Punjab Ditches Subsidies, Bets Big on Business-Friendly Ecosystem
Punjab is set to unveil a new industrial policy by year-end, prioritizing ease of doing business over traditional fiscal incentives. The Aam Aadmi Party (AAP) government, under Chief Minister Arvind Kejriwal, has opted for a different approach.
The policy, expected to be released by December 31, 2025, will focus on creating a robust and supportive business environment. This strategy emphasizes streamlined processes and efficient regulations to attract investment.
Instead of offering direct financial subsidies, the AAP government believes in fostering sustainable growth through a simplified regulatory framework. This will reduce bureaucratic hurdles and encourage private sector participation.
This shift in approach marks a departure from previous industrial policies in Punjab, which often relied heavily on fiscal incentives. The government’s confidence lies in the belief that a strong ecosystem will naturally attract investment.
The success of this new strategy will be crucial for Punjab’s economic future. It will determine whether the state can attract significant investment and create much-needed jobs without the crutch of subsidies. The coming months will be critical in observing the policy’s rollout and its impact on the state’s industrial landscape.
