JAMMU: Presenting the budget, Finance Minister Omar Abdullah announced a new policy to provide price preference for local Micro, Small, and Medium Enterprises (MSMEs) in public procurement, addressing concerns about competition and compliance challenges on the GeM (Government e-Marketplace) platform. The move comes as government departments have significantly increased their purchases from Jammu and Kashmir-based suppliers, with procurement on GeM reaching Rs 1,527.74 crore over the past year.
This includes Rs 1,010.54 crore from MSMEs and Rs 517.2 crore from non-MSMEs, marking a remarkable 165 per cent increase from 2021-22. Jammu and Kashmir businesses have also expanded their national footprint, supplying goods and services worth Rs 4,099.09 crore on GeM, with MSMEs contributing Rs 2,763.5 crore and non-MSMEs Rs 1,335.59 crore—an impressive 85 per cent growth from 2021-22.
Omar Abdullah emphasised that the government is making steadfast efforts to attract investment, create employment opportunities, develop backward regions, and expand industries. To fully harness the potential of the Rs 28,000 crore industrial package, the administration is undertaking a comprehensive review of existing policies to ensure that land allotments for industries translate into real investment and tangible employment generation. The objective is to make the industrial policy deliver its promised benefits to the people of Jammu and Kashmir.
At present, Jammu and Kashmir has 64 industrial estates, with 46 more under development as part of the ‘Made in J&K’ initiative. The government is committed to ensuring infrastructure development in these estates, including the provision of dedicated dwelling units and labour sarais for the workforce.
In an effort to support the growth of new industries, the government is streamlining SGST reimbursement and turnover incentives while encouraging investment in IT, renewable energy, biotechnology, and incubation centres. To strengthen industry collaboration, an Advisory Committee on Industries will be constituted to ensure regular engagement with businesses and address industry concerns.
The budget also lays a strong emphasis on fostering a thriving startup ecosystem. While Jammu and Kashmir has made significant progress, challenges remain in funding access, incubation, mentorship, and market linkages. To bridge these gaps, the government will strengthen the Venture Capital Fund, enhance incubation partnerships, and improve market access while ensuring regular policy reviews. A Rs 50 crore allocation has been proposed this year to provide financial aid, mentorship, and incubation support for emerging entrepreneurs.
To further support MSMEs, the government plans to expand coverage under the CGTMSE scheme, implement the Raising and Accelerating MSME Performance (RAMP) scheme, and launch MSME Health Clinics, Skill Development Programmes, and Buyer-Seller Meets. Additionally, the administration is promoting ‘Brand J&K’ by focusing on premium local products such as pashmina, saffron, and handicrafts. Thirteen traditional crafts are in the advanced stages of Geographical Indication (GI) registration, with seven more targeted for this year, ensuring global recognition and protection of Jammu and Kashmir’s rich heritage.
The Handicrafts and Handloom sector, which supports 4.22 lakh people—mostly from economically weaker sections—will also receive a boost. Omar Abdullah highlighted Srinagar’s recognition as a ‘World Crafts City’ and its inclusion in UNESCO’s Creative Cities Network as a significant achievement. To empower artisans, the government will develop PM Unity Malls in Srinagar and Jammu to provide direct market access, expand the Karkhandar Scheme, and ensure universal coverage under the Artisan Credit Card (ACC).
In addition, key policy measures—including the J&K Public Procurement, Logistics, and Export Policies—will be introduced to strengthen the business ecosystem and improve global market access for Jammu and Kashmir-based industries. Through these initiatives, Omar Abdullah’s budget aims to create a business-friendly environment, empower local enterprises, and accelerate economic growth in the Union Territory.
