Challenge mounts for Industry Minister as bizmen plan to expand ops to MP

A major challenge has arisen for newly inducted Punjab Industry and Commerce Minister Sanjeev Arora as several prominent Ludhiana-based industrialists have announced plans to expand operations in Madhya Pradesh (MP) with investments totalling Rs15,000 crore over the next five years. The development follows a recent visit by Madhya Pradesh Chief Minister Dr Mohan Yadav to Ludhiana, where he held discussions with business leaders that appear to have borne fruit.

Expressing concern over the exodus of investments, Member of Parliament Vikram Sawhney commented that Punjab must now build a robust ecosystem within the state itself, featuring world-class infrastructure, focal points and industrial zones. “Let’s make additional investments and create jobs for our youth right here in Punjab,” he posted on X (formerly Twitter).

This large-scale investment in MP is being seen as a potential threat to Punjab’s economic stability. Gurmeet Singh Kular, president of the Federation of Industrial and Commercial Organisations (FICO), alleged that Chief Minister Bhagwant Mann had failed to provide sufficient support to local industry. “In 2022, when the AAP government came to power, it announced a fiscal incentive of 2.5 per cent on new industrial investments,” he said.

Shiromani Akali Dal president Sukhbir Badal also voiced concern. “In 2022, Punjab industrialists invested Rs 2,950 crore in Uttar Pradesh. Now, in 2025, over Rs 15,000 crore is being invested in Madhya Pradesh due to lawlessness and gang wars in Punjab,” he said in a tweet. “Besides, Arvind Kejriwal is threatening the industry in Punjab to fill the government’s empty coffers. It has destabilised the state’s economy.”

Kular said: “Many industrialists invested based on the expectation of receiving refunds. But to their shock, major industries such as hosiery, agriculture, bicycle and sewing machine manufacturing were excluded from the refund scheme. Why would anyone invest in Punjab when the government itself is not supportive? We are preparing to move court on the issue.”

Following interactions with the industrialists, major business groups committed to investments in MP include Trident (Rs 5,000 crore), Ralson (Rs 2,000 crore), Vardhman (Rs 2,500 crore), Nahar (Rs 1,200 crore), PV Cottspin (Rs 1,300 crore), Cremica (Rs 700 crore), and Deepak Fasteners (Rs 1,300 crore). These ventures are expected to generate employment for nearly 20,000 youths in Madhya Pradesh.

Another industrialist, requesting anonymity, said: “If someone invests Rs 100 crore in MP, they receive Rs 40 crore back as capital subsidy. Besides, there is a calm and peaceful environment — unlike Punjab, where law and order is at its worst. We do not feel secure here.”

Ludhiana