Leading industry bodies in Punjab have urged the state government to introduce a one-time migration window under the Punjab Industrial and Business Development Policy-2026, saying the move would encourage existing industrial units to upgrade their operations, improve competitiveness and accelerate fresh investment across the state.
The demand has been jointly raised by the Confederation of Indian Industry (CII) and the PHD Chamber of Commerce and Industry (PHDCCI), which believe that industries established under earlier policy regimes should be allowed to voluntarily migrate to the state’s latest industrial policy framework. According to industry representatives, such a provision would help existing businesses benefit from the modern incentives, simplified procedures and sector-specific support introduced under the new policy.
Punjab’s Industrial and Business Development Policy-2026 was unveiled earlier this year with the objective of attracting large-scale investments, creating employment opportunities and strengthening the state’s manufacturing ecosystem. The policy offers a range of incentives for priority sectors, including advanced manufacturing, logistics, food processing, textiles, information technology, renewable energy and electric vehicles. It also focuses on improving the ease of doing business by streamlining approvals through digital platforms and reducing procedural delays.
Industry leaders, however, have pointed out that while the policy is expected to attract new investors, many existing enterprises remain outside its ambit because they continue to operate under provisions of previous industrial policies. They argue that allowing such units to migrate voluntarily to the new framework would ensure a level playing field and encourage long-term expansion.
Representatives of both industry associations have stated that the proposed migration window would help manufacturers modernise production facilities, adopt advanced technologies and undertake capacity expansion without facing policy-related disadvantages. They also believe the measure would strengthen investor confidence by demonstrating the government’s willingness to support both existing and prospective investors.
Business leaders have further emphasised that Punjab’s industrial growth depends not only on attracting fresh investment but also on enabling existing enterprises to expand. Many medium and small industries, they say, are looking to diversify operations, enhance productivity and generate additional employment. Access to the incentives available under the new industrial policy could significantly improve their ability to undertake these investments.
The demand assumes significance as Punjab competes with neighbouring states to attract domestic and international investments. Industry experts believe policy stability, transparent regulations and equal opportunities for both new and existing industries are essential for sustaining long-term industrial growth. They have suggested that a migration mechanism could encourage companies to reinvest profits within the state rather than shifting expansion plans elsewhere.
The Punjab government has consistently maintained that the Industrial and Business Development Policy-2026 has been designed to create a business-friendly ecosystem capable of generating employment, boosting exports and promoting balanced regional development. Officials have also highlighted the policy’s emphasis on innovation, technology adoption and infrastructure development as key drivers of future economic growth.
Economic analysts believe the industry’s proposal deserves careful consideration, as similar transition mechanisms have been adopted in other states to ensure continuity during major policy reforms. They note that extending selected incentives to existing industries could enhance industrial productivity while helping Punjab retain its position as one of northern India’s leading manufacturing and agro-processing hubs.
The state government is yet to formally respond to the industry’s request. However, the proposal is expected to figure prominently in upcoming consultations between the government and industrial stakeholders. The outcome of these discussions could shape the implementation of Punjab’s new industrial policy and influence the investment climate in the months ahead, particularly as the state seeks to achieve its ambitious targets for industrial expansion, employment generation and economic growth.
Source: Based on reports web media
