ADCCI
By ADCCI Editorial Team • October 12, 2026

From Phulkari to Precision Parts: The Sectors Powering Amritsar’s Economy

Traditional Punjabi phulkari embroidered shawl

Amritsar’s economy is far more varied than most people realise. Alongside the world-famous tourism and food culture, the city is home to thousands of textile units, handicraft workshops, food processors and engineering firms. ADCCI sees these sectors as the foundation for Amritsar’s growth as an export centre.

1. Textiles and woollens

Amritsar has a long history in textiles, from shawls, blankets and woollens to traditional phulkari embroidery. Many units are family-run MSMEs with generations of skill behind them. With better access to design, quality certification and buyers abroad, this sector can compete strongly in global markets.

2. Handicrafts

Phulkari, juttis, woodwork and other Punjabi crafts carry a strong cultural identity that international buyers value. What artisans often lack is packaging, branding and a route to market. Export clusters and buyer-seller meets can close that gap.

3. Food processing

Punjab is India’s food bowl, and Amritsar is famous for products such as papad, warian, pickles and spices. Processed and packaged foods have strong demand among the Indian diaspora and beyond. Cold-chain capacity and food-safety certification are the key enablers.

4. Engineering goods and auto parts

Amritsar’s small and medium engineering units make machine parts, tools, agricultural equipment and components that supply industries across the country. Modern infrastructure in industrial areas, reliable power and skilled manpower will decide how fast this sector grows.

5. Furniture and home décor

A growing segment, furniture and home décor products from the region have potential in both domestic retail and export markets, especially when combined with traditional craftsmanship.

How ADCCI is supporting these sectors

  • Pushing for dedicated export clusters for each of these sectors
  • Seeking an Integrated Export Facilitation Centre in Amritsar
  • Organising buyer-seller meets and interactions with foreign delegations
  • Working with colleges and institutes on industry-driven skilling

If your business belongs to one of these sectors, ADCCI wants to hear from you. Join the Chamber and help shape the support your industry needs.