Punjab

§1Policies

• Punjab Industrial and Business Development Policy 2026 (IBDP 2026)ActiveFrom 8 Mar 2026 until amended (no end date printed)
• Industrial and Business Development Policy 2022 (IBDP 2022)ClosedNo new CAF after 8 Mar 2026; migration window 90 days

§2Incentive pattern

§3State schemes

• Punjab capital subsidyActiveUp to 20% of eligible FCI, max ₹10 crore, paid yearly over the chosen 10-15 year eligibility period
• Punjab SGST subsidyActive75% of net SGST reimbursed for the eligibility period, within the annual ceiling
• Punjab stamp & EDActive100% exemption/reimbursement of stamp duty on purchase or lease of land and/or buildings
• Punjab EGSActive₹3,000 per male employee per month; ₹4,000 per female/SC/OBC/BC/PwD employee per month; for 5 years
• Punjab CGTMSE feeActive100% of CGTMSE guarantee fee, max ₹3 lakh per unit per year, for 7 years from commercial production
• Punjab marketing & freightActiveTrade fairs (stall rent only, once per event type per year): MSME 50% max ₹5 lakh abroad / ₹3 lakh national; ODOP 75% max ₹7.5 lakh / ₹5 lakh

More incentives in the policy (12)

Name and benefit are from the policy; the full conditions are not on this page yet — see the policy document.

• Punjab IBDP 2026 - R&D/testing facility and ZLD supportCluster common R&D/testing 50% max ₹2.5 crore (first 10 clusters); existing units ZLD 20% max ₹10 crore; cluster shared ZLD or CETP-to-ZLD 20% max ₹10 crore; 10 yearly instalments.
• Punjab IBDP 2026 - Paddy straw boilersNew/expansion: 50% or ₹1 crore per 8 TPH, max ₹5 crore; existing switching: 50% or ₹1.5 crore per 8 TPH, max ₹7.5 crore; upgrading: 50% or ₹0.75 crore per 8 TPH, max ₹2.5 crore; 3 yearly instalments.
• Punjab IBDP 2026 - NSE EMERGE listing support25% of public issue expenses, max ₹10 lakh, once.
• Punjab IBDP 2026 - ZED certification incentive₹5 lakh for first 100 Silver; ₹10 lakh for first 50 Gold (max ₹10 lakh per unit).
• Punjab IBDP 2026 - Energy/water/environment/steam/safety audit75% of cost, max ₹3 lakh per audit type, once.
• Punjab IBDP 2026 - Patent registration75% of expenses, max ₹10 lakh domestic, ₹20 lakh international, once each.
• Punjab IBDP 2026 - Quality/management/environment certification100% of expenses, max ₹20 lakh per unit, once.
• Punjab IBDP 2026 - Digital marketing support50% of e-commerce onboarding (NSIC, ONDC etc.), max ₹50,000 (₹75,000 ODOP units); first 1,000 units.
• Punjab IBDP 2026 - Vendor Development ProgrammeUp to ₹5 crore to MSME Punjab for buyer-seller and reverse buyer-seller meets.
• Punjab IBDP 2026 - Annual State Awards for MSMEs₹2 lakh per unit per category (SC, women, export-oriented); ₹3 lakh for ODOP units.
• Punjab IBDP 2026 - Canal water charges exemptionExemption until own canal connectivity investment is offset or 10 years, whichever lower (PWRDA certification).
• Punjab IBDP 2026 - Customised package for Mega unitsCase-by-case for FCI above ₹500 crore (IT/ITeS above ₹250 crore; first 3 GCCs with 1,000+ jobs), approved by Council of Ministers.

§4District zones

In many states the subsidy rate changes with the zone of the district or block.

Schemes for some districts only

• ODOP marketing support (within respective districts)All districts, for their ODOP products

§5Famous for

• LudhianaWoollen and cotton knitwear and hosiery →
• LudhianaBicycles and bicycle parts →
• LudhianaAutomobile and tractor components →
• LudhianaMachine tools, sheet-metal parts and oil expellers →
• JalandharSports goods — cricket, hockey, football and fitness equipment →
• JalandharHand tools — spanners, pliers and wrenches →
• JalandharValves, cocks and sanitary fittings →
• JalandharLeather tanning →
• Mandi GobindgarhSteel re-rolling mills and induction furnaces — the 'steel town' of Punjab →
• BatalaFoundries, machine tools and farm machinery →
• Kapurthala and PhagwaraFoundry, diesel-engine parts and general engineering →
• HoshiarpurTractor and auto parts →
• HoshiarpurWood inlay furniture and boxes →
• PatialaPhulkari embroidery →
• AmritsarPapad, warian (sun-dried lentil dumplings) and pickles →

§6Choose your district

For each district: its ODOP product, its subsidy zone and the schemes that run only there.

• AmritsarEmbroidery, Tourism, Achar-Muraba
• BarnalaTextile-Towels, Poultry Meat & Chicken
• BathindaCitrus Fruits (Kinnow), Honey, Cotton, Yarn
• FaridkotBasmati (Rice), Agriculture Implements
• Fatehgarh SahibForged Items, Machine parts/ Rolling Mill Machinery
• FazilkaCitrus Fruits (Kinnow), Basmati (Rice)
• FerozepurBasmati (Rice), ChilliesAspirational
• GurdaspurFoundry Cluster, Jaggery
• HoshiarpurTractor & parts, Plywood/ Wood Inlay Products
• JalandharSports Goods, Hand Tools, Honey, Leather
• KapurthalaDiesel engine and Auto Parts
• LudhianaReadymade Garments, Engineering Goods
• MalerkotlaMetal Casting, Embroidery
• MansaCotton Yarn, Agriculture Implements
• MogaAgriculture ImplementsAspirational
• PathankotLitchi
• PatialaEmbroidery Fabric-Phulkari
• RupnagarMaize, Agriculture Implements
• S.A.S NagarEngineering Goods, Sculptures, Pharmaceuticals/ Medical Equipment
• SangrurVegetable Oil
• Shahid Bhagat Singh NagarJaggery
• Sri Muktsar SahibAgriculture Implements
• Tarn TaranBasmati (Rice), Milk, Pears

§7Focus sectors & ODOP

Electric Vehicle ManufacturingAgri & Food ProcessingIT/ITeS/GCCESDM & SemiconductorsDefence & AerospaceAgro-waste (biomass, excl. mandi waste) to energy/bio-energy/manureTextiles (NIC Division 13 incl. apparel, made-ups, technical textiles; dyeing only with ZLD)Auto & Auto ComponentsSports Goods

§8Why do business here — and why not

¶Still being researched

We could not confirm these points from an official source, so no figure is printed on the page.