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Punjab is predominantly an agrarian state and the state government is making all out efforts to develop and boost the agro-based industry in the State which is probably the key sector for industrial growth. Through green revolution in the 60’s, the state  took a major stride in increasing its productivity of food grains and contributed to the central pool significantly towards strengthening India's self-sufficiency.

During 2013-14, the number of large & medium scale industrial units in the state was 452 and small scale units were 156518. However, in 2014-15(P) the large & medium scale industrial units have increased to 463 and small scale units to 160000.

In the recent years, both in India and Punjab the growth rate of industrial sector has declined due to recession in economy. Thus, the contribution of the industry sector in the       economy has slowed down. The industry has shown growth rate of 2.08% in 2013-14(Q) and estimated to grow at 2.04% in 2014-15 (A).

The category-wise industries in the state are as under:

Red Category Industries

  • Large         -      383
  • Medium      -      209
  • Small         -      13706

Orange Category Industries

  • Large         -      81
  • Medium      -     40
  • Small         -      830

Green Category Industries

  • Large         -      50
  • Medium      -      38
  • Small         -      5503
Pollution Control by the Industries

All the large and medium scale industries have installed ETP and APCD.


Out of total 13706 small scale industries:

  • 3206 require ETP.
  • 3196 installed ETP.
  • Remaining 10 being persuaded to install ETP.
Out of total 13706 small scale industries:

  • 10238 require APCD.
  • 10213 installed APCD.
  • Remaining 25 being persuaded.

State Govt Initiatives to Boost Industrial Development

Fiscal Incentives for Industrial Promotion: To overcome the global recessionary trend and to establish a congenial industrial atmosphere in the State, the State Government has implemented Fiscal Incentives for Industrial Promotion 2013. The Policy offers attractive opportunities to invest in the State. The package provides benefits on VAT & CST, Stamp Duty, Property Tax and Electricity Duty Exemptions, besides additional incentives for specific sectors such as food processing, textiles and information technology.

Punjab Bureau of Investment Promotion: In pursuance of the resolve of the Government to provide time bound Clearances of all new investments in the State. The Government of Punjab has established the Punjab Bureau of Investment Promotion (PBIP), to carry out the objectives of the package of Fiscal Incentives for Industrial promotion- 2013 (FIIP-2013).As a result of the progressive policies of the State Govt., 153 proposals with proposed investment of about Rs. 9600 crore have been received in the Bureau. The key proposals are from M/s ITC, M/s Cargill India, M/s Amul, M/s Mahindra Rise Agro and M/s Sonalika Tractors etc. Further, the Bureau has granted various stages of regulatory clearances to 92 of the said projects.

Progressive Punjab Investment Campaign- Creation of Punjab Bureau of Investment Promotion (PBIP): The Govt. of Punjab has launched Progressive Punjab Investment Campaign in 2013.It organised “The Progressive Punjab Investors Summit” on 9thand 10 th December, 2013, as a part of this investment campaign.

The 2nd Progressive Punjab Investors Summit was held at India School of Business, SAS Nagar, Mohali on 28th -29th October 2015. The state government has signed memoranda of understanding with over 400 companies that have promised to pump in more than Rs 96,000 crore.

It was focussed on Agro and Food Processing, Life Sciences, Healthcare, Manufacturing, Education, IT, Renewable Energy and Tourism. In its Efforts to attract investment, the State Government of Punjab has taken rapid strides in strengthening infrastructure, up-skilling workforce and sector-specific initiatives. It has also created a one stop clearance system - INVEST PUNJAB for all regulatory and fiscal incentive related approvals.

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