To support textile investors, the Punjab state government offers a range of incentives, including a capital subsidy of up to 20% of fixed capital investment with a maximum limit of Rs 10 crore.
The state also offers reimbursement of up to 75% of net SGST paid, and total incentives of up to 125% of fixed capital investment with a maximum cap of Rs 500 crore.
This was shared by Industries and Commerce Minister Aman Arora at Bharat Tex 2026, while positioning Punjab as a preferred textiles and garment production investment destination.
While addressing the media, Aman Arora also announced that the state has received investment proposals worth over Rs 75,000 crore since 2022.
“Punjab is not merely participating in India’s textile growth story; we are writing its next chapter. We are transitioning from traditional strengths to technical leadership, positioning Punjab as a future-ready and globally integrated textile hub,” he added.
The Industries Minister noted that Punjab has long served as a cornerstone of India’s textile industry, accounting for approximately 95% of the country’s woollen knitwear production and around 65% of hosiery production.
The state also ranks first in blended yarn production, holding a 5.7% share of India’s total spinning capacity.
The textile and apparel sector contributes nearly 14% to the state’s manufacturing Gross Value Added (GVA), with over 1.46 lakh units providing employment to more than 10 lakh workers.
Extending an invitation to textile investors, Arora highlighted that the Punjab government has established a competitive policy framework to drive industrial growth, having notified three dedicated policies covering spinning & weaving; dyeing & finishing; and apparel & technical textiles.
On ease of doing business, Arora noted that Punjab has implemented the Right to Business Act, under which approvals are based on self-declaration and granted within 5 to 45 working days; any delay results in automatic deemed approval.
The state has also launched the FastTrack Punjab Portal, a fully digital single-window system for all clearances.
While Punjab’s traditional textile base remains strong, Arora observed that the global textile industry is undergoing a fundamental shift toward man-made fibres, technical textiles, and high-performance materials, driven by sectors such as healthcare, infrastructure, sports, and defence.
