The resources, policy incentives, infrastructure and climate in the state support investments in sectors such as agro-based industries, food products, light engineering goods, automotives, chemicals, sports goods, textiles, pharmaceuticals, paper and paper products, metal and alloy products.
The state government has set up "Udyog Sahayak" as the state-level nodal agency and district industry centres (DIC) as the district-level committee for single-window clearance of industrial projects.
The Government of Punjab is promoting the development of several special economic zones (SEZs) across Punjab for pharmaceuticals, textiles, electronic hardware and IT/ITeS.
The following are some of the major initiatives taken by the government to promote Punjab as an investment destination:
- The state government has actively promoted contract farming. Notable contract farming agreements include those with the Tata Group for basmati rice, the UB Group for malting barley and Advanta India for hyola (hybrid rapeseeds and mustard). Crops being promoted include maize, hybrid basmati and sunflower.
- The state has launched a venture capital fund, with a corpus of nearly US$ 4.3 million, for the IT industry. It has been funded jointly by Punjab State Industrial Development Corporation (PSIDC), Punjab Infotech, Punjab Financial Corporation (PFC) and the Small Industries Development Bank of India (SIDBI).
- The Government of Punjab has allocated 2.72 acres of land for setting up a new software technology parks of India (STPI) centre at Amritsar.
- The state's textile policy provides incentives such as development of clusters, benefits under the central government's Technology Upgradation Fund Scheme (TUFS), electricity at reduced rates, and government support in the acquisition of land for textile mills.
- The Government of Punjab encourages the development of food parks and mega projects to facilitate the establishment of food processing infrastructure. Until May 2012, 63 projects were approved under the mega projects policy.
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