As its borders, the state has the Pakistani province of Punjab to its west, Jammu and Kashmir in the north, Himachal Pradesh in the northeast, Haryana in the south and southeast and Rajasthan in the southwest.
Punjab’s fertile and productive soil has accorded it the status of ‘Granary of India’ and the ‘Bread-basket of India’. With only 1.2 per cent of India’s geographical area, the state accounts for about 18 per cent of the country’s wheat production and 11 per cent of rice production. This makes it suitable for agro-based industries, dairy farming and products, and other food processing industries.
The state has emerged as a key hub for textile-based industries including yarn, readymade garments and hosiery. With the development of apparel parks, favourable textile policy and other incentives for the creation of textile infrastructure, the state offers tremendous opportunities for investment.
Punjab has well-developed social and industrial infrastructure. Punjab’s transport network is one of the best, with easy access to key markets such as the Delhi-NCR region. It has witnessed impressive growth in the number of clusters and hubs as public-private partnerships (PPP) are being developed.
The average gross state domestic product (GSDP) growth rate for the state of Punjab was about 15.0 per cent between 2004-05 and 2012-13. The state provides investment opportunities in sectors such as textiles, agro-based industries, IT & ITeS, automotive and auto components, sports goods and light engineering goods.
Punjab offers industries with a wide range of fiscal and policy incentives under the Industrial Policy–2009 and 2013. In addition, the state has policies to offer sector-specific incentives to sectors such as information technology (IT), SEZs and food parks.