ET Make in India SME Regional Summits: Punjab’s next growth story must be innovation-led

From leading India’s Green Revolution to building a thriving manufacturing base, Punjab has been a cornerstone of the country’s economic progress. But as the global economy shifts into a new, digitally-driven era, the state now faces a crucial question: will it follow, or will it lead?

Speaking at the ET Make in India SME Regional Summit in Chandigarh, Shailendra Tyagi, Director of the Software Technology Parks of India (STPI), Ministry of Electronics & IT, made a compelling case for the latter. “The time has come for Punjab to script its next success story: a story of innovation-driven resurgence, startup-led growth, and MSME inclusivity,” he said in his opening keynote, ‘From Policy to Prosperity: A Roadmap for MSME Success’.

This edition of the ET SME Summits, which took place on August 7, had IDBI as banking and lending partner, and Canon as the tech enabler.

The numbers reveal both strengths and challenges for Punjab, Tyagi added. Over the past decade, Punjab’s Gross State Domestic Product (GSDP) nearly doubled to ₹7.44 lakh crore in 2023-24. Yet, with an average annual growth rate of 4.6%, which lags behind the national average of 5.7%, the state’s industrial output has stagnated at around 24% of GSDP. Agriculture still contributes a hefty 27%, while manufacturing struggles to gain new momentum.

Tyagi pointed to the state’s micro, small, and medium enterprises (MSME) sector, home to over 160,000 registered units, as both a key driver and a sector in need of transformation, especially in adopting new technology, accessing markets, and ensuring financial sustainability. Encouragingly, Punjab’s startup count has soared from just seven in 2016 to over 800 today, thanks to initiatives such as Make in India, Atmanirbhar Bharat, and the Production Linked Incentive (PLI) scheme.

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Infrastructure too is getting a boost through the PM GatiShakti plan, with projects like the Amritsar-Jamnagar Corridor and Ludhiana-Ajmer Expressway promising better connectivity. Meanwhile, export-oriented industries are benefitting from schemes like RoDTEP (Remission of Duties and Taxes on Exported Products).At the heart of Tyagi’s vision is innovation, and STPI is playing a leading role. Its Mohali centre offers plug-and-play incubation, high-speed connectivity, cloud access, and AI-focused entrepreneurship support through the ‘Neuron Centre’. Currently, 162 STP and ESDP (Science and Technology Park, Entrepreneurship and Skill Development Programme) units in Punjab export goods and services worth ₹4,100 crore, with more being nurtured under the Next Generation Incubation Scheme.Tyagi stressed that Punjab’s transformation will require coordinated action: industrial diversification, high-value manufacturing, digital MSME adoption, skill development, ease of doing business, and investment facilitation. “The framework is in place. What we now need is relentless execution, data-driven governance, and continuous stakeholder collaboration,” he said.His closing message at the ET Make in India SME Regional Summit – Chandigarh was clear and urgent: the next decade must be one of strategic action. “Let us move decisively from policy to prosperity,” Tyagi urged.

The ET Make in India SME Regional Summits, ET MSME Day, and ET MSME Awards are flagship initiatives to celebrate the versatility and success of India’s MSME sector. If you lead or are part of a micro, small, or medium enterprise, register for the ET MSME Awards 2025 before August 31, 2025.

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