Srinagar– The Federation of Chambers of Industries Kashmir (FCIK) has lauded the budget presented by Chief Minister Omar Abdullah in the J&K Legislative Assembly, calling it a “growth-oriented” blueprint with significant potential to transform the region’s industrial landscape.
At a meeting chaired by FCIK President Shahid Kamili, the valley’s apex industrial body commended the government’s targeted support for both established industries and emerging sectors like IT, renewable energy, and biotechnology. The chamber, however, underscored the need for effective execution to ensure these initiatives translate into tangible growth and job creation.
Industrial Revival and Policy Overhaul
A key highlight of the budget is the government’s plan for a comprehensive review of J&K’s industrial policies. FCIK sees this as a crucial step toward unlocking the full potential of the region’s 40,000 industrial units, many of which struggle with operational challenges.
“The proposed policy reforms must prioritize the revival of existing industries, ensuring their sustainability and competitiveness,” Kamili emphasized.
The chamber welcomed the allocation of funds from the ₹28,400 crore New Central Sector Scheme (NCSS) but stressed the need for equal opportunities across industries to maximize impact.
Boost for Local Manufacturers
The announcement of a new public procurement policy favoring local manufacturers was another welcome move. However, FCIK expressed concerns over the Government e-Marketplace (GeM) platform, arguing that it fails to differentiate between manufacturing and service-based MSMEs, thereby disadvantaging local industries.
“The feedback provided to the Chief Minister on MSME performance based on GeM data does not reflect ground realities,” the chamber noted.
Infrastructure Gaps and Worker Housing
FCIK acknowledged the government’s push for worker housing within
industrial estates, calling it a significant step towards improving working conditions. However, the chamber raised concerns over the ₹100 crore allocation for upgrading existing industrial estates, arguing that it falls short of the actual requirements for infrastructure enhancement.
Industrial Advisory Committee
The formation of an Industrial Advisory Committee was hailed as a positive development, with FCIK emphasizing its role in fostering interdepartmental coordination and ensuring regular stakeholder engagement. The chamber stressed that this committee must actively address policy loopholes and implementation bottlenecks to drive industrial growth effectively.
SGST Reimbursement and Credit Accessibility
FCIK welcomed the streamlining of SGST reimbursement and turnover incentives but called for equal budgetary allocation between Kashmir and Jammu to ensure balanced industrial development. The chamber also urged the government to extend SGST reimbursement benefits to MSMEs engaged in both intra-state and inter-state supplies, removing any discriminatory provisions.
Recognizing the government’s focus on easier access to credit and technology, FCIK applauded initiatives under CGTMSE but called for wider implementation of collateral-free loan schemes to further support MSMEs.
Startups, Skill Development
While FCIK acknowledged the government’s recognition of startup challenges, including venture capital access, incubation, mentorship, and market entry, it urged the administration to extend these benefits to young entrepreneurs who launched businesses in recent years.
The chamber backed the government’s emphasis on skill development, but urged a mission-mode approach with strong private sector collaboration to align workforce training with the actual needs of industries.
On the mining sector, FCIK supported the adoption of technology-driven regulatory frameworks and satellite-based monitoring for sustainable resource management but cautioned against over-regulation, which could stifle mineral-based industries.
Pending Industry Demands
Despite welcoming several budgetary provisions, FCIK expressed disappointment over the omission of key industry issues, including:
• Amnesty schemes for power and pre-GST VAT regime
• One-time settlement schemes for industrial dues
• Stronger fiscal incentives for struggling industries
FCIK also acknowledged positive initiatives in agriculture, horticulture, tourism, education, and health, recognizing their role in holistic economic development.
Implementation Holds the Key
While the chamber lauded the government’s intent, it warned that the real challenge lies in execution.
“The promises made in the budget must translate into tangible action, particularly in streamlining industrial policies, improving infrastructure, empowering local businesses, and ensuring fiscal sustainability,” Kamili asserted.
FCIK reiterated its commitment to collaborating with the government to ensure that J&K’s industrial sector thrives and contributes significantly to the region’s economic growth.
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