Other problems faced by the state were the poor mineral resources, non-availability of infrastructure and communication facilities, shortage of capital and lack of modern skills.
In order to develop industrialization, a number of new policies were adopted by the state government like providing various incentives such as cheaper power, twenty five percent subsidy besides easier credit facilities through the State Finance Corporation and the nationalised banks for establishing new industries.
Also, land was made available on 99 years low rate lease basis and new industries were exempted from sales or purchase tax.
Concessions were also given on charges for transportation of raw materials from the nearest railhead outside the state beside provision of other marginal benefits.
Gagret, Parwano, Barotiwala, Baddi, Paonta Sahib, Mehatpur, Shamshi, Nagrotu Bagwan, Bilaspur, Reckong Peo and Sansar Pur Tera are some of the industrial areas of the state at present.