Punjab's industry should be given incentives at par with neighbouring hilly regions: Bhagwant Mann

Chandigarh, Oct 23 (PTI) Punjab Chief Minister Bhagwant Mann on Wednesday emphasized on the need for incentives and concessions for Punjab's industrial sector, similar to those enjoyed by hill states.

Addressing the inaugural session of a workshop "MSME exports as drivers of growth for Punjab" here, the Chief Minister said as a border state, Punjab deserves a special "ease of doing business" status, which would aid in comprehensive industrial development.

Describing industries as the pivot of Punjab's development, Mann said it is the need of the hour to provide subsidies and concessions to Punjab industry at par with hill states.

He pointed out that due to the preferential incentives given to hilly regions in neighbouring Himachal and J&K, as it particularly affects Punjab's industry which lies in the vicinity of areas like HP's Baddi and Jammu, Mann said.

The workshop was jointly organised by NITI Aayog and the Confederation of Indian Industry here.

Mann announced that the state is prepared to charter exclusive trains for Punjabi entrepreneurs, enabling them to ship their goods economically to Kandla port, boosting profitability and trade.

Describing MSMEs as the backbone of Punjab's economy, Mann said MSMEs play a crucial role in the economic development, significantly contributing to GDP, employment generation, and exports.

Speaking on the occasion, Suman Bery, Vice Chairman, NITI Aayog, emphasized the importance of supporting MSMEs while acknowledging the challenges they face.

"Our MSMEs often struggle to secure the funding they need to expand and innovate. The shortage of skilled labour is a persistent issue, particularly in sectors like textiles and hand tools. High transportation costs make it difficult for our businesses to compete in price-sensitive markets," he said.

Meanwhile, Bhagwant Mann further emphasized that Punjab, sharing a 532-kilometer-long border with Pakistan, acts as a first line of defense for the country.

He also highlighted the global presence of Punjabis, who have made their mark in various industries worldwide.

Mann noted that Punjab, though accounting for just 1.5 per cent of India's total land area, contributes nearly 2.5 per cent to the national economy and 1.6 per cent to India's exports.

Mann pointed out that Punjab has a strong base of nearly two lakh MSMEs, which provide large-scale employment opportunities.

He highlighted that Punjab is the third-largest producer of wheat and rice, the largest producer of machine tools, hand tools, and bicycle components, and a leader in horticulture crops such as mandarins, carrots, musk melons, and honey.

Moreover, the state is a key player in India's woolen knitwear production, sewing machine manufacturing, and sports goods production, he said.

Listing the state government's initiatives to support MSMEs and boost exports, Mann noted that Punjab's Industrial and Business Development Policy 2022 (IBDP-2022) offers a holistic approach with ease-of-doing-business reforms and fiscal incentives for both existing and new units.

He mentioned that since the implementation of IBDP-2022, Punjab has attracted investments worth Rs 76,915 crore.

To further industrial growth, the state has established an Industrial Advisory Commission to support key industrial clusters. Dedicated sector-specific parks have also been developed, and the state is encouraging districts to become export hubs to boost rural economic growth and employment generation, he said.

The state government has also set up District Export Promotion Committees to facilitate MSMEs in navigating export procedures. PTI SUN DRR