Federation of Industries Jammu Urges Government to Strengthen Support for MSMEs under J&K Industrial Policy 2021–30

• Over 3,000 industrial members back FOIJ memorandum seeking comprehensive industrial policy for survival and growth of the Jammu Region industrial sector

Jammu, 17-03-2026: The Federation of Industries Jammu (FOIJ), representing more than 3,000 industrial members and over 5,000 MSMEs across the Jammu region, has submitted a detailed memorandum to the Chief Secretary of the Union Territory of Jammu & Kashmir in a meeting attended by the Chairman, Sh. Virendra Jain and Co-Chairman, Sh. Lalit Mahajan, of FOIJ highlighting critical issues affecting the survival and growth of the local micro/small industrial sector.

FOIJ emphasized that industries in Jammu & Kashmir face unique geographic and logistical challenges, resulting in higher input costs and higher production expenses. The federation urged the government to ensure a level playing field and strengthen the “ease of doing business” environment in the region.

The federation stressed the importance of continued fiscal and marketing support for local industries, including :

• • Turnover incentives
  • Working capital subvention
  • Marketing support and purchase preference
  • Development and promotion of ancillarization

FOIJ noted that many local MSMEs depend significantly on government procurement due to the region’s geographical limitations and restricted market access. The federation urged the government to restore and strengthen purchase preference policies to support local manufacturers supplying to government departments.

FOIJ also raised concerns regarding the inverted tax structure under the GST regime, where higher GST on raw materials compared to finished goods has adversely affected several industries. The federation requested suitable compensation mechanisms and continuation of IGST refund benefits on value addition for interstate sales to support existing industrial units.

The federation urged the government to incorporate unattended incentives in the proposed amendments to the J&K Industrial Policy 2021–30, including turnover incentives, working capital support, marketing assistance, and ancillarization development. It emphasized that these incentives are essential for the survival and sustainability of micro and small industrial units in the Union Territory.

FOIJ requested that “Ease of doing business” be implemented in true letter and spirit.

Federation of Industries, Jammu further recommended simplifying procedural requirements related to fire department approvals, SICOP NOCs, and land transfer processes within industrial estates to reduce administrative hurdles for entrepreneurs.

Industrial units continue to face delays in establishment and operations due to the requirement of obtaining No Objection Certificates (NOCs) from multiple departments such as Pollution Control, Forest, and Fire. FOIJ requested that departments independently discharge their regulatory responsibilities without imposing excessive procedural burdens on industries.

Although the government has introduced a time-bound clearance mechanism under the Public Service Guarantee Act, FOIJ noted that prescribed timelines are often not adhered to. The federation called for strict implementation of this mechanism to ensure timely approvals.

The federation highlighted that industries are frequently asked to submit hard copies of documents already uploaded on departmental portals, leading to duplication of effort and unnecessary delays. FOIJ recommended eliminating repeated documentation requirements.

FOIJ expressed concern over restrictions imposed on turnover-based incentives tied to the financial years 2018–19, 2019–20, and 2020–21. According to the federation, such riders limit growth opportunities for industrial units and should be reconsidered.

FOIJ requested the Chief Secretary, Sh. Atal Dulloo to formulate a comprehensive Industrial Policy with a thrust on the survival of the existing industry by providing Fiscal Incentive alongwith the package to attract new investment in the industrial sector.