Ludhiana: Punjab budget evokes mixed reactions from industry bodies
The World MSME Forum strongly opposed the budget, calling it a “setback” for the sector; forum president Badish Jindal pointed out that despite government claims of boosting investment, the industry budget had actually dropped from ₹3,449 crore ₹3,425 crore; he also criticised the reduction in allocations for village and small industries
The Punjab government’s latest budget has sparked a mixed response from the state’s industrial sector. While some industrial associations welcomed key announcements aimed at boosting growth and Micro, Small and Medium Enterprises (MSME) support, others called the allocations as insufficient and lacking in critical areas.
Honey Sethi, general secretary of the Chamber of Industrial and Commercial Undertakings (CICU), lauded the state government’s efforts, saying the measures would promote industrial productivity, attract investment, and generate employment. “These steps mark a progressive move toward making Punjab an industrial leader,” he said.
He added that in a move aimed at driving industrial development, the government announced several initiatives during the Budget presentation. These include ₹250 crore in incentives for industries, ₹120 crore for MSME development, and ₹3,426 crore allocation for subsidized power. Additionally, ₹10 crore has been earmarked for a research and development centre in Ludhiana to focus on auto parts and hand tools technology, he added.
However, not all industry voices shared the optimism.
The World MSME Forum strongly opposed the budget, calling it a “setback” for the sector. Forum president Badish Jindal pointed out that despite government claims of boosting investment, the industry budget had actually dropped from ₹3,449 crore ₹3,425 crore. He also criticised the reduction in allocations for village and small industries.
“The government boasts of attracting ₹92,000 crore in investments, yet fiscal incentives have only grown marginally from ₹124 crore to ₹250 crore,” Jindal stated. He added that industrial infrastructure remains neglected, with a stagnant budget of ₹50 crore and only 50% of it utilised. “The incentive on power for investment has also been reduced from ₹1,121 crore to ₹875 crore,” he said.
Pankaj Sharma, president of the Association of Trade and Industrial Undertakings (ATIU), took a more balanced stance. Welcoming the ₹10 crore provision for the R&D and Auto Parts Centre in Ludhiana, Sharma said that the allocation was a direct result of industry demands voiced during the recent “Sarkar-Sannatkar Milni” meeting with the chief minister. He also appreciated the continued subsidised power provision, noting that Punjab hasn’t added significant new power generation in the last 25 years despite a 15% annual rise in demand.
However, Sharma noted the budget fell short on provisions for cheaper financing for MSMEs—an urgent and long-standing demand.
United Cycle and Parts Manufacturers Association (UCPMA) president Harsimran Lucky expressed disappointment over the lack of support for the MSME sector, he also criticised the government for failing to introduce any beneficial policies for small industries.
“No changes have been made for MSMEs, and we have received nothing substantial. We demand a strong package to support our sector and measures to promote exports. We had specifically requested additional benefits for exports, as shipping costs have risen significantly. Earlier, sending a container cost ₹80,000, but now it has increased to ₹1.10 lakh,” said Lucky.
