Punjab has set an investment target of ₹75,000 crore under its new industrial policy, as the state government seeks to attract businesses, expand existing industries and create employment opportunities. The Punjab Industrial and Business Development Policy 2026, announced in March, is designed to offer incentives based on the requirements of individual projects and businesses.

Chief Minister Bhagwant Mann said the policy allows investors to choose from 20 options to put together an assistance package suited to their business needs. He also said Punjab is offering capital subsidy for the first time, a measure intended to reduce the initial cost of setting up industrial projects.

The policy focuses on both new industrial units and the modernisation and expansion of existing businesses. It provides for 24 sector-specific schemes, with assistance tailored to the requirements of different industries. The government aims to use industrial investment to strengthen economic activity and widen employment opportunities for young people in the state.

Engineering, information technology, electronics, electric vehicles and food processing are among the sectors identified for investment. The expansion of these industries could also create business opportunities for local suppliers and service providers, including transport, packaging and machinery repair businesses.

The policy is intended to support a wider industrial ecosystem rather than only the establishment of large manufacturing units. Investment in new facilities and the expansion of existing businesses could generate demand across supply chains and allied services.

The government’s investment target will, however, depend on the extent to which proposed projects move towards implementation. The availability of infrastructure, skilled workers and reliable power supply will remain important to the expansion of industrial activity.

The impact of the policy will also be reflected in the number of projects that become operational, the investment actually realised and the jobs created. The state will need to ensure that smaller businesses and local suppliers can participate in the opportunities generated by new investments.

The policy marks the government’s latest effort to position Punjab as an investment destination, with its results likely to be assessed through actual industrial expansion and employment generation.