Srinagar, 11-02-2025: The PHD Chamber of Commerce & Industry Kashmir (PHDCCI-K) held a crucial pre-budget consultation with Chief Minister Omar Abdullah at the Civil Secretariat, presenting a comprehensive set of policy recommendations aimed at economic revival in Jammu & Kashmir. Led by General Convenor Bilal Kawoosa along with members Haleem Bhat and Iqbal Fayaz Jan, the delegation emphasized the urgent need for financial stimulus, sectoral reforms, and infrastructure development to create a more resilient and competitive business environment. The Chief Minister engaged actively with the delegation, reiterating the government’s commitment to fostering entrepreneurship and ensuring sustainable economic growth.
A key focus of the discussions revolved around the revival of the MSME sector, which has been grappling with financial distress and structural challenges. PHDCCI advocated for immediate financial support, tax relief, and debt restructuring for struggling businesses, particularly those excluded from existing schemes due to credit-linked barriers. The delegation stressed the need to execute Government Order 203-IND (2021) to aid sick units through soft loans and special budget allocations, ensuring their rehabilitation and continuity. Mechanisms were also proposed to minimize the adverse impact of credit rating downgrades on distressed businesses, thereby allowing them to regain stability and access financial assistance.
Infrastructure development was another crucial area of discussion, with PHDCCI urging the establishment of industry-specific clusters to drive economic diversification. The delegation proposed setting up an SFRUTI Cluster in Bandipora and a Textile Park in Ganderbal to boost local production and employment. Additionally, the upgradation of the Integrated Textile & Handicraft Park in Zakura was recommended to enhance the region’s traditional industries. To further integrate trade with tourism, the creation of Geographical Indication (GI) Marts in Srinagar and major tourist hubs was suggested, offering artisans a dedicated platform to showcase and market authentic Kashmiri crafts.
The delegation highlighted the need for policy interventions to protect local industries from external competition. A review of the entry tax at Lakhanpur was advocated to reduce the financial burden on local enterprises, ensuring a level playing field. Furthermore, the delegation recommended the strategic disinvestment of inefficient Public Sector Undertakings (PSUs) to optimize industrial productivity and redirect resources toward more viable economic initiatives. Recognizing the potential of Public-Private Partnerships (PPP), PHDCCI proposed leveraging private sector expertise and investment to restore defunct industrial units, including JKI Silk/Wool industries, Kashmir Haat, and estates under SICOP and SIDCO. The creation of Special Purpose Vehicles (SPVs) for these assets was suggested to facilitate their revival and long-term sustainability.
In addition to industrial development, sectoral growth strategies were proposed to diversify the region’s economic base. PHDCCI emphasized the introduction of subsidies for homestay tourism ventures, modeled on successful initiatives in Meghalaya, to attract investment and boost tourism revenue. The establishment of a revolving fund for raw wool procurement under HADP was also recommended to strengthen the wool economy. The delegation urged the government to accelerate the implementation of key welfare programs, including SAMAGRA-2, wool development initiatives, and handicraft schemes, to enhance livelihood opportunities in both rural and urban areas. The importance of environmentally sustainable economic growth was underscored, with a specific proposal to fund a Waste-to-Energy project in Srinagar aimed at addressing waste management challenges while generating economic benefits.
Administrative reforms and trade facilitation were also key concerns raised by PHDCCI. The delegation called for the resolution of pending mergers within the Handicraft and Handloom Directorates to streamline operations and improve efficiency. Financial support for MSMEs participating in national and international exhibitions was sought, including rent waivers to encourage broader market participation. Additionally, the delegation urged budget allocations for breed multiplication farms, following the discontinuation of central assistance, to support livestock and dairy industries.
Speaking after the meeting, General Convenor Bilal Kawoosa emphasized that the recommendations were designed to address deep-rooted economic challenges that have constrained Jammu & Kashmir’s growth. He expressed optimism about the Chief Minister’s positive response and hoped that these measures would be incorporated into the upcoming budget to pave the way for economic stability and expansion. The proposals put forth by PHDCCI reflect a comprehensive approach to economic revival, combining financial stimulus, infrastructure development, and policy interventions to create a robust and self-sustaining economy in the region.