After the partition of British India into the two nations of India and Pakistan in 1947, the region of Punjab was also split between India and Pakistan. The Indian state of Punjab required a new capital city to replace Lahore, which became part of Pakistan during the partition. After several plans to make additions to existing cities were found to be infeasible for various reasons, the decision to construct a new and planned city was undertaken. Of all the new town schemes in independent India, the Chandigarh project quickly assumed prime significance, because of the city's strategic location as well as Jawaharlal Nehru's (the first Prime Minister of independent India) personal interest in it. Commissioned by Nehru to reflect the new nation's modern, progressive outlook, Nehru famously proclaimed Chandigarh to be "unfettered by the traditions of the past, a symbol of the nation's faith in the future."

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Chandigarh is located in the fringes of the Shivalik range of the Himalayas in Northwest India. It covers an area of approximately 114 km. and shares its borders with the States of Haryana in the south and Punjab in the north. The exact cartographic co-ordinates of Chandigarh are 30.74 N 76.79 E. It has an average elevation of 321 metres (1053 feet). The surrounding districts are of Mohali and Ropar in Punjab and Panchkula in Haryana. The boundary of the state of Himachal Pradesh are not too far from its north.

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Government is a major employer in Chandigarh with three governments having their base here. A significant percentage of Chandigarh?s population therefore consists of people who are either serving for one of these Governments or have retired from government service. For this reason, Chandigarh is often called a ?Pensioners Paradise?. There are about 15 medium to large industrial including two in the Public sector. In addition Chandigarh has over 2500 units are registered under small scale sector. The important industries are paper manufacturing, basic metals and alloys and machinery. Other industries are relating to food products, sanitary ware, auto parts, machine tools, pharmaceuticals and electrical appliances. Yet, with a Per Capita Income of Rs. 67,370, Chandigarh is the richest city in India. Chandigarh's gross state domestic product for 2004 is estimated at $2.2 billion in current prices. Chandigarh has a well developed market and banking infrastructure. Nearly all the major banks in the country have registered their presence in Chandigarh. Most banks with a pan India presence have their zonal/regional offices present in Chandigarh. In fact Bank square in Sector 17 in chandigarh has a large presence of such offices all in one section of the commercial sector.

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