SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has defended the Jammu and Kashmir Ease of Doing Business Act, 2026, rejecting concerns raised by the Group of Concerned Citizens (GCC) as misleading and speculative. It said the legislation sought to reduce unnecessary bureaucratic interference, streamline regulatory procedures and encourage investment without compromising environmental protection or public safety.
In a statement, FCIK said the apprehensions expressed by GCC overlooked the difficulties faced by industrialists and entrepreneurs for decades under a system marked by overlapping jurisdictions, repeated permissions, arbitrary inspections and prolonged administrative delays.
The federation expressed particular concern over criticism from former senior bureaucrats associated with GCC, arguing that some had held influential administrative positions during periods when entrepreneurs struggled with excessive regulatory controls.
FCIK said it had repeatedly called for comprehensive reforms to simplify business procedures and reduce the burden of obtaining permissions, renewals and clearances from multiple departments.
It maintained that the existing system had caused financial losses, uncertainty and hardship for entrepreneurs, while discouraging investment, restricting industrial expansion and undermining employment generation in Jammu and Kashmir.
The federation said decades of political disturbances, natural disasters and economic uncertainty had already affected industrial growth in the region, with excessive bureaucratic controls adding to the challenges faced by businesses.
Addressing concerns over environmental degradation, deemed approvals, inspection moratoriums and relaxations relating to master plans, FCIK argued that the legislation was intended to remove procedural obstacles rather than abolish statutory obligations.
It said the Act contained provisions, exceptions and safeguards relating to environmental protection, human safety, public interest and specified planning restrictions. The federation questioned the basis for GCC’s broader concerns, asking which mandatory safeguards had been removed by the legislation.
FCIK described time-bound decision-making and risk-based regulation as essential administrative reforms, arguing that official inaction should not indefinitely prevent lawful economic activity.
It said inspections necessary to prevent environmental damage or threats to human life must be distinguished from those conducted arbitrarily, adding that regulatory powers should protect public interests rather than become a source of harassment for entrepreneurs.
The federation also rejected the suggestion that Ease of Doing Business conflicted with Ease of Living, arguing that productive economic activity supported household incomes, generated employment, sustained ancillary businesses and contributed to government revenue.
It said the availability of dignified livelihood opportunities was particularly important for unemployed graduates, artisans and families dependent on struggling enterprises.
Highlighting Kashmir’s traditional household-based economy, FCIK cited sozni embroidery, shawl-making, carpet-weaving, papier-mâché, handloom production and wood carving as activities that had sustained generations of families.
The federation said it wanted households across Kashmir to have greater opportunities to undertake production activities, enabling women, young people and other family members to supplement their incomes while preserving traditional craftsmanship.
It argued that genuinely non-polluting household enterprises should not face unnecessary permissions simply because their activities involved commercial production.
On environmental protection, FCIK questioned why the historical shortcomings of regulatory institutions had received insufficient attention in GCC’s criticism. It referred to encroachments on wetlands, deterioration of water bodies, conversion of agricultural land and unplanned construction, noting that Jammu and Kashmir already had extensive environmental and planning laws when much of the damage occurred.
The federation said its questions were intended to highlight institutional accountability rather than assign personal blame. It also urged former administrators associated with GCC to reflect on the steps taken during their tenures to simplify procedures, eliminate redundant permissions, prevent arbitrary inspections and hold officials accountable for delays.
FCIK welcomed the efforts of the present administration under Chief Secretary Atal Dulloo to develop a regulatory framework based on transparency, time-bound decisions and accountability. It also credited Chief Minister Omar Abdullah and his government with refining the reforms and taking them through the legislative process.
The federation said investors assessed destinations on the basis of regulatory certainty, infrastructure, incentives, administrative responsiveness and the time and cost involved in establishing businesses.
Jammu and Kashmir, it added, could ill afford to lose further investment and employment opportunities because of outdated administrative practices, given the economic damage caused by years of disruption and industrial distress.
FCIK stressed that environmental protection and economic development were compatible, provided the safeguards contained in the legislation were properly reflected in the forthcoming rules.
It called for the rules to ensure that environmental, planning and safety requirements remained enforceable while unnecessary bureaucratic interference was removed.
The federation urged GCC to support its concerns with specific statutory provisions, technical evidence and practical alternatives rather than relying on what it described as speculative apprehensions.
FCIK said the success of the legislation would ultimately depend on whether entrepreneurs could focus more on production, innovation and job creation instead of spending excessive time pursuing official files and permissions.
It expressed hope that the forthcoming rules would preserve the Act’s stated reform objectives and prevent unnecessary bureaucratic controls from being reintroduced through alternative procedures.
