Punjab leads other states in Textile and Hosiery production

Having an industrial promotion and growth index of 1.8 per cent which is far better than what the nation averages, Punjab leads India in textile industry. With incentives provided by the government for people wishing to enter the industry and to those already in it Punjab has risen to be the best among all.

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Punjab has been called by many as one of the richest states in India, and all this is due to the ability of the people and their hardworking attitude. Be it agriculture or Industry sector, Punjab has seen the top of it all it still continues to rise not just in the nation but beyond it. Soon Punjab will be known for its textile and Hosiery manufacturing industry. Punjab not just owns the Textile industry, Cycle and Tractor production in Punjab is more than any other state in the nation.

The people take initiative here in Punjab and along with incentives from the state government under Shiromani Akali Dal (SAD) and BJP alliance the state has seen its rise.

Additional chief secretary Industry and Commerce rightly said that Entrepreneurship runs in the blood if Punjabis, and it is this zeal that has now led it to certain heights on the national stage. Manufacturing is done at its best and on the largest scale in the state of Punjab. With efficient labour and machinery Punjab has given itself the edge over other states. Spinning and Hosiery exports are other key elements which make it able for Punjab to top the nation in Textile based industry.

Weaving sector now gets six per cent interest rate rising from the previous five per cent one. Developments in apparel parks along with positive textile policy the state offers various opportunities for investment. It has been recorded that the Average gross Domestic Product of Punjab was around 50.9 Billion USD and a major role here is played by Textile industry alongside Agro based industry.

Yarn, Readymade garments and Hosiery are other emerging segments of the industry. Punjab is a key producer of light engineering goods, automotive components and textiles too. The state of Punjab is above all other states in the industrial promotion growth index, which can be made sure by having a look at the 1.8 per cent of index of industrial growth in Punjab. The national level witnessed just (-) 0.7 per cent.

Textile industry has flourished so in the state, providing employment to many. The incentives by the state government and the centre have been a great reason for the rise of the industry in Punjab. The credit also goes to the skills of the people who have worked towards attaining success in this field.

Ludhiana takes credit for all the industrial growth in the nation, Hosiery and readymade garments are produced here. Ludhiana is the largest exporter of hosiery items in India. These are not just exported to other states of India but also exported abroad. Oswal group in Ludhiana manufactures top brands like Monte Carlo and also garments.

Even the Textiles and Yarn Industry take house in the Ludhiana. Vardhman group is the largest contributor here.  JCT fabrics id produces in Phagwara city and Barnala is home to the Trident group, one the very eminent textile manufacturers.

Bicycle & Tractor Industry a fillip for Punjab Economy

With sizeable grants and compensations from the government the leading brands in the Bicycle and tractor production market have established their primary manufacturing units in the state of Punjab. Hero, Avon and other cycle brands produce and export cycles adding to the economy of the state. Tractor production by Swaraj and Sonalika group has also taken benefits and export their product from Punjab to other states.

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With a GDP of US$ 47 Billion Punjab contributes to the Indian economy in a very decent way. On the international stage Punjab produces 2% of world’s cotton. Agriculture here has at its prime since the green revolution, but that is not all. Punjab has some fast growing industries too. Ludhiana is the state’s industrial hub and houses many industries. There are small scale industries and even large scale industries. Punjab is also the leading state in the Bicycle and tractor Production.

Punjab state produces Bicycle and Bicycle parts in the industrial city of Ludhiana. Industries like the hand tools, sewing machines, machine tools along with Bicycle and bicycle parts are a major sector in the Economy of Punjab. 80% of the bicycle parts produces in India are made here, in Punjab and 15% of all the bicycles are made here too.

Leading Companies like Hero Cycles and Avon Cycles have established their industries in the state and have been providing immense employment statistics and also contributing to the Economy. Hero Cycles is a part of one of countries top ten business houses. Hero cycles have established their main manufacturing unit in Ludhiana. They even plan to expand the plant with US$ 4.4 million.

Avon Cycles is another large bicycle manufacturer based in Ludhiana. The production capacity of Avon is 5,000- 8,000 cycles per day. It is also the largest exporter of bicycles.

It has been estimated that around 50,000 bicycles are manufactures in the City of Ludhiana in a day. A huge chunk of people in the city are there dependent for their livelihood from bicycle manufacturing industry. It has been said to be a 1.12 billion USD industry. The major demand for bicycles comes from Uttar Pradesh and Bihar. Only 4% of the bicycles produced in Punjab are sold here rest are exported to other states.

It has been easy to set up all the leading industries like the bicycle industry with the efficient plans of the government. Over 4,000 small, medium and large bicycle industries have been set up and all this has been possible with the efficient work force of the Government of Punjab. With the time lines being followed by the officials the factory plan get approved within 30 days and the license for running a factory is granted in 15 days.

The leading tractor manufacturing groups, International Tractors Ltd. and Punjab Tractors Ltd. (Swaraj Enterprises) have been set up in Punjab which gives the tractor manufacturing industry a boost.

The Sonalika group, which is the International Tractors Ltd., produces 37000 tractors per annum. These are further exported to South Africa, Australia, Sri Lanka, Canada and many other nations. 25% of the tractors manufactured in India are from Punjab.

Punjab on Investment Promotion Mode

The industrious nature of the people of Punjab, progressive and transparent policies of the government, continuous investment in human capital, development initiatives, robust infrastructure development and good governance have put Punjab on the trajectory of fast growth in the last six years, said the deputy chief minister of Punjab, Sukhbir Singh Badal .The set – up of the Bureau of Investment Promotion has been contributing in large numbers towards the economic growth of the state.

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The Bureau of Investment Promotion, Punjab is a meeting point for the regulatory clearances and attractive fiscal incentive approvals. It provides a one stop clearance to the investors, keeping in view the preferable investment destination in terms of abundant quality power, class logistics, end to end communication network, highly skilled manpower and enterprise and high quality social infrastructure.

The business rules of the Department of Investment Promotion, are to interact with industry at National and International level to promote investment in Punjab and to consistently deal with several proposals.

The visionary far sight of the deputy chief minister Sukhbir Singh Badal is clearly by his statement at the Invest Punjab summit that, “When investors come to India why they should go to 100 departments of government of India? There should be one Invest India in Prime Minister’s office under the Prime Minister. Anybody who walks in there should be a one number, one man, one email and one month clearance for those who wants to invest in India that will be the game changer.”

The Bureau of Investment Promotion facilitates fiscal incentives and investment proposals of about 23 departments, some of which include pollution, labour, industry, forest and the electricity department. The head of the department, Anirudh Tiwari IAS, the Chief Executive Officer (CEO) and the secretary of the administrative department, Karan A. Singh IAS have been conducive towards the Fiscal Incentives for Industrial Promotion, (FIIP) 2013 and attracting lucrative investors for the set – up of new industries in the state.

The Shiromani Akali Dal – BJP led state government, witnessed the signing of 378 Memorandum of Understanding (MoU), and approvals of about Rs. 1.15 lakhs in the Progressive Punjab Investors Summit. Studies have proven that radical initiatives of the state government such as the setting up of The Bureau of Investment Promotion, has been successful in attracting lucrative investments in the state by huge investors from all over the globe. Punjab’s rise is a defining storyline of the early 21st century. Owing to the concentrated leadership of the state government, Punjab is marching on the road of economic growth and stability.

ITI’s providing Umpteen Opportunities to Youngsters

With the vision to enrich and empower all individuals through improved employable skills or knowledge in nationally and internationally recognized qualifications to gain access to decent employment and ensure Punjab’s competitiveness in the national and global market, the department of Technical education and Industrial Training is operating efficiently in the state.

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Industrial Training Institute and Industrial Training Centers are the junior polytechnic institutes, which incubate training in technical fields, mainly constituted under the Directorate General of Employment & Training (DGET), Ministry of Labor & Employment, Union Government of India.

With about 234 Private Industrial Training Institutes in Punjab, the state has witnessed the Industrial sector to be augmenting since the last decade. The department of Technical education and Industrial Training has been divided into two wings, which are –

  1. Industrial Training Wing – The Industrial Training Wing, looks after the Industrial Training Institutes, Vocational Training Providers and the other Institutes of Skill development under various schemes of the central and the state government.
  2. Technical Education Wing – The Technical Education Wing, looks after the Post Graduate, Degree and Diploma level Institutes in the fields of Engineering, Management, Pharmacy, Hotel Management and Architecture.

Under the responsive Shiromani Akali DalBJP led state government, the department of Technical education and Industrial Training has been successfully creating technicians under the Craftsmen Training Scheme. The Craftsmen Training Scheme was initiated in the year of 1950 by, The Directorate General of Employment & Training (DGE&T) in the Ministry of Labour, Government of India. With the visionary motive of imparting skilled manpower by vocational courses, about 50 Industrial Training Institutes were set up which have evidently increased with time immemorial, reason being the augmenting manpower requirements for technology, industrial development and economic growth of the country.

In order to march towards expansion, development, quality improvement and excellence in the Industrial Training sector, the department of Technical education and Industrial Training directed majority of the Industrial Training Institutes towards entering into a Memorandum of Understanding (MOUs), with various industries. So that, the students could easily avail hands on job training.

In contrast to the professional courses in tailoring, stitching, knitting etc. the revolutionary initiative of the Industrial Training Institute, Sangrur to introduce vocational courses in fashion designing, computer application, hair and skin care for women, contributed towards creating a pool of opportunities, employment and progression for the women candidates. The government Industrial Training Institute, Rajpura has also been contributing in large numbers for strengthening competitiveness, and enhancing skill development in women through various vocational courses, for both skilled an un-skilled employment opportunities.

It would not be wrong to claim that, the department of Technical education and Industrial Training has enhanced the skills of the human resource, provided placement and employment opportunities, accelerated the competitiveness and helped the Punjab to achieve the state and national targets for the skilled and un – skilled job opportunities. Owing to the same, the state has witnessed an upward growth trajectory by achieving rapid and inclusive growth.

Traders a Happy lot in Punjab

Traders in the state of Punjab have been the beneficiaries of several schemes taken out by the state government which helps them enhance their business by providing them with various benefits. In 2013 when Deputy Chief minister Sukhbir singh Badal announced the ‘New Traders policy’. It was well received by the trader of the state. It came out with the purpose of attracting more investors and making the trader government reason more transparent.

Traders a Happy lot in Punjab.pngThe Small traders in the state of Punjab were on the receiving end of the scheme too. By giving them some leverage to pay Value Added Tax, government has decided to provide small traders with social security net.

The Raahat scheme as it is known is a great one for the traders having a turnover of Rs 1 crore or less. They can opt to pay tax in lump sum. The Raahat scheme is for Small town traders falling under Class 2 and class 3. People who have opted for this scheme can pay tax due in four Equal Quarterly instalments.

There are many benefits that the traders can avail under the Raahat scheme. Any business premises owned by a person registered under the scheme cannot be inspected without prior permission from the Excise and Taxation Commissioner.

If the premises is examined by any officer without prior permission from the Excise and taxation commissioner, the trader can lodge a complaint which will then be looked on by the commissioner himself.

The single taxation system in the state also gives the traders the benefit of being free from the accounting and taxation procedures. Under this the traders have to give tax only in the production stage. This tax consists of all the tax, even the tax which would been given after the production. This does away with the paper work in every stage.

The VAT in latter months of 2015 was also brought down to 4.95 per cent by the state government. The VAT in Punjab stood at a staggering 6.5 per cent but after the IFCC took the matter to the Deputy Chief Minister and Revenue minister, this has been lowered. The new low rate of VAT gives the traders another benefit in their hands.

The trader’s policy gives the traders of Punjab a lot of benefits. It helps in getting investment into the state by attracting more and more traders into the state. The growth of traders benefits the government so this makes it a ‘quid pro quo’.

Traders in Punjab even get insurance schemes especially for them. These schemes are the first of its kind in India. These insurance schemes are for traders with a turnover up to Rs. 1 crore.

Under the Accidental death &disability Insurance cover, the traders will be given cover of Rs. 2 Lakhs. Fire insurance gives a cover of Rs. 5 lakhs if the stock is damaged by fire kept in a registered location. Whereas the Health Care cover gives Rs. 50,000.

There are about 1.86 lakh traders that benefit from the scheme. The various benefits of insurance, social security net, the raahat scheme and other small benefits help the traders to grow at a rapid pace in the state.

New canneries by Markfed: A step towards economic development

Markfed is one of the Asia’s largest marketing cooperative federation. Punjab’s Markfed has a turnover of over 2 billion USD, and has won fathomless recognition and awards by the Government of India for its contribution in various fields of excellence. It is a marketing federation of over three thousand societies, which represents the interests of millions of farmers across the Punjab state.

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Markfed has been pro – actively contributing towards the development of the agricultural sector in the state, with the visionary motive of value addition to the agriculture produce for export and domestic market. It has invested about Rs. 25 crore, of which 11 acres of land has been acquired near Jalandhar with the view of establishing State of Art food processing unit. The Shiromani Akali Dal – BJP led state government has always been conducive towards the needs of the farmers, which is clearly evident by its selfless initiatives taken for accelerating the growth of the agricultural sector.

One such initiative was taken in the year of 2015, when the Punjab Chief Minister, Parkash Singh Badal dedicated the state-of-the Art cannery set up by Markfed in the state.

The Markfed cannery in the state, involved the investment of approximately Rs. 50 crore by the state government. With the set up of the same, the production capacity in comparison to the old unit is witnessed to increase by triple times. The plant has been successful in replacing the conventional and traditional techniques of production to the latest and scientific techniques of production, with the fully automated State of the Art grinding and packaging lines. Thereby, making it one of the most efficient and effective plant of the country.

The plant which was equipped to produce 66 lakh cans and 48 lakh pouches of ready to eat food per annum, has now been efficient enough to produce 5.60 lakh cans of fruit syrup and 18 lakh bottles of jam and ketchup, on yearly basis. With the support of the far sighted state government, Markfed has been successful in gaining popularity across the globe, it terms of wonderful quality and hygiene. The honorable Chief Minister, Mr. Parkash Singh Badal stated that approximately 88% of the production of the old Markfed canneries were exported to the highly developed countries such as United Nations, United Kingdom, Canada, Australia and the other European nations.

The foundation stone of Markfed, Honey processing plant had also contributed in large numbers towards the diversification of the agricultural sector, and nudging the farmers for adopting allied farming activities as goatery, piggery, bee keeping etc. for supplementing their income levels. The radical initiative of the state government, to set up new canneries by Markfed, has been accomplishing twin objectives of accelerating the growth rate and expanding the economic prospective of the farmers, and stimulating the agricultural sector in the state.

Industry summits a big hit for investments in Punjab

Thanks to industry friendly measures by the government a number of leading entrepreneurs have exhibited interest in making investment in a number of projects in the city. The two industry summits which were held by the state government in last over couple of years and the visits by the foreign delegates, in fact would bear testimony to the vibrancy and the buzz which the industry friendly initiatives have created all over the state.

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During the summits investment agreement to the tune of over Rs 1.72 lakh crore were signed by various leading firms. More remarkable was the fact that amongst the investment agreements of Rs 65000 crore, as many as 53 investment proposals of about Rs 4,881.99 crore were from the agree-processing category.

As many as 55 MoUs were signed in the food processing sector alone infusing to promise an investment to the tune of Rs 8,000 crore.

The Deputy Chief Minister Sukhbir Singh Badal has been elated about the investment and had said after the summits that the signing of MoUs was likely to provide employment to over 2.5 lakh youth all over Punjab.

Big firms’ proposals and contribution
Mukesh Ambani’s Reliance has already invested Rs 3,900 crore in Punjab and the 4G network has been rolled out making state well equipped with the mobile network. Similarly ITC had already increased its investment in the Kapurthala food park from Rs 700 crore to Rs 1,400 crore.

We have plans of investing in setting up a kinnow processing plant here besides expanding our potato seed business and investing in agro forestry,” ITC head Deveshwar had maintained while adding that the company had plans of investing in a luxury hotel or a convention centre in Chandigarh.

Government’s e-governance initiatives too have paid off well and the ICICI Bank has signed MoU for taking part in the e-governance initiatives of the state government. These would include developing skill development centres and offering customised financial services while raising the number of bank’s branch network in state.

Some of the key proposals for investments in Punjab:

  • ITC’s proposal worth about Rs 680 crore for setting up of integrated food processing cum logistics centre.
  • A multi model logistic park with an investment of Rs 500 crore by the Container Corporation of India.
  • A seed potato project with an investment of about Rs 18 crore by Mahindra & Mahindra.
  • DLF Universal’s investment which has the largest sum of investment so far of (Rs 9,200 crore in the real estate sector.
  • GVK Industries’s proposal to invest Rs 5,000 crore for setting up medical colleges.  Adani Group’s proposal of investing Rs 3,700 crore for setting up a 500-MW solar power plant.

Kings College, London, has also evinced interest in investing 100 million pounds (Rs 1,000 crore) for setting up Florence Nightingale College of Nursing, a medical college and a hospital at Medicity in New Chandigarh and has signed MoU with the Punjab government.

Most of the industrialists who had taken part in the summit were all praise for a series of measures which were announced by the Punjab government for investors.

In particular there was a specific mention of fiscal incentives which have been offered by the Punjab government under Punjab’s Industrial Policy.

Foreign delegations

Industry delegation from Poland, led by state minister of economy Jerzy Witold Pietrewicz too during his visit promised to invest in information technology. A delegations from China and Hungary promised participation in food processing. Chief Minister Parkash Singh Badal has also asked the industrialists signing MoUs with Punjab to set up a skill development centre in the state. Industry Minister Madan Mohan Mittal claimed Punjab offered the best investment atmosphere in the country.