Last updated: Dec, 2023
Introduction
Chandigarh is located at the foothills of the Shivalik hills range in the north and is the capital of Haryana and Punjab. The foundation of the city was laid out in 1952 but assumed its status of capital of Haryana and Punjab during the state reorganization in 1966. Apart from being the capital of Haryana and Punjab, the city is also a Union Territory and hence is governed by the central government.
The administration of Chandigarh has been committed to creating a progressive business environment. The city offers a wide range of fiscal and policy incentives for businesses under the Chandigarh Industrial Policy, 2015. The Chandigarh Administration is focusing on promoting the ‘Information Technology’ (IT) industry, which requires less space. To develop the associated ecosystem, the government has developed high-speed data communication facilities for software development and its export by providing a NODE at Punjab Engineering College (PEC), Chandigarh, by collaborating with the Software Technology Parks of India (STPI).
Chandigarh’s Gross State Domestic Product (GSDP) was Rs. 6,75,448 million (US$ 8,107.65 million) in 2021-22, rising at a CAGR of 14.95% between 2015-16 and 2020-21. Chandigarh’s Net State Domestic Product (NSDP) was Rs. 40.573 crore (US$ 4,871.70 million) in 2021-22.
Recent Developments in Key Sectors
- In the State Budget of 2022-23, Rs. 20,437 lakh (US$ 25.7 million) has been allocated to the buildings & roads department.
- The city attracted Foreign Direct Investment (FDI) equity inflow worth US$ 79.98 million between October 2019-June 2023 as per the data released by the Department for Promotion of Industry and Internal Trade (DPIIT).
- As of September 30, 2023, Chandigarh had a total installed power generation capacity of 233.62 MW, of which 169.57 MW was contributed by central utilities and 64.05 MW by private utilities.
- In FY22, Chandigarh exported industrial machinery for dairy worth US$ 13.19 million, followed by other miscellaneous engineering products worth US$ 9.62 million and drug formulations worth US$ 8.83 million.
- Total merchandise exports from Chandigarh stood at US$ 135.5 million in FY23 whereas as of July 2023 (FY23) it stood at US$ 43.4 million.
- Total merchandise exports from Chandigarh stood at US$ 98.81 million in FY22. The key items exported from Chandigarh include industrial machinery, other misc. engineering items, drug formulations, and electronics components.
- Out of about 2,950 small-scale industries in Chandigarh about 40% are ancillary units producing components for the major tractor industry around Chandigarh. The light engineering industry is heavily represented, other industrial units produce mainly industrial fasteners, electrical/electronic items, machine tools, pharmaceuticals, plastic goods, sanitary fittings, steel / wooden furniture food products etc. A number of items manufactured here are finding ready markets abroad.
- Out of the total Union Budget 2021-22, a major chunk of Rs. 950.41 crore (US$ 130.57 million) has been allocated for the next fiscal year for Housing and Urban Development including the smart city project.
- On August 14, 2021, the Chandigarh Health Department achieved 100% inoculation of the targeted population, with at least the first dose of the COVID-19 vaccine.
- In December 2020, the Chandigarh administration announced to hire 40 AC electric buses for a period of 10 years to improve the air quality of the city.
- In April 2021, Chandigarh’s administration has decided to expand the IT industry in the Industrial Area. According to the Chandigarh Export Promotion Plan, the union territory will allow IT-based industry, including software and electronics hardware, to set up their units, but any activity entailing direct customer interface would not be allowed.
- There are many units manufacturing agricultural equipment, tractor components, auto parts, tyres & tubes, electric meters, electronic items, cables and engineering items operating in Chandigarh.
- Basic metal and metal alloy industries are among the leading industries in this sector in Chandigarh. Metal products such as bars, rods of steel & rolled products and HR strips are some examples.
- Chandigarh industrial area is also home to several pharmaceutical manufacturing companies such as Pfizer and Ind Swift.
- ~ 40% of all industries in Chandigarh are ancillary units manufacturing components for the tractor industry.
- Other industrial units are mainly into manufacturing industrial fasteners, electrical/electronic items, machine tools, pharmaceuticals, plastic goods, sanitary fittings, steel / wooden furniture food products etc.
