For The First Time In The Country, Punjab Introduces A Landmark Industrial Policy

The Punjab Cabinet gave its consent to the Industrial and Business Development Policy, 2026, which gives many fiscal and non-fiscal incentives to those willing to set up new units in the state. The policy is expected to help generate Rs 75,000-crore investment.

The approval was given in the Cabinet meeting presided over by Chief Minister Bhagwant Mann this morning. This time, it is one overarching policy supported by 24 sector-specific schemes, which have been developed after consultation with stakeholders. “We had received 601 recommendations from industry leaders from different sectors for making the policy and 77 per cent of the suggestions have been included in it,” said Industry and Investment Promotion Minister.

In a first, the investors in manufacturing, IT and global capability centres (GCC) will have the liberty to choose from 20 different incentive options to build their own customised incentive package, based on an investment threshold level of over Rs 500 crore for manufacturing, Rs 250 crore for IT and employment of over 1,000 persons in the GCCs. 

Other than this, a fixed capital subsidy of Rs 20 crore will be given for setting up zero liquid discharge systems and Rs 7.50 crore for switching to paddy straw-based boilers. The other incentives include freight subsidy (up to Rs 30 lakh per annum for exporters), marketing assistance, support for research and development facilities, an NSE Emerge platform, quality certification, patent registration, vendor development programmes and exemption from canal water user charges.