As its borders, the state has the Pakistani province of Punjab to its west, Jammu and Kashmir on the north, Himachal Pradesh on the northeast, Haryana on the south and southeast and Rajasthan on the southwest.
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.
The state is ranked first in India in terms of the infrastructure facilities it offers. Punjab’s road, rail and air transport network, connectivity, construction of bridges and infrastructure facilities are amongst the best.
The average gross state domestic product (GSDP) growth rate for the state of Punjab was about 14.1 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), small economic zones (SEZs) and food parks.