To give a big boost to the industry in Punjab, especially the manufacturing sector, the state government is all set to come up with an industrial focal point near Jalandhar for setting up new industries on a cluster-development basis. The focal point will come up across 300 acres and will have at least 4 to 5 clusters of industries in areas with significant export potential. Besides, the Industries department is also working out to increase the number of items under bilateral trade with Pakistan.
Especially, there is huge potential to export agricultural machinery and equipment from our country that the government is keenly looking at. Notably, the truck service between India and Pakistan started on the October 1 and is the first time since both countries allowed cross border movement of trucks through the international Attari check post.
Also on the cards is an international trade center in Mohali across 9 acres planned under PPP mode for which a private developer is likely to be selected soon. This was disclosed by A R Talwar, principal secretary, Industries & Commerce.
Apprising about what the further plans of the government to ameliorate the status of Punjab industry, Talwar said the government has recognised various clusters in the state for assistance under the Centre’s scheme for cluster development. “The state government has formed Special Purpose Vehicles (SPV) in case of these clusters which will be preparing a detail project report on the status of these clusters. The report will then be submitted to the Centre for its approval,” he said. Notably, SPV has already been formed in case of textile industry in Ludhiana, re-rolling industry in Mandi Gobindgarh, foundaries in Batala, sports goods industry in Jalandhar. An SPV for hand tools industry in Jalandhar will be formed shortly.
To boost IT industry in Punjab, the government has sanctioned 12 IT parks which will be coming up under PPP mode. “There is one in Mohali which is to come up across 400 acres, besides another one in Patiala across 60 acres. Apart from this, IT parks are also planned for Ropar and Amritsar,” said Talwar.
Meanwhile, Punjab small industries export corporation will also be signing an MOU with state trading corporation in November to promote exports from Punjab to Africa. A delegation will be sent to Johannesburg in October for the same.
“Going ahead, the government will be announcing the industrial policy in December which is being prepared by UNIDO. Notably, the main focus of the policy will be at promoting the manufacturing sector, agro-based industries, food processing and IT. Special impetus would also be to improve industrial infrastructure in the state and improve procedures for approvals. The government has also commissioned a study in collaboration with Indian Institute of Foreign Trade (IIFT) to find out items where export potential exists for Punjab,” he added.
It is pertinent to note that exports of Punjab during 2006-07 marginally increased by 22.18% as against a growth of 22.01% during the corresponding period in the previous year. Merchandise exports from the state increased from Rs 9,656 crore in 2005-06 to Rs 11,798 crore in 2006-07, registering a growth of 22.18%. Share of exports of Punjab as at march 2007 is stagnant at 2.12%.
From the commodity wise export turnover, yarn and textiles ranked first at Rs 2,676 crore followed by cycle and cycle parts at 1,434 crore and hand tools at Rs 1,366 crore. District wise exports reveal that Ludhiana remains at the forefront of export activity clogging Rs 8,287 crore followed by Jalandhar at Rs 1,984 crore and Amritsar at Rs 1,225 crore. This however, is not a rosy picture as the GDP growth of Punjab has just been 6% as compared to national GDP growth of 9%.