LUDHIANA: 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.
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 ₹25 crore investment and 50 workers, thereby opening industrial incentives to a much wider base of businesses while strengthening Punjab’s position as a leading destination for manufacturing, services and emerging technology sectors.
Addressing the gathering, CM Bhagwant Singh Mann said that the policy represents a major shift in the way industrial incentives are structured in Punjab. “Every 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.”
Explaining the rationale behind this approach, the Chief Minister said that different industries have different operational realities and cost structures. “Pharmaceutical 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.”
He said the framework allows investors to optimise incentives according to their sector, cost structure and scale of operations. “The 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’t there before.”
Highlighting another major feature of the policy, the Chief Minister stated that for the first time in Punjab’s history the government has introduced a capital subsidy. “If someone is planning a ₹100 crore plant, without capital subsidy ₹100 crore is their risk. With capital subsidy, the government co-invests a portion upfront and their capital at risk drops.”