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Punjab is situated in the Northern part of India and sharesgeographical boundries with Haryana, Uttar Pradesh, Himachal Pradesh, Jammu & Kashmir, Rajasthan and also Pakistan. Due to extrimist tension in Punjab, it has suffered alot on economic as well as social front. Punjab is now enjoying the foreign investment because of redical change in the Indian governement policies. There is a big push to liberalization through new fiscal, trade, industrial and foreign investment policies. Curtailment of the area reserved for public sector, major progress in elimation of licencing restriction, and simplification of procedures have the motivation factor for inflow of foreign investment. The 1997 National budget has seen a affirmation of the goverment's commitment to further liberalisation of the economy.

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