Existing MSMEs’ Struggle: FOIJ’s Call to Action

In addition to the threads of picturesque landscapes, this Union Territory’s colourful tapestry is also made up of the labour and sweat of numerous people working in micro, small, and medium-sized enterprises (MSMEs). The Federation of Industries, Jammu (FOIJ) has moved into the spotlight as these current industrial facilities teeter on the verge of collapse, requesting immediate corrective action to avert a coming catastrophe.

The MSME sector supports Jammu & Kashmir’s economy by making a sizable contribution to its GDP and giving a major portion of the people gainful work. With their wide range of goods and services, these businesses have played a significant role in promoting economic independence and lowering reliance on imports. The recent meeting convened by FOIJ under the chairmanship of Sh. T.S. Reen, with the participation of Sh. Lalit Mahajan, and others, served as a platform to articulate the growing concerns that are plaguing the existing industrial units within the Union Territory. One of the prominent demands put forth by FOIJ during this critical gathering was the implementation of Price and Purchase Preference policies. These policies, if enacted, would mandate the procurement of goods and services from local MSME units by UT and Central Government Departments. Such policies hold the potential to bolster the local economy while fortifying the foundation of MSMEs, making them competitive and sustainable in the long run. The gap between government promises and practical implementation became glaringly evident when it came to fiscal incentives. Despite the government’s assurances, these incentives have largely remained confined to paper, with the Industries Department failing to disburse the pending claims amounting to approximately Rs. 210 Crores for the Financial Year 2021-22. Repeated appeals and reminders to augment budgetary allocations from Rs. 50 Crores to Rs. 210 Crores have yielded little result, leaving the working capital of existing units effectively blocked. Another critical issue highlighted during the meeting pertains to the shift of major purchases to the Government e-Marketplace (GeM) Portal. As a consequence, existing MSME units find themselves at a disadvantage, grappling with higher prices of raw materials due to locational disadvantages. Moreover, government departments have displayed a predilection for procuring goods from external suppliers through tendering processes, often imposing conditions known only to the concerned officials. This has left thousands of MSME units, which relied on government department supplies through SICOP, facing imminent closure, as the sales and marketing avenues through SICOP have significantly dwindled. One of the core issues that demand immediate attention is the government’s focus on establishing new industrial units while neglecting the existing ones. While encouraging new ventures is commendable, it shouldn’t come at the expense of the existing units that have been the pillars of local industry. The absence of support for these existing units, coupled with their struggle to survive, has caused potential investors to redirect their attention to other states where opportunities and support are more forthcoming. The meeting also delved into various other pressing issues, including the non-availability of fiscal incentives for existing units embarking on substantial expansion, challenges related to power amnesty, the shortage of funds with J&K SIDCO/SICOP for the upgrade and maintenance of existing industrial estates, and the mounting pending cases of the Delayed Payment Act within the office of the Chairman, Facilitation Council. In light of these pressing concerns and the existential threat faced by existing industrial units in Jammu & Kashmir, FOIJ has made a humble yet fervent appeal to the Hon’ble Lt. Governor, Sh. Manoj Sinha, and Commissioner of the Industries & Commerce Department. FOIJ has urged them to take proactive measures and constitute a high-level committee with active participation from stakeholders to address and resolve these issues promptly.

Existing industrial units affect the lives of numerous people and families who depend on them for a living, thus their survival and continued growth are not only issues of economic importance. These businesses exemplify local entrepreneurship, fortitude, and self-reliance. In addition to endangering the Union Territory’s economy, ignoring their challenges also undermines the hopes and dreams of those who have put their time, effort, and money into these businesses. The difficulties experienced by the current industrial facilities in Jammu and Kashmir are manageable. They do, however, necessitate a concerted and cooperative effort from all parties involved, including governmental organizations, business organizations, and the general public. As suggested by FOIJ, creating a high-level group is a huge step in the right direction. The government, both at the Union Territory and Central levels, holds a pivotal role in fostering an enabling environment for the growth and sustenance of existing industrial units. This includes the timely disbursal of fiscal incentives, support for power amnesty, provision of adequate funding for infrastructure upgrades, and expeditious resolution of pending cases. The need to support local business owners and entrepreneurs is at the core of this problem.

These people have proven they care about the area and are eager to contribute to its development. The government can secure the survival of current industrial units as well as spur their extension and transformation into bulwarks of economic prosperity by giving them the support and chances they need. Existing enterprises must be encouraged and supported if the self-reliance and self-sufficiency concepts embodied in the Atmanirbhar Bharat (self-reliant India) vision are to be achieved. These groups, which are deeply ingrained in the community, have the potential to significantly advance the economic growth of the Union Territory and the entire nation. The urgency of the matter cannot be overstated. Each passing day without corrective action increases the risk to existing industrial units. It is imperative that all stakeholders, including government authorities, business leaders, and civil society, come together to formulate and implement measures that will safeguard the livelihoods of thousands of individuals and the economic stability of the region. In the midst of the breathtaking vistas and serene landscapes of Jammu & Kashmir, a silent crisis is unfurling, one that threatens not only the region’s economic stability but also the dreams and aspirations of countless individuals. The government’s emphasis on nurturing new industrial ventures is undoubtedly commendable, but it should not come at the expense of the existing industrial units that have long been the backbone of the local economy. FOIJ’s plea for immediate corrective action is not just a call for support; it is a fervent appeal to protect the hopes, dreams, and livelihoods of those who have invested their sweat and toil in these existing industrial units. The time to act is now, and with concerted efforts, we can ensure that the entrepreneurial spirit of Jammu & Kashmir not only endures but also thrives, contributing to the nation’s progress.