FCIK Lauds J&K Budget’s Industrial Growth Focus, Calls for Effective Implementation

Srinagar, March 8: The Federation of Chambers of Industries Kashmir (FCIK) has welcomed the budget presented by Chief Minister Omar Abdullah in the J&K Legislative Assembly, lauding its strong emphasis on industrial expansion and economic revival. The industrial body expressed optimism about the government’s commitment to fostering a robust business environment but underscored the need for effective execution of the proposed initiatives.

In a meeting chaired by FCIK President Shahid Kamili, the chamber commended the budget’s provisions aimed at supporting both established industries and emerging sectors such as information technology, renewable energy, and biotechnology. Describing these measures as transformative, FCIK stated that if implemented efficiently, they could turn J&K into a thriving hub for industrial growth and employment generation.

FCIK highlighted the government’s decision to conduct a comprehensive review of industrial policies and introduce a renewed framework as a significant step toward unlocking the region’s industrial potential. The chamber expressed hope that the new policy would effectively address the long-standing challenges faced by existing industries, providing them with much-needed financial and infrastructural support.

“The allocation of a portion of the ₹28,400 crore under the New Central Sector Scheme (NCSS), coupled with a commitment to fostering equal opportunities, has the potential to provide substantial support to J&K’s 40,000 industrial units,” Kamili stated. “This will not only generate employment but also encourage greater investment in the region.”

The chamber welcomed the government’s introduction of a revised public procurement policy that prioritizes local manufacturers, addressing the persistent concerns regarding the Government e-Marketplace (GeM) platform. However, FCIK pointed out discrepancies in the performance data of Micro, Small, and Medium Enterprises (MSMEs) used by the government, stating that the platform has failed to differentiate between manufacturing and service-based MSMEs. This, they argued, has placed local manufacturers at a disadvantage for the past five years.

FCIK praised the government’s initiative to establish worker housing facilities within industrial estates but raised concerns over the allocated budget. “While the move to build housing facilities is commendable, the ₹100 crore allocated for upgrading existing industrial estates is insufficient, given the scale of infrastructural improvements required,” the chamber stated.

The announcement of an Industrial Advisory Committee was also well received, with FCIK emphasizing the importance of regular stakeholder engagement and inter-departmental coordination to address policy loopholes and implementation challenges efficiently.

While appreciating the government’s streamlining of SGST reimbursement and turnover incentives, FCIK called for an equitable distribution of funds between the two provinces to ensure a level playing field for industrial units operating in difficult environments. Additionally, the chamber urged the government to extend SGST reimbursements to MSMEs engaged in both intra-state and inter-state trade without any discrimination.

Acknowledging the government’s recognition of startup funding challenges, including access to venture capital, incubation, mentorship, and markets, FCIK urged that these initiatives be extended to newly established ventures by young entrepreneurs, ensuring a sustainable entrepreneurial ecosystem in J&K.

FCIK commended the Chief Minister for facilitating easier access to credit and capacity-building programs, particularly through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). However, the chamber stressed the need for parallel implementation of all collateral-free schemes alongside CGTMSE to further improve credit availability for MSMEs.

On the regulatory front, FCIK endorsed the use of technology-driven frameworks and satellite imagery for sustainable mining but warned against over-regulation that could stifle the mineral-based industry. “A balanced approach must be maintained, ensuring that regulatory measures support rather than hinder industrial growth,” members observed.

The chamber strongly supported the budget’s focus on skill development but urged the government to prioritize job quality and sustainability. FCIK recommended that skill development initiatives be executed in mission mode with increased private-sector collaboration to align training programs with industry needs.

While FCIK acknowledged that several of its pre-budget recommendations were incorporated into the budget, the chamber expressed disappointment over the exclusion of key industry demands. Notably, the lack of announcements regarding amnesty schemes for outstanding power dues, pre-GST VAT regime issues, and one-time settlement schemes for businesses were highlighted as major oversights. FCIK urged the government to address these concerns during the ongoing budget session.

Additionally, the chamber welcomed provisions aimed at boosting the agriculture, horticulture, and tourism sectors, along with key developments in social welfare, education, and healthcare.

Despite its overall positive outlook, FCIK emphasized that the real test lies in the effective implementation of the budget’s proposals. “The commitments made in the budget must translate into tangible action, particularly in streamlining industrial policies, enhancing infrastructure, supporting local businesses, and ensuring fiscal stability,” Kamili asserted.

FCIK reaffirmed its readiness to collaborate with the government to ensure that the initiatives outlined in the budget are executed efficiently, ultimately fostering a conducive environment for industrial growth in Jammu and Kashmir.