For decades, the micro, small, and medium-scale enterprises (MSMEs) of Ludhiana were the powerful engine that drove Punjab into India's top economic league. Today, these very industrialists lament that they have been demoted to the status of "interns" in their own factory, forced to scramble for land, finance, and upgrades alone. This stark contrast comes as the state government actively pursues large corporate brands with red-carpet incentives, leaving the homegrown sector feeling sidelined and struggling under bureaucratic weight.
The Red Carpet for Giants, Bureaucracy for Locals
The core grievance from Ludhiana's industrial hubs is one of perceived inequality. While major corporations are offered subsidised land, support, and a grand welcome to attract large-ticket investments, the existing local businesses that have sustained the state's economy for generations say they are grappling with a stark lack of support. Jagbir Singh Sokhi, chairman of the Sewing Machine Manufacturers Association, highlighted the disparity in accessing crucial finance. He stated that for small manufacturers, securing loans has become an extremely difficult task, hampered by multiple compliance requirements and the heightened risk perception of banks.
This sentiment is echoed by Gurmeet Singh Kular, president of the Federation of Industrial and Commercial Organisation (Fico). Kular criticised the state government for ignoring the established businesses that have been Punjab's economic pillars. "There is no real support for existing industry. There is no attention towards extension or support for existing units," he asserted. He pointed out that Ludhiana's vital sectors—including sewing machines, hosiery, bicycles, and light engineering—are now under severe pressure due to this neglect.
Financial Strangulation and a State's Economic Slide
The challenges extend beyond mere policy neglect to active financial strain. Kular brought up a critical issue plaguing small and medium industries: government-owed payments, such as legitimate value-added tax (VAT) refunds, are frequently pending for months or even years. "How can small and medium industries survive when their working capital is stuck with the govt?" he questioned. This delay cripples daily operations and hampers growth, creating a survival crisis for many units.
Reflecting on Punjab's broader economic trajectory, Kular recalled that the state was once ranked among India's top performers. "Today, unfortunately, we are counted among the lagging states," he lamented. He argued that instead of strengthening the proven local industrial base, the government's focus on chasing big corporate brands is a misplaced strategy. Kular estimated a massive untapped potential, suggesting that if proper incentives were extended to existing units, Ludhiana alone could generate investments worth tens of thousands of crores from local entrepreneurs.
A Path Forward: The Migration Policy Proposal
To address the dual issues of industrial modernisation and urban decongestion, Kular proposed a pragmatic solution: a "migration policy." Under this plan, industries currently operating from congested interior residential areas of cities like Ludhiana would be offered land at subsidised rates in external, developed industrial zones. In exchange, they would hand over their existing city properties. This would facilitate expansion, adoption of new technology, and ease urban pressure simultaneously.
The overarching demand from the MSME sector is clear and urgent. Industrialists stress that the state government must treat existing industries as partners in growth, not ignore them. They warn that continued neglect risks further eroding Punjab's industrial foundation, which was painstakingly built by these very enterprises. The call is for a balanced approach where the welcome for new large investments does not come at the cost of abandoning the economic soldiers who have long held the fort.
