The Punjab Cabinet approved the new Industrial Policy 2026 on Saturday, easing eligibility for subsidies for small and medium industries and allowing women to work night shifts. The policy focuses on employment generation and aims to attract Rs 75,000 crore in investments by 2026.
The Punjab government has introduced attractive incentives for businesses through the newly approved Industrial Policy 2026. Under the policy, industries qualify for employment generation incentives with a minimum investment of Rs 25 crore and 50 workers, down from the previous Rs 250 crore and 1,000 employees.
Wage support will be Rs 3,000 per month per male employee, and Rs 4,000 for women, Scheduled Caste and Scheduled Tribe employees, and persons with disabilities. In the IT sector, support is Rs 5,000 per employee per month, while Global Capability Centres will receive Rs 7,500 monthly per employee.
Women are permitted to work night shifts in industrial units, subject to mandatory safety provisions. The eligibility period for incentives has been extended from 7-10 years to 10-15 years.
The policy was framed after extensive consultations with industry stakeholders, involving 24 sectoral committees that submitted 601 recommendations, with nearly 77 percent incorporated. Priority sectors such as food processing, textiles, IT, and electric vehicles will receive an additional 25 percent incentive. Units in border districts like Pathankot, Gurdaspur, Amritsar, Tarn Taran, Ferozepur, and Fazilka, as well as the Kandi region, will get a similar extra 25 percent benefit.
Seed grants for startups have been raised from Rs 3 lakh to Rs 5 lakh, with a new second tranche of Rs 10 lakh for scaling startups. An Innovation and Startup Hub is planned in Mohali to position it as the Silicon Valley of North India. For environmental sustainability, industries installing Zero Liquid Discharge systems will get up to Rs 10 crore subsidy, and those adopting paddy-straw-based boilers up to Rs 7.5 crore.
Regulatory approvals will be processed via a FastTrack portal, promising time-bound digital clearances within 45 working days. The state has expanded its industrial land bank, accessible through the portal. Punjab attracted around Rs 25,000 crore in investments in FY2024 and Rs 55,000 crore in FY2025, with projections to reach Rs 75,000 crore by 2026.
