chief Minister Bhagwant Singh Mann in the presence of Minister for Industries & Commerce, Investment Promotion, Power and Local Government Sanjeev Arora in Ludhiana.
The launch event witnessed participation from nearly 200 leading industrialists, industry leaders and representatives from multiple sectors, reflecting strong industry interest and confidence in Punjab’s industrial future.
Describing the policy as one of the most progressive industrial policy frameworks in the country, Chief Minister Bhagwant Singh Mann said the initiative would significantly strengthen Punjab’s position as a leading destination for manufacturing, services and emerging technology sectors.
The Industrial & Business Development Policy 2026 introduces a wide range of incentives and reforms aimed at making Punjab one of the most attractive investment destinations in India.
Key highlights of the policy include:
* One overarching industrial policy accompanied by 24 sector-specific policies announced simultaneously to address the requirements of diverse industries.
* Investors can choose from up to 20 different incentives to design a customised incentive package suited to their investment plans.
* Capital Subsidy introduced for the first time for eligible industries in Punjab.
* Incentives available up to 100% of Fixed Capital Investment (FCI) through a combination of multiple incentives under the policy.
* Modernisation and expansion projects made eligible for incentives under the policy framework.
* Employment Generation Subsidy (EGS) eligibility reduced to ₹25 crore investment and 50 workers, making incentives accessible to a larger number of industries.
* Higher employment incentives for women, SC/ST, Persons with Disabilities, IT/ITeS and GCC sectors.
* 25% additional incentives for nine thrust sectors and industries located in border and Kandi areas.
* Strengthening of the startup ecosystem through enhanced startup seed grants and establishment of a Government Startup Hub in Mohali.
* Dedicated sectoral policies introduced for IT/ITeS and GCC, Electric Vehicles (EV), Electronics System Design & Manufacturing (ESDM), semiconductor, filmmaking and tourism sectors.
* Land, labour housing, R&D facilities, ETP/STP/ZLD and environmental infrastructure included in Fixed Capital Investment calculation for incentives.
* Freight and marketing subsidy support introduced to promote exports from Punjab.
* A customised package committee established to facilitate mega investment projects.
* Investor option for an extended incentive period of up to 15 years to ensure long-term policy stability.
* Major reforms in power supply, labour regulations and building approvals to further improve ease of doing business in Punjab.
Speaking on the occasion, Minister for Industries & Commerce Sanjeev Arora said, “This policy sends a clear message to investors across India and the world: Punjab is open for business. With one of the most comprehensive incentive frameworks in the country, we are creating the right ecosystem for industry to grow, invest and generate employment.”
Highlighting the flexibility built into the new framework, Minister Sanjeev Arora added, “For 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. This flexibility and investor-driven framework is unprecedented and reflects Punjab’s commitment to becoming the most investor-friendly state in India.”
The Punjab Government reiterated that the Industrial & Business Development Policy 2026 will play a transformative role in accelerating industrial growth, strengthening Punjab’s competitiveness and creating large-scale employment opportunities for the youth of Punjab.
The Government also invited domestic and global investors to explore opportunities in Punjab and participate in the Progressive Punjab Investors’ Summit 2026, scheduled to be held from 13–15 March 2026 at Plaksha University, Mohali, where Punjab will showcase its new industrial vision and investment opportunities.
