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) was Rs. 5,42,847.3 million (US$ 6,906.5 million) in 2022-23, rising at a CAGR of 8.02% between 2015-16 and 2022-23.

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

• Total Engineering goods exports from Chandigarh stood at US$ 3.92 million in FY25 (April-August). The key items exported from Chandigarh include industrial machinery, other misc. engineering items, drug formulations, and electronics components.
• The city attracted Foreign Direct Investment (FDI) equity inflow worth US$ 110.38 million between October 2019-June 2024 as per the data released by the Department for Promotion of Industry and Internal Trade (DPIIT). 
• From April-August 2024, Chandigarh exported Engineering Goods for worth US$ 3.92 million, followed by Cereal Preparations and Miscellaneous Processed Item worth US$ 1.19 million and Drugs and Pharmaceuticals worth US$ 0.86 million.
• As of August 31, 2024, Chandigarh had a total installed power generation capacity of 243.15 MW, of which 169.57 MW was contributed by central utilities and 73.58 MW by private utilities.
• 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:

• As part of the Union Budget 2024-25, a major chunk of Rs. 875.54 crore (US$ 105 million) has been allocated for the next fiscal year for housing and urban development.
• In the State Budget of 2022-23, Rs. 20,437 lakh (US$ 25.7 million) has been allocated to the buildings & roads department.
• 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.
• In December 2020, the Chandigarh administration announced to hire 40 AC electric buses for a period of 10 years to improve the air quality of the city.
• 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).
• The Ministry of Natural and Renewable Energy (MNRE) selected Chandigarh to be developed as the ‘Model Solar City’ through Chandigarh Renewal Energy, Science and Technology Promotion Society (CREST) in 2012. The Master Plan for the ‘Model Solar City’ was prepared by The Energy and Resource Institute (TERI) and approved by MNRE in January 2012.
• 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.