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February 25, 2026 4:50 pm

Industrial Leaders Call for Urgent Action to Revive Punjab’s Manufacturing Sector

Mohali:

Once regarded as the industrial pride of North India, Punjab today faces a critical juncture as slowing growth, declining competitiveness, and mounting challenges threaten its industrial ecosystem. Industrial leaders have called for urgent, collective action to revive the State’s manufacturing strength and restore investor confidence.

From agro-based industries and engineering units to textiles, plastics, and small manufacturing enterprises, Punjab once stood among India’s leading industrial states. However, rising input costs, regulatory pressures, infrastructure gaps, policy uncertainty, and prolonged GST disputes have weakened the sector. Several industrial units have either stagnated, relocated, or shut down, raising concerns about employment and economic sustainability.

Mohali, long seen as a symbol of new-age industrial growth and technological promise due to its strategic location and international airport connectivity, is also grappling with significant challenges. Industrialists cite deteriorating infrastructure, high electricity tariffs, lack of clarity in pollution norms, labour shortages, skill mismatches, and limited institutional support as major obstacles. The widening gap between Mohali’s potential and ground realities has become a matter of concern.

Industry representatives emphasize that this is not merely an economic issue but a broader social challenge, directly impacting youth employment, entrepreneurship, and regional prosperity. With India’s youth population expected to exceed 50 percent by 2030, stakeholders warn that lack of domestic opportunities could accelerate brain drain unless a strong industrial base and skill development ecosystem are established.

Special emphasis has also been placed on women empowerment and gender inclusion as vital economic drivers. Integrating women into entrepreneurship and industrial activities, they argue, can significantly strengthen both the economy and social fabric.

Key Challenges Highlighted

Industrial leaders have outlined several pressing concerns:

  • MSME Neglect: Small and medium enterprises, which contribute nearly 80 percent of industrial revenue, face high land costs, unreduced power tariffs, and unclear GST rebate mechanisms. Many remain unaware of government incentives due to weak policy outreach.

  • Health & Social Security: ESIC and ESI hospitals, despite regular contributions from employers and employees, have reportedly remained in poor condition, undermining trust in social security systems.

  • Governance & Efficiency: Delays in file movement, lack of accountability, and administrative inefficiencies discourage industrial expansion. District Industries Centres (DICs) exist but their performance metrics remain unclear.

  • Solid Waste Management: Unscientific waste disposal has led to mounting waste piles in urban and industrial areas, highlighting the need for systemic reforms and public awareness.

  • Energy & Environmental Policy: Concerns have been raised over contradictions in environmental policies, particularly regarding electric vehicles and coal-based power generation. A holistic energy strategy has been advocated.

  • Skill Development Crisis: Traditional trades are witnessing declining interest among younger generations, posing risks to the availability of skilled manpower in foundational sectors.

  • Stubble Burning: Industrialists have urged government intervention to scale up the use of paddy straw as industrial fuel or for board manufacturing to curb air pollution.

MIA’s Call for Proactive Leadership

In this context, the Mohali Industries Association (MIA) has been urged to transform from a passive representative body into a proactive, solution-driven institution.

The newly elected President of MIA stated that silence and fragmented efforts are no longer viable. He emphasized the need for structured advocacy with the government, transparent communication with members, capacity building initiatives, youth-focused skill programs, improved healthcare engagement, and measurable collective outcomes.

Industry stakeholders believe that with coordinated efforts between government, associations, and entrepreneurs, Punjab can reclaim its industrial vitality and restore confidence in its economic future.

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