Chandigarh

Chandigarh is known as one of the best examples of urban planning and modern architecture in the twentieth century in India, and is as a regional hub in the areas of service industry, education, health, information technology, food and vegetable processing.

Snapshot Infographics Presentation

Last updated: Nov, 2022

Chandigarh State Report

Sep, 2022

Introduction

Chandigarh is located at the foothills of the Shivalik hills range in the north and is the capital of Haryana and Punjab. Foundation of the city was laid out in 1952 but assumed its status of capital of Haryana and Punjab during the state reorganization in 1966. Apart from being the capital of Haryana and Punjab, the city is also a Union Territory and hence is governed by central government.

The administration of Chandigarh has been committed to creating a progressive business environment. The city offers a wide range of fiscal and policy incentives for businesses under the Chandigarh Industrial Policy, 2015. The Chandigarh Administration is focusing on promoting the ‘Information Technology’ (IT) industry, which requires lesser space. To develop the associated ecosystem, the government has developed high speed data communication facilities for software development and its export by providing a NODE at Punjab Engineering College (PEC), Chandigarh, by collaborating with the Software Technology Parks of India (STPI).

Chandigarh’s Gross State Domestic Product (GSDP) was Rs. 436,743.4 million (US$ 6,195.8 million) in 2019-20, rising at a CAGR of 10.52% between 2015-16 and 2018-19. Chandigarh’s Net State Domestic Product (NSDP) was Rs. 3,917,275.0 million (US$ 5,557.2 million) in 2019-20.

Recent Developments in Key Sectors

In the State Budget of 2022-23, Rs. 20,437 lakh (US$ 25.7 million) has been allocated to the buildings & roads department.
The city attracted Foreign Direct Investment (FDI) equity inflow worth US$ 66.52 million between October 2019-June 2022 as per the data released by the Department for Promotion of Industry and Internal Trade (DPIIT).
As of August 31 2022, Chandigarh had a total installed power generation capacity of 227.41 MW, of which 169.57 MW was contributed by central utilities and 57.84 MW by private utilities.
In FY22, Chandigarh exported industrial machinery for dairy worth US$ 13.19 million, followed by other miscellaneous engineering products worth US$ 9.62 million and drug formulations worth US$ 8.83 million.
Total merchandise exports from Chandigarh stood at US$ 98.81 million in FY22. The key items exported from Chandigarh include industrial machinery, other misc. engineering items, drug formulations, and electronics components.
In September 2021, Chandigarh International Airport Limited (CHAIL) announced that the air cargo complex, which will handle both domestic and international cargo, including perishable goods, will be functional from November 1, 2021. The construction cost of the cargo complex is Rs. 11.5 crore (US$ 1.56 million) and the complex is spread >14,127 sq. m.
Out of the total Union Budget 2021-22, a major chunk of Rs. 950.41 crore (US$ 130.57 million) has been allocated for next fiscal year for Housing and Urban Development including the smart city project.
On August 14, 2021, the Chandigarh Health Department achieved 100% inoculation of the targeted population, with at least the first dose of COVID-19 vaccine.
In December 2020, Chandigarh administration announced to hire 40 AC electric buses for a period of 10 years to improve the air quality of the city.
In April 2021, Chandigarh’s administration has decided to expand the IT industry in the Industrial Area. According to the Chandigarh Export Promotion Plan, the union territory will allow IT-based industry, including software and electronics hardware, to set up their units, but any activity entailing direct customer interface would not be allowed.
There are many units manufacturing agricultural equipment, tractor components, auto parts, tyres & tubes, electric meters, electronic items, cables and engineering items operating in Chandigarh.
Basic metal and metal alloy industries are among the leading industries in this sector in Chandigarh. Metal products such as bars, rods of steel & rolled products and HR strips are some examples.
Chandigarh industrial area is also home to several pharmaceutical manufacturing companies such as Pfizer and Ind Swift.
~ 40% of all industries in Chandigarh are ancillary units manufacturing components for the tractor industry.
Other industrial units are mainly into manufacturing of industrial fasteners, electrical / electronic items, machine tools, pharmaceuticals, plastic goods, sanitary fittings, steel / wooden furniture and food products etc.