Boost for Punjab’s industry and exports:Ludhiana–Jalandhar units to get easier loans, higher subsidies; farmers to receive incentives for crop diversification

The Union Budget for 2026–27 has proposed a set of measures aimed at encouraging crop diversification, strengthening micro, small and medium enterprises (MSMEs), and improving logistics infrastructure in Punjab. Presenting the Budget, Finance Minister Nirmala Sitharaman said farmers would be incentivised to move beyond wheat and paddy cultivation, while industry-focused interventions would support the State’s manufacturing and export base. Incentives for farmers to diversify crops The Finance Minister announced special incentives for farmers opting to cultivate oilseeds and pulses instead of wheat and paddy. The move is intended to promote crop diversification and reduce Punjab’s over-dependence on water-intensive crops. Farmers who choose alternative crops are expected to benefit directly from the proposed incentives. MSMEs to gain from higher investment limits The Budget has raised investment thresholds for the MSME sector, a decision likely to benefit industrial centres such as Ludhiana, Jalandhar and Amritsar. With revised limits, units in these cities will be able to access higher credit and enhanced government support, offering relief to businesses constrained by limited financing. In a push to expand exports, the Centre announced support for taking Punjab’s key products — including Ludhiana’s hosiery and Jalandhar’s sports goods — to overseas markets. A dedicated ‘export desk’ will be created on the Champions portal to help entrepreneurs market and sell their products through global e-commerce platforms. Rail corridors and logistics reforms To improve connectivity, the Budget proposes seven new high-speed rail corridors across the country. Along with logistics reforms in north India, these measures are expected to reduce transportation costs and enable faster movement of Punjab’s goods to ports and other markets. What Punjab gets: four key measures Political reactions Congress terms Budget ‘disappointing’ Former Chief Minister and Congress MP Charanjit Singh Channi criticised the Budget, calling it disappointing for Punjab. He said there was no substantive relief for farmers or labourers and noted that the long-standing demand for a legal guarantee for minimum support price (MSP) had not been addressed. Mr. Channi questioned why farm and labour debts had not been waived and alleged that Punjab had been ignored despite Assembly elections approaching. He claimed the Centre continued to discriminate against the State. ‘No relief, no roadmap’, says Bajwa Congress leader Pratap Singh Bajwa said the Budget showed that Punjab had been “completely forgotten”. He alleged the absence of any clear roadmap for farmers, youth employment, industry or urban development, adding that repeated promises had failed to translate into concrete action. BJP defends allocations Punjab BJP president Sunil Jakhar defended the Budget, saying ₹14 lakh crore had been allocated for States, from which Punjab would also benefit. He said the aim was to make every State self-reliant and described the Prime Minister’s decision to name Adampur airport after Guru Ravidas Maharaj as a strong social message. Industry calls it a balanced Budget Pankaj Sharma, president of the Association of Trade and Industry Undertakings, described the Budget as balanced. While welcoming measures for MSMEs, textiles and sports-related industries, he said the engineering sector had not received specific attention. He also noted the focus on technology upgradation, mega textile parks and revival of the Mahatma Gandhi Khadi scheme. Pending demands of the Punjab government Ahead of the Budget, the Punjab government had sought central assistance on several fronts, including compensation for flood losses estimated at ₹12,905 crore affecting over 2,300 villages, release of ₹7,757 crore in pending Rural Development Fund dues, and enhanced incentives for crop diversification to conserve groundwater. The State also flagged an annual revenue loss of around ₹6,000 crore after the introduction of GST, opposed proposed changes to MGNREGA, sought restoration of National Health Mission funds, and demanded ₹1,000 crore for police modernisation and anti-drone technology to tackle cross-border threats and drug trafficking. While the Centre has projected the Budget as growth-oriented, reactions from Punjab indicate sharp political differences over whether the proposed measures adequately address the State’s economic and agrarian concerns.