CICU Applauds Punjab Government’s Japan–Korea Outreach; Says It Can Spur Significant Progress for MSMEs in the State

Ludhiana, December 16, 2025: The Chamber of Industrial & Commercial Undertakings (CICU), Ludhiana, has lauded the Punjab Government for its highly successful official visit to Japan and South Korea, aimed at attracting foreign investment and accelerating industrial development in the State.
The high-level delegation, led by the Chief Minister of Punjab Bhagwant Singh Mann and accompanied by Industry Minister Sanjiv Arora, the Chief Secretary, Secretary Industries, CEO Invest Punjab and the Chairperson, Punjab Development Commission (PDC), effectively projected Punjab as a progressive, investor-friendly and globally competitive destination. The visit succeeded in building strong confidence among leading Japanese and Korean corporations to explore investment opportunities in Punjab.
Punjab’s industrial ecosystem is predominantly driven by Micro, Small and Medium Enterprises (MSMEs). In this context, CICU finds it extremely encouraging that several prominent Japanese companies such as Yamaha Motor, Fujitsu, Toray, Toppan, Honda Motors and Daichi Steel have expressed keen interest in setting up operations in Punjab. These proposed investments span strategic sectors including Electric Vehicles (EVs), Data Centres, Artificial Intelligence, Skill Development Centres, Research & Development and Information Technology, aligning seamlessly with Punjab’s long-term industrial transformation goals.
Similarly, positive intent has been conveyed by South Korean companies. Daewoo has indicated interest in infrastructure development, while Pangyo has proposed the establishment of a Startup Valley at Mohali. Another Korean company has expressed interest in setting up a sports university at Jalandhar, which would significantly strengthen Punjab’s education and sports ecosystem.
CICU strongly believes that the entry of such global majors into Punjab will have a powerful multiplier effect on the State’s MSMEs. Their presence will enable technology transfer, integration with global supply chains, access to new markets and enhancement of manufacturing capabilities—ultimately leading to increased investments and large-scale employment generation.
The engineering and auto component industry of Ludhiana, in particular, stands to gain substantially. Companies like Yamaha Motor, Honda, Daewoo and Yanmar are globally renowned manufacturers of two-wheelers, cars, trucks, tractors and agricultural machinery. Ludhiana alone hosts over 20,000 Tier-I, Tier-II and Tier-III component manufacturers serving the automotive and tractor industries, making it one of Punjab’s strongest competitive advantages.
Yanmar, one of the world’s largest manufacturers of tractors, combine harvesters and engines, has already acquired a plant near Morinda in Punjab. CICU is confident that the Chief Minister’s outreach and the State’s proactive industrial policies will further encourage Yanmar to expand its footprint in Punjab. Similarly, Yamaha’s global standing and existing collaborations in India can open new avenues for advanced manufacturing and vendor development.
Welcoming the outcome of the visit, CICU President Upkar Singh Ahuja stated,
“This visit marks a decisive shift in Punjab’s industrial trajectory. The Chief Minister’s direct engagement with global industry leaders has sent a powerful message that Punjab is open, proactive and ready for high-technology investments. CICU firmly believes that such global partnerships will act as a catalyst for MSME growth, employment generation and Punjab’s emergence as a modern manufacturing hub.”
Despite certain locational challenges, Punjab offers distinct advantages such as a skilled workforce, a robust ancillary base and cost competitiveness. A recent CICU survey highlights that tractors manufactured in Punjab are nearly ₹1 lakh cheaper compared to those produced in several other States, underscoring the State’s efficiency and manufacturing strength.
CICU also emphasises the urgent need for Punjab to transition from traditional, low-value manufacturing to high-end, technology-driven production. Exposure to advanced technologies and collaboration with global companies and technical institutions—particularly those explored during the Japan visit—can play a transformative role in this shift.
On behalf of its members and the MSME fraternity, CICU assures the Punjab Government of its full cooperation and active support in all such initiatives. CICU remains confident that the outcomes of this landmark visit will soon translate into concrete investments, technological upgradation and sustainable industrial growth, firmly positioning Punjab as a leading manufacturing hub of India.