Industries of Punjab | Punjab State (PPSC) PSC: Preparation - PPSC PCS (Punjab) PDF Download

Industrial Infrastructure of Punjab

After gaining independence, Punjab's industrial development occurred in phases. In the 1950s, the focus was on the cycle parts and hosiery industries. The 1960s brought the Green Revolution, leading to the growth of agriculture-related industries such as farm machinery manufacturing and food processing. According to the Economic Survey 2017-18, the industrial share in the state's Gross State Value Added (GSVA) was 24.07% in 2016-17.

Punjab's industrial units are categorized into:

• Small and Medium Scale Units
• Large Scale Units
• Cottage and Village Industries

Small and Medium Scale Units

Small scale industries (SSI) play a crucial role in the Indian economy by providing 48% of employment and contributing 10% to total production. These industries encompass sectors such as bicycle and cycle parts, hosiery, sewing machine parts, hand tools, sports goods, and leather goods.

Here are some major types of small scale units or industries in Punjab:

Automobile Industry

• The growth of the motor vehicle industry in India during the 1980s led to the establishment of numerous small-scale industries (SSIs) in Punjab, particularly in cities like Ludhiana, Jalandhar, Kapurthala, and Patiala.
• These SSIs primarily focused on producing automobile components to meet the demands of Original Equipment Manufacturers (OEMs) and the replacement market.

Bicycle and Cycle Parts

• Punjab is the second-largest manufacturer of bicycles and bicycle parts in the world.
• The first indigenously owned bicycle manufacturing unit, Atlas Cycles, was established in Sonipat in 1951 under the small scale industries (SSI) sector in undivided Punjab.
• Hero Cycle Ltd. started producing complete bicycles in 1956 as an SSI unit in Ludhiana and became the world’s largest producer of bicycles by 1989, even earning a place in the Guinness Book of World Records.
• Cycle parts industries are primarily located in Ludhiana.

Forging and Re-rolling Industry

• Over 90% of forging units are situated in Ludhiana and Jalandhar, with the remainder located in Mandi Gobindgarh, Phagwara, Mohali, and Amritsar districts.
• The rolling and re-rolling mills cluster is primarily in Mandi Gobindgarh and surrounding areas, earning Mandi Gobindgarh the nickname "Steel Town of Punjab."
• The steel melting and re-rolling sector consists of small and medium-scale units.

Hosiery Industry

• Punjab is the largest producer of hosiery items in India, accounting for 91% of total production.
• The state also produces ready-made garments, which are exported to other countries.
• Ludhiana is the largest center for hosiery industries in Punjab.

Machine Tools and Parts

• Machine tools are used for shaping metal or other rigid materials.
• Machine tools, parts, and components are manufactured in Jalandhar and Ludhiana and supplied throughout India.

Sports Goods

• Before the Partition of Punjab, sports goods were produced in Sialkot (now in Pakistan).
• After Partition, sports goods and equipment such as balls, bats, badminton rackets, and gym equipment are now manufactured in Jalandhar and Batala.
• These products are also exported to other countries.

Sewing Machines and Parts

The manufacturing of sewing machines and their components is concentrated in Ludhiana, Amritsar, and Batala. These products are supplied across India.

Large Scale Industries in Punjab

According to the Economic Survey of 2017-18, Punjab is home to approximately 469 large-scale industries, which collectively provide employment to about 15% of the state's population.

Some of the major types of large-scale industries in Punjab include:

Agro-Based and Agriculture Implements Industry:

• This sector includes industries that obtain their raw materials from agriculture. The state is home to food processing units such as jam and sauce making industries. Major agro-based industries are found in Sangrur, Ludhiana, Patiala, and Firozpur. Additionally, there are specialized industries in Punjab that manufacture agricultural implements, tools, and machinery used in farming. These industries are primarily located in Ludhiana, Jalandhar, Phagwara, Goraya, Amritsar, and Moga.

Dairy Industry:

• Punjab ranks high in the country for milk production, following Gujarat and Haryana. The Moga Milk Plant is the largest milk processing facility in the state, with other significant plants located in Ludhiana, Mohali, Jalandhar, Patiala, Hoshiarpur, Gurdaspur, Firozpur, Sangrur, Bathinda, Faridkot, Nabha, Kotkapura, Hamira, and Amritsar districts.

Information Technology Industry:
SAS Nagar (Mohali) is a leading center for the electronics hardware industry, ranking second in India after Bengaluru. The region is home to top-grade units specializing in various sectors, including:

• Communications
• Computers and Peripherals
• Electronic Components such as picture tubes, semi-conductors, and active devices

In addition to electronics hardware, SAS Nagar also supports IT and Software companies by providing the necessary infrastructure for setting up their units. This initiative contributes to job creation and employment generation in the state.

Machinery Industry:
The machinery manufacturing industry in Punjab has been instrumental in the industrial development of India. This industry produces a wide range of machinery, including:

• Diesel Engines
• Tractors
• Oil Expellers
• Textile Machinery

Key locations for this industry include Batala, Phagwara, and Ludhiana, where a variety of machine tools of different sizes and types are manufactured.

Sugar Industry:
In Punjab, sugar mills are spread across various locations, including Batala, Gurdaspur, Bhogpur, Phagwara, SBS Nagar, Zira, Morinda, Rakhra, Dhuri, Fazilka, Dasuya, Mukerian, Tarn Taran, Faridkot, and Jagraon. Among these, the co-operative sugar mill in Morinda stands out as the largest in the state. However, when compared to sugar mills in other states, those in Punjab are relatively small in size.

Textile Industry:
Ludhiana is renowned globally for its hosiery and knitting industry, with a history dating back to 1902-1903 when the first woollen sock manufacturing unit was established. Other notable centres for the textile industry in Punjab include Amritsar, Phagwara, Malerkotla, Bathinda, and Barnala. Ludhiana is also a hub for woollen blankets and various garments made from wool.

Cottage and Village Industries

Cottage Industry in Punjab includes handicrafts, wooden furniture, carpet weaving, embroidery, brassware, etc. The Punjab Government has been making special efforts to promote small scale/tiny and cottage industrial services and business units at the rural focal points, to create employment opportunities in rural area.

These focal points are under the control of the Department of Rural Development and Panchayats. The cottage and village industries are of considerable importance in improving the economic condition of the rural population, as they play an important role in the rural economy and its reconstruction.

Khadi and Village Industry Board (KVIB):
The Punjab Khadi and Village Industry Board (KVIB), established in 1956, has been actively involved in creating sustainable employment opportunities for traditional rural artisans and entrepreneurs. The board provides financial assistance and technical support to help set up village and tiny industries. Promotion of Traditional Artisans  KVIB focuses on promoting very small and tiny industries run by traditional artisans, including:

• Weavers
• Spinners
• Cobblers
• Blacksmiths
• Carpenters
• Potters

Main Industrial Centres

Punjab is home to several cities known for their industrial output. Here are some of the prominent industrial centres in the state:

• Mohali, located near Chandigarh, has attracted many 'Sunrise Industries' such as telecommunications. Notable companies in Mohali include Punjab Tractor Limited (PTL), ICI Paints, Tata Communications, Vodafone, Dell, and Ranbaxy.
• Ludhiana district is the leader in industrialisation in Punjab, contributing 28% of the state's industrial output. The district is known for small-scale industrial units producing machine parts, auto parts, household appliances, hosiery, apparel (especially woollen), and garments. Ludhiana is also Asia's largest hub for bicycle manufacturing, with companies like Herocycle and Mahavir Spinning Mill.
• Hoshiarpur, located in the northeast of Punjab, is home to several well-known companies such as Herocycle and Sonalika Tractors.
• Chandigarh has around 15 medium to large industries, including two in the public sector. Important companies in Chandigarh include Infosys, Tech Mahindra, and Wipro Technologies.
• Patiala is a fast-growing industrial area with companies like Mohan Industry, Goyal Fibre Glass Industry, and Kaysons Gear Industries.
• Bathinda is known for major industries such as National Fertilizers Limited, Ambuja Cement, Ultratech Cement Limited, and HMEL Refinery.
• Phagwara is home to several notable companies like Bawa Industries Pvt Ltd and JCT.

Fatehgarh Sahib:

• Powerloom weaving
• Wood and machine screws
• Radios and transistors
• Agricultural implements
• Paints and varnishes
• Dyes
• Electric fans
• Pharmaceuticals
• Printing machinery
• Textiles
• Chemicals
• Soaps
• Acids

Amritsar:

• Cotton ginning and processing
• Pharmaceutical s
• Flour mills

Barnala:

• Agricultural implements
• Cotton seed oil
• Rice bran oil

Moga:

• Steel re-rolling
• Pump parts
• Sewing machine parts
• Truck body building

Gurdaspur:

• Cotton ginning and processing
• Grey board
• Flour mills
• Agricultural implements
• Mill board

Kapurthala:

• Agricultural implements
• Conduit pipes
• Machine tools
• Soap and chemical products
• CI castings
• Brassware

Jalandhar:

• Rosin and turpentine oil
• Paints and varnishes
• Sugar
• Agricultural implements
• Pressure cookers
• Paper and paper board

Pathankot:

• Surgical instruments
• Sports goods
• Hand tools
• Automobile parts
• Cocks and valves
• Pipe fittings
• Bus body building
• Leather tanneries
• Ball bearings
• Publication
• Switch and switch-gears
• Rubber goods

Ludhiana:
The Ludhiana district is known for its production of various agricultural and industrial goods. Some of the key items manufactured in this region include:

• Agricultural Implements: Tools and equipment used for farming activities.
• Pressure Cookers: Kitchen appliances used for cooking food under high pressure.
• Fans: Electrical devices used for air circulation.
• Wood and Machine Screws: Fasteners used in woodworking and machinery.
• Electrical Goods: Various electronic items and appliances.
• Rice Mills: Facilities for processing rice.
• Rubber Goods: Products made from rubber.
• Bolts and Nuts: Fasteners used in construction and machinery.
• Diesel Engines: Engines powered by diesel fuel.

Mansa:

• The Mansa district is recognized for its production of agricultural implements and cotton spinning. Some of the key items manufactured in this region include: Agricultural Implements: Tools and equipment used for farming activities. Cotton Spinning: The process of converting raw cotton into yarn or thread.

Muktsar Sahib:

• Muktsar Sahib district is known for its production of cotton yarn, rice bran oil, and paper. Some of the key items manufactured in this region include: Cotton Yarn: Yarn made from cotton fibers, used for knitting and weaving. Rice Bran Oil: Oil extracted from rice bran, used for cooking and frying. Paper: Various types of paper products.

Nawanshahr:

• Nawanshahr district is recognized for its production of light commercial vehicles, pharmaceuticals, yarn, and sugar. Some of the key items manufactured in this region include: Light Commercial Vehicles: Vehicles designed for transporting goods and passengers. Pharmaceuticals: Medicinal products and drugs. Yarn: Thread used for knitting and weaving. Sugar: Sweetener produced from sugarcane or sugar beets.

Rupnagar:

• Rupnagar district is known for its production of agricultural implements, pharmaceuticals, tractors and parts, and electrical components.

Sangrur:
Some of the key items manufactured in this region include: 

• Agricultural Implements: Tools and equipment used for farming activities. 
• Pharmaceuticals: Medicinal products and drugs. 
• Tractors and Parts: Tractors and their spare parts. 
• Electrical Components: Parts used in electrical appliances and devices.
• Agricultural Implements: Tools and equipment used for farming activities. 
• Tractor Parts: Spare parts and accessories for tractors. 
• Cycle Parts: Components and accessories for bicycles. 
• Sewing Machine Parts: Components used in sewing machines. 
• Milk Products: Dairy products such as milk, cheese, and yogurt. 
• Chilled Rolls: Rolls of dough or pastry kept at low temperatures for storage.

Initiatives by the State Government for Industrial Development

Industrial and Business Development Policy, 2017:
The State Government has introduced the Industrial and Business Development Policy, 2017, to enhance the industrial sector within the state. This policy is based on eight fundamental strategic pillars:

• Infrastructure
• Power
• Micro, Small and Medium Enterprises (MSME)
• Ease of Doing Business
• Startup and Entrepreneurship
• Skill Development
• Fiscal and Non-Fiscal Incentives
• Stakeholder Engagement

Additionally, the policy includes sector-specific strategies to promote growth. It presents attractive opportunities for companies looking to invest in the state.

Startup Cell in Punjab Infotech:

• As part of the Industrial and Business Development Policy, 2017, the Government of Punjab has established the Startup and Entrepreneurship Development Policy 2017. This initiative aims to provide essential secretarial and technical support to the Startup Coordination Committee. The committee's role is to gather and share information about resources, funding mechanisms, investment opportunities, and incentives available to startups in Punjab, all through a single portal.

Fiscal Incentives for Industrial Promotion, 2013:

• The Punjab Government has launched this scheme to encourage new investments in the state. The package offers attractive benefits such as VAT, CST, Stamp Duty, Electricity Duty, and Property Tax, among others. Industries are allowed to retain VAT and CST. Additionally, the scheme provides exemptions from regulatory checks for certain categories of industries.
• In 2018, the operational guidelines were updated to include provisions for exemption or reimbursement of stamp duty for industrial units. The Punjab Government Cabinet also approved detailed guidelines for exemptions from electricity duty, property tax, and a scheme for investment subsidy through VAT-SGST reimbursement. Furthermore, operational guidelines for providing fiscal incentives and interest subsidies to MSMEs were finalized.

Agro-Industrial Policy of 2009:
The Agro-Industrial Policy of 2009 aims to position Punjab as the preferred destination for both global and domestic investors and processors in the agriculture sector. The policy's broad objectives include:

• Increasing Investment: To enhance the flow of investments in agriculture and agro-industries, establishing strong backward and forward linkages.
• Promoting Collaboration: To foster a close interface between research, extension mechanisms, industry, farmers, markets, and consumers.
• Enhancing Value Addition: To increase value addition, thereby boosting the income of farmers and traders while delivering better quality products to consumers.
• Developing Supply Chain Infrastructure: To create modern supply chain infrastructure necessary for agro-industrial development and marketing of agricultural produce.
• Generating Employment: To create employment opportunities, thereby improving the overall quality of life.
• Supporting Small-Scale Units: To assist small-scale agro-based units in remaining competitive in a globalized market.
• Boosting Exports: To increase the export of fruits, vegetables, and value-added agro products.

Business First Portal:
The state acknowledges the importance of creating a supportive environment for industries and businesses. To enhance the Invest Punjab initiative, the state plans to establish the Business First Portal. This portal will offer all services and fiscal incentives through a single integrated platform, ensuring business-friendly service delivery. Additionally, the state will set up District Bureau of Enterprise to provide a wide range of services to industries.

Cluster Projects:
According to the Economic Survey 2017-18, the State Government has identified 20 clusters under the Micro and Small Enterprises Development Programme. The Government of India has approved two major projects under the cluster scheme:

• Project for Hand Tools Cluster in Jalandhar
• Project for Foundry and Machine Tool Cluster in Batala

The Department of Industries and Commerce of Punjab has also introduced an ongoing Allotment Scheme. This scheme allows entrepreneurs looking to set up projects to request industrial plots in Industrial Focal Points according to their requirements at any time.

E-Industry Portal:

• The government has established an e-Industry portal to facilitate online transactions and enhance business opportunities.

Hi-Tech Cycle Valley:

The State Government has announced the creation of a Hi-Tech Cycle Valley in Ludhiana to promote the cycle and cycle parts industry. The objective of this initiative is to foster an ecosystem for high-tech bicycle manufacturers.

• Technology Upgradation: The project aims to incentivize technology upgrades, ensuring that Ludhiana's cycle industry remains relevant and competitive in the global market.
• Industry Relevance: By promoting advanced manufacturing practices, the Hi-Tech Cycle Valley will help local manufacturers keep pace with international standards and innovations.

Invest Punjab Kendras:

• To promote industrial activities, Invest Punjab Kendras are being established in every district under the 'Invest Punjab' initiative. These Kendras, led by Deputy Commissioners and General Managers of District Industries Centres, will offer support to startups, address grievances, and provide investment promotion and fiscal assistance.

Industrial Parks:
The government has designated specific areas for the production of particular goods, which are as follows:

• Kapurthala: Integrated Mixed Use Industrial Park
• Banur (Mohali): Footwear Design and Development, and Leather Apparel Park
• Jalandhar: Sports Goods Park
• Bathinda and Ludhiana: Plastic Parks
• Mohali: New Cargo Export Centre
• Rajpura: IT and ESDM Park

Mega Food Parks

The Punjab Government has given the green light for the establishment of two Mega Food Parks within the state. One of these parks has already been inaugurated by the Punjab Agro Industries Corporation (PAIC) in Ludhiana, while the second park is planned to be set up in Phagwara.

Micro, Small and Medium Enterprises (MSME):

• To promote development in rural and backward areas, the Micro, Small and Medium Enterprises (MSME) sector aims to encourage small and village industries. A Facilitation Council has been established in Chandigarh under the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. This council operates at the state level to address various issues faced by MSMEs, such as delayed payments from medium and large industries, as well as public sector undertakings.
• Additionally, the State Government has decided to create an organization called 'MSME Punjab'. This organization will focus on the development and upgrading of various MSME clusters across the state.

Small Industries Service Institute:
The Small Industries Service Institute was established in Ludhiana in 1956. Its primary objectives include:

• Marketing Assistance: Helping small industries promote and sell their products.
• Entrepreneurship Development: Providing training and support to individuals looking to start their own businesses.
• Skill Development: Offering programs to enhance the skills of the workforce.
• Management Development: Training for improving management practices in small industries.
• Counselling Services: Providing various types of counselling to entrepreneurs and small business owners.

Special Economic Zones (SEZ)

• The Central Government has approved the establishment of 17 Special Economic Zones (SEZ), with 2 zones already notified in the Mohali district of Punjab. Additionally, one more SEZ has been recommended to the Government of India for approval in Mohali.
• SEZs enjoy exemptions from state taxes, duties, cess, and registration fees. These incentives are aimed at boosting the industrial sector and attracting investment.

Progressive Punjab Investor Summit:

• The Progressive Punjab Investor Summit is an event that highlights the investment opportunities available in various sectors such as Information Technology, Hardware and Electronics, Agro and Food Processing, Textiles, and Light Engineering.
• The first summit took place in December 2013, followed by the second one in October 2015, both held at the Indian School of Business in Mohali. These summits successfully attracted investments into sectors like textiles, engineering, information technology, agro and food processing, tourism, health, and life sciences, among others.

Punjab Start-up Summit 2018:

• The primary goals of the Summit are to foster a dynamic entrepreneurial ecosystem in Punjab.
• To encourage start-ups in Punjab to nurture, implement, and expand their business ideas while aligning with the 'Make in India' and 'Digital India' initiatives.
• To facilitate the sharing of ideas, best practices, and the development of solutions and partnerships that benefit the state of Punjab.

Punjab Bureau of Investment Promotion (PBIP):

• The Punjab Bureau of Investment Promotion (PBIP) is a key agency established to facilitate and enhance the ease of doing business in the state. Its primary role is to streamline various procedures and formalities associated with setting up and running a business, thereby encouraging more investments in Punjab. The PBIP aims to create a conducive environment for businesses by providing necessary support and resources, making it easier for investors to navigate the regulatory landscape.

Punjab's Department of Industries and Commerce:

• The Punjab State Government is committed to establishing a robust industrial infrastructure. This includes improving the transport network, ensuring a reliable supply of electricity, and providing a skilled labor force to support industrial development.
• To achieve these goals, the department is supported by various corporations and organizations.

Department of Technical Education and Industrial Training (DTEIT)

• The Department of Technical Education and Industrial Training (DTEIT) in Punjab was established on June 10, 1977.
• Its industrial training wing is responsible for providing vocational training in both engineering and non-engineering trades. This training is part of the Craftsman Training Scheme, which aims to meet the industry's demand for skilled workers.

Punjab Finance Corporation (PFC):
The Punjab Finance Corporation (PFC) was established under the State Financial Corporation Act of 1951. Its primary purpose is to provide medium and long-term loans to small and medium-scale industrial enterprises in the state. PFC offers financial assistance under various schemes for sectors such as tourism, health, transport services, infrastructure, and agro services.

Punjab Small Industry and Export Corporation Ltd. (PSIEC):
The Punjab Small Industry and Export Corporation Ltd. (PSIEC) was founded in 1962 to support small-scale industries in Punjab. Its main activities include:

• Distribution of iron and steel materials.
• Development of infrastructure.
• Promotion of exports from small-scale industries.
• Marketing products manufactured in small-scale units.

PSIEC is also a designated agency for implementing the Central Government Scheme known as Assistance to State for Developing Export Infrastructure and Allied Activities (ASIDE).

Punjab State Industrial Development Corporation Ltd. (PSIDC):
The Punjab State Industrial Development Corporation Ltd. (PSIDC) was established in 1966 with the aim of promoting planned industrial development in the organised sector and accelerating industrialisation in the state of Punjab. Registered under the Companies Act of 1956, PSIDC focuses on facilitating large and medium-scale projects, playing a crucial role in driving major initiatives within the evolving economic landscape.

Punjab Agro Industries Corporation Ltd. (PAIC):
The Punjab Agro Industries Corporation Ltd. (PAIC) was set up in 1966 with the goal of providing quality agricultural inputs such as fertilizers, pesticides, and tractors to farmers. PAIC is responsible for establishing public sector projects in the agro and food processing sectors, as well as creating the necessary facilities and infrastructure for setting up food processing units in the state.

Punjab Corporate Social Responsibility Authority (PCSRA):
The Punjab Government has established the Punjab Corporate Social Responsibility Authority (PCSRA) to promote sustainable CSR contributions from both Government Public Sector Undertakings (PSUs) and private sector companies. The aim is to ensure optimal utilization of the CSR Fund. Additionally, the State Government has made it mandatory for certain firms to allocate 2 percent of their average net profit from the last three financial years towards activities focused on social welfare.