Introduction
Punjab lies in the north west part of India and is surrounded by Jammu and Kashmir in the north, Haryana to the south, Himachal Padesh to the east and Pakistan to the west. The word Punjab derives from a Persian word which signifies the land of 5 rivers. With the population of over 27 million inhabitants, Punjab is the 16th largest Indian State by population which comprises of 23 districts. The city of Chandigarh, within the Chandigarh union territory, is the joint capital of Punjab and Haryana. Punjabi is the most widely spoken languages followed by Hindi. The famous “Golden Temple” which located in Amritsar, Punjab is has been certified as most visited religious place in the world by the UK-based World Book of Records is one of the prominent place of visit and it host about in 150,000 to 200,000 visitors daily.
The economy of Punjab is the 16th largest economy with an expected GDP of USD 100 billion for the 2024-25 which is equivalent to the GDP of a small nation in Europe like Bulgaria and it contributes more than 7.3 % to India’s GDP. Punjab boasts a literacy rate of 76.7 percent, according to the Census of 2011.
Punjab has a rich industrial base of Micro Small Medium Enterprises (MSME) units belonging to bicycle parts, auto components, hosiery, sports goods, and agricultural implements. The state accounts for 92% of India’s production of bicycle parts and 75% of bicycle production of India. Other attractive sectors range from agri-business (food processing, chemicals and agri-machinery) to metal and light engineering products. Punjab, also known as India’s ‘food basket’, is one of the largest states in the production of commodities such as wheat, sugarcane, corn and maize. The state is also involved in a wide range of activities related to horticulture, forestry, poultry and animal husbandry, which provides a strong platform for setting up agrobased industries.
Some of the most prominent cities leading the State’s GDP are Mohali, Ludhiana, Amritsar, Bathinda and Jalandhar with each city having its unique characteristics. Jalandhar is a hub of sports goods manufacture, and Ludhiana is a major agri-products producer and is a big center for dairy product packaging. The capital city of Chandigarh is one of the largest IT / ITES hubs of India. Around Chandigarh, Panchkula, Mohali and Baddi are major industrial hubs too. Another city of Bathinda has one of the largest food grain and cotton markets in northern India.
Punjab ranks on the 12th position in attracting FDI into the State and has received a cumulative foreign direct investment (FDI) of Rs. 7,552.89 crore (USD 1 billion) in the last four years. The State has steadily been attracting a large number of FDI due to its various policies and benefits.
It has also been ranked 3rd in Ease of Logistics in the country (2021) as per the Government of India Logistics Ease across Different States Report and it will be connected to both the Eastern & Western Dedicated Freight Corridors. In addition, there are 10 ICDs, 6 Private Freight Terminals & 2 Container Freight Stations in Punjab along with a land and rail port in Amritsar and 3 multi-modal logistics parks in Ludhiana. Punjab is also ranked as leader category in the Startup Ranking Framework in the year 2022, Also, ranked 8th in the overall export Preparedness Index and 4th in the land-locked export Preparedness Index. Also, ranked top performing Investment Promotion agency with a 100% implementation score. This has enabled the State to have the best ecosystem for attracting investment, creating employment opportunities, and adding value to the state GDP.
Punjab is well connected with all major cities through its 2,100 km of rail infrastructure, 64,000 km of roads and 5 airports. It offers a strong logistics backbone with 13 container freight stations and inland container depots easing exports and imports for the state.
Some of the most prominent reason to invest in Punjab is its Unified Regulator with 23 Departments present at One Office. More than 40+ services/clearances across 12+ Departments are provided in a time bound manner online through Invest Punjab-Business First Portal. Punjab ranks well across all indicators of the index like labour policies, child welfare, housing, social welfare, education, health, sanitation & political participation. The government provides 100% exemption duty for electricity, stamp duty and property tax. You may look for more information regarding the benefits and incentives provided by the Punjab government, on https://pbindustries.gov.in/static/.
Punjab is also home to various multi-national companies with prominent foreign investors such as Infosys, Amazon, Tata Consultancy Services, and Cognizant Technology Solutions are present in Punjab.
The Punjab government has an emphasis on Industrial Infrastructure development. The Government aims to develop robust infrastructure including core and supporting infrastructure which shall provide long-term benefits to the industry and set the State on the path of planned industrial growth. The Government also makes the endeavor to simplify laws and rules for infrastructure development, management and maintenance through a single Industrial Infrastructure Development Agency in the State.
The government has set up a separate authority called as the Punjab Industrial and Business Development Authority that is responsible for the development, maintenance and management of industrial infrastructure has intended to develop 4 major Industrial Parks and 10 other Industrial Parks covering general and sector-specific requirements of various industrial sectors.
The State intends to develop the following industrial corridors such as Amritsar Kolkata Industrial Corridor (AKIC), Chandigarh-Amritsar Industrial Corridor, Chandigarh-Hoshiarpur-Gurdaspur Industrial Corridor and Chandigarh-Patiala-Sangrur-Bathinda Corridor.
Punjab being a landlocked State does not have any wet ports, however, the Government has various dry ports at cities such as Ludhiana, Jalandhar, Amritsar, Bhatinda and Dappar. These dry ports offer customized handling transportation and storage solutions for imports and exports.
With the recent development, Punjab is climbing the rank of being the favored State for foreign investors.
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