Chandigarh: Punjab is seeking to expand its manufacturing base into electronics, semiconductors, electric mobility, defence, aerospace and medical devices, with the state government positioning technology-driven manufacturing as the next phase of industrial growth.
Since 2022, Punjab has attracted around ₹1.5 lakh crore in investments, with the potential to generate more than 5 lakh employment opportunities across manufacturing, healthcare, chemicals, logistics, IT, food processing and emerging sectors, Industries and Commerce Minister Aman Arora said.
Focus on High-Value Manufacturing
Under the Industrial and Business Development Policy 2026, the state is offering incentives for modernisation, automation, quality certification, research and development and integration with global value chains.
Punjab is also using FastTrack Punjab to speed up approvals and attract new industrial investments. While textiles, engineering goods, bicycles, sports goods and food processing remain important sectors, the government wants to expand into agritech, defence, aerospace and electronics system design and manufacturing.
Rajpura Cluster to Strengthen Infrastructure
The proposed Integrated Manufacturing Cluster at Rajpura, located along the Amritsar-Kolkata Industrial Corridor, is expected to provide plug-and-play infrastructure, integrated utilities and multimodal connectivity.
The state is also implementing master plans for Ludhiana, Jalandhar, Bathinda and SAS Nagar to support planned industrial expansion and improve connectivity.
MSMEs Remain a Key Focus
Punjab has nearly 1.6 lakh MSMEs, which form a major part of its industrial ecosystem. The 2026 policy provides support through capital subsidies, technology-upgradation assistance, SGST reimbursement, electricity-duty exemptions, employment incentives and export and marketing support.
Common Facility Centres are also being developed to give smaller businesses access to advanced machinery, testing facilities, design support and skill development without requiring major individual investments.
Global Investments Expand
Punjab has been using international outreach and sector-specific partnerships to attract global companies and technology.
Recent investments include around ₹1,116 crore through the Vardhman Special Steels-Aichi Steel partnership for advanced forging and machining, around ₹400 crore in additional investment announced by Toppan Speciality Films, and around ₹339 crore invested by Germany’s Freudenberg Group in advanced automotive components.
Companies including Yanmar, Nestlé and De Heus are also expanding their presence in the state.
Push for Electronics and Semiconductor Supply Chains
Punjab is seeking a role in emerging electronics and semiconductor supply chains by leveraging institutions such as the Semiconductor Laboratory, CSIR-CSIO, IIT Ropar, NIPER, the Institute of Nano Science and Technology and TBRL.
The Startup Punjab Policy 2026 also aims to support more than 1,000 startups through incubation centres, innovation hubs and accelerator programmes.
Linking Investment With Jobs
The state is also focusing on ensuring that industrial expansion creates opportunities for local youth. Employment Generation Subsidies are being offered to encourage local hiring, while the Punjab Hunar Portal connects employers, training institutions and skilled workers.
Partnerships with the Tata Indian Institute of Skills and T-Works are being used to upgrade industrial training, modernise ITIs and provide exposure to advanced manufacturing technologies.
Punjab’s strategy signals a shift from traditional manufacturing towards innovation-led industries, with the state seeking to combine investment, skilled talent, technology and infrastructure to build a stronger position in India’s next generation of manufacturing and global supply chains.
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