Industry in Punjab:
Punjab Economy-Agriculture Based
Agriculture Sector- 14.5% of State GDP
Agro based industries, Machinery units, Chemical units
Small , Medium and Large scale industries
1,68,000 small scale units
425 medium and large scale units
Ludhiana, Jalandhar and Amritsar
Ludhiana- Manchester of Punjab
Khanna – Largest Grain market in Asia
Ludhiana- Cycle parts, Textile industry, Machinery parts, sewing machines
Jalandhar- Sports goods
Batala – C.I. Casting, Agriculture and mechanical machinery
Cotton mills- Abohar, Malout, Phagwara, Amritsar
Sugar mills- Batala, Gurdaspur, Phagwara, Dhuri, Morinda
Morinda – Biggest sugar mill in state
Industrial Policy of Punjab,2013:
Notified in Dec,2013
Incentive based- Fiscal Incentives to manufacturing units, Textile units, Agro and food processing sector, Electronics and IT etc
State divided in two zones-
Zone-1 – Less industrialized
(Fazilka, Ferozepur, Tarn Taran, Amritsar, Gurdaspur, Pathankot, Hoshiarpur, Sangrur, Barnala, Mansa , Bathinda, Muktsar and Faridkot
Zone-2- more industrialized
Zone II includes Patiala , Fatehgarh Sahib, Ludhiana , Moga, Jalandhar, Kapurthala, Shaheed Bhagat Singh Nagar and Mohali
| Investment ( Zone-1) | Retention Benefits | Time Period |
| 1-10 Crores | 50% VAT ,75% CST | 7 |
| 10-25 crores | 50% VAT ,75% CST | 8 |
| 25-100 crores | 60% VAT ,75% CST | 10 |
| 100-500 crores | 70% VAT ,75% CST | 11 |
| > 500 crores | 80% VAT ,75% CST | 13 |
| Investment ( Zone-2) | Retention Benefits | Time Period |
| 10-25 crores | 25% VAT ,75% CST | 11 |
| 25-100 crores | 30% VAT ,75% CST | 10 |
| 100-500 crores | 35% VAT ,75% CST | 11 |
| > 500 crores | 40% VAT ,75% CST | 13 |
Important points:
No purchase tax on wheat and milk purchased and processed in state
No VAT/Entry tax on farm equipments
SAS Nagar Mohali Amritsar-IT hub, VAT incentives, 24 Hours power supply, stamp duty, property tax exemption
Approved establishment of Punjab bureau of Investment Promotion (PIBP)
