Punjab Attracts ₹1.92 Lakh Crore Investment Proposals Since 2022, Targets Defence and Aerospace as Next Growth Engines

Chandigarh: Punjab is positioning itself as a major industrial destination, with investment proposals worth ₹1.92 lakh crore received since 2022, promising employment opportunities for nearly 6.5 lakh people. The state government is now looking at defence and aerospace as the next major drivers of industrial growth, Industries and Commerce Minister Aman Arora said.

Speaking at the inauguration of the 9th CII Manufacturing Excellence Exposition in Chandigarh, Aman Arora said Punjab had received 1,626 investment proposals worth ₹32,110 crore, with the potential to generate 91,236 jobs, during the first six months of the current financial year (April 1 to September 30).

The event was inaugurated by Aman Arora along with former Chief of the Air Staff, Air Chief Marshal B.S. Dhanoa (Retd.).

Highlighting the importance of manufacturing in Punjab's economy, the minister said the state has a strong industrial base, with manufacturing units producing auto components, tractors, bicycles, hand tools, sports goods, hosiery and steel products for domestic and international markets.

He said the government is committed to creating an industry-friendly environment through simplified procedures, faster approvals and investment incentives.

Under the new Industrial and Business Development Policy 2026, Punjab is offering capital incentives of up to 125% in priority sectors, including auto components, electric vehicles, defence and aerospace, electronics, textiles, food processing and sports goods.

Arora also highlighted the revamped FastTrack Punjab single-window system, which aims to provide all necessary permissions through an online platform with time-bound approvals within 45 working days. The system also includes officer-specific accountability, automatic escalation and show-cause notices in case of delays.

Explaining the government's approach towards industrial policymaking, Arora said the new policy was developed through 24 sector-specific committees involving industry representatives.

"No state or society can survive without industry. The person facing a problem understands it best and can suggest the right solution. That is why industry itself played a key role in framing the policy," he said.

Defence and Aerospace Emerging as New Opportunities

Identifying defence and aerospace as promising sectors for Punjab, Arora said the state's engineering and manufacturing units already have the capabilities to produce precision components that could be utilised by the defence industry.

He added that vendor development discussions facilitated by Invest Punjab during the exposition would help local manufacturers explore opportunities to become suppliers to the defence and aerospace sectors.

The minister also urged large companies and public sector undertakings (PSUs) to increase their procurement from Punjab-based MSMEs, emphasising that the growth of local suppliers would strengthen the entire industrial ecosystem.

Focus on Employment and Skill Development

Arora stressed the importance of closer collaboration between industries and educational institutions, including ITIs, polytechnics and engineering colleges, to ensure that young people acquire industry-relevant skills and secure employment opportunities within Punjab.

He said manufacturing excellence today is not limited to production volumes but also involves improved quality, reduced wastage, timely delivery, competitive pricing and the adoption of modern technologies.

Assuring the industrial community of the government's support, the minister said the Department of Industries and Invest Punjab would work towards resolving industry-related challenges quickly.

The event was attended by CII Punjab Chairman Harpreet Singh Nibber, Ashish Garg and several industry representatives and exhibitors. Congratulating CII Punjab and the participating companies, Arora expressed hope that the two-day exposition would lead to new business partnerships, collaborations and investment opportunities for Punjab.