Punjab’s 2026 policy puts industry in the fast lane

Ludhiana: Punjab chief minister (CM) Bhagwant Mann on Saturday unveiled the Punjab Industrial and Business Development Policy 2026, drawing widespread appreciation from Ludhiana's industrial bodies. Local business leaders have welcomed the framework as a positive step toward economic revival, highlighting several key reforms aimed at labor welfare, research, and investment incentives.Upkar Singh Ahuja, president of the Chamber of Industrial and Commercial Undertakings (CICU), noted that the policy surpasses previous versions. He specifically lauded labor reforms, including the extension of overtime limits to 144 hours, and the inclusion of R&D expenses and worker housing construction costs into total project costs. Additionally, the reimbursement of expenses for pollution control equipment toward achieving zero discharge was cited as a major highlight.
Representing the hosiery sector, Harish Kairpal, cashier of the Knitwear Club, welcomed the 15-year extension of incentive support. He emphasized the impact of direct employment subsidies, which provide Rs 3,000 per month for male employees, Rs 4,000 for women and SC/ST workers, and Rs 5,000 for IT sector staff. Kairpal noted that this government support, coupled with employer salaries, would encourage labor stability and productivity. Pankaj Sharma, president of the Association of Trade and Industrial Undertakings (ATIU), stated that the policy reflects a clear intent to attract fresh investment through capital subsidies, SGST reimbursements, and the development of industrial parks. While he praised the focus on digital approvals and emerging sectors like electric vehicles and renewable energy, Sharma raised concerns regarding traditional sectors. He pointed out that Ludhiana's core industries—such as hosiery, bicycles, and auto components—face rising costs and global competition, necessitating stronger sector-specific technology and export support. Industrialist Narinder Miglani added that the provisions for subsidies to generate employment and establish new units make the policy a promising tool for the state's growth. Industrialists remain hopeful that the implementation of these digital and financial measures will significantly improve the ease of doing business across Punjab. Get the latest lifestyle updates on Times of India, along with Women's day wishes, messages and quotes !