Punjab’s ‘Right to Business Act’ Transforms Industrial Landscape

Punjab Government's Initiative: “The Punjab Right to Business Act, 2020 was introduced at a time when small industries in the state were facing numerous obstacles in starting new units. Chief Minister Bhagwant Singh Mann’s vision was that if Punjab was to become an investment hub, it was first necessary to provide convenience and confidence to small entrepreneurs. This law was born from this very thought, and has now become the backbone of Punjab’s industrial revolution.

Chief Minister Bhagwant Singh Mann's revolutionary reforms

Under the leadership of Chief Minister Bhagwant Singh Mann, the Punjab government has made revolutionary reforms in the state’s industrial sector. Among these, the most significant step is the ‘Punjab Right to Business Act’, which aims to facilitate Micro, Small and Medium Enterprises (MSMEs) in starting businesses. Where previously dozens of departmental approvals were required to set up a small industry, the government has now eliminated this entire hassle through a single system — the ‘Self Declaration Model’. This model is entirely based on trust and transparency.

Certificate of In-Principle Approval

Under this policy, any entrepreneur can now start their industry by simply submitting a ‘Declaration of Intent’ (announcement to start business) online. Based on this declaration, the government immediately issues a ‘Certificate of In-Principle Approval’, after which the entrepreneur can begin construction or operation of their unit without waiting for any departmental permission. This policy is nothing short of a boon for those small businesspersons who previously had to waste months in government formalities. Now starting a business in Punjab means — ‘work first, paperwork later’. The entire process is now completely online — every step from application to certificate issuance is done through the Invest Punjab portal. This has almost eliminated the possibility of corruption and delays. This technology-based system has become an example of honest governance for small entrepreneurs.”

Confidence to start production or trade without hesitation

Under this Act, industries are given a three-year grace period. During this time, entrepreneurs don’t need factory licenses, environmental clearances, labor department approvals or other state-level permissions. Unless there’s a serious complaint, no department can conduct inspections. This arrangement has given small businesses the confidence to start production or trade without hesitation. After three years, when their business stabilizes, they can obtain all necessary permits and certificates. This is a ‘trust-based development’ model that creates a positive relationship between administration and traders.

District Bureau of Enterprise (DBE)

To implement this policy, the government has established a ‘District Bureau of Enterprise (DBE)’ in every district. This bureau not only provides documentary assistance but also acts immediately on new investment proposals. This not only saves time but has also increased transparency in government functioning. This bureau operates under the chairmanship of the Deputy Commissioner and provides entrepreneurs with all facilities at one place — application, document verification, certificate issuance and grievance redressal. Where previously entrepreneurs had to make rounds of 8-10 departments, now everything is settled in a single office. This step demonstrates the Punjab government’s seriousness towards administrative transparency and Ease of Doing Business.

New energy to thousands of small entrepreneurs in Punjab

This scheme has given new energy to thousands of small entrepreneurs in Punjab. According to government figures, hundreds of new industries have started operations under this policy so far, providing employment to over 4,000 youth and attracting investments of more than Rs 400 crore. Punjab’s cities — Ludhiana, Mohali, Amritsar and Jalandhar — have witnessed renewed energy in the industrial sector. Entrepreneurs say that where files used to remain stuck in departments for months, the same work is now completed in just a few days. Punjab’s industrial environment has now become simpler, safer and more investment-friendly.

The government trusts its people

Chief Minister Bhagwant Singh Mann has repeatedly stated that “the government trusts its people. Punjab’s entrepreneurs are honest and if they are given convenience and confidence, they can take the state’s economy to new heights.” It is this very thinking that is transforming Punjab into one of the country’s most attractive states for industries. The Right to Business Act is a perfect example of this — where the government treats the public not as a burden, but as partners. This policy has also opened new avenues for women in Punjab’s rural areas. Many women entrepreneurs are now starting their small industries such as food processing, handloom and handicraft units without any hassle. The Mann government is determined to make women and youth leaders in the industrial sector.

Right to Business Act

Today, the ‘Right to Business Act’ has given new hope, new confidence and new direction to Punjab’s small businesspersons and industrialists. This is not just a law, but an administrative revolution that has opened paths for honest entrepreneurs. Chief Minister Bhagwant Singh Mann’s initiative proves that when a government works on trust and transparency, the pace of development cannot be stopped. This law is realizing the dream of ‘Rangla Punjab’, where every citizen can be self-reliant and proudly say —“Starting a business is no longer difficult, but easy and a matter of pride.''