Chandigarh

Chandigarh is located at the foothills of the Shivalik hills range in the north and is the capital of Haryana and Punjab. The 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 the central government.

Chandigarh’s Gross State Domestic Product (GSDP) stood at Rs. 68,072.60 crore (US$ 8050.17 million) in 2024-25, increasing at a CAGR of 9.83% between 2015-16 and 2024-25.

Some of the recent key developments in Chandigarh are as follows:

Total exports from Chandigarh stood at US$ 117.68 million in FY26. The key items exported from Chandigarh include nuclear reactors, boilers, machinery and mechanical appliances (US$ 32.12 million), man-made staple fibres (US$ 12.84 million), arms and ammunition; parts and accessories thereof (US$ 10.22 million), vehicles other than railway or tramway rolling stock, and parts and accessories (US$ 9.86 million), pharmaceutical products (US$ 9.76 million), etc.

As of April 2026, Chandigarh had a total installed power generation capacity of 254.72 MW, of which 78.85 MW was contributed by central utilities and 175.87 MW by private utilities.

According to the Telecom Regulatory Authority of India (TRAI), Chandigarh had 1.74 million wireless subscribers and 0.17 million wireline subscribers, as of December 2025.

The Union territory administration has announced a significant increase in property tax rates for both residential and commercial properties within the city. Residential property owners will experience a threefold increase in their tax rates, while commercial property tax rates will be doubled. As a result, the municipal corporation's revenue from property tax is projected to rise from Rs. 45 crore (US$ 5.3 million) to Rs. 90 crore (US$ 10.6 million) annually.

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 less 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).

The city has taken several steps to develop its industrial infrastructure and to achieve consistent economic growth. Some of those initiatives are as follows:

• On May 20, 2026, the Chandigarh Administration approved a proposal to convert leasehold industrial and commercial plots into freehold ownership, a move aimed at unlocking property value, improving ease of doing business and strengthening the city’s industrial real estate ecosystem; the proposal has been sent to the Ministry of Home Affairs for final approval.
• On April 30, 2026, Union Health Minister J. P. Nadda inaugurated the 10th National Summit on Good and Replicable Practices and Innovations in Public Health Systems in Chandigarh. The two-day summit focused on showcasing innovative public healthcare practices, strengthening primary healthcare, digital health innovations, and improving healthcare service delivery systems across States and Union Territories.
• As part of the Union Budget 2026-27, a major chunk of Rs. 120.66 crore (US$ 13.26 million) has been allocated for the next fiscal year for education.
• In the State Budget of 2026-27, Rs. 47.31 crore (US$ 5.20 million) has been allocated to the roads and transport department.
• Chandigarh’s total road infrastructure length is 3,269.75 kms and has one national highway with a total length of 15.3 km. The municipal corporation manages 2,440.03 km road network, while PWD manages 537.52 km road network. 163.41 kms road is considered as rural roads.
• Chandigarh is connected through twin track railway lines from Delhi and Mumbai upto Ambala, a single-track broad gauge afterward upto Kalka and a narrow-gauge single track between Kalka and Shimla having heritage value.
• The city has one domestic airport, which is managed by the Ministry of Defence and an international airport. The international airport has the capacity to accommodate 1,600 passengers at a time and is managed (joint venture) by Chandigarh International Airport Limited (CHIAL).
• As of February 2026, Chandigarh achieved a cumulative rooftop solar capacity of 103 MWp across 11,663 sites under various solar initiatives, including PM Surya Ghar: Muft Bijli Yojana. Additionally, rooftop solar systems were installed across all 377 government non-residential buildings in the Union Territory.
• Chandigarh Industrial Area has been developed over 1200 acres in two phases; Phase I has an area of 776.14 acres and Phase II has an area of 486 acres. Phase III is also being developed with an area of 153 acres.
• Chandigarh's single window system offers a channel for multiple business activities such as pre-establishment approvals, pre-operation approvals, renewal, and investor registration.

Chandigarh is a compact, services-driven Union Territory and the joint capital of Punjab and Haryana, offering a stable and investor-friendly business environment. With a focus on IT, light engineering and pharmaceuticals, its industrial base is dominated by MSMEs, including a strong cluster of ancillary units supporting the tractor and auto component industry. High digital connectivity, reliable power infrastructure and sustained public investment in urban development continue to position Chandigarh as a resilient administrative and economic hub in North India.