As 2025 draws to a close, Ludhiana, famously known as India's Manchester, stands at a critical industrial juncture. The year painted a picture of stark contrasts for Punjab's economic powerhouse, where grand investment announcements and unprecedented government outreach were overshadowed by a deepening crisis for the city's backbone—its small-scale manufacturers.
A Year of Policy Pivot and Persistent Bottlenecks
The most notable shift in 2025 was the government's strategic move from broad oversight to targeted, sector-specific engagement. Under the leadership of State Industry Minister Sanjeev Arora, the administration formed 24 sectoral committees. These groups, representing diverse micro-verticals from bicycle parts to hosiery, were designed to cut through red tape and deliver direct policy reforms to the cabinet. While industry leaders have welcomed this consultative approach, the prevailing sentiment is clear: 2025 was for talks, but 2026 must be for tangible results.
This need for action is underscored by two major infrastructural and social bottlenecks that plagued the city throughout the year. The highly anticipated Halwara International Airport failed to start commercial operations, depriving exporters of crucial direct cargo connectivity. Simultaneously, Ludhiana's factories faced an acute labor shortage, as migrant workers from Eastern India increasingly chose faster-growing hubs or returned to their improving home states.
Big Wins for Large Industry, Big Woes for MSMEs
The narrative for large-scale industry in Ludhiana was one of remarkable capital inflow. The year witnessed landmark commitments, including a ₹2,500 crore steel venture with Japanese collaboration and a ₹1,000 crore expansion in the forging sector. Furthermore, Ludhiana firms demonstrated their national clout by pledging a staggering ₹15,000 crore in investments during a summit in Madhya Pradesh in July.
However, this headline-grabbing success masked severe distress in the Micro, Small, and Medium Enterprise (MSME) sector. The implementation of GST 2.0 inadvertently worsened the inverted duty structure for many. Manufacturers found themselves paying an strong>18% GST on raw materials but could only charge 5% on finished goods like bicycles and tractors, leading to blocked capital and squeezed margins.
Global Trade Winds Bring Storm Clouds
On the international front, 2025 was a year of volatility. While progress on a UK Free Trade Agreement (FTA) offered hope, relations with the United States deteriorated sharply. Ludhiana's hosiery and machine tool sectors were hit with a double whammy: a base 25% US tariff was doubled to 50% in some cases, a retaliatory measure linked to India's oil imports from Russia. Compounding this pressure, cheap Chinese imports in segments like sewing machines continued to flood the market, undercutting local manufacturers and eroding their domestic share.
The 2025 Industrial Scorecard:
- Bicycles: Struggling due to inverted GST and Chinese imports.
- Hosiery: Volatile, impacted by US tariff hikes up to 50%.
- Steel/Auto: Growth sector, buoyed by successful Japanese collaborations.
- Infrastructure: Delayed, with Halwara Airport and drainage projects pending.
The 2026 Watchlist: A Make-or-Break Year
The coming year is poised to be decisive for Ludhiana's industrial landscape and the current administration's legacy. Several critical deadlines and projects loom large:
Thousands of industrial units operating under the Mixed Land Use (MLU) policy face a potential expiration date in September 2026. The lack of a permanent roadmap raises fears of large-scale closures. All eyes are also on the long-delayed Tata Steel plant, with a 0.75 MT capacity, now expected to commission in early 2026. Furthermore, the promised international exhibition centers in Ludhiana and Mohali remain confined to drawing boards, their development a key test of promise versus delivery.
As the new year approaches, Ludhiana's industrial community watches with bated breath. The blueprint for revival, drafted through 2025's sectoral committees, must now translate into concrete action to navigate the high-stakes crossroads at which the city finds itself.
