FCIK Outlines Six Key Contours for New Industrial Policy

Srinagar, 08-05-2026: In a significant push for a comprehensive reset of Jammu & Kashmir’s industrial landscape, the Valley’s apex industrial body, the Federation of Chambers of Industries Kashmir (FCIK), on Friday outlined six core contours which, in its view, should guide the forthcoming industrial policy and the institutional mechanism for effective implementation of ease of doing business reforms.

The presentation was made by the FCIK delegation led by Shahid Kamili in a meeting with the high-level Drafting Committee constituted by the Government, headed by Financial Commissioner (Additional Chief Secretary), Finance, Shailender Kumar, with the Administrative Secretary, Industries & Commerce Department Vikramjeet Singh and the Managing Director & CEO, J&K Bank Amitva Chatterji, as members.

At the outset, FCIK submitted that the revised policy should focus on consolidation of the existing industrial base alongside promotion of prospective investment. The federation said the fastest, most cost-effective, and employment-intensive path to industrial growth in Jammu & Kashmir lies in preserving and strengthening the industrial capacity built over decades of private investment. It therefore urged that the policy prioritize revival, rehabilitation, modernization, capacity utilisation and consolidation of existing units, while ensuring that fresh investment expands and reinforces, rather than bypasses, the existing industrial base.

As the second major contour, FCIK said local industry continues to face structural disadvantages arising from location, logistics, finance, energy costs, limited scale and restricted market access. To offset these disadvantages, it called for a stronger public procurement framework ensuring fair market access to local MSMEs through purchase preference, suitable tender conditions, segregation of supply contracts from works contracts, stronger local filters on the GeM portal, and revival of procurement and marketing support through SICOP besides timely payments.

The third contour focused on creating a genuinely facilitative regulatory ecosystem. FCIK called for simplified compliances, rationalised fees, time-bound approvals, deemed clearances, timely payments and transparent digital implementation. It also urged region-sensitive credit delivery and suitable relaxation, in deserving MSME cases, of norms relating to CIBIL scores, external credit ratings and rigid asset classification.

Under the fourth contour, FCIK stressed the need for balanced, sector-sensitive and infrastructure-led industrial growth, particularly in underserved regions. It called for focused support to sectors with strong local value-addition and employment potential—especially wood-based, mineral-based, agriculture-based and horticulture-based industries—along with upgradation of existing industrial estates and creation of new industrial infrastructure.

As the fifth contour, FCIK urged that the new policy move away from fragmented and registration-linked incentives and adopt a broadly uniform incentive architecture for existing, revived, expanding and new units, linked to actual investment, commencement of production, employment generation, labour welfare, green technologies and measurable value addition. The federation pointed out that while more than 1,000 units registered under the New Central Sector Scheme (NCSS) by the September 2024 cut-off are still awaiting approval due to limited funds, units already covered under the scheme continue to enjoy substantial fiscal benefits. This, FCIK said, has created a clear policy imbalance, making it imperative for the revised industrial policy to provide a broadly comparable incentive framework on the lines of NCSS to maintain competitive parity.

The sixth contour related to monitoring and effective implementation. FCIK stressed that the credibility of any industrial policy depends not merely on its formulation but on its execution. It proposed measurable targets for investment, MSME support, employment and sectoral growth, multi-level oversight mechanisms, revival of the Industrial Advisory Council under the Chief Minister, a dedicated grievance redressal mechanism, and clear operational guidelines and authoritative clarifications to ensure accountability, transparency and timely execution.

During the meeting, FCIK also submitted a fresh copy of its earlier comprehensive policy paper, prepared after extensive consultations with its constituent industrial associations across Kashmir. The federation said the document reflects a consolidated grassroots perspective and seeks to ensure that the revised policy addresses structural realities rather than offering fragmented short-term measures.

FCIK also emphasized the urgent need for institutional strengthening of the Industries & Commerce Department, including better coordination, staff augmentation, digitisation of service delivery, and preservation of the distinct functional roles of SIDCO in infrastructure development and SICOP in procurement and marketing support.

According to FCIK, the Chairman and members of the Drafting Committee gave a patient hearing to the delegation, responded to several issues raised, acknowledged a number of the demands, and assured that the submissions would receive due consideration in the policy formulation process.

The meeting was also attended, among others, by Secretary Industries & Commerce Khalid Jehangir, Director Handicrafts/Handlooms Musarat-ul-Islam; Managing Director Trade Promotion Organization Sudharshan Kumar, Director Industries & Commerce Khalid Majid; MD SIDCO/SICOP Shahid Saleem; Joint Directors Industries & Commerce Zahoor Magrey and Rayees Ahmad, general managers of various districts,  senior officers besides other stakeholders.