Started business in Delhi in the late sixties and became Managing Director of Standard Fasteners Pvt. Ltd. in the year 1970  which  he  continued till 1982. Has been a Director of the Traders Bank Ltd. from the year 1966 to 1982  and  later  became  the owner of the Lakshmi Commercial Bank Ltd.

While taking  keen  interest  in  the  social  activities,  has  been  associated  with the educational and charitable Institutions. In the year 1980 was elected to the Rajya Sabha and remained Member of Parliament for two consecutive terms i.e.1980-1986 and 1986-1992.

Has been President of the Namdhari Darbar- a charitable Institution involved in social reforms and running of schools, publication of Namdhari literature and helping the poor since 1980, earlier he was General Secretary of Namdhari Darbar  for  about  25  years. Has been Chairman of the GSRK Hanspal Trust running SJS International School and SJS International College of Education in Samalkha. Also contributing a lot for the Punjabi literature and culture as Chairman of the World Punjabi Conference since 1983.  

During his tenure as Member of the Parliament he always voiced the grievances of the downtrodden and was  very  much  concerned  about  the welfare of Punjabis settled all over India and abroad. Remained Chairman of the House Committee of Rajya Sabha from the year 1988 to 1992. Became the Chairman of the Committee of Members of Parliament from Punjab from 1984 to 1990 while was appointed Chief Whip of the Congress Parliamentary Party in Rajya Sabha for the period from 1990-1992.

A staunch  believer  in  the  Gandhian  Philosophy  and  the  Policies & programmes of Congress Party and a close aide of the late Prime Ministers  Smt. Indira Gandhi and Shri Rajiv Gandhi played a key role in solving many political tangles during this period.

Represented Indian Government in the U.N. Assembly in the year 1981 led a delegation of Indian M.P.s to the special session of the UNO.  

Was nominated as Convenor of the Minority Cell of the All India Congress Committee by the late Prime Minister Sh. Rajiv Gandhi. During his tenure as Convenor of the Minority Cell he took keen interest in airing the voice of minorities in the Parliament and all other forums.

Became Senior Vice President  of  the Punjab Pradesh Congress Committee in 1992 when Late S. Beant Singh was President of  the  Punjab Pradesh Congress Committee. Later remained Senior Vice President of the PPCC under the leadership of Capt. Amarinder Singh.

The Congress President Smt. Sonia Gandhi deputed him as Observer for many states in the elections held to the Parliament and various State Assemblies.  

Widely traveled as he is, Sh. Hanspal has led political and official delegations to many countries.  Has  been  General  Secretary  of  the  Minorities  Department  of  the  AICC and Chairman of the Disciplinary Action Committee of the Punjab Pradesh Congress Committee till he was elevated to the coveted post of President of the Punjab Pradesh Congress Committee on 31st of July 2002.