FOIJ Welcomes MSME-Friendly Union Budget 2025-26

JAMMU, FEBRUARY 01: The Federation of Industries Jammu (FOIJ) has hailed the Union Budget 2025-26, presented by Hon’ble Union Minister of Finance, Smt. Nirmala Sitharaman, terming it as an industry-friendly budget that prioritizes the growth and development of the MSME sector while benefiting all sections of society.

Sh. Lalit Mahajan, Chairman FOIJ & President BBIA, welcomed the budget proposals, emphasizing their positive impact on the MSME and corporate sectors. Key announcements include:

• • Revision in MSME Turnover Classification: Micro enterprises redefined from ₹5 crore to ₹10 crore, small-scale from ₹50 crore to ₹100 crore, and medium-scale from ₹250 crore to ₹500 crore.
  • Credit Cards for Micro Enterprises: Introduction of customized credit cards with a ₹5 lakh limit for enterprises registered on the Udyam portal.
  • Enhanced Credit Guarantee Cover: Increased from ₹5 crore to ₹10 crore for Micro and Small Enterprises, and up to ₹20 crore for exporter MSMEs availing term loans.
  • Income Tax Exemption: Raised to ₹12 lakh per annum.

However, while acknowledging these progressive measures, FOIJ expressed concern over the absence of any proposal for the extension of the Central Package of Incentives for both existing and new industrial units in Jammu & Kashmir. With approximately 300 applications pending for registration with the J&K Industries Department, the industry stakeholders are seeking urgent intervention.

FOIJ has urged Hon’ble Prime Minister Sh. Narendra Modi, Hon’ble Home Minister Sh. Amit Shah, Hon’ble Finance Minister Smt. Nirmala Sitharaman, Hon’ble Lt. Governor J&K Sh. Manoj Sinha, Hon’ble Chief Minister J&K Sh. Omar Abdullah, and Hon’ble Deputy Chief Minister J&K Sh. Surinder Kumar Choudhary to allocate adequate funds for fiscal incentives. The federation highlighted the severe financial distress faced by existing industrial units due to a reduction in fiscal incentives from approximately ₹1,800 crore per annum to ₹500 crore.

To ensure the survival and competitiveness of existing industrial units, FOIJ has requested fiscal incentives on par with new units for the next ten years, including:

• • Turnover-Based Incentives: Incentives linked to actual turnover to support operational sustainability.
  • Reimbursement of Gross GST-Linked Incentive: IGST/CGST/SGST reimbursement to ensure liquidity for working industrial units.
  • Interest Subvention on Working Capital Loans: Interest relief on actual basis to facilitate business continuity.

FOIJ reiterated its commitment to advocating for the industrial sector’s growth in J&K and called for immediate policy support to sustain the existing industries while fostering new investments.