AAP and BJP push policy reforms, investment to spur industrial growth

Will the push by the Aam Aadmi Party government and the BJP-led Central Government spur industrial investment in Punjab?

This is the question being widely debated in the border state of Punjab, overlooked by investors for the past many years. While the Aam Aadmi Party has launched its “Udyog Kranti” initiative to propel industrial growth and the newly em‘power’ed Industry and Investment Promotion Minister Sanjeev Arora has started his roadshows to spread the government’s message of giving a boost to the industry, the Centre has just announced its decision to expand the semi-conductor unit, Continental Devices India Limited (CDIL) in Mohali.

A sum of Rs 10,000 crore is to be spent for the purpose. By expanding this unit, established in Mohali almost four decades ago, the BJP, which is looking at covering more political ground in Punjab, hopes to woo urban voters, who have been desperately seeking economic growth in the state.

With agriculture incomes shrinking and no new big industrial investment in the state after the Guru Gobind Singh Refinery was set up in Bathinda and commissioned in 2012, the much-needed push to the state’s sagging economy will come only from industrial growth.

If earlier, lack of political farsightedness in making Punjab an industrial economy and the tax holidays given to the neighbouring hill states led to the flight of the industry from Punjab to these states, now the tax incentives and capital investment subsidies given by states like Uttar Pradesh and Madhya Pradesh to industrial investors is making Punjab’s home-grown industry to go in for greenfield expansions in these states, or in states like Gujarat that have sea ports.

The Operation Sindoor, with Punjab taking maximum impact as it shares an over 500 km border with Pakistan, has also had an impact on future investors. But with the new push being given to industrial development in Punjab by both state government and the Centre, the hope of industrial investors reposing faith in Punjab has been revived.

Agreed, Ludhiana-based industrialist and president of the Chamber of Industrial and Commercial Undertakings Upkar Singh Ahuja said, “The first big step was the lifting of farmer dharnas and calling out some of them who had started interfering in industry-labour disputes. This coupled with policy changes by the state government and the Centre’s announcement about expanding semi-conductor facility, has reposed investors faith in Punjab’s growth story”.

AAP Rajya Sabha member Vikramjit Singh Sahney said Punjab’s full potential in the semiconductor value chain can only be realised with this long-awaited upgradation. Highlighting the transformative impact of the proposed upgradation, Dr Sahney stated that if SCL- Mohali is modernised with the state-of-the-art fabrication and research facilities, it will attract top global technology partners, create thousands of high-value jobs for our youth, and make Punjab a hub for innovation and advanced manufacturing. “This is not just an investment in infrastructure, it’s an investment in the future of Punjab and in India,” he said. Punjab Industry, Investment Promotion and Power Minister Sanjeev Arora said the government is bringing all kinds of policy changes that will instill the confidence of investors and he was hopeful of getting new industrial investment during the Investors Summit that the government proposes to hold in March 2026.