Punjab’s New Industrial Policy: Boon or Bane?

Punjab has unveiled a new set of notifications aimed at boosting investment and streamlining business operations within the state. Key changes include allowing greater flexibility in the use of industrial plots and facilitating the conversion of leasehold land to freehold.

These amendments, announced on July 9, 2025, are intended to make the state more attractive to investors. Industrialists largely welcome the increased flexibility.

However, a significant point of contention is the substantial increase in conversion charges associated with changing leasehold plots to freehold. This has drawn criticism from the industrial community, who feel the costs are prohibitive.

The success of this new policy hinges on striking a balance between attracting investment and ensuring the charges remain reasonable. The affordability of land conversion will ultimately determine the policy’s effectiveness in revitalizing Punjab’s industrial sector and creating jobs for its citizens.