Photo Source: Babushahi Bureau
Punjab to strengthen MSME sector with dedicated agency, says Minister Sanjeev Arora
Babushahi Bureau
Chandigarh, March 15, 2026:Punjab Cabinet Minister Sanjeev Arora on Saturday said that Micro, Small and Medium Enterprises (MSMEs) are playing a crucial role in India’s economic growth, contributing nearly 25 to 30 percent to the country’s GDP. He urged entrepreneurs and industry leaders to increasingly adopt artificial intelligence (AI) to streamline business operations and improve efficiency in day-to-day work.
Addressing an MSME session, Arora described MSMEs as the “executing arm of the economy” and the natural manufacturing engine of the country. He said the Punjab government is focusing on the modernization and expansion of MSMEs, emphasizing that industrialists should prioritise price competitiveness and product quality over excessive marketing to increase demand.
Highlighting the state’s industrial potential, the minister noted that Punjab has no shortage of skilled manpower, which provides a strong foundation for the growth of manufacturing and small businesses.
Arora further revealed that the Punjab Government plans to establish a dedicated agency for MSMEs to strengthen the state’s industrial ecosystem. With a strong base of nearly 1.6 lakh MSME units, the proposed platform aims to transform the sector into a dynamic and globally competitive segment of the economy. The new institutional mechanism will help enhance competitiveness and improve access to finance, technology, markets and skills, while also promoting cluster-based industrial development.
According to the minister, the state will adopt a cluster-based strategy to accelerate the growth of MSMEs. This approach will allow enterprises located in the same region to benefit from shared infrastructure, economies of scale and collective efficiency. Punjab also plans to make better use of existing cluster development schemes and introduce state-level cluster programmes to address gaps and unmet needs.
Cluster initiatives will focus on strengthening infrastructure, technology adoption and market readiness of MSMEs through collaboration between government departments, industry associations and Special Purpose Vehicles (SPVs) formed by cluster members. The goal is to create a collaborative environment that encourages innovation, cost competitiveness and sustainable industrial growth, Arora added.
Meanwhile, Gurkirat Kirpal Singh, Secretary, Industries and Commerce, said the Punjab Government is actively encouraging MSMEs to expand their operations in the state. He noted that several incentives and policy support measures are being provided to help businesses establish manufacturing units in Punjab.
He also stated that the government has accepted 77 percent of the recommendations of sectoral committees while framing the state’s new industrial policy. The policy offers time-bound approvals and clearances for investors, making Punjab an attractive destination for entrepreneurs and industrial investment.
The MSME session was attended by Rudhra Pratap, Vice Chancellor of Plaksha University, along with industry experts including Dharmesh Goswami, Partner at KPMG; Bhupinder Pal Singh Anand, Director of Jal Bath Fittings; Manbir Singh, Director of IEE Elevators; and Rajesh Mehra, Managing Director of Active Clothing Co. Limited, who shared their perspectives on strengthening the MSME ecosystem.